The application listed the Nancy Bergman Irrevocable Trust dated as the sole owner and beneficiary of the policy. Among other relevant factors, courts should consider a later purchaser's participation in and knowledge of the original illicit scheme.Ī $ 5 million insurance policy on the life of Nancy Bergman. We also note that a party may be entitled to a refund of premium payments depending on the circumstances. In response to the certified questions, we find that STOLI policies are against public policy and are void ab initio, that is, from the beginning. Such an approach would upend the very protections the statute was designed to confer and would effectively allow strangers to wager on human lives. It would elevate form over substance to conclude that feigned compliance with the insurable interest statute - as technically exists at the outset of a STOLI transaction - satisfies the law. We find that STOLI policies run afoul of New Jersey's insurable interest requirement and are against public policy. We now consider STOLI policies as a matter of first impression. Because such policies can be predatory and may involve fraud, other states have adopted legislation that bars them. The policy in question is known as a "STOLI" - a stranger-originated life insurance policy. In short, the insurable interest requirement appeared to have been satisfied at the moment the policy was purchased, but the plan from the start was to transfer the benefits to strangers soon after the policy was issued. About five weeks later, the trust was amended and the strangers who invested in the policy became its beneficiaries. When the policy was issued, the insured's grandson was the beneficiary. Here, a group of investors paid for a life insurance policy through a trust. We consider whether the swift transfer of control over a life insurance policy and its benefit, from a named beneficiary who had an insurable interest to investors who did not, satisfies New Jersey's insurable interest requirement. This case arises out of certified questions of law from the United States Court of Appeals for the Third Circuit. Rosensaft submitted a brief on behalf of amicus curiae Life Insurance Settlement Association (Katten Muchin Rosenman, attorneys).ĬHIEF JUSTICE RABNER delivered the opinion of the Court. Jean submitted a brief on behalf of amicus curiae Institutional Longevity Markets Association (Pillsbury Winthrop Shaw Pittman, attorneys). Masef, Trenton, Deputy Attorney General, on the brief). Carey, Jr., Deputy Attorney General, and Adam B. Raksa, Assistant Attorney General, of counsel and James A. Grewal, Attorney General, attorney Melissa H. Chance, III, Assistant Attorney General, argued the cause for amicus curiae State of New Jersey Department of Banking and Insurance (Gurbir S. ![]() Vinicombe argued the cause for respondent (Cozen O'Connor, attorneys Charles J. Rousseau, III, and Eric Biderman, on the briefs).Ĭharles J. Rousseau, III, of the New York and North Carolina bars, admitted pro hac vice, argued the cause for appellant (Arent Fox, attorneys Julius A. ![]() WELLS FARGO BANK, N.A., as Securities Intermediary, Defendant-Appellant. If approved, the lender and borrower sign a mortgage contract, which outlines the payment frequency and amount.SUN LIFE ASSURANCE COMPANY OF CANADA, Plaintiff-Respondent, A lender takes several considerations into account before approving a loan, including a borrower’s credit history and income, as well as the property value. To finance the purchase, consumers need to get a mortgage. Most individuals don’t have the money to purchase a home or property with cash. government extended a moratorium on mortgage foreclosures for a final time through July 31, 2021, and allowed the enrollment period for mortgage forbearance to extend through Sept.
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