• New York’s Highest Court Approves STOLI Policy Sales
  • November 19, 2010 | Authors: Phillip E. Stano; Evan J. Taylor; Steuart H. Thomsen
  • Law Firm: Sutherland Asbill & Brennan LLP - Washington Office
  • The New York Court of Appeals held yesterday that “New York Law permits a person to procure an insurance policy on his or her own life and immediately transfer it to one without an insurable interest in that life, even where the policy was obtained for just such a purpose.” That holding, which responded to a certified question from the U.S. Court of Appeals for the Second Circuit in Kramer v. Phoenix Life Ins. Co., appears to approve stranger-owned life insurance (STOLI) schemes in New York that predate recent anti-STOLI legislation, at least where such schemes were “free from nefarious influence or coercion.”