Advocacy Update: October 30, 2007
NAIFA and ACLI Publish STOLI Alert
For More Information
Gary Sanders
703-770-8192
NAIFA and the ACLI recently published the third issue of STOLI Alert. STOLI Alert is a newsletter published periodically by NAIFA and the ACLI to update its readers on recent activity and developments in connection with stranger-originated life insurance (STOLI). STOLI transactions are used by unrelated investors and speculators as a way to circumvent insurable interest laws by initiating life insurance policies on strangers with the intent that the policy-owner will settle the policy after the expiration of the contestability period. NAIFA believes such transactions are an abuse of life insurance’s traditional and established purposes.