NAIFA and ACLI Publish STOLI Alert Issue No. 4

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NAIFA and the ACLI recently published the fourth issue of STOLI Alert. Publication was timed to coincide with the upcoming Annual Meeting of the National Conference of Insurance Legislators, who will be considering amendments to the NCOIL Life Settlements Model Act which are intended to restrict STOLI transactions. 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.