NAIFA and ACLI Publish STOLI Alert Volume 2, Issue 4
Issue: Stranger-Originated Life Insurance (STOLI)
Date: November 21, 2008
Action Taken: NAIFA and the American Council of Life Insurers recently published the eighth issue of STOLI Alert. The timing of this issue was planned to coincide with the NCOIL Fall Meeting and in advance of the upcoming NAIC Winter National Meeting.
Background: 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.
A copy of Volume 2, Issue 4 of STOLI Alert can be viewed here.
NAIFA Staff Contact: Gary Sanders, Vice President – Securities and State Government Relations.
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