June 11, 2012
Authored by: Kathy Sherby and Stephanie Moll
Nyet, we don’t mean the vodka. In the life insurance world, STOLI stands for “stranger owned life insurance.”
In Pruco Life Ins. Co. v. Brasner, Case No. 10-80804,U.S. Dist. Ct S.D. Florida, November 14, 2011, the court once again found that an investor or stranger who owned a life insurance policy lacked an insurable interest. In this case, Arlene Berger was interested in obtaining the lucrative cash payment that was the pot at the end of the rainbow of this life insurance arrangement, but with a net worth of under $1 Million, she really had no need for the life insurance. Ms. Berger learned of the life insurance arrangement from a free seminar she and her husband had attended, and she was referred to Mr. Brasner, who was a life insurance agent for Pruco.
Ms. Berger, through the help of Mr. Brasner, applied for the life insurance, but had no