01.Core Concepts

The sale of life insurance in the secondary life insurance market is a problem for many life insurers because of stranger-owned life insurance (STOLI) STOLI is a large policy acquired by a group of investors with the specific intention to sell the policy in the secondary market Insurers will not knowingly issue a policy used for STOLI purposes The sale is viewed as a wagering transaction There is material misrepresentation or fraud regarding the true purpose of buying the policy Investors may be taking advantage of elderly people ‹#›