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This story is reprinted with permission from the Insurance Coverage Law Center, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.
The Supreme Court of New Jersey has ruled that stranger-originated life insurance (STOLI) policies are against public policy and are void ab initio. The court also ruled in the June 4 decision that a party to a STOLI policy may be entitled to a refund of premium payments depending on factors including its participation in and knowledge of the original illicit scheme.
