Eversheds Sutherland 11th Circuit Business Blog
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Court Revives Challenge to Stranger-Originated Life Insurance Policies (STOLIs)

In Sun Life Assurance Co. of Canada v. Imperial Premium Finance, LLC, 2018 WL 4443054 (11th Cir. Sept. 18, 2018), the Eleventh Circuit reversed the dismissal of fraud and breach of contract claims related to the sale of life insurance policies to strangers to the insureds.  Sun Life Assurance Company sold life insurance to senior citizens, who, in some cases, obtained premium financing...

Florida STOLI policies have insurable interest

In consolidated Pruco Life Insurance Co. v. Wells Fargo Bank, N.A., 2017 WL 360512 (11th Cir. Jan. 25, 2017), the Eleventh Circuit applied guidance from the Florida Supreme Court and held that Stranger-Originated Life Insurance (“STOLI”) policies have an “insurable interest” as required by Florida Statute § 627.404, so a standard contractual provision limiting challenges to the...