Delaware Judge Rules On Fraud Claims In Row Over STOLI Policies

Mealey's ( February 16, 2023, 2:23 PM EST) -- WILMINGTON, Del. — A Delaware judge granted in part a life insurer’s summary judgment motion in suits consolidated for trial that were filed against a life insurance policy administrator and its beneficial owner seeking a declaration that the two $5 million life insurance policies, one in each original suit, are void ab initio because they are stranger-originated life insurance (STOLI) policies, finding the policies statutorily void ab initio because they were paid for with nonrecourse funds and neither insured paid any of the premiums....