R.I. Top Court Finds Insurable Interest Not Necessary in Annuities

July 9, 2015 by Cyril Tuohy

In a legal decision that breaks new ground, the Rhode Island Supreme Court has found no requirement of insurable interest when it comes to the purchase of an annuity with a death benefit.

Insurable interest is required in the purchase of life insurance policies to prevent wagering on people’s lives, but the court found that since annuities are different from life insurance, insurable interest doesn’t apply.

Howard M. Zaritsky, a Virginia-based legal and tax expert with no connection to the case, said he thinks the Rhode Island decision in Western Reserve Life Assurance Co. of Ohio v. ADM Associates LLC sets a precedent. Click here to read…

Originally Posted at InsuranceNewsNet on July 7, 2015 by Cyril Tuohy.