New Jersey Supreme Court Hears Life Settlement Case
February 5, 2019 by Allison Bell
A New Jersey Supreme Court case could affect investment firms that buy life insurance policies from life settlement companies without verifying how the policies came to exist.
Sun Life Assurance Company of Canada, an arm of Sun Life Financial Inc., and an arm of Wells Fargo & Company are battling over the fate of a $5 million “stranger-originated life insurance” (STOLI) policy.
A trust controlled by Nancy Bergman’s grandson bought the policy in 2007, with Nancy Bergman named as the insured, and unrelated investors paying the premiums, according to a court case summary.
A life settlement company, SLG Life Settlements LLC, acquired the policy from the trust in 2009. SLG Life Settlements later transferred the policy to LTAP. Wells Fargo ended up holding the policy, and paying the policy premiums, after LTAP went bankrupt.
Click HERE to read the full story via ThinkAdvisor.
