LH – Life insurers are beating back legislative attempts in various states by hedge funds who invest in the life settlement industry and settlement providers to keep premiums on resold life insurance policies once they have been deemed to have been fraudulently obtained.
Such a situation, called a STOLI – stranger-originated life insurance – or a policy taken out with the purpose of reselling it to a person who does not have an insurable interest in the life of the original insured.
