Question 3017 of 287 · Texas Life, Accident and Health Agent Exam
Stranger-originated life insurance (STOLI) is a practice in which
Exactly one answer is correct.
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Correct answer to question 3017
- D: a policy is bought for the benefit of an investor who has no insurable interest in the insured
Explanation
STOLI uses the insured as a means to create a policy that is sold to investors. It is prohibited or restricted by insurers and regulators because it violates the insurable interest principle.
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