Stranger originated life insurance policies are in direct opposition to the principle of

Stranger-originated life insurance policies are in direct opposition to the principle of "Insurance interest".

Stranger-originated life insurance ("STOLI") for the most part implies any demonstration, practice, or course of action, at or preceding approach issuance, to start or encourage the issuance of a life coverage strategy for the proposed advantage of a man who, at the season of approach beginning, does not have an insurable enthusiasm for the life of the safeguarded under the laws of the relevant state. This incorporates the buy of extra security with assets or assurances from or through a man that, at the season of strategy commencement, couldn't legitimately start the strategy; a plan or other consent to exchange responsibility for strategy or the approach advantages to someone else; or a trust or comparative game plan that is utilized straightforwardly or by implication to purchase at least one arrangements for the planned advantage of someone else in a way that damages the insurable intrigue laws of the state.