A large life insurance policy acquired by a group of investors with the specific intention of selling the policy in the secondary life insurance market for a substantial profit is called a(n)

Question

Quizplus · Accepted Answer

Stranger-Owned Life Insurance Policy (STOLI) is a strategy where investors persuade individuals to take out a new life insurance policy, with the investors as the beneficiary, intending to sell the policy in the secondary market for profit. This contrasts with policies intended to benefit the insured's loved ones or cover personal financial responsibilities.

A Large Life Insurance Policy Acquired by a Group of Investors