Bruce,age 62,was approached by a representative of a group of investors.The representative asked Bruce to purchase a large life insurance policy which the investor group would purchase from Bruce.Bruce doesn't need life insurance.The investor representative told Bruce to tell the agent he needed the policy for estate liquidity.Bruce purchased the policy,and then sold it to the investor group.The arrangement described in this scenario is called a(n)

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This scenario describes a stranger-owned life insurance policy, which is when someone purchases a life insurance policy with the intention of selling it to a third-party investor rather than keeping it for their own personal insurance needs. The investor group typically pays the premiums and receives the death benefit upon the insured's death. In this case, the investor group convinced Bruce to make the purchase and designated the reason for the policy as estate liquidity, even though Bruce did not actually need the coverage.

Bruce,age 62,was Approached by a Representative of a Group of Investors.The