Author: Goldberg Segalla

Stranger-Owned Annuities allow investors to purchase an interest in the life of an elderly or terminally ill person, inducing the insured to purchase the policy largely for the benefit of unrelated and sometimes unknown beneficiaries. The NAIC will examine whether greater regulation of the Stranger-Owned Annuity market is warranted and whether consumers are adequately protected.

In recent history, the insurance industry has focused on Stranger-Owned Life Insurance Policies, which are generally disfavored by the industry because they are a speculative investment for disinterested parties. Numerous …

Jones v. Unum Provident Corp.

(8th Cir., March 1, 2010)

A disability insurance carrier denied coverage based on the plan’s pre-existing condition clause.  The dispute was whether the prior carrier’s plan would have been paid if it had remained in force.  The Circuit Court agreed with the insurer that the prior policy lapsed when the participant stopped working full-time, even after her benefits were denied, despite that she started working again a few months later.  The court held that when the plaintiff quit work, contrary …