Which Of These Arrangements Allows One To Bypass Insurable Interest Laws?

Investor-Originated Life Insurance Investor-originated life insurance (or IOLI), sometimes called stranger-originated life insurance (or STOLI) is used to circumvent state insurable interest statutes.

This is done when an investor (or stranger) persuades an individual to take out life insurance specifically for the purpose of selling the policy to the investor.

The investor compensates the insured and makes the premiums, then collects the death benefit when the insured dies.