Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that prohibits stranger-originated life insurance policy arrangements.

Highlights:

• Prohibits any individual from directly or indirectly engaging in any act, practice, or arrangement that constitutes stranger-originated life insurance and specifies that any other contract, agreement, arrangement, or transaction entered into to help further a stranger-originated life insurance policy shall be void and unenforceable (Sec. 1).

• Defines “stranger-originated life insurance (STOLI)” as an act, practice, or arrangement to initiate or procure the issuance of a policy in this state and the prohibition against wagering on life (Sec. 1).

• Authorizes any individual damaged by another individual's aforementioned acts to bring a civil action to a court of competent jurisdiction and specifies that the Commissioner of Banking and Insurance may issue a $10,000 civil penalty (Sec. 2).

Full Bill Text