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STOLI has been found to be in violation of what contractual element?

a) Offer and acceptance
b) Consideration
c) Legal purpose
d) Competent parties

User Shajji
by
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1 Answer

3 votes

Final answer:

STOLI has been found to be in violation of the contractual element of legal purpose.

Step-by-step explanation:

STOLI, which stands for Stranger-Originated Life Insurance, has been found to be in violation of the contractual element of legal purpose.


The legal purpose element of a contract requires that the agreement be for a lawful objective or consideration, and STOLI contracts are typically considered to be against public policy due to their speculative nature.


STOLI contracts involve a third party purchasing a life insurance policy on the life of an individual with the intention of selling the policy to a life settlement company or investor in the future, creating an insurable interest solely for the purpose of profiting from the death of the insured.

User Bin Wang
by
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