Question

Which of the following describes a Stranger-Originated Life Insurance (STOLI) arrangement?

a. An employer purchases a life policy on a key employee.
b. A person with no insurable interest in the insured purchases a life policy.
c. A trust is used to hind a life insurance policy.
d. A family member purchases a life policy on someone other than a spouse

Answer 1

A Stranger-Originated Life Insurance (STOLI) arrangement is when a person with no insurable interest in the insured purchases a life insurance policy.

Step-by-step explanation:

A Stranger-Originated Life Insurance (STOLI) arrangement is when a person with no insurable interest in the insured purchases a life insurance policy. This means that the person buying the policy does not have any personal or financial relationship with the insured. STOLI arrangements are often considered unethical and are sometimes illegal because they involve the exploitation of the life insurance policy for financial gain.

Answer 2

it is a

Step-by-step explanation: