Recent Developments in the Life Settlement Industry

January 31, 2011
The U.S. Court of Appeals for the Second Circuit has vacated the controversial 2009 federal trial court ruling that had cast doubt on the legality of certain life settlement contracts made before New York’s anti-STOLI (stranger-originated life insurance) legislation took effect on May 18, 2010. The Second Circuit’s ruling could have an impact on other pending life settlement litigation in New York—an impact favorable to investors and originators of life settlement contracts entered into under New York law before May 18, 2010. This update further examines certain recent judicial developments, including investor-driven litigation, in the life settlement industry.