Recent Developments in the Life Settlement Industry

November 15, 2011
The Supreme Court of Delaware recently issued two rulings regarding life settlements that have attracted media and life settlement industry attention. The court ruled in both cases that under Delaware state law, insurance companies may challenge the validity of insurance policies on the basis of lack of an insurable interest after the expiration of the two-year statutory contestability period. This update examines these two cases and their potential impact on life settlement transactions in Delaware and throughout the United States.