Pundit Newswire : Ohio National Life Assurance Corporation v. Douglas Davis, Paul Morady, Mavash Morady, et al. (N.D. Ill.).
In two separate opinions, the district court in the Northern District of Illinois declared void ab initio five insurance policies procured by STOLI (stranger originated life insurance) investors on the lives of strangers. The STOLI investors procured five STOLI policies from Ohio National with aggregate death benefits totaling $2.8 Million, without an insurable interest in the elderly insureds’ lives. Illinois insurable interest laws are designed to protect the integrity of human life. When a life insurance
Striking a blow against STOLI investment practices, the district court entered summary judgment for Ohio National, declaring the policies void ab initio , and entering summary judgment against the STOLI procurers for civil conspiracy, and against the insurance broker for breach of contract, fraud, and civil conspiracy. As a matter of law, the court awarded damages to Ohio National in excess of $860,000.00 including attorneys’ fees, commissions paid to the insurance broker, and retention of premiums paid by