JH Advanced Markets Radio

The Wuliger Decision: STOLI Policy Voidable By Insurer

Paul Gallagher, VP and Counsel in John Hancock's US Law Department joins Randy Zipse, VP and Senior Counsel of John Hancock's Advanced Markets Group to discuss the recent decision of the U.S. Court of Appeals for the Sixth Circuit on the Wuliger case, a STOLI case that has been in the courts for ten years and has taken a number of twists and turns.

The Sixth Circuit decision in the Wuliger case held that the insurer has the right to void a policy that was purchased fraudulently and that lacked insurable interest, but, importantly, the receiver for the viatical company did not have the same right. Interestingly, the Sixth Circuit also repudiated the prior decision of the District court to order the return of premiums paid.

This case clearly outlines the many issues that accompany STOLI transactions and the court system's lack of tolerance for such transactions, from a number of different perspectives.

.Click on the link below to listen to the broadcast:

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• JHAM Radio Randy Zipse Featured on North Shore Financial Forum - (May 20, 2008)
• JHAM Radio Current Events with Stephan Leimberg Part II- (May 13, 2008)
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• JHAM Radio The Inheritor's Trust: Minimizing Leakage From Family Wealth - (March 25, 2008)
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• JHAM Radio Exit Strategies From Freezes and Squeezes - (February 26, 2008)
• JHAM Radio Newly-Released Allegations of Agent-Fraud and The Implications for Investor-Owned Life Insurance Part I - (February 5, 2008)
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• JHAM Radio Estate Equalization with GRATs - (January 22, 2008)
• JHAM Radio Considerations in the Design and Administration of Charitable Trusts Part II - (January 15, 2008)
• JHAM Radio Considerations in the Design and Administration of Charitable Trusts Part I - (January 8, 2008)
• JHAM Radio Estate Taxes and Family Farms with Dr. Neil E. Harl and Randy Zipse - (December 11, 2007)
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• JHAM Radio Current Events with Randy Zipse and Stephan Leimberg Part II - (November 27, 2007)
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• JHAM Radio Administering an Estate with Kristin Bulat, JD, LLM - (November 13, 2007)

For more information, contact your John Hancock representative or the Advanced Markets Group at 1-888-266-7498, option 3.

This material is for informational purposes only.  Although many of the topics presented may also involve tax, legal, accounting or other issues, neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice.  The above material was not intended or written to be used, and it cannot be used, for the purpose of avoiding any penalty that may be imposed by the Internal Revenue Service.  The above material may have been written to support the promotion or marketing of the transactions or topics addressed by the written material.  Individuals interested in these topics should consult with their own professional advisors to examine legal, tax accounting or financial planning aspects of these topics.

Insurance policies and/or associated riders and features may not be available in all states.

Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595.