Case Study: Malkin v Wells Fargo

Here we look at the insurable interest requirements for life insurance policies. At issue was a "stranger owned life insurance" policy, that have been banned under the laws of many states. These were common in the mid-2000's as investors Invested in life insurance on elderly strangers in exchange for some sort of compensation or benefit paid to the insured. This practice was severely curtailed by cases like this, in which courts took harsh measures against the investors who engaged in these arrangements that were once likened to "investing with the Grim Reaper."

The case can be found here:

https://law.justia.com/cases/federal/appellate-courts/ca11/19-14689/19-14689-2021-05-27.html