Who Knew? STOLI is not a Pastry!

I read about ten insurance newsletters a day so I can keep up with what's going on.

This morning the AM Best news had a piece that New Hampshire has banned STOLI.

To me, STOLI is a bread pastry that my brother-in-law prepares every Christmas, and he is from New Hampshire.  The AM Best news worried me as his STOLI is one of my favorite parts of Christmas.

Turns out STOLI is "stranger owned life insurance."  As I spend little time in the world of life, I had never heard of this. (When anyone comes to me with big life insurance questions I send them to my compatriot, Glenn Daily, who has forgotten more about life insurance than I have ever known.)

Well, STOLI is high finance.  Even to getting TV guy Larry King sucked in.

Investors convince wealthy old folks to buy big life insurance policies and then flip them for payouts.  Larry is not so happy with his $1.4 million payday.

Kiplinger's story here.

Who knew?