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Tag: “void ab initio”

Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

The legal rulings in SAF Funding, LLC v. Taylor, Case No. CL-3022, 2017 Va. Cir. LEXIS 316 (Va. Cir. Ct. Oct. 27, 2017), are many and follow a long and complicated history, but the bottom line is this: the structured settlement payee who is challenging factoring transactions may proceed with his lawsuit. In the ruling, the Virginia Circuit Court for City of Portsmouth addressed a number of ancillary issues, but the key determination was that the payee would be allowed to try…

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In Rejecting Defendant’s Arguments, Magistrate Judge’s Opinion Offers A Primer On Florida Insurable Interest Laws

In Rejecting Defendant’s Arguments, Magistrate Judge’s Opinion Offers A Primer On Florida Insurable Interest Laws

As discussed in this post, in PHL Variable Ins. Co. v. Hudson Valley EPL, LLC, Civil Action No. 13-1562-SLR-SRF (D. Del. Sept. 16, 2014), U.S. Magistrate Judge Sherry Fallon recommended that the defendant’s motion for judgment on the pleadings be dismissed, meaning that insurer PHL would be allowed to proceed with its lawsuit seeking a declaration that an insurance policy (issued on the life of Phillip E. Skidmore) was void for lack of insurable interest. The court went into some…

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Magistrate Recommends Letting Insurer Proceed with Lawsuit Seeking Invalidation of Insurance Policy For Lack of Insurable Interest

Magistrate Recommends Letting Insurer Proceed with Lawsuit Seeking Invalidation of Insurance Policy For Lack of Insurable Interest

A federal magistrate judge this week recommended that the United States District Court for the District of Delaware deny a motion to dismiss a complaint brought by an insurance company seeking to invalidate an insurance policy for lack of an insurable interest. In PHL Variable Ins. Co. v. Hudson Valley EPL, LLC, Civil Action No. 13-1562-SLR-SRF (D. Del. Sept. 16, 2014), U.S. Magistrate Judge Sherry Fallon described the case as one in which PHL Variable Insurance Company sought a declaration…

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UPDATE: Court Allows STOLI Claims to Go to Trial: “Life Insurance Policies Are Different”; “Incontestability Clause is Not Sacrosanct”

UPDATE: Court Allows STOLI Claims to Go to Trial: “Life Insurance Policies Are Different”; “Incontestability Clause is Not Sacrosanct”

  Without an incontestability clause that allows fraud-based challenges beyond the two year period, construing the statutory requirement as an absolute ban on fraud-based challenges risks encouraging fraud.  Put another way, if bad actors can disguise their fraud for two years, their hands are washed clean by the Legislative requirement of section 3203, and they are free to collect on their ill-gotten gains.   Settlement Funding v. AXA Equitable Life Insurance Co., No. 06-cv-5743, 2010 WL 3825735 (S.D.N.Y. Sep. 30,…

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