Life & Health · Chapter 3 · Contract Law
STOLI / IOLI
Definition
Stranger/Investor-Originated Life Insurance — a policy initiated by someone with no insurable interest, as a wager on a life. Lacks legal purpose → void / prohibited.
Exam tip
An investor always initiates an IOLI.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms