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Old 09-19-2009, 04:50 PM   #41
Confused about dryer sheets
 
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Originally Posted by brewer12345 View Post

- Investor hands money to an older person to go get a big LI policy. After 2 years, the elder signs over the policy to the investor for a cash payment and the investor waits to collect.
"After 2 yrs, ... signs (it) over"??
Sounds sort of like the straw man schemes that burned so many mortgage lenders. Of course it burned the schemers when they were caught, and are now serving time for fraud.
There are three parties to a LI contract- the owner, the insured, and the beneficiary. The owner decides the bene and can change it as often as he pleases. What investor, as beneficiary, would risk not being the owner?
It's all moot anyway if there's no insurable interest.
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Old 09-19-2009, 06:18 PM   #42
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Join Date: Mar 2003
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Originally Posted by usat522 View Post
"After 2 yrs, ... signs (it) over"??
Sounds sort of like the straw man schemes that burned so many mortgage lenders. Of course it burned the schemers when they were caught, and are now serving time for fraud.
There are three parties to a LI contract- the owner, the insured, and the beneficiary. The owner decides the bene and can change it as often as he pleases. What investor, as beneficiary, would risk not being the owner?
It's all moot anyway if there's no insurable interest.
May not be an insurable interest as you and I see it, but this stuff happens all the time.
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