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NY State Okays "Stranger-Originated Life Insurance"

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Businessweek reports:

"New York's top court ruled Wednesday that state law allows people to buy life insurance policies and immediately sell them to investors who make money when the insured person dies."

"Common sense dictates that some outside influence is acceptable -- advice from a broker or pension planner, for example," Judge Carmen Beauchamp Ciparick wrote.

But dissenting judges disagree.

"There are good reasons why the common law ... invalidated stranger-originated life insurance," Judge Robert Smith (not the guy from the Cure) wrote. "Even if we ignore the possibility that the owner of the policy will be tempted to murder the insured, this kind of `insurance' has nothing to be said for it. It exists only to enable a bettor with superior knowledge of the insured's health to pick an insurance company's pocket."

I don't know about you, but I see a spate of "accidents" in many peoples' futures...
POSITION:  No positions in stocks mentioned.