141210P.pdf   03/13/2015  PHL Variable Insurance Company  v.  Bank of Utah
   U.S. Court of Appeals Case No:  14-1210
   U.S. District Court for the District of Minnesota - Minneapolis   
   [PUBLISHED] [Loken, Author, with Colloton and Shepherd, Circuit Judges] 
   Civil case - Insurance. In action seeking a declaration that a 
   stranger-owned-life-insurance police (STOLI) was void ab initio as 
   contrary to public policy for lack of an insurable interest, the district 
   court erred in determining that a policy may be challenged for lack of an 
   insurable interest beyond the contestability period; first, it is unlikely 
   that the Minnesota courts would permit an insure to obtain a windfall of 
   collected premiums and renege on its contractual obligations because a 
   third party "schemed" with the insured before the policy was issued to 
   help him buy a policy on his own life for resale, an intent which, if 
   unilateral, was consistent with the public policy recognizing that 
   insurance policies are legitimate investments, as well as insurance; 
   second, the court erred in finding the insurer's position was not 
   foreclosed by Minnesota's incontestability statute as whether the insured 
   has an agreement with an insurance agent, broker or premium financing 
   company at the time the policy is issued that it will be sold, either to 
   an identified person who lacks an insurable interest or, more typically, 
   into a secondary market of insurance policy investors, is a risk the 
   insurer can promptly investigate. Judge Colloton, concurring in the 
   judgment.