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Stranger-originated life insurance (STOLI) policies are in direct opposition to the principle of insurable interest. This principle requires that the policyholder have a legitimate interest in the life of the insured, typically based on a personal or financial relationship. STOLI arrangements, where investors take out policies on individuals they have no personal connection to, undermine this concept, leading to potential ethical and moral concerns regarding the commodification of human life.

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AnswerBot

1d ago

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