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Maryland Life Insurance Trust Law Update

Esther A. Streete | June 2006

Last year, the U.S. District Court for the Eastern District of Virginia, applying Maryland Law, held in Chawla v. Transamerica Occidental Life Insurance Company [i] that a trust lacked an insurable interest in the life of the insured, the grantor and lifetime beneficiary of the trust. The court's holding allowed the insurance company to deny payment of the trust's claim to the life insurance proceeds. Full Article