Von Hoffmann v. Prudential Insurance Co. of America

OPINION

CHIN, District Judge.

In 1987, plaintiff Ladislaus Von Hoff-mann (“Von Hoffmann”) purchased $30 million worth of “vanishing premium” life insurance from defendant The Prudential Insurance Company of America (“Prudential”). Defendant Alexander & Alexander, Inc. (“A & A”) was the broker. Premiums were to “vanish” after seven years because the first seven years worth of premiums were expected to generate sufficient dividends to eliminate the need for Von Hoff-mann to pay any further premiums. Prudential and A & A were careful to provide disclaimers; they advised Von Hoffmann that the…