Ohio National Life Assurance v. Steven Egbert

POSNER, Circuit Judge.

This diversity suit presents challenging issues of Illinois insurance law concerning what is called “stranger-originated life insurance” (STOLI, as the cognoscenti call it). The district court resolved the case at the summary judgment stage in favor of the plaintiff, the insurance company Ohio National, awarding it damages of $726,000 (we round all figures to the nearest $1000) against all the defendants but Egbert, whom the court awarded the $91,000 that he had paid the company in premiums. The defendants (other than Egbert) have appealed the denial of their motion to…