Leslie Gladstone v. US Bancorp

OPINION

THOMAS, Chief Judge:

In recent years, a substantial market has developed for the purchase of unma-tured term life insurance policies. In these “viatical settlement” or “life settlement” transactions, the policyholder receives a lump-sum settlement greater than the cash surrender value of the policy, but less than the policy’s death benefit. The purchaser continues to pay the policy premiums, and collects the death benefit when the policyholder dies. The purchaser then, typically offers the life insurance benefit of the policy to potential investors. See Hus-key v. Tolman (In re Tolman),…