Phl Variable Insurance Company, Plaintiff Appellant v. Price Dawe 2006 Insurance Trust, by and Through Its Trustee…

Summary

The court answered three certified questions concerning Delaware's insurable-interest and incontestability requirements for life-insurance policies. It held that a policy lacking an insurable interest at inception is void ab initio and may be challenged after the contestability period, but that an insured may validly procure and later transfer a policy unless the transaction was structured as a cover for a wager. It also held that a trust has an insurable interest if the insured actually created and initially funded it, subject to the same prohibition on wagering arrangements.