Trusts and insurable interests

In this item from The National Underwriter Company, a spokesman for Transamerica states that the recent surprise outcome in Chawla v. Transamerica does not mean that the company will view all irrevocable life insurance trusts as suspect. It's another situation of bad facts make for bad law. Still, there is a bit of a chill in the air over the issue, until we hear the outcome of the appeal of the decision to the Fourth Circuit. For those that haven't read the case, the article also provides a good summary of the key elements.