Expert May Not Testify About STOLI for Lack of Experience
Post 5227
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Insurer Needs to be Careful When Retaining an Expert With No Experience About the Key Issue in the Case.
In Ameritas Life Insurance Corp. v. Wilmington Savings Fund Society, FSB, United States District Court for the District of Delaware (Civil Action No. 23-236-GBW), Judge: Gregory B. Williams (November 7, 2025) Ameritas Life Insurance Corp. (“Ameritas”) sought to void a $3 million life insurance policy on the life of Marvin Flaks (the “Policy”) as a stranger-originated life insurance (“STOLI”) policy lacking an insurable interest under Delaware law.
Defendant Wilmington Savings Fund Society, FSB (“Wilmington Savings”), as securities intermediary and counterclaim-plaintiff, opposed and sought to enforce the Policy.
Motion at Issue:
Wilmington Savings’ Daubert moved the court to exclude testimony of Ameritas’ expert, Michael L. Vild, under Federal Rule of Evidence 702. The motion targets four categories of Vild’s opinions from his expert reports (served June–August 2025): (1) choice-of-law analysis; (2) STOLI and insurable interest; (3) reasonableness of Ameritas’ investigation; and (4) life insurance investor practices.
Factual Background - STOLI Context:
STOLI involves speculators procuring life insurance policies on strangers’ lives for resale of death benefits, circumventing the “insurable interest” requirement (a policyholder must have a legitimate economic or familial stake in the insured’s continued life to prevent wagering on death.
Delaware’s seminal case, PHL Variable Ins. Co. v. Price Dawe 2006 Ins. Tr. (28 A.3d 1059 (Del. 2011)), declared STOLI policies void ab initio as against public policy.
The Policy:
Ameritas alleges it was procured via STOLI scheme and lacks insurable interest.
Expert (Vild’s Qualifications) - Employment:
Partner at Cross & Simon, LLC (2019–present; corporate litigation, no STOLI experience); Director, Delaware DOJ Fraud Division (2017–2019; no shown STOLI work); casino counsel (2008–2017; unrelated); Deputy Insurance Commissioner, Delaware DOI (2005–2008; oversaw regulation, attended NAIC meetings where STOLI/viatical settlements discussed, involved in regulatory discussions but no enacted STOLI regs or direct enforcement); prior law firm roles (1991–2004; no shown STOLI work). J.D. (Notre Dame, 1991); B.Mus. (Ohio State, 1988). Board roles in captive insurance/reinsurance; bar memberships; personal activities (e.g., music, horse racing). Limited recall of direct STOLI work; no litigation or advisory on life insurance/STOLI; captive insurance unrelated to insurable interest.
Legal Standard
Trial courts gatekeep expert testimony, requiring proponent to show (by preponderance) it is:
(a) helpful to trier of fact;
(b) based on sufficient facts/data;
(c) product of reliable methods; and
(d) reliably applied to case facts.
Court’s Analysis and Ruling
The court granted the motion in part (excludes on issues 3–4; partial exclusions on 1–2) and denies in part, emphasizing Vild’s regulatory experience qualifies him for generalized insurance testimony but not ultimate legal conclusions, claims handling, or investor-specific practices.
Conclusion
The court granted preserved Vild’s testimony on general Delaware insurance regulatory interests and STOLI principles (but not case-specific applications) while excluding it on investigation reasonableness and investor practices. Therefore, the ruling narrows Ameritas’ expert evidence ahead of trial on the Policy’s validity, underscoring Daubert’s gatekeeping for topic-specific expertise in insurance disputes.
ZALMA OPINION
STOLI policies are invalid and void from inception in Delaware because they violate the requirement of every life insurance policy that the beneficiary has an insurable interest in the life insured. Rather than being insurance STOLI policies are a gamble on the life of the insured making a profit if the insured dies quickly after the policy was issued. The Insurer retained as an expert a person who knew insurance but had no knowledge of STOLI and wanted to testify about ultimate issues that were the sole province of the court. Applying the gate keeping function the court limited Vild’s testimony to generalized insurance practice.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Anti-Public Adjuster Clause Is Effective in New York
Post number 5301
Read the full article at https://www.linkedin.com/pulse/public-adjusters-attempt-represent-insured-subject-zalma-esq-cfe-rubfc, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Insurers May Contractually Prevent an Insured from Hiring a Public Adjuster
In Peter Barbato & North Jersey Public Adjusters Inc. v. Interstate Fire & Casualty Company, et al, No. 25-cv-5312 (JGK), United States District Court, S.D. New York (December 15, 2025) the plaintiffs, Peter Barbato and North Jersey Public Adjusters, Inc. (“NJPA”), filed suit against several insurance companies, including Interstate Fire & Casualty Company, Independent Specialty Insurance Company, and certain Underwriters at Lloyd’s of London.
FACTS
NJPA is a New Jersey-based public adjusting firm licensed in New York. The dispute centers on ...
Anti-Public Adjuster Clause Is Effective in New York
Post number 5301
Read the full article at https://www.linkedin.com/pulse/public-adjusters-attempt-represent-insured-subject-zalma-esq-cfe-rubfc, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Insurers May Contractually Prevent an Insured from Hiring a Public Adjuster
In Peter Barbato & North Jersey Public Adjusters Inc. v. Interstate Fire & Casualty Company, et al, No. 25-cv-5312 (JGK), United States District Court, S.D. New York (December 15, 2025) the plaintiffs, Peter Barbato and North Jersey Public Adjusters, Inc. (“NJPA”), filed suit against several insurance companies, including Interstate Fire & Casualty Company, Independent Specialty Insurance Company, and certain Underwriters at Lloyd’s of London.
FACTS
NJPA is a New Jersey-based public adjusting firm licensed in New York. The dispute centers on ...
Proof of Highly Contaminated Water is Required for Extra Payments
Post number 5300
Read the full article at https://www.linkedin.com/pulse/acting-your-own-lawyer-foolish-barry-zalma-esq-cfe-mbg0c, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Acting as Your Own Lawyer is Foolish
Evidence of Breach of Contract Survives Dismissal of All Other Charges
In Lee Lifeng Hsu and Jane Yuchen Hsu v. State Farm Fire And Casualty Company, C. A. No. N24C-09-020 CLS, Superior Court of Delaware (February 27, 2026) a claim to State Farm who paid approximately $61,000 after assessments but denied coverage for additional items including ceramic tiles, the kitchen floor ceiling, underlayment plywood, and numerous personal property items resulted in suit by the Hsu’s acting in pro per.
Facts
Lee Lifeng Hsu and Jane Yuchen Hsu (“Plaintiffs”) purchased a homeowners’ insurance policy from State Farm Fire...
Insurance Condition Requires Following the Intent of the Parties
Post number 5307
Principles of Contract Interpretation Compels Reading Contract as Written
Read the full article at https://www.linkedin.com/pulse/portable-storage-containers-buildings-barry-zalma-esq-cfe-fkg1c and at https://zalma.com/blog.
In Eastside Floor Supplies, Ltd. v. SCS Agency, Inc., Hanover Insurance Company, et al., No. 2024-01501, Index No. 609883/19, 2026 NY Slip Op 01488, Supreme Court of New York, Second Department (March 18, 2026)
In May 2019, a fire damaged business personal property belonging to the plaintiffs, which was stored in portable storage containers at their Manhattan premises. At the time of the fire, the plaintiffs were insured under a businessowners insurance policy (BOP) issued by the defendant Hanover Insurance Company which provided general coverage for business personal property, and which included a specific extension for “Business Personal Property Temporarily in Portable Storage Units” (the portable storage ...
ERISA Saves Fraudulent Claims Suit
Post number 5306
Read the full article at https://www.linkedin.com/pulse/failure-provide-well-pled-facts-defeats-most-action-zalma-esq-cfe-b4zuc and at https://zalma.com/blog plus more than 5300 posts.
Allegations of Fraudulent Insurance Billing Must be Pleaded with Specificity
In Genesis Laboratory Management LLC v. United Healthcare Services, Inc. and Oxford Health Plans, Inc., No. 21cv12057 (EP) (JSA), United States District Court, D. New Jersey (March 13, 2026) Genesis Laboratory Management LLC (“Genesis”), a New Jersey-based molecular diagnostic and anatomic pathology laboratory, provided COVID-19 related testing services and submitted claims for reimbursement as an out-of-network provider to United Healthcare Services, Inc. (“United”) and Oxford Health Insurance, Inc. (“Oxford”). Metropolitan Healthcare Billing, LLC (“Metropolitan”), owned by the same individual as Genesis, handled the billing for Genesis.
FACTUAL BACKGROUND
United and Oxford, who administer both ERISA and ...
ERISA Saves Fraudulent Claims Suit
Post number 5306
Read the full article at https://www.linkedin.com/pulse/failure-provide-well-pled-facts-defeats-most-action-zalma-esq-cfe-b4zuc and at https://zalma.com/blog plus more than 5300 posts.
Allegations of Fraudulent Insurance Billing Must be Pleaded with Specificity
In Genesis Laboratory Management LLC v. United Healthcare Services, Inc. and Oxford Health Plans, Inc., No. 21cv12057 (EP) (JSA), United States District Court, D. New Jersey (March 13, 2026) Genesis Laboratory Management LLC (“Genesis”), a New Jersey-based molecular diagnostic and anatomic pathology laboratory, provided COVID-19 related testing services and submitted claims for reimbursement as an out-of-network provider to United Healthcare Services, Inc. (“United”) and Oxford Health Insurance, Inc. (“Oxford”). Metropolitan Healthcare Billing, LLC (“Metropolitan”), owned by the same individual as Genesis, handled the billing for Genesis.
FACTUAL BACKGROUND
United and Oxford, who administer both ERISA and ...
