Business succession

Confusion Over Policy Replacement Leads to Litigation

Topics: Business succession, Estate planning

Dr. Trey Sutton was the minority shareholder with Dr. Christopher Spraberry, the majority owner of a dental practice. The parties entered into a buy-sell agreement with respect to the practice in 2006, and Sutton later owned, and was beneficiary of, $2 million of coverage on Spraberry’s life to fund Sutton’s obligation under the buy-sell agreement.…

Dispute Between Carrier and Agent Over Responsibility for Expiration of Policy Conversion Rights Continues

Topics: Business succession, Estate planning

A Nebraska federal court recently ruled that a dispute concerning responsibility for selling two term life insurance policies with expired conversion rights required additional evidence and briefing in order to make a ruling. The court stated it required this additional material before it could decide whether the agent or the carrier was responsible for selling…