VON HOFFMANN v. PRUDENTIAL INS. CO. OF AMERICA

No. 97 Civ. 4496(DC).

202 F.Supp.2d 252 (2002)

Ladislaus VON HOFFMANN and Beatrix Von Hoffmann, Trustee under 1987 Von Hoffmann Insurance Trust and 1987 Von Hoffmann Trust II, Plaintiffs, v. THE PRUDENTIAL INSURANCE COMPANY OF AMERICA and Alexander & Alexander, Inc., Defendants.

United States District Court, S.D. New York.

May 21, 2002.


Attorney(s) appearing for the Case

Mintz Levin Cohn Ferris Glovsky and Popeo PC, By: Robert I. Bodian, David L. Barres, New York, New York, for Plaintiffs.

Mound, Cotton, Wollan & Greengrass, Alexander & Alexander, Inc., By: Renee M. Plessner, New York, New York, for Defendant.


OPINION

CHIN, District Judge.

In 1987, plaintiff Ladislaus Von Hoffmann ("Von Hoffmann") purchased $30 million worth of "vanishing premium" life insurance from defendant The Prudential Insurance Company of America ("Prudential"). Defendant Alexander & Alexander, Inc. ("A & A") was the broker. Premiums were to "vanish" after seven years because the first seven years worth of premiums were expected to generate sufficient dividends to eliminate...

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