Investors now buying insurance on strangers, betting they'll die

Investors are now buying insurance policies on strangers and betting they will die! These investors see human life as an asset to be exploited.

They approach a subject offering to buy them life insurance for free and even pay the person for doing the paperwork.  By law, strangers can't buy life insurance on those they don't know, so these investors get around the law by paying those to be insured to take out the policy themselves. If the person dies -- and the faster the better -- the 'investment' pays off. Making this really scary? The policy can be sold -- to perhaps a criminal -- who won't wait for the subject to die, but will hurry things along.

Here's a good write-up on the current practice and how it all got started in Europe a long time ago.
 
LINK: http://taxprof.typepad.com/taxprof_blog/files/2005-6866-1.pdf