[Rev]

Unit, from what I've read, the Texas law allows life insurance on employees only when the company has "insurable interest" in the life of the employee (executives whose demise would hurt the company profits, i.e. a loss).

The "dead janitor insurance " is really only a tax dodge for the company as insurance payments are generally not taxable (they are considered compenstion for a loss). If they were taxable to the company at corporate tax rates, it would not be profitable to do it at all.

Since the employees in that case you refer to do live in Texas and the company does do business in Texas where the 'dead janitor' was employed, there might be some basis for Texas court jurisdiction.

BTW, almost everything you said in your post is correct from what I've read.

Rev