Bank Owned Life Insurance Services

BOLI Regulatory Compliance

The Office of the Comptroller of the Currency bulletin OCC 2004-56 provides banks with comprehensive guidelines for purchasing bank owned life insurance. In this bulletin, the OCC expresses the fact that BOLI can be a useful product to recover costs associated with providing employee benefits. The bulletin also stresses the importance of the evaluation process and properly assessing the risks associated with BOLI. Navigating through some of the analysis requirements can be challenging, and documentation of the process is critical to show that the proper pre-purchase analysis was completed.

BCG monitors the BOLI regulatory environment on a regular basis, and updates its clients frequently with regard to changes in carrier ratings and product issues, as well as BOLI regulatory changes. In addition, BCG's comprehensive compliance manual will assist in answering questions that may come from an auditor, and will be a record of the work that was done to ensure compliance with OCC guidelines. Contact Bank Consulting Group.