Continuation of FIL-127-2004
- Institutions should have a comprehensive risk management process for purchasing and holding bank owned life insurance (BOLI).
- The safe and sound use of BOLI depends on effective senior management and board oversight.
- Institutions should establish policies and procedures governing their BOLI holdings, including meaningful risk limits.
- A sound pre-purchase analysis helps ensure that institutions understand the risks, rewards and unique characteristics of BOLI.
- Institutions also should monitor BOLI risks on an ongoing basis subsequent to purchase.
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Section 24 of the Federal Deposit Insurance Act and Part 362 of the FDIC's Regulations
Interagency Statement on the Purchase and Risk Management of Life Insurance
FDIC Regional Accountant or Christine M. Bouvier, Senior Policy Analyst, Division of Supervision and Consumer Protection firstname.lastname@example.org or 202 898-7289.
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Executive Summary 75k
Interagency Statement on the Purchase and Risk Management of Life Insurance Contents 15k
Interagency Statement on the Purchase and Risk Management of Life Insurance 126k
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2004/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).