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Bank Owned Life Insurance Compliance

Pre-Purchase Analysis

Bank management is required to complete a thorough pre-purchase analysis to ensure the bank understands all aspects of a BOLI program. BMC provides each bank client with substantial pre-purchase analysis documentation and BOLI due diligence assistance. Listed below are some categories for which BMC provides documentation assistance.

• Determining/Quantifying the need for insurance
• Vendor qualification
• Carrier selection
• Review of the characteristics of the available BOLI products
• Analysis of the benefits of BOLI
• Reasonable compensation analysis, if needed
• Analysis of BOLI risks
• Documentation of safe and sound banking practices
• Accounting considerations
• State insurable interest information

The above information is combined with the bank's internal due diligence information to create a valuable regulatory resource when discussing the BOLI program with bank examiners.