BOLI Compliance

When purchasing BOLI, banks must be careful to adhere to guidelines set by appropriate federal and state regulators. The Todd Organization guides the bank’s leadership through a thorough analysis prior to a BOLI purchase. Once the purchase is complete, we assist the financial institution with the documentation that is required by these guidelines. This includes cash value reporting, documentation for regulatory requests, and appropriate materials for Board meetings.

Such documentation provides assurance to the regulators, bank management and shareholders that the BOLI purchase is appropriate and a prudent financial management action.

Because BOLI is often used to finance Non-Qualified Retirement Plans and is subject to state and federal regulatory scrutiny, most banks should consider only high credit quality insurance products. This is particularly the case when BOLI transactions involve a single premium investment.