What is our BOLI Process and the due diligence needed?

Our BOLI Implementation Process

The long-term success of your benefit-financing program depends on the expertise of its design, management and support. To ensure that your BOLI portfolio complies with complex regulatory and reporting requirements – including insurable interest, equity and risk parameters – Schiff Benefits Group, LLC in conjunction with one of our Third Party consulting companies will help manage your BOLI from pre-purchase assessment through post-purchase administration – ie. the BOLI Process.

Schiff Benefits Group, LLC has implemented standards that meet the guidelines for purchasing BOLI as outlined in OCC Bulletin 2004-56 and have working relationships with Accountants, Attorneys and Third Party Administrators who can administer these plans on behalf of our clients.  Our Initial pre-purchase analysis will evaluate the following:

  1. Calculate employee benefit liabilities
  2. Conduct OCC testing for insurance and benefits
  3. Analyze insurable interest
  4. Analyze risks (credit, price, interest rate, legislative)
  5. Prepare financial models (test risk positions, policy surrender, etc.)
  6. Review carrier investment strategy
  7. Review policy characteristics (general account, separate account, variations)
  8. Reverse-engineer products
  9. Negotiate final pricing with carriers
  10. Assist in Board review

Leave a Reply

Your email address will not be published. Required fields are marked *

Helping Business Owners and their Key Employees Retire Happily Ever After