Broker Check

Pre-purchase Analysis

According to the Interagency Statement on the Purchase and Risk Management of Life Insurance, the objective of the pre-purchase analysis is to help ensure that the institution understands the risks, rewards and unique characteristics of BOLI. The nature and extent of this analysis should be commensurate with the size and complexity of the potential BOLI purchases and should also take into account existing BOLI holdings. A mark of a well-managed institution is the maintenance of adequate records concerning its pre-purchase analyses, usually including documentation of the purpose and amount of insurance needed.