Policy loans

Court Dismisses Suit Alleging Carrier Improperly Charged Compound Interest on Policy Loans

Topics: General life insurance, Policy loans

A California federal court recently granted a life insurance carrier’s motion to dismiss a putative class action claiming that the carrier charged compound interest on life insurance policy loans without proper authorization and in violation of California state law. The plaintiffs asserted that Metropolitan Life Insurance Company violated California’s usury laws, initially enacted in 1918,…

Key Employee Compensation 101- Favorable Economic Conditions Make Effective Key Employee Compensation Programs Critical.

Topics: COLI/BOLI, General life insurance, Policy loans

Effective key employee compensation programs serve a myriad of functions, such as recruitment, motivation, performance recognition, retention, alignment with shareholder interests, and succession planning. Program design options and benefits are voluminous and provide employers with extensive flexibility to meet the specific desires and needs of both the employer and the employees.