System for designing and implementing bank owned life insurance (BOLI) with a reinsurance option

A method for designing and administering a bank owned life insurance plan for a financial organization, the method comprising the steps of:

• a. determining in at least one computer a bank owned life insurance premium;
• b. determining insurable interest requirements;
• c. generating performance estimates for said bank owned life insurance plan, wherein said performance estimates are used to ensure compliance with risk-based capital requirements;
• d. allocating premium amount by business unit and employee;
• e. calculating regulatory requirements for said business unit and employee;
• f. storing said premium amount in a memory of said at least one computer;
• g. ensuring that said bank owned life insurance plan is in compliance with the regulatory requirements for said business unit;
• h. verifying, reconciling, consolidating in said computer and reporting from said at least one computer policy values for said financial organization;
• and
• i. performing administrative procedures for said bank owned life insurance plan of said financial organization.

An apparatus for designing and administering a bank owned life insurance plan for a financial organization, comprising:

• a. a first inputting means for inputting employee data;
• b. a second inputting means for inputting information from an insurance company;
• c. a reporting means;
• and
• d. a processor, said processor connected to said first and second inputting means and said reporting means, wherein said processor accepts employee data from said first inputting means, determines a bank owned life insurance premium and insurable interest requirements, generates performance estimates for said bank owned life insurance plan, allocates premium amount by business unit and employee, calculates regulatory requirements for said business unit and employee, ensures that said bank owned life insurance plan is in compliance with the regulatory requirements for said business unit, accepts policy values from said second inputting means, sends the policy values to said reporting means, wherein said reporting means verifies, reconciles, consolidates and reports the policy values, and said processor performs administrative procedures for said bank owned life insurance plan of said financial organization.