Insurance-Related Activities

Insurance transfers the financial effect of fortuitous losses. A financial organization's primary defenses against loss are adequate internal controls and loss mitigation procedures, which insurance is intended to complement, not replace. Banking organization insurance programs include the funding of employee benefits through purchases of corporate- or bank-owned life insurance and the transfer of insurable risks through coverages associated with risk management initiatives. Financial institutions supervised by the Federal Reserve also engage in functionally regulated insurance underwriting activities and insurance sales activities.

Policy Letters

Insurance-Related Activities

Framework for the Supervision of Insurance Organizations

Supervisory Rating System for Holding Companies with Total Consolidated Assets Less Than $100 billion

Consolidated Supervision of Bank Holding Companies and the Combined U.S. Operations of Foreign Banking Organizations

Interagency Advisory on the Confidentiality of Nonpublic Supervisory Information

Interagency Statement on the Purchase and Risk Management of Life Insurance

Accounting for Deferred Compensation Agreements

Framework for Financial Holding Company Supervision

Interpretation of Interagency Statement on Retail Sales of Nondeposit Investment Products

Examination Procedures for Retail Sales of Nondeposit Investment Products

Split-Dollar Life Insurance at State Member Banks

Interagency Statement on Retail Sales of Nondeposit Investment Products

Split-Dollar Life Insurance

Manual References

  • Bank Holding Company Supervision Manual
    • Section 2010.6, "Supervision of Subsidiaries (Financial Institution Subsidiary Retail Sales of Nondeposit Investment Products)"
    • Section 3170.0, "Section 4(c)(8) of the BHC Act (Insurance Agency Activities of Bank Holding Companies)"
    • Section 3180.0, "Section 4(c)(8) of the BHC Act (Insurance Underwriters)"
    • Section 3905.0, "Permissible Activities for FHCs (Section 4(k) of the BHC Act)"
    • Section 3950.0, "Insurance Sales Activities and Consumer Protection in Sales of Insurance (Sections 4(k) and 4(c)(8) of the BHC Act)"
  • Commercial Bank Examination Manual
    • Sections 4040.1, "Management of Insurable Risks"
    • Sections 4042.1, "Purchase and Risk Management of Life Insurance"
    • Sections 4043.1, "Insurance Sales Activities and Consumer Protection in Sales of Insurance"
    • Sections 4170.1, "Retail Sales of Nondeposit Investment Products"
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Last Update: December 20, 2022