Insurance groups are working to counter criticisms of corporate-owned life insurance that surface in a new documentary film.
Michael Moore, who drew attention to concerns about the U.S. health finance system in the documentary Sicko, includes references to corporate-owned life insurance in his new film, “Capitalism: A Love Story.”
The film implies that some employers are using COLI to profit from the deaths of their employees.
“Mr. Moore’s assertions on COLI, and subsequent media reports, mischaracterize the truth about these insurance policies,” according to a statement about the film issued by the American Council of Life Insurers, Washington; the National Association of Insurance and Financial Advisors, Falls Church, Va.; and the Association for Advanced Life Underwriting, Falls Church.
“COLI is a life insurance policy used by employers both to protect against the financial cost of losing a key employee as well as to help provide funds for the payment of employee and retiree benefits through coverage on highly paid employees,” the groups say.
Recent changes in federal laws “limit COLI to coverage of highly compensated employees and require the informed consent of the insured individuals,” the groups say.