BOLI Risk Management

Risk can generate uncertainty in financial markets. At Van Epps LLC, our team manages market risks by continuously monitoring the market, BOLI contracts, and the creditworthiness of insurance carriers.

BOLI Information Security Standards

The Office of the Comptroller of the Currency has identified that protecting personal data for customers and employees is a high level risk for banks today. Van Epps LLC maintains the highest level of security for our clients’ data. Meeting the standards of SSAE 16, OCC 2013-29 is a mandatory requirement to provide BOLI services to regulated financial institutions.

Insured Management System

As the largest nationwide administrator of BOLI insureds, we have developed a proprietary system to efficiently and effectively manage every step of the claim process. Our comprehensive claims management team assists from the notification of deaths until the payment is received.


Extensive knowledge of the various products in the market and our many years of experience in managing BOLI portfolios enables us to provide an unbiased review of a bank’s BOLI assets. Van Epps LLC has assisted several banks with reviewing insurance contracts, Letters of Understanding, Stable Value Agreements, financial reports, etc. to ensure that their policies are managed in accordance with the underlying agreements and charges are being represented accurately. Additionally, having 15 years of performance history on carrier tranches allows us to compare net yields between bank portfolios.

Services include:
  • Post-purchase review
  • Contract review
  • Re-Documentation
  • Expense analysis
  • Mortality structure and cost

Van Epps LLC will also incorporate all acquired data into the BOLI Annual Risk Management Report.

Portfolio Services

Understanding and periodically reviewing the asset allocation is imperative in managing an effective BOLI portfolio. Van Epps LLC provides clients with monthly and/or quarterly portfolio reports analyzing various aspects of the portfolio.

Portfolio analysis and review includes:

  • Independent third-party investment advisor to help the bank manage market exposures contained in separate account BOLI portfolio.
  • Establishment of asset allocation framework to help maximize economic performance of portfolio given tax-preferred nature of insurance vehicle in highly bank-regulated context.
  • Risk metric reporting of current securities holdings within separate account.
  • Commentary and independent assessment of current manager performance, including alternative divisions.

Our comprehensive BOLI Administration and Reporting process includes the monthly policy detail necessary for financial accounting and regulatory reporting of BOLI assets. In addition to the monthly policy detail reporting, Van Epps LLC's BOLI Administration Services include ongoing review and additional reporting as follows:

Monthly Reporting
  • Requested business day summary report of monthly results
  • Detail of all securities held in the investment division by the 25th business day
Quarterly Reporting
  • Investment advisor updates
  • Social Security death claim audit
  • Risk-based capital reporting
  • Peer analysis of BOLI holdings
  • Stable Value Crediting Rate attribution analysis
Annual Reporting
  • Financial projections for budgeting
  • Annual review with investment advisors
  • Annual policy performance review
  • Credit exposure as a percentage of Tier 1 Capital
  • Update OCC 2004-56 benefit financing analysis for regulatory compliance
  • Maintain and update census database with current cash surrender value, death benefit and status information

Other reporting services offered include: Carrier credit ratings and financial strength, Yield and expense variance analysis, Stable value credit rate forecasting, Reallocation analysis, Global asset allocation reports, Consolidation of life of plan results for OCC compliance, and Transaction re-documentation.

Risk Management

Risk can come from uncertainty in financial markets. Our team manages this risk by continuously monitoring the market, BOLI contracts and the credit worthiness of insurance carriers.

Van Epps LLC provides in-depth reports and analyses to assist our bank clients in developing and maintaining processes and procedures in order to comply with regulatory compliance issues. A sample of the various types of reports and analyses provided are below:

  • Carrier ratings review
  • Market / book value reporting & audits
  • Portfolio stress testing
  • Regulatory compliance support
  • Capital allocation support
  • Reallocation analysis
  • Advanced strategy planning
Transition Administration

We are knowledgeable and efficient regarding the takeover of BOLI contract plan administration. During their active M&A period, Van Epps LLC assisted acquirers of banks with BOLI assets in the transition and consolidation of all financial reporting and policy administration. The process required the Van Epps LLC team to become familiar with every BOLI contract in the market and the carriers supporting the policies. The result of all of this activity involves Van Epps LLC managing 500 different BOLI tranches issued by more than 60 carriers dating back to 1980.

  • Establish data transition protocol with carriers
  • Set month-end cut off dates
  • Establish inter-month claim processing standards
  • Provide data formatting and integration into master reporting system
  • Manage errors proactively
  • Establish tolerance factors

Van Epps LLC has transitioned major blocks of BOLI contracts in 30 to 60 days without interruption or impact on the integrity of a client’s monthly reporting.

As the largest nationwide administrator of BOLI insureds, we have developed a custom system to manage the claim process down to county-level vital records offices.
  • Through the process, maintaining confidentiality is our primary concern including communication between carriers.
  • Our processes include a weekly sweep of all of the insureds we manage to determine if claims have occurred.
  • We check death events utilizing a Master Death File comprised of millions of deceased individuals compiled from numerous sources.
  • Our sources update data weekly and contain records from the Social Security Administration (SSA), state and federal agencies, and other proprietary death data searches.
  • We were instrumental in developing the single certificate death claim process that is embraced by the BOLI community.
  • Once claims are paid, we audit the claim proceeds, including interest proceeds, to ensure the amounts are in accordance with the policy and state requirements for the payment of interest.
  • We offer death claim management services to any institution seeking a reliable firm with secure systems to handle the death claim payment process.
Admin System

The infrastructure of our system was built to provide invaluable and efficient benefits for our clients. The key advantages of our system include:

  • Our proprietary system was designed to provide clients with the option to allow monthly or daily valuations in participants’ accounts. Van Epps LLC ’s system tracks stocks, bonds, mutual funds, dividends and the net asset value reflected in participants’ accounts.
  • The system receives two feeds from Bloomberg each day as well as daily feeds from multiple insurance carriers providing proprietary mutual fund information.
  • All data in our system is Section 409A compliant, which allows us to communicate easily with clients or participants in response to questions about a plan, payment, change form, etc.
  • System capabilities allow for transmission of daily payment files to payroll processors.
Asset Liability Management
  • We review and rebalance assets and liabilities on a monthly basis to help clients hedge their accounts.
  • Van Epps LLC processes the forms necessary to rebalance accounts with insurance carriers, and follows up to ensure that the request is completed.
  • Liabilities can be forecasted at any time within our system for client use.
Customer Service Call Center

Van Epps LLC is committed to putting your interests first and that means providing quick and easy access to the information you need, when you need it.

  • Our professional and knowledgeable staff is available Monday through Friday, 8:00am – 5:00pm EST to answer calls or respond to email messages from clients and participants.
  • Our professional call center staff has over 100 combined years of industry knowledge and experience.
  • Using our state-of-the-art proprietary system, we’re able to provide our clients with the most accurate and timely information.
Death Sweeps

In addition to sweeping insureds in BOLI policies, we also sweep and notify our clients of any deaths of participants in their Executive Benefit plans.

  • Since 2011, we have filed over 4,000 claims with more than 20 insurance carriers.
  • Death sweep files are processed from our Insured Management System™ weekly to ensure that clients receive accurate and up-to-date information.
  • We assist in processing all death claims. Death certificates are ordered and forms are completed and mailed to insurance carriers. Our process ensures that clients are paid the appropriate amounts in a timely manner.
  • We monitor and notify clients of any outstanding liability accounts that may need attention due to a death (e.g., starting or stopping payments, contacting the deceased’s family, sending condolence letters, etc.).
  • We monitor participants’ statuses for banks’ pension payments.
  • We have the ability to access national address records and obituary sweeps to assist our client with processing death claims accurately and efficiently.
Information Security

At Van Epps LLC, protection of our clients' data is a high priority. We utilize our Information Technology policies and procedures to enforce security and data protection to all areas of our business. We have implemented several tools to ensure our client data is protected. These layers of protection include the following:

  • We use Secure Socket Layer (SSL) technology to ensure the privacy of the client and participants. SSL technology encrypts information so that it is unreadable to others.
  • We are SSAE 16 SOC 2 compliant.
  • We complete incremental daily and full monthly system backups to ensure data is secure.
  • We perform monthly vulnerability scans and annual penetration tests on our system.

Executive Benefit Administration includes the following reporting services for our clients:

  • Monthly, quarterly or annual statements are sent to clients within 30 days of the end of the reporting period.
  • A master client calendar is maintained, reviewed, and updated as needed on a monthly basis to ensure that all client deadlines are met.
  • Assets and liabilities are reported on a monthly basis, and more often if needed.
  • Ad hoc report requests are always welcome. Data is typically delivered to the client within 24 hours.
Transition We are knowledgeable and efficient regarding the takeover of plan administration, having smoothly transitioned hundreds of plans and thousands of participants to our system with little or no disruption.

  • Deferred Compensation Plans
  • Supplemental Executive Retirement Plans
  • Restricted Stock Unit Plans
  • Mirror 401K Plans
  • Director Deferral Plans
  • Charitable Award Plans
  • Stock Incentive Plans
  • Benefit Restoration Plans
  • Split-Dollar Insurance Plans
  • COLI Policy Administration and Restoration Plans

Our highly-trained staff is available to answer any client and participant questions. In addition, our services are tailored to meet the specific needs of each individual client.

About our Company

Since 1994, Van Epps LLC has provided full disclosure client-side advisory services. Services include pre-purchase review, regulatory compliance support, placement and implementation services and ongoing administration and risk management.

Van Epps LLC was built on the foundation of creative and innovative solutions, demonstrable long‐term results, and consistent client service. We deliver expert and comprehensive insurance advisory services to the banking industry

Contact Info

10930 Crabapple Road
Suite 206
Roswell, GA 30075

Phone: 770-777-2866
Fax: 770-777-2644