AL 95-2
Subject:  Bank Purchases of Life Insurance

TO:  Chief Executive Officers of all National Banks, OCC Department and 
     Division Heads, and all Examining Personnel

PURPOSE

This advisory communicates the OCC's concern that some vendors, individuals or 
firms who market life insurance programs, may be misleading banks. 

BACKGROUND

The OCC is aware of several instances in which vendors have marketed bank-owned 
life insurance products and programs as "OCC Approved."  Such representations 
are untrue and unauthorized.  The agency has not approved bank-owned life 
insurance products or programs offered by any vendor.  As a matter of policy, 
the OCC does not endorse the products or programs of specific vendors.

Each purchase or acquisition of a beneficial ownership of life insurance by 
a national bank must be evaluated on a case by case basis.  Each individual 
transaction must comply with Banking Circular 249, Bank Purchases of Life 
Insurance (Rev.).  

QUESTIONS

Questions concerning this advisory should be directed to the Credit and 
Management Policy Division of the Chief National Bank Examiner's Office at 
(202) 874-5170.



                                     
Jimmy F. Barton
Chief National Bank Examiner
Date: February 9, 1995