CHEVY CHASE, MD--(Marketwire - February 10, 2010) - Companies should give their corporate-owned life insurance (COLI) policies a rigorous stress test, Vernon W. Holleman, III, president of The Holleman Companies writes in the National Underwriter.

The stress test should cover the insurance company's financial strength, policy returns (cash value), internal costs/contract flexibility, and legislation risk, Holleman writes.

Companies buy life insurance as a nonqualified benefit to help attract, retain, and reward key executives and professionals. Some have a big investment in insurance policies.

"Companies want to understand the flexibility they have in insurance funding arrangements," he writes. "Are the products they have flexible regarding premium payments or face-amount changes? Could a face-amount reduction increase policy efficiency by reducing frictional mortality and expense costs? What are the crediting rates or dividend rates from their universal life or whole life contracts? How are those different from a year ago? What are the variable sub-account options they can choose from?"

Companies also need to be aware if their policies are vulnerable to legislation that would impose new taxes on them.

The full article can be read at

Life Insurance Audits Now Available

Because stress-testing takes special expertise, The Holleman Companies now offers audits on life-insurance policies owned by trusts, individuals and companies.

The service provides a full audit of the policy, plus current market benchmarking. Fees range from $650 to $1,250 per policy depending on the complexity of the work. The firm guarantees the service and offers bulk discounts for multiple policy audits.

For more information, contact Connie Golleher at or 301-656-8689 ext. 305.

The Holleman Companies, Chevy Chase, MD, is a specialized insurance advisory firm focused exclusively on business continuity, executive benefits and insurance advisory, including charitable giving. More information is online at or by contacting the firm at or 301-656-8689.

Contact Information: Contact: Henry Stimpson Stimpson Communications 508-647-0705