Five life insurance industry organizations have joined to combat what they say is a mischaracterization of corporate-owned life insurance by Michael Moore in his movie, “Capitalism: A Love Story.”
The documentary includes a small focus on DEAD PEASANT INSURANCE, which has led to additional media reports alleging that business owners are obtaining life insurance policies on their low-level employees without their knowledge.
Nearly two decades ago, some business owners used COLI to obtain broad coverage of low-level workers – “janitor’s insurance” or “dead peasant’s insurance” – not for the insurance benefits, but as a tax shelter.
But the groups say tax laws, implemented in 2006, require employers to take out COLI only on their highly compensated employees after notice and informed consent. That approach, they say in a joint statement, has been a common practice in the industry, despite Moore’s portrayal.
(Since companies are not required to disclose these secret insurance policies, there is no way to disprove what these insurance giants claim in order to continue this disgusting practice and increase the insurance and corporate profits off of dead “peasant” employees. - Chimp)
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