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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Supervisory Policy and Guidance Topics

Insurance-Related Activities

Insurance transfers the financial effect of fortuitous losses. A financial organization's primary defenses against loss are adequate internal controls and loss mitigation procedures, which insurance is intended to complement, not replace. Banking organization insurance programs include the funding of employee benefits through purchases of corporate- or bank-owned life insurance and the transfer of insurable risks through coverages associated with risk management initiatives. Financial institutions supervised by the Federal Reserve also engage in functionally regulated insurance underwriting activities and insurance sales activities.
Sections on this page:  

Policy Letters

Insurance-Related Activities

SR 11-11/CA 11-5
Supervision of Savings and Loan Holding Companies (SLHCs)
SR 08-9 / CA 08-12
Consolidated Supervision of Bank Holding Companies and the Combined U.S. Operations of Foreign Banking Organizations
SR 05-4
Interagency Advisory on the Confidentiality of Nonpublic Supervisory Information
SR 04-19
Interagency Statement on the Purchase and Risk Management of Life Insurance
SR 04-4
Accounting for Deferred Compensation Agreements
SR 00-13 (SUP)
Framework for Financial Holding Company Supervision
SR 97-25 (SUP)
Risk-Focused Framework for the Supervision of Community Banks
SR 97-24 (SUP)
Risk-Focused Framework for Supervision of Large Complex Institutions
SR 95-46 (SPE)
Interpretation of Interagency Statement on Retail Sales of Nondeposit Investment Products
SR 94-34 (FIS)
Examination Procedures for Retail Sales of Nondeposit Investment Products
SR 94-23 (FIS)
Split-Dollar Life Insurance at State Member Banks
SR 94-11 (FIS)
Interagency Statement on Retail Sales of Nondeposit Investment Products
SR 93-37 (FIS)
Split-Dollar Life Insurance
 

Manual References

  • Bank Holding Company Supervision Manual
    • Section 2010.6, "Supervision of Subsidiaries (Financial Institution Subsidiary Retail Sales of Nondeposit Investment Products)"
    • Section 3170.0, "Section 4(c)(8) of the BHC Act (Insurance Agency Activities of Bank Holding Companies)"
    • Section 3180.0, "Section 4(c)(8) of the BHC Act (Insurance Underwriters)"
    • Section 3905.0, "Permissible Activities for FHCs (Section 4(k) of the BHC Act)"
    • Section 3950.0, "Insurance Sales Activities and Consumer Protection in Sales of Insurance (Sections 4(k) and 4(c)(8) of the BHC Act)"
  • Commercial Bank Examination Manual
    • Sections 4040.1, "Management of Insurable Risks"
    • Sections 4042.1, "Purchase and Risk Management of Life Insurance"
    • Sections 4043.1, "Insurance Sales Activities and Consumer Protection in Sales of Insurance"
    • Sections 4170.1, "Retail Sales of Nondeposit Investment Products"
Last update: August 2, 2013