You asked whether Connecticut regulates so-called corporate owned life insurance (COLI) transactions, i. e. the purchase of life insurance covering "rank and file" employees by corporate employers.

Yes, Connecticut regulates COLI transactions. Administratively, the Insurance Department sets two conditions on the approval of COLI filings. First, employees covered by the policy must give their consent. Second, the insurance must end when the employee's employment ends whether through retirement, resignation, or termination, unless the employer has a continuing financial obligation to the employee like the payment of vested retirement or medical benefits.

Unlike executive life insurance where the company only buys insurance on the lives of senior managers, COLI covers rank and file employees. The company is the policy owner, premium payer, and beneficiary.

JH: ro