Case 30: Dead Peasant Life Insurance Policies
1. What are the major ethical issues involved in this case? Is it ethical for an employer to benefit
from the death of an employee if they took out and paid for the policy?
The major ethical issue regards an employer having the ability to take out a corporate-owned life
2. How does the idea that these policies help to fund executive compensation and/or retiree
benefits affect your answer to #1?
3.
administration and use of these types of COLI policies? Should states be pressured to conform to
4. What are other ways that federal and state governments could encourage businesses to avoid
these COLI policies?