Tuesday, October 06, 2009

Dead Peasant Policy: Amegy's Response

I recently contact Amegy Bank, questioning them about their Dead Peasant Policy.
Below is their response:

I am forwarding this response to Mike Myers, the attorney interviewed in Moore's movie regarding the Dead Peasants Policy

Dear Brian,

Thank you for contacting Amegy Bank. Unfortunately, Michael Moore’s recent movie does not include all relevant facts and therefore we understand why you are concerned. While we do not comment on pending litigation out of fairness to both sides, let us explain more about our Bank Owned Life Insurance program (BOLI).

Amegy acted appropriately and fairly in offering and administering our BOLI plan and we are prepared to support our actions. Amegy, like nearly 85% of banks our size, offered bank owned life insurance to bank employees who were Vice President and above from 1998 to 2005. Participation in Amegy’s BOLI plan is completely voluntary. Amegy’s program enabled participating employees to name beneficiaries of a portion of the policy proceeds.

BOLI is recognized and permitted by all regulatory authorities, including the SEC, OCC and FDIC, and is authorized by Texas statute.

Some companies have been criticized for their BOLI plans because they did not receive consent from their employees and their employees do not share in the death benefits. Amegy’s plan is very different: our plan is voluntary; employees agreed to participate; and each currently-employed or vested participant’s beneficiary receives insurance benefits upon the death of the insured employee.

I hope this helps to clarify our BOLI program and answers your questions. If you have additional questions, please don’t hesitate to contact me.

Alicia Blaszak

Alicia Blaszak

Senior Vice President

Human Resources Director

Amegy Bank of Texas

4400 Post Oak Parkway | 8th Floor | Houston Texas 77027

p: 713.232.1208 | f: 713.693.7504