Sunday Oregonian, April 28, 2002, "Dead Peasants May Return to Haunt PGE": "Dead peasants are corporate-owned life insurance policies that companies – from Walt Disney to Nestle to Portland General Electric – take out on their own employees while designating the corporation as the beneficiary. That delightful epithet, The Wall Street Journal notes, originated in a 1996 memo from one of Winn-Dixie's insurance consultants, who barked, 'I want a summary sheet that has ... the Dead Peasants in the third column.'"
National Law Journal, February 2, 2009: "Bank of America Corp. officials issued a statement acknowledging that the company uses BOLI policies and asserting that they are legal. 'The bank does have this type of insurance in place. It is a legitimate business practice used by many companies. And, like many companies, Bank of America uses this insurance to help defray the cost of employee benefits,' said Bank of America spokesperson Shirley Norton. She would elaborate no further."
Wall Street Journal, April 19, 2002: "Wal-Mart Stores Inc. took out COLI [Corporate Owned Life Insurance] on about 350,000 of its workers in the 1990s, offering $5,000 in life insurance to those who agreed to be covered. Only 500 asked to be excluded, a spokesman says. The brochure that Wal-Mart gave to employees noted that the company would provide the benefits 'as a result of financial gains from life insurance policies Wal-Mart will purchase ... [that] will result in the financial benefits for the corporation.' But the brochure didn't make it clear that the company expected to receive a benefit far outstripping the death benefit it offered workers. 'We could have communicated more,' a Wal-Mart spokesman says now. In 1998, the company canceled the $5,000 benefit for workers ... Wal-Mart says that it ended its janitors coverage by January 2000, and that it no longer receives death benefits when employees or former employees die. The company says it 'has substantially resolved' all COLI-related issues with the IRS. 'We were looking to reduce our corporate income taxes,' the spokesman says. 'That's really why we did it. ... It was a tax strategy that didn't work out as expected.'"
Houston Chronicle, June 7, 2002, "Dow Chemical Is Accused of 'Dead Peasant' Insurance": "Several other companies -- including Camelot Music, Winn-Dixie and American Electric Power -- also sued the IRS over the issue of deductions. In those cases, the IRS successfully proved the expenses were made solely to avoid federal income tax liability."
Wall Street Journal, April 19, 2002: "Valued Employees: Worker Dies, Firm Profits; Why? Many Companies Insure Staff, Yielding Benefits On Taxes, Bottom Line; Where to Put Dead Peasants"
National Law Journal, February 2, 2009: "[John] Failla [a partner in the litigation group and insurance recovery practice at New York's Proskauer Rose,] who advises business policy holders on insurance matters, noted that, despite all the litigation surrounding COLI policies, they're still wildly popular, accounting for more than 20% of life insurance policies written every year. 'Look, COLI is a very, very active market," Failla said, "I think it's fair to say that they're writing billions of dollars a year of face amounts ... I think the statistics I've seen suggest that, even now, a quarter or more of the largest companies have COLI programs.'"