Bank related death? Slain MassMutual executive had access to sensitive data on Bank-Owned Life Insurance policies

According to the coroner's report, it was determined that Millan's death was attributable to a stab wound to the chest with an "edged weapon." Police ruled the death a homicide, a rarity for this town where residents feel safe enough to routinely jog by themselves on the same path used by Millan.

Information has now emerged that Millan had access to highly sensitive data on bank profits resulting from the collection of life insurance proceeds from her insurance company employer on the death of bank workers - data that a Federal regulator of banks has characterized as "trade secrets."

Millan was a Senior Vice President with Massachusetts Mutual Life Insurance Company (MassMutual) headquartered in Springfield, Massachusetts and a member of its 39-member Senior Management team according to the company's 2013 annual report. Millan had been with the company since 2001.

According to Millan's LinkedIn profile, her work involved the "General management of BOLI" and Executive Group Life, as well as disability insurance businesses and "expansion into worksite and voluntary benefits market."

BOLI is shorthand for Bank-Owned Life Insurance, a controversial practice where banks purchase bulk life insurance on the lives of their workers. The death benefit pays to the bank instead of to the family of the deceased. According to industry publications, MassMutual is considered one of the top ten sellers of BOLI in the United States. Its annual reports in recent years have indicated that growth in this area was a significant contributor to its revenue growth.

Banks as well as other types of corporations enjoy major tax benefits through the use of this type of insurance. The cash buildup in the policies contribute to annual earnings on a tax-free basis while the death benefit is received free of Federal income tax when the employee eventually dies. Even if the worker is no longer employed at the bank, it can still collect the death benefit. Banks owning BOLI routinely conduct "death sweeps" of public records using former employees' Social Security numbers to determine if a former employee has died. It then submits a claim request for payment of the death benefit to the insurance company.

Four of Wall Street's largest banks are the largest owners of BOLI according to December 31, 2013 data from the Federal Financial Institutions Examination Council (FFIEC), holding a combined total of $68.1 billion. The four banks' individual BOLI assets are as follows as of the end of last year:

Bank of America $22.7 billion

Wells Fargo 18.7 billion

JPMorgan Chase 17.9 billion

Citigroup 8.8 billion

The BOLI , however, support a far greater amount of life insurance in force on the workers' lives - potentially as much as a ten to one ratio - meaning that just these four banks could be holding $681 billion on the lives of their current and past employees.

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