EOLI compliance encompasses the federal and state rules governing employer-owned life insurance: obtaining written notice and consent before issue, covering eligible employees, maintaining policy and consent records, and filing Form 8925 annually. Noncompliance can jeopardize tax treatment of death benefits. Advisors coordinate documentation, confirm business purpose, and ensure policy amounts are reasonable relative to the employee's role.

Operations teams maintain a consent repository, file Form 8925 annually, and verify that only eligible employees are covered. Periodic audits confirm that policy amounts are tied to legitimate business interests. Advisors educate HR and finance staff to avoid inadvertent noncompliance that could imperil tax-free death proceeds.