11. Bank-Owned Life Insurance
The Company has two fully-funded general account life insurance policies on certain members of its leadership team. The Company paid all premiums on these policies during 2013 and is the sole beneficiary. Each policy was funded with a premium of $5.0 million paid to AA+ rated insurance companies. The policies are reflected in the Consolidated Balance Sheets at the cash surrender value of $10.0 million at December 31, 2013.
In addition, the Company has fully-funded life insurance policies on two former members of executive management who are now retired from the Company. At both December 31, 2013 and 2012, the cash surrender value of these policies totaled $1.6 million.