A more thorough explanation:

COLI stands for corporate-owned life insurance. It is a type of life insurance policy that a company buys on an employee's life, with the company as the beneficiary.

For example, if a company buys a COLI policy on an employee named John, and John dies, the company will receive the death benefit payout from the insurance company.

COLI is often used by companies to provide a tax-free source of funding for employee benefits or to recover the costs of employee compensation and benefits.