Question about Corporate life insurance (Dead Peasants)?

I became interested on corporate life insurance (Dead peasants) after watching Michael Moore's movie "Capitalism: a Love Story". I read up on corporate life insurance and how it was changed in the Pension Protection Act of 2006. But I am confused on how the requirements work. Does the corporation have to only notify the employee if they want it to be tax-free or if does it have to notify the employee regardless?