A current 401(K) plan that I presently administer has new employee's who are coming from another 401(K) plan and want to roll over their money along with life insurance policy's that they had from the previous plan. The policy's have been paid in full.

Is it possible to do a trustee to trustee transfer of the life insurance policy's to the new employer's plan?

If the terms of both plans and the policies allow it. The first thing you need to do is be more precise about whether you mean a direct rollover or a plan to plan transfer. There is a difference and the difference may show up in plan terms.

Apart from that, be sure that the receiving plan wants to have life insurance policies. They are not a good idea. I am sure that others will not share that opinion, even some who are not insurance purveyors.