objective
By the end of this brief course you will be able to definewhat deposit insurance is, as well identify the types ofinsurances that back Credit Union deposits in the UnitedStates. You will also be able to identify which insurancetype covers SF Fire Credit Union accounts as well what ourcoverage limits are.
August 10 2
What is
Deposit
Insurance?
Deposit insurance is the primary way to guarantee
the security of a depositor's money
August 10 3
Are there
different
types of
Deposit
Insurance?
YES!Federal (NCUSIF)
Private (ASI)
National Credit Union Share Insurance Fund
American Share Insurance
August 10 4
Differences: NCUSIF vs. ASI
NCUSIF (Federal)
• National Credit Union Administration (NCUA*)
• Is backed by the full faith and credit of the United States government
ASI (Private)• ASI is a private not-
for-profit corporation
• Member-owned, share guaranty corporation.
August 10 5
* National Credit Union Administration-is the United States independent federal agency that supervises and charters federal credit unions.
Differences: NCUSIF vs. ASI
NCUSIF (Federal)
• Regulated by the Federal Government
ASI (Private)
• Dual-regulated by the Ohio Department of Insurance and the Ohio Department of Commerce
August 10 6
Differences: NCUSIF vs. ASI
NCUSIF (Federal)
• Customer deposits are insured per individual person (account holder) up to $250,000
• Total $250,000 for allaccounts
ASI (Private)• Member deposits are insured
by primary coverage per individual account up to $250,000.
• Option for supplemental coverage of $250,000*
• Total $500,000 for eachaccount
August 10 7
Differences: NCUSIF vs. ASI
NCUSIF (Federal)
• By law the NCUA must insure all credit unions unless the choose to opt out.
ASI (Private)
• Selective as to who it insures. Not all Credit Unions that apply for coverage are accepted due to ASI’s strict underwriting standards
August 10 8
Differences: NCUSIF vs. ASI
NCUSIF (Federal)
• Taxpayer money may be used for bailouts
ASI (Private)• No taxpayer money
used for bailouts. All monies come from participating credit unions
August 10 9
Accounts
August 10 11
A Case Study
• $250,000 - Checking
• $100,000 - Savings
• $275,000 - 6-month Term Certificate
• $450,000 - 1-yr Term Certificate
• $125,000 - Money MarketASI- Primary + Supplemental
ASI- Primary
NCUSIF
Federal (NCUSIF)
* Individual account owner/single institution
Nayda Mbeki
• $250,000 - Checking
• $100,000 - Savings
• $275,000 - 6-month Term Certificate
• $450,000 - 1-yr Term Certificate
• $125,000 - Money Market
Total $1,250,000 Total Coverage:$250,000
August 10 12
ASI (primary)
* $25,000 of this amount would NOT be covered
Corbin Gedecki
• $250,000 - Checking
• $100,000 - Savings
• $275,000* - 6-month Term Certificate
• $450,000^ - 1-yr Term Certificate
• $125,000 - Money Market
Total $1,250,000 Total Coverage: $1, 025,000
August 10 13
^ $200,000 of this amount would NOT be covered
ASI (primary + supplemental)
Benjii Pineheiro
• $250,000 - Checking
• $100,000 - Savings
• $275,000 - 6-month Term Certificate
• $450,000 - 1-yr Term Certificate
• $125,000 - Money Market
Total $1,250,000 Total Coverage: $1, 250,000
August 10 14
American Share Insurance Dublin, OH
Established in 1974
Owned by Credit Unions and only insures Credit Unions*
Largest non-federal insurer of credit union deposits
* Currently, over 1.5 million individual consumers belong to Credit Unions insured by ASI
August 10 16
American Share Insurance Dublin, OH
ASI is safe and sound. It has an equity
ratio^ of 1.49%*
ASI does not hold any collateralized mortgage obligations (CMOs) Largest non-federal insurer of credit union deposits
* By contrast the NCUA has an equity ration of 1.3%
August 1017
^ Equity Ratio = Owners Equity/Total Assets
American Share Insurance Dublin, OH
Is dual-regulated by the Ohio Department of Insurance and Commerce.
ASI’s insured Credit Unions hold little or no sub-prime mortgages
ASI is selective as to who it insures. Not all Credit Unions that apply for coverage are accepted due to ASI’s strict underwriting standards
August 10 18
American Share Insurance
Each and every SF Fire Credit Union
account of an individual member up to $500,000 without limitation to the number or nature of accounts held
$250,000 (primary insurance)
$250,00 (supplemental)
Remember!
August 10 19
American Share Insurance
If you wish more information you can
call ASI at 800.521.6342, or;
Email: [email protected]
Website: www.americanshare.com
How can I
contact
them?
August 10 20