1. INSURANCE OF ACCOUNTS

2. Overview NCUA and NCUSIF Dollar Coverage Credit Union Records
Insurance Classifications
Non Personal
Personal

3. NCUA AND NCUSIF
The National Credit Union Administration (NCUA) is an independent agency of the U.S. Government and regulator of credit unions
The National Credit Union Share Insurance Fund (NCUSIF) was established in 1970 and insures the deposit funds of member credit unions

4. Insurance Dollar Coverage
Coverage is based on the account ownership
Ownership categories are defined by NCUSIF
Generally limited to a maximum of $100,000 in each ownership classification

5. Credit Union Records
NCUSIF assumes that funds are owned as shown by the credit union’s records
Records it considers
Signature cards
Certificates
Corporate Resolutions
Certain computer records

6. Non-Personal Classifications
Corporate, Partnerships and Unincorporated Associations
Independent Activity
Definition of an Unincorporated Association
Public Unit
Employee Benefit Plans

7. Personal Classifications
Single Ownership
Individual Accounts
Individual Accounts with POA
Sole Proprietorship Accounts
Decedent Estate Accounts
Accounts held by Agents, Guardians Custodians or other Fiduciaries
Accounts established in another ownership category that do not meet technical requirements for that category
Probably Health Savings Accounts

8. Personal Classifications (Cont.)
Joint Accounts
Types of joint accounts
JTWROS
Tenancy in common
Community Property
Fiduciary Accounts held jointly for two or more persons

9. Personal Classifications (cont.)
Joint Ownership Requirements
Signature card
All joint owner must sign the card
All joint owners must have equal withdrawal rights
All joint owners must be natural persons
Failure to create a Joint Ownership Account
Each owner’s interest is added to the owner’s single ownership account

10. Joint Insurance Calculation
Account Number
Account Owner
Account Balance
A Interest
B Interest
C Interest #1
A and B
$160,000
$80,000 $0 #2
A and C
$ 50,000
$25,000
Total
$210,000
$105,000
$5,000 uninsured

11. Payable on Death and Revocable Trust Accounts
Trust must be revocable – grantor must be able to change or cancel it at any time
Beneficiary must be spouse, child, grandchild, parent, brother or sister of owner

12. IRA ACCOUNTS Traditional, Roth and SEPs
IRA accounts are separately insured from other accounts a depositor may have. All of an individual’s deposits of Traditional, Roth and SEPs IRAs are added together and insured up to $100,000.

13. IRREVOCABLE TRUSTS
An irrevocable trust is a trust for which the owner(grantor) does not reserve the right to change or revoke the trust agreement.
Coverdell Educational Savings Accounts insured as irrevocable trust
Beneficiary is insured up to $100,000 for each owner(grantor) – no relationship requirement for the beneficiary to the grantor
Trust be valid under state law
Credit union records must disclose the existence of the trust

14. SAMPLE INSURANCE OF ACCOUNT CALCULATIONS