INSURANCE OF ACCOUNTS - PowerPoint PPT Presentation

JasminFlorian
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INSURANCE OF ACCOUNTS

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  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

  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