Agency wants to continue requiring credit unions to advertise excess deposit insurance coverage

A requirement that federally insured credit unions must advertise any deposit or savings account insurance they have in excess of federal insurance would be extended under filings made by the federal credit union regulator Wednesday.

In a notice scheduled to be published in the Federal Register Thursday, the National Credit Union Administration (NCUA) said the advertising – essentially, a disclosure statement – must include the identity of the carrier of the excess deposit insurance, the type and amount of such insurance and must “avoid any statement or implication that the carrier is affiliated with NCUA or the federal government.”

Only credit unions that have the excess insurance – typically for amounts of deposits above the ceiling covered by federal insurance – must produce the advertisements.

According to NCUA, the disclosure requirements are necessary “to ensure that share account holders are aware that their accounts are insured by carriers other than the NCUA.”

The agency is seeking comments on the proposed extension of the existing advertising requirement for 60 days.

Agency Information Collection Activities: Proposed Collection; Comment Request; Advertising of Excess Insurance