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Primary Insurance

Primary Share Insurance

Every credit union must insure its members’ deposit accounts against loss. While NCUA is both the insurer and regulator of federally chartered credit unions, the agency was never empowered to be that with respect to the state charters it insures. With American Share, a state-chartered credit union gains the primary share insurance that members deserve, without the regulatory duplicity and burden that NCUA imposes upon state-licensed and state-regulated credit unions.

More Coverage

When you get your members’ deposits insured through American Share, more of their money is protected. Generally, NCUA only covers $250,000 per member, meaning a portion of your members’ money may be left uninsured.

American Share covers $250,000 per account, with no limit to the number of accounts a member can have with your credit union.

A circular graphic with the following within the graphic: $250,000 Per Account

NCUA’s coverage only protects up to $250,000 of a member’s total basic deposits. If members have high balances in more than one account, that could add up to a lot of unprotected deposits.

American Share covers up to $250,000 per account, with no limit to the number of accounts of an individual member that can be insured. This example of a single member with 6 accounts shows how much difference more coverage can make.
a complex table detailing the amount of deposit insurance provided by a credit union using American Share’s primary deposit insurance, versus the amount of coverage delivered by the National Credit Union Association’s deposit insurance. For more information on how these two programs differ, please contact American Share Insurance at 800-521-6342.

Proven Performance

  • American Share’s equity ratio—a measure of loss-paying capacity—is greater than that reported by NCUA.
  • Over 92% of American Share’s assets are held in cash and US government-guaranteed bonds and US Treasury securities.
  • American Share does not hold the types of investments that plagued many financial institutions and investment firms in recent years.
  • Our cooperative approach to examinations focuses on safety and soundness to maintain the financial integrity of our member credit unions.
  • No credit union member has ever lost money in an American Share-insured credit union account.

Converting to American Share

Interested in converting your state-chartered credit union to American Share’s primary insurance, or your federally chartered credit union to a state charter and American Share? Below is an overview of the process that NCUA requires you to follow:

  1. Your credit union board must vote to convert to American Share.
  2. American Share then conducts a no-charge, onsite examination to confirm insurability (federally chartered credit unions also need to apply for state chartering from their state credit union authority).
  3. Your credit union then follows the prescribed rules governing the conversion of share insurance, including:
    • Notifying NCUA of your intent to convert
    • Soliciting a vote of your membership over a 30-day period
    • Confirming the results of the vote in order to finish the process

When you convert to American Share, our professional staff provides support and assistance every step of the way to help minimize the cost of regulatory burden imposed under federal regulation, resulting in a successful vote every time.

Ready to get started or have questions? Complete the form below to get more information or to schedule a meeting with American Share and your management team and/or board.

A quote from Karla Salisbury, President and CEO of KEMBA Indianapolis Credit Union in Indianapolis, Indiana