Compliance Question of the Week

Can a credit union provide life insurance for its board members?

It depends on whether the credit union is state or federally chartered and what state the charter is under.

Federal credit unions are prohibited from providing life insurance for their board members per 12 CFR 701.33.

Oregon state chartered credit unions may provide “reasonable life, health, accident and similar insurance protection for a director or committee member,” per ORS 723.266.

Washington state chartered credit unions may provide “insurance coverage or incidental services, available to employees generally,” per RCW 31.12.365. This does include health, accident, and related types of personal insurance per the 1999 Interpretive Letter. Conversations with the director confirm this includes life insurance.

Idaho state chartered credit unions are limited to providing only “group hospitalization and group health and accident insurance for the directors.”

Related Links
12 CFR 701.33
ORS 723.266
RCW 31.12.365
O-99-1
Idaho Statute 26-2122
 

 

Questions or Concerns? Contact Matt Halvorson, Anthem Editor: mhalvorson@nwcua.org.

Posted in Compliance.