Bill Gives New York CUs New Source Of Deposits
ALBANY, N.Y. – Gov. Patterson signed into law a bill that allows insurance companies to deposit funds in credit unions.
Non-life insurance companies now are able to invest up to $250,000 in share certificates with credit unions where they are eligible for membership through this legislation. This law reverses a ruling of the New York State Insurance Department that prohibited insurance companies from investing in credit union share certificates.
“This new law enables insurance companies across New York State to have greater choice with their investments,” Ellen Melchionni, president of the New York Insurance Association said. “This is a perfect example of how easing regulatory limitations can benefit small businesses.”
“I am able to better diversify Community Mutual’s investment portfolio and maximize return on investment now that my company has the ability to deposit funds in credit unions,” Thomas White, president of Community Mutual Insurance Company said. “I advocated for this change so my company can have as many options as possible when determining how to best invest our policyholders’ money. It makes particular sense for credit unions and mutual insurance companies to be allowed to partner since both are driven by the individuals the organization serves.