CU Insurers Seeks To Spread Its Wings

- WESTBOROUGH, Mass. (09/27/00) - MassachusettsShare Insurance Corp. (MSIC), one of two entities providing excessdeposit insurance for credit unions, has asked state authorities toexpand its charter to provide excess insurance outside the BayState. A bill to allow the move died in the state legislature butlawmakers agreed to appoint a commission to study the matter, whichis expected to be revisited next year. The insurer, which holds $44million in capital, had provided basis insurance, coverage up to$100,000 per account, but wound down that business in the early1990's amid the panic over private deposit insurance spurred by thefailure of Rhode Island Share and Deposit Indemnity Corp. (RISDIC).John Buddle, MSIC president, told The Credit Union Journal, theynow provdie excess coverage for 100 Massachusetts credit unions buthave had numerous requests from out of state credit unions, whothey are prohibited from covering under their currentcharter.