OLYMPIA, Wash. – State regulators have approved a request from a credit union to provide life insurance to volunteer directors.
“The Washington State Credit Union Act does not prohibit a credit union’s directors or committee members from receiving insurance coverage or incidental services, available to the credit union’s employees generally,” said Linda Jekel, director of credit unions for the state’s Department of Financial Institutions, wrote in a new legal interpretation. “Therefore, we do not object to a (state chartered credit union) purchasing life insurance for its board members or committee members.”
The name of the credit union making the request was blacked out from the legal interpretation.
The state regulator gave the following conditions to buy life insurance for directors: the insurance is reasonable in coverage and amount; the insurance is the same as offered to its employees; and the insurance ceases immediately upon the insured person’s leaving office, except for any residual claims pending at the time the insured person leaves office.
