NCUA To Allow Self-Insurance For LargeReg-Flex CUs

ALEXANDRIA, Va. - (10/21/05) -- The NCUA Board Thursday, with itsonly sitting member Chairman JoAnn Johnson, approved a new ruleallowing large well-run credit unions that qualify for Reg-Flex toincrease the deductible on their fidelity bonds to as much as $1million--effectively allowing them to self-insure for the first $1million of losses. The new rule increases the maximum requireddeductible, on a sliding scale, for all credit unions over $1million in assets that qualify as well-managed under the agency'sregulatory flexibility, or Reg-Flex program. So for credit unionsunder $100,000 no deductible is required; for those between$100,000 and $250,000 a $1,000 deductible is required; for thosebetween $250,000 and $1 million a $2,000 deductible is required.For credit unions over $1 billion in assets, a deductible of $1million is required.