Private Deposit Insurance MakesTexas-Sized Comeback
AUSTIN, Texas - (06/12/06) Private deposit insurance forcredit unions made a comeback in the Lone Star State Friday whenthe Texas CU Commission approved an application from ASI to privatecoverage for state chartered credit unions. The comeback was a longtime in coming since the state folded up its private insurer, knownas Texas Share Guaranty, in 1992, after the failure of Rhode IslandShare and Deposit Indemnity Corp. caused public confidence inprivate insurance to plummet. The Texas fund was one of a dozenprivate credit union insurers to fold in the wake of the RISDICcrises. But the Texas Commission, which barred all but federalinsurance under NCUSIF at the time, opened the door in 1999 when itadopted rules to provide an option to federal insurance. Dublin,Ohio-based ASI, which is the only surviving competitor to federaldeposit insurance, currently insures primary shares (up to$100,000) in eight states, and excess shares (over $100,000 peraccount) in 32 states.