SAN FRANCISCO -- States that bar banks from selling retail insurance products should reconsider their position, the top of the nation's insurance commissioners association said at a conference here in the week.
It is "unfair for a few groups" to dictate what banks should do, said David J. The National Association of Insurance Commissioners' president is Walsh.
"I think we always got to check out distribution systems to define what's best," he told bankers and insurance industry executives gathered for the autumn conference of the Financial Institutions Insurance Association.
What Is a Financial Institution Covered by the FDIC?
Financial institutions that are covered by the Federal Deposit Insurance Corporation are referred to as FDIC insured institutions. This implies that in the case of a bank failure, the FDIC will protect a depositor's funds in the bank. The FDIC insures each individual up to $250,000 in value. The FDIC is supported through fees imposed on participating banks. It is not public funds.
How Can I Determine if a Business Is FDIC Insured?
You can contact the FDIC at 1-877-275-3342 or utilise its Bank Find website to learn if a business is FDIC insured. You might also contact the particular institution directly.
Which Banks Are Exempt From FDIC Insurance?
Credit unions are not covered by the FDIC. The National Credit Union Administration (NCUA) provides insurance to credit unions. They are covered by the same $250k FDIC insurance that covers bank accounts.
A financial institution that is protected by deposit insurance is referred to as such. In the US, the FDIC covers bank deposits up to $250,000 per person while the NCUA insures credit union accounts up to $250,000. This makes sure that customers' money is safe in the event that the bank holding their funds declares bankruptcy or is unable to uphold its duties to depositors.
Mr. Walsh's words have clout because the state insurance commissioners in his association are liable for setting policy and completing laws associated with banks' sales of insurance products, like annuities and life assurance.
States like Florida, where commissioner Tom Gallagher may be a member of the insurance commissioners group, have long held that banks haven't any business selling products that independent insurance agents are marketing.
But Mr. Walsh, who is Alaska's insurance commissioner, took a gentler stance, suggesting "a middle ground," where banks may play a task.
He addressed attendees of the conference, "There must be a big check out distribution systems up and down the organic phenomena.
State insurance commissioners who do not feel this manner will likely come around, he added. They'll be able to see the right path laid out clearly.
Mr. Walsh said that he wasn't simply playing to his audience of bankers, but that he has also made his position known to members of his association.
The comments drew mixed reactions at the conference, with some bankers grumbling that Mr. Walsh stopped well in need of endorsing banks' sale of insurance products.
But other executives were heartened that Mr. …
التسميات
insurance business