About Share Insurance

Unlike banks and thrifts, credit union member deposits are insured up to $250,000 by the National Credit Union Administration (NCUA), an agency of the federal government, or by American Mutual Share Insurance Corporation (ASI), a private deposit insurance fund that operates in nine states. To learn more about American Share, click here. In the information that follows, credit unions insured by the NCUA are referred to as "federally insured" and credit unions insured by American Share are referred to as "privately insured." In general, the coverage provided members of federally insured credit unions is $250,000 per member, irrespective of how many accounts each member holds with a specific credit union; whereas, each depository account of a member at a privately insured credit union is insured to $250,000 -- irrespective of the number of depository accounts each member has with that privately insured credit union. This is one advantage of a credit union being privately insured. The following explains the amount of additional share insurance protection ESI can provide members of federally insured credit unions as compared to members of a privately insured credit union.

Excess Share Insurance at Privately Insured Credit Unions

Over one-third of America’s state-chartered credit unions have the option of choosing to insure their members’ share/deposit accounts with American Mutual Share Insurance Corporation (ASI), the nation’s only non-federal, credit union-owned private share insurer, and ESI’s parent company. Currently, American Share operates in the states of Alabama, California, Idaho, Illinois, Indiana, Maryland, Nevada, Ohio and Texas. If your credit union is domiciled in any of these states, your credit union deposit accounts may very well be privately insured.

Coverage for All Accounts

Most people don’t realize that private share insurance existed long before the NCUA, a federal agency, began insuring the share accounts of federally chartered credit unions in 1971; in fact, as far back as 1957, a private share insurance program operated in the state of Illinois. American Share has operated safely and soundly since 1974, providing $250,000 of coverage for years while federal share insurance was only providing $100,000 per member. Currently, American Share insures all accounts of a member of a privately insured credit union to $250,000, irrespective of the number of accounts the member has, or the class of such accounts. For example, American Share does not differentiate its coverage between individual accounts, joint accounts or IRAs.

As a result, for privately insured credit unions, ESI is able to offer up to an additional $250,000 of protection on top of the $250,000 that American Share provides without limitation to the class of account being insured. 

Excess Share Insurance on Privately Insured Accounts  

Excess Share Insurance Example Coverage

*Note: Not every privately insured credit union purchases ESI’s broad coverage. Your credit union may very well have chosen to offer Excess Share Insurance on certain types of accounts, such as IRAs, or money market accounts. Furthermore, any credit union can choose to provide less than the maximum $250,000 of protection per privately insured account, so please check with ESI or your credit union to determine the exact type of policy they currently have with ESI and the actual limits of coverage in effect.

Proven performance and policy specifics

Our success can be attributed to thorough underwriting and risk management policies and practices. We are selective as to who we insure, and not all credit unions that apply for coverage are accepted due to ESI’s strict underwriting standards. Furthermore, we examine our credit unions regularly to ensure continued safety and soundness. Also, ESI’s insurance policy requires that every credit union submit financial statements and a listing of accounts eligible for excess coverage quarterly in order to continue coverage.

Individual policies are not provided to members and there is no direct cost to you for this coverage. The credit union or ESI may terminate or modify this coverage, but in either case you would be notified in writing of any change in the excess coverage. It is important to note that excess deposit insurance is payable only upon the failure and liquidation of an excess insured credit union.

Financially sound and regulated
  • The majority of ESI’s assets are held in cash and US Government-guaranteed bonds and US Treasury securities. ESI does not hold the types of investments that plagued many financial institutions and investment firms in recent years.
  • ESI is licensed and regulated by the Ohio Department of Insurance. ESI has licensures in 32 other state jurisdictions.
  • The Ohio Department of Insurance conducts a cyclical statutory examination of ESI; a "big four" accounting firm annually certifies the company's financial statements; and, an independent actuary opines each year as to the sufficiency of the company's reserves.
  • ESI has always been, and continues to be, in good standing with the various insurance departments in all of our states of operation.
ESI's rating

ESI is not assigned an insurance industry rating by A.M. Best. Financial data and other information are supplied to rating services annually for their review and analysis. Our audited financial statements are available upon request from your credit union or ESI.


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A Simple Formula

Excess share insurance when combined with American Share primary share insurance insures each account up to $500,000.