April 3rd, 2017
DUBLIN, OHIO, April 3, 2017: American Share Insurance, the nation’s private share insurer and provider of excess share insurance in 33 states across America, reacts to the GAO’s recent study of its loss reserves and its member credit unions’ compliance with consumer disclosure laws.
On March 29, 2017, the United States Government Accountability Office (GAO) issued its “Report to Congressional Committees - Private Deposit Insurance” (GAO 17-259), concluding its work on two studies associated with private share insurance that were mandated by The FAST Act (HR 22), which was signed into law in December 2015, making FHLB membership available to privately insured credit unions.
The GAO’s two studies – both addressed in this Report— were originally solicited by Congress to: (1) determine the sufficiency of American Share’s loss reserves; and, (2) assess the level of compliance among privately insured credit unions with respect to consumer disclosures as to the nature and extent of private share insurance.
American Share’s President/CEO, Dennis Adams, could not have been more pleased with the results of the GAO’s work and their conclusions. “This 46-page Report was 13 months in the works, involving numerous regulatory authorities, various independent and GAO in-house actuaries, credit unions and others. In conducting their study, the GAO carefully analyzed our financial statements and our independent actuary’s annual reviews of the adequacy of our loss reserves and their triennial determinations as to our overall capital adequacy under various economic scenarios,” Adams noted.
“According to the company’s independent actuary, our loss reserves have been determined to be, ‘…reasonable and consistent with amounts computed based on actuarial standards of practice,’ and that American Share had ‘…a strong ability to cover losses under different economic scenarios,’” Adams added. In the Report, the Ohio Department of Insurance also cited that their recent statutory exam concluded that American Share’s loss reserves “…have been adequate and the company has had a strong ability to cover present and future losses for the credit unions it insures.”
The GAO closed this subject stating, “We believe that the evidence obtained [from these sources] provides a reasonable basis for our findings and conclusions based on our audit objectives.” “This study confirms our safety and soundness,” Adams added.
As for the second study conducted by the GAO to assess the degree of compliance as to consumer disclosures by privately insured credit unions, the results were very encouraging, but some improvements are needed. “We were ecstatic to learn that the 26-year commitment by American Share and state credit union regulators has helped member credit unions comply with the consumer disclosure requirements under FDICIA (1991) and the CFPB’s Regulation I (2011),” Adams stated. Per the Report, the degree of compliance is approaching 100% in certain categories, such as website postings, while other areas need a little more attention according to the GAO.
After paying surprise visits to over one-third of the privately insured credit unions, and reviewing 100% of all known websites of privately insured credit unions, the study group suggested that the CFPB consider issuing guidance to aid these credit unions in: (1) clarifying what constitutes advertising; (2) improving disclosures at drive through windows; and, (3) defining what constitutes “clear and conspicuous” disclosure.
This is the second time in the last 15 years that the GAO has looked into this subject, and this time the compliance levels were notably higher. In their response to the GAO, the CFPB – which regulates consumer disclosures for privately insured credit unions – wrote back to the GAO stating: “To date, the Bureau has not received any consumer complaints related to private deposit insurance. Nor has the Bureau’s extensive consumer risk analysis process identified privately insured credit unions and their related disclosure requirements as consumer-facing activity that poses risk of the sort that would merit supervisory examination or enforcement investigation.”
“The American Share board, management team and our members truly appreciate the thoroughness and professionalism of the GAO study team, and are pleased to see the favorable and constructive comments within this very comprehensive Report,” Adams noted.
American Share is a member-owned share guaranty corporation, licensed by the Ohio Department of Insurance, dual-regulated by the Ohio Departments of Insurance and Commerce. The corporation provides up to $250,000 of share insurance on each and every account of an individual member in insured member credit unions. For more information, call 1.800.521.6342, Ext. 102, or contact Dennis Adams at dadams@AmericanShare.com.
November 22nd, 2016
Dennis Adams, President/CEO of Excess Share Insurance Corporation (ESI), announced that with the mailing of its new Branding Update Kit to all policy-holding credit unions this week, the company has put the finishing touches on its rebranding experience. Over the past few months, ESI has refreshed its image and message with a new logo and branding colors, an updated website, new advertising themes and compatible collateral materials for use in the lobbies of its insured credit unions. The Branding Update Kit includes a supply of ESI’s new consumer information brochures, counter and desktop signage and window and door decals – all designed to help the credit unions inform their members about ESI and the excess share insurance coverage.
November 2nd, 2016
Excess Share Insurance Corporation and its parent company, American Share Insurance, are Gold Sponsors and exhibiting at booth 212 during the California & Nevada Credit Union Leagues’ Annual Meeting, November 2–4, at the Cosmopolitan, Las Vegas, NV.
Excess Share Insurance Corporation and its parent company, American Share Insurance, are sponsoring and exhibiting at the Southeast Leadership Development Conference, November 2–4, at the Grand Hotel Marriott Resort in Point Clear, AL. Excess Share/American Share is sponsoring opening speaker, Andrew Downin, Managing Director of Research of the Filene Institute’s prestigious i3 program, at 8:00a.m. on Thursday, November 3rd. Be sure to visit the Excess Share/American Share booth (207) during exhibit hours.
September 29th, 2016
Excess Share Insurance Corporation is exhibiting and sponsoring at "CONNECT 2016" – the Pennsylvania Credit Union Association's Annual Convention, May 15-17, at the Nemacolin Woodlands Resort in Farmington, PA. You can meet company representatives at the Excess Share Insurance booth during exhibit hall hours.
Excess Share Insurance Corporation and its parent company, American Share Insurance, are presenting on Wednesday, May 11, from 3:00-3:45pm in the Bay 1A room, during the Idaho Credit Union League's 80th Annual Meeting at The Coeur d'Alene Resort in Coeur d'Alene, ID. The corporation is sponsoring the cruises to the Hagadone Center and the Resort on Thursday evening, May 12. Attendees can also visit company representatives at Booth 1 during exhibit hall hours.
Excess Share Insurance Corporation (ESI) and its parent company, American Share Insurance, are Platinum Sponsors at this year’s MD|DC Credit Union Association Annual Meeting & Convention, June 5-8, in Ocean City, MD. ESI and American Share are sponsoring the breakout session, “Innovation in NASCAR; a Constant Objective,” being presented by Andy Papathanassiou, a former NASCAR pit crew coach with the Hendrick Motorsports Race Team. The ESI-sponsored session is scheduled for Tuesday, June 7, from 11:15am–12:30pm. Plus, you can visit our company representatives at booth 37 in the exhibit hall to learn more about excess deposit insurance.
Excess Share Insurance Corporation’s 2015 annual report has been sent to all policyholding credit unions. A package of consumer financial brochures was included with the mailing. Excess Share-insured credit unions can order additional copies of the financial brochures and/or download the annual report from the Policyholders section of the Excess Share Insurance website.
Excess Share Insurance Corporation (ESI) and its parent company, American Share Insurance, are sponsoring and exhibiting at the League of Southeast Credit Unions Conference & Expo, June 15-17, at the JW Marriott Grande Lakes, Orlando, Florida. ESI is sponsoring the Continental Breakfast on Thursday, June 16 (7:15-8:00am) at the Mediterranean Foyer, and is also sponsoring the “3-in-1 Session” on June 16 (1:15-2:45pm) at Cordova 5-6. Company representatives are available at the ESI booth (608) throughout exhibit hall hours.
September 28th, 2016
Excess Share Insurance Corporation (ESI) along with its parent company, American Share Insurance, are sponsoring and exhibiting at the Indiana Credit Union League’s 82nd Annual Meeting and Convention, October 12-14, in Indianapolis, IN. ESI is sponsoring the Keynote Speaker, Sam Glenn, presenting his “Art of Positive Change” on Thursday, October 13 (9:00am-10:00am) in the White River Ballroom F-J. In addition, ESI is exhibiting at booth 19, with company representatives available throughout exhibit hall hours.