Excess FDIC private deposit insurance now available.Private deposit insurance applying to deposits exceeding the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. (FDIC FDICSee: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) $100,000 limit is now available in most states. Over half of 1992 bank failures led to losses by uninsured depositors. Over 21,000 bank account holders had uninsured deposits totaling $600 million, leading to actual losses currently exceeding $200 million. Particularly hard hit were small businesses and retirees. Known as DEPOSITSURE, the excess deposit insurance is sold directly to bank account holders at rates comparable to those the FDIC charges banks for its coverage (about $.25 annually for each $100 of insurance). It is available through licensed insurance agents in most states. The coverage is provided by General Star Indemnity, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of General Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Corp. The procedures for reimbursing policyholders in case of a bank failure are straightforward. After disbursing the first $100,000 under FDIC deposit insurance, federal regulators issue receiver's certificates Receiver's certificate A debt instrument issued by a receiver and serving as a lien on the property, which provides funding to continue operations or to protect assets in receivership. to uninsured depositors. On presenting these certificates to the insurance company, policyholders are paid for their covered loss, up to the amount of the deposit insurance purchased. For further information on DEPOSITSURE, call Joseph Carlson of Centrex Underwriters, Inc., at (901) 767-4754. |
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