Asi liquidating corp
This is the fourth in a series of articles that look at the evolution of deposit insurance in America.Last month looked at private deposit insurance, this article presents an overview of deposit insurance in America, with an emphasis on American Share Insurance (ASI). The company, which insures deposits for credit unions, has been in business more than 40 years. While at one time they faced competition, they outlasted them all. Their philosophy from the beginning was simple, credit unions should be able to meet the needs of their members without undue outside interference in daily operations.
According to the report, “history shows when private insurers fail, depositors at other privately insured institutions, even if those institutions are healthy, lose confidence in their institutions as news of the failures spread.By the 1990s, ASI was the sole private depositor insurer for the nation.Next week’s article will focus on more details about ASI since the 2000s and look at their business model that’s proven to be a winning strategy.According to ASI company history, “private share insurance was recognized for the first time in federal banking statutes, encouraging the continuation of the private share insurance option so long as consumer disclosures explained the private coverage sufficiently.” Another important year during that decade was 1993.The company created and incorporated Excess Share Insurance (ESI) as a wholly-owned subsidiary of America Share to allow it to serve almost 225 credit unions in 33 state, instead of the 16 it served prior to ESI.Nationwide, the idea of an alternative to federal share insurance was taking hold.” But there were a lot of naysayers.
For one thing, just by the nature of how the private sector functioned, it was plagued with a lack of diversity, which is a deadly sin in all things financial. No wonder so many private insurers eventually failed.
ASI emphasizes that it is an insurer and not a regulator.
They aren’t keen on meddling, that’s a job for individual state credit union authorities. It is a credit-owned share insurance fund with a board of directors and advisory council that is made up of president and CEOs of its member credit unions.
While other private deposit insurers have failed, ASI touts its history of low loss ratios and high equity levels.
No member has ever lost money in an American Share-insured credit union account.
If you buy several different annuities at several different companies in any state, there is no limit if you stay under the state limits.