As the impact of the current economy has taken its toll on corporate credit unions, looking to next year, CUNA Mutual has decided to adapt its bond program accordingly.
At issue is the greater risk exposure corporate credit unions present on the bond and special insurance package (SIP) coverage resulting in increased expenses for the program. In general, SIP can include coverage for directors, officers and employment practices liability.
"While we cannot comment on individual account actions, our underwriting process considers the unique characteristics and exposures of each customer," said CUNA Mutual Senior Manager of Media Relations Rick Uhlmann. "Because financial condition has an impact on Bond and SIP losses, we have an obligation as a mutual company committed to credit unions to take certain actions and maintain our financial strength for all of our policy owners."
