NCUA Clarifies Rules On Volunteers' Insurance
Credit unions can give their executives long-term care insurance, even if it provides protection for non-credit union activities, but they can't provide insurance for members of nonvoting volunteer committees, according to an NCUA advisory letter.
The insurance "must be reasonable in coverage and amount," NCUA Associate General Counsel Hattie Ulan wrote in a letter to Syracuse, N.Y., lawyer Mark T. Harrington.
She noted that the "mere fact long-term care insurance would provide protection for other areas of risk to which an official is exposed outside his or her credit union activities does not prohibit an FCU from providing such insurance to its officials."
Ulan also wrote that because members of nonvoting advisory committees "are not given any responsibilities or standards for which they are held accountable," they can't receive insurance or be reimbursed for expenses.