X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ALEXANDRIA, Va.-Under the NCUA’s recently approved incidental powers rule, a federal credit union may provide members with the opportunity to purchase a third party’s vendor insurance, which may require the credit union to become a licensed insurance agent under state or local law, according to a recent legal opinion letter. The recent rulemaking codified several different federal credit union authorities, as well as lifting the limitation of pricing of products permitted. “Acting as a finder, an FCU may perform administrative functions for vendors and its members to facilitate their transactions, as previously authorized under group purchasing,” the letter read. “Therefore, an FCU may act as a finder of insurance companies as a services to its members and earn income from engaging in finder activities, without restriction, under our rule.” However, the FCU may be subject to other federal, state, and local laws, the letter reminded, and therefore, could be subject to license requirements and income restrictions.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.