ALEXANDRIA, Va.-Current credit union officials may receive long-term care insurance, as long as they are able to serve in their official capacity, NCUA Associate General Counsel Sheila Albin wrote in a recent legal opinion letter (03-0382). However, she told Northwest Farmers Insurance Group Federal Credit Union CEO Tom Edwards, retired officials are not eligible. "A federal credit union.may provide health insurance to volunteer officials that is reasonable in coverage and amount. 12 C.F.R. 701.33(b)(2)(ii)," the letter read. "The coverage `must cease immediately upon the insured person's leaving office, without providing residual benefits other than from pending claims, if any.' Id. These provisions prohibit Northwest Farmers FCU from offering long-term care insurance to retired or former officials." Albin said that the agency's understanding of long-term care insurance is that it typically includes coverage when daily tasks, such as bathing and eating, are impossible by oneself. "Once an individual is no longer capable of serving as an official and leaves office, as noted above, NCUA regulations require that the coverage cease immediately. 12 C.F.R. 701.33(b)(2)(ii)."

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