OLYMPIA, Wash. — The regulator in Washington State, at thebehest of a handful of credit unions and the state league, hasbegun the process to study private primary deposit insurance forcredit unions and its applicability within state law.

In July, Washington's Department of Financial Institutionsannounced that it would begin looking into changing its regulationsto codify the law, which permits state-chartered credit unions touse a private primary deposit insurer. American Share Insurance isthe sole remaining private primary deposit insurer since most ofthem closed their doors after the Rhode Island Share and DepositIndemnity Corp. failure due to embezzlement.

“I think they have a strong, independent attitude up there andthey like to have their choices,” ASI President and CEO DennisAdams said. He said his organization has met with between five andeight credit unions that have expressed some interest in theirproduct so there “appears to be some demand.”

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