The NCUA said federal credit unions can invest in or buy an insurance agency as a credit union service organization as long as the entity meets its customer base requirement.
The agency provided that guidance in a June 3 legal opinion letter on the matter. At issue was if a FCU would be permitted to purchase or invest in an existing insurance agency as a CUSO if the insurance agency would change its customer base to primarily serve credit union members.
The customer base requirement must be met at the time the FCU invests in the CUSO, wrote Hattie Ulan, NCUA associate general counsel. After that, a reassessment on who is being served must continue.
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