Excess Share Insurance (ESI)

Member share savings in South Metro Federal Credit Union are protected up to $250,000, more than double the typical protection for savings accounts. This coverage is available through the addition of excess coverage from Excess Share Insurance Corporation (ESI), a licensed property and casualty insurer.

ESI now provides $150,000 in coverage on top of the federal government's $100,000. And because Individual Retirement Accounts (IRAs) are insured separately, they are now protected up to $150,000 as well. So, by maintaining your non-retirement savings and your IRA at the credit union, you may now have a combined savings insurance of $500,000.

This exceptional coverage is available only to those credit unions meeting ESI's strict underwriting requirements and high standards of performance. Our approval for the program reaffirms our position as a leading financial institution in Scott County. 

How much does this increased coverage cost?

The credit union pays ESI for the additional coverage. There is no direct cost to the member.

Do I receive a policy for my excess share insurance?

Policies are not provided to the individual consumer. Our coverage is actually provided to the institution that, in turn, reallocates it up to a maximum of $150,000 by reporting your uninsured amount to us.

How do I know if coverage is changed or terminated?

Should your credit union no longer participate in the excess share insurance program, or should the amount of coverage change, you are required to be notified.  

How secure is ESI?

There are several factors you should be comfortable in knowing about the security of ESI:

• ESI is reviewed and monitored regularly by the appropriate agency in each state in which we operate. 
• ESI retains extensive reinsurance with unrelated third party U.S. re-insurers. 
• ESI maintains lines of credit for supplemental liquidity.
• ESI monitors all of our insured institutions monthly.
• ESI conducts periodic on-site examinations of our insured credit unions. 
• ESI insures only financially sound institutions meeting our criteria. Not all credit unions applying for this coverage are accepted. 

What do I have to do to activate coverage?

Nothing. Your credit union completes the necessary paperwork.

Excess Share Insurance applies only to personal accounts and not to our Business services.

Who is Excess Share Insurance Corporation (ESI)?

ESI is a wholly owned subsidiary of Ohio-based American Share Insurance (ASI), the nation's largest private deposit insurer. ESI is a licensed property and casualty insurance company. 

What are the advantages of being insured by ESI?

ESI coverage increases deposit insurance levels for credit union members. Excess insurance can provide each member up to an additional $150,000 above your current level of protection. For instance, accounts insured to $100,000 by NCUA can actually be protected up to $250,000 by adding excess coverage.

How safe is ESI?

Excess share insurance has been provided by either ESI or its sole shareholder, American Share Insurance, since 1982. Over this period, no credit union member has ever lost a cent due to failure to pay a claim by either company. Many factors contribute to the corporation's safety and soundness; for example, ESI:

• retains extensive reinsurance policies with unrelated third party U.S.-based reinsurers. 
• maintains lines of credit for supplemental liquidity.
• monitors all of its insured institutions monthly.
• conducts periodic on-site exams of its insured credit unions.
• insures only financially sound credit unions

What is ESI's rating?

ESI has filed for a rating from A.M. Best and Standard & Poor…two typical insurance-rating systems.

Who regulates and reviews ESI?

ESI is licensed and examined by the Ohio Department of Insurance, and by the insurance departments of each state in which it operates. 

What impact does being insured by ESI have on credit unions?

Credit unions receiving excess share insurance are required to meet above average standards for insurability. In fact, ESI's monitoring and oversight of its insured credit unions is the most comprehensive in the industry. Credit unions are monitored monthly and routinely examined on-site. As a result of this due diligence, ESI's insured credit unions are among the healthiest in the industry.

What information is available about ESI?

ESI provides an annual report prepared by a nationally recognized accounting firm. This report is provided to the state insurance department of each state in which ESI operates, each ESI-insured credit union and, by law, is made available to each insured depositor, upon request. Additional information can be obtained from the company's Web site at www.excessshare.com.

How many credit unions does ESI insure?

ESI is licensed and operating in some 20 states plus the District of Columbia, and currently insures more than 150 credit unions. In addition, the corporation has applications to conduct business pending in 7 states. Only credit unions that meet ESI's underwriting requirements and risk eligibility standards are considered for the program. The majority of the credit unions in the program today are among America's elite.