The bill amends the Credit Union Act of 2003 by updating the requirements for domestic credit unions regarding insurance for their share and deposit accounts. It specifies that credit unions must apply for and maintain insurance from a federal agency authorized to insure such accounts or from a qualified private insurance organization. The language clarifies that if a credit union is denied insurance or receives notice of termination from an insurer, it must either dissolve, merge with an insured credit union, or apply for additional time to secure insurance within 30 days of the notice.

Additionally, the bill introduces provisions for insurance carriers to apply for authorization as qualified private insurance organizations, allowing them to provide primary share or deposit insurance. The director has the authority to deny or revoke this authorization if the insurance carrier is found lacking in resources or management. The bill also defines terms related to insurance coverage, ensuring clarity in the regulatory framework for credit unions and their insurance obligations.

Statutes affected:
House Introduced Bill: 490.387