Advertising a Private Insurance Carrier's Logo

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Question:

Is it permissible to advertise a private insurance carrier's logo (indicating additional deposit insurance coverage) next to a Federal Logo (such as FDIC or NCUA)? Example: "Deposit accounts insured up to $250,000 by (private carrier) and Deposit accounts insured to $100,000 by NCUA for a total of $350,000"

Answer:

The statement as you have drafted it would NOT be acceptable. The FDIC and NCUA do not permit you to state their insurance limit without stating that it is "per depositor." As written, your statement suggests that the coverage is per account.

There is also some information relating to the FDIC's view of the advertising of "Excessive Deposit Insurance" in a letter numbered 96-11 (dated April 2, 1996) by Marc Goldstrum, FDIC Counsel, which can be found in the FDIC's FDIC Law, Regulations and Related Acts binders beginning on page 4979. Here is a link to the online version -- http://www.fdic.gov/regulations/laws/rules/4000-1200.html#4979.

First published on BankersOnline.com 8/01/05