Answer:
Yes, the FDIC has just announced proposed rules for the temporary insurance coverage provided under Section 343 of the Dodd-Frank Act. The coverage will cover only noninterest-bearing demand deposit accounts (NOW and IOLTA accounts won't be covered). Under the proposal, all banks would have to post a prescribed notice in their lobbies and on their websites.
Additional notices would be sent by banks participating in the FDIC's TAG program through 12/31/2010. These notices, to be mailed to TAG-covered NOW and IOLTA account holders, would announce the end of that coverage effective 1/1/2011. Finally, banks will have to make appropriate notification if they make any changes (such as offering DDA interest on or after 7/22/2011) that would remove affected accounts from the temporary unlimited insurance coverage.
[Editor's note: Since this page was published, the FDIC has issued its final rule implementing Section 343 of the Dodd-Frank Act. The information provided above, however, remains correct.]
First published on BankersOnline.com 10/04/10
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