PRESS RELEASE

October 16, 2007

NASCUS Emphasizes State Authority in Washington State Proposed Insurance Rulemaking

ARLINGTON, Va. — NASCUS commented to the Washington Department of Financial Institutions (DFI) regarding its proposed rulemaking on alternative share insurance in an October 4 letter.

The DFI states on its Web site that at the request of the Washington Credit Union League and several Washington state-chartered credit unions, DFI began the process for providing the regulatory standards for alternative share insurance in Washington. Because alternative share insurance is already permitted in Washington state law, DFI agreed to begin rulemaking.

According to the DFI, the rulemaking process includes an in-depth study of alternative share insurance, a substantial series of stakeholder meetings (open to the public), a lengthy review process and, eventually, public hearings under the state’s Administrative Procedures Act.

In its comment letter, NASCUS emphasizes that the decision to allow state credit unions to seek alternative share insurance is properly a public policy decision for state legislatures and executive branches. “NASCUS supports states’ rights to make those choices,” stated NASCUS. Further, NASCUS underscores the ability of the state and federal regulator to promulgate rules distinct to their systems as essential to the dual chartering system. As a regulators’ professional association, NASCUS does not advocate on behalf of alternative share insurance or share insurance providers.

NASCUS explains that as the primary regulators of state credit unions, state regulators examine and regulate state-chartered credit unions to the highest standards. NASCUS further recognizes Washington DFI’s capability as a highly professional, accredited state regulatory agency, to provide the proper regulatory oversight and take preventive and corrective action. “Regardless of share insurance provider, Washington State’s credit unions will continue to be regulated and examined for safety and soundness to the highest standards,” said NASCUS.

To view the full comment letter, click here.

Information Contact:
Kate Hartig, Director, Communications and Public Affairs, (703) 528-0669 or kate@nascus.org

The NASCUS mission is to enhance state credit union supervision and advocate a safe and sound state credit union system. Founded in 1965, NASCUS represents all 48 state and territorial credit union supervisors and the NASCUS Credit Union Advisory Council, which is made up of nearly 500 of the nation's more than 3,400 state-chartered credit unions.