FDIC Deposit Insurance

You can use the FDIC Calculator to determine your FDIC coverage for each FDIC-insured bank where you have deposit accounts. The calculator lets you know in a printable report whether your deposits are within or exceed coverage limits. Click here for the calculator.

Yes, premium trust accounts can be eligible for pass-through FDIC insurance. However, the name and ownership interest of each owner in the account must be ascertainable from the deposit account records of the insured bank or depositor.

To accomplish this, accounts need to be set up as fiduciary accounts. The deposit account record of an insured depository institution must expressly disclose the existence of any fiduciary relationship and be titled as such.

An agency also needs to maintain accurate records indicating the amount of funds owed to each policy holder, carrier or the agency. These records should be kept in good faith and in the regular course of business by the depositor.

As long as these recordkeeping requirements are met, deposit insurance of up to $250,000 would be provided for the funds that the agency owns outright and up to $250,000 for each policyholder or underwriter for whom the funds are being held. Agencies should take a careful look at the timing and arrangement made with their carriers for payment of policyholder funds to determine ownership of these funds.

No. Funds deposited by fiduciary (agency) on behalf of one or more owners (policy holders, carriers, agency) would be added to any other deposits of the owner at the same insured bank and the total would be subject to the insurance limit of that owner.

If you have any specific questions pertaining to your agency’s premium trust accounts, you should contact the FDIC direct at 1-877-ASK-FDIC (275-3342).