NYS Legislation Allowing Insurance Companies To Work With Credit Unions Passes Both Houses

ALBANY, NY (06/29/2010)(readMedia)-- The Credit Union Association of New York has secured passage of legislation that allows insurance companies to deposit their funds in New York State credit unions.

The legislation (S.3499-A/A.8557A) reverses a ruling of the New York State Insurance Department that prohibited insurance companies from investing in credit union share certificates, even though they routinely place money in bank certificates of deposit.

The legislation was sponsored by Sen. Neil Breslin, chairman of the Senate Insurance Committee, and Joseph Morelle, chairman of the Assembly Insurance Committee, and was unanimously supported in both chambers. The next step is for the bill to be sent to the Gov. Paterson for his approval.

If approved by the governor, insurance companies, other than life insurance companies, will be able to invest up to $250,000 in share certificates with credit unions where they are eligible for membership.

"This bill is another example of how fighting for credit union parity with banks benefits consumers," said Association President and CEO William J. Mellin. "Now insurance companies will be able to put their money where they can get the best return on earnings."

"The strong leadership of both chairmen in guiding this bill through the legislative process was essential to the bill's passage," continued Mellin. "And the fact that so many members supported the bill shows that credit unions are an important constituency."

The Association worked closely with the New York Insurance Association, which had been contacted by members that wanted to work with credit unions but were prevented from doing so under current legislation.

The Credit Union Association of New York has served as the trade association for the state's credit unions for 93 years. New York credit unions have assets of more than $50 billion and 4.4 million members. To learn more about the Association, visit www.cuany.org.

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