Southeast Credit Union Management School (SRCUS) Year 1 Practice Test

Share insurance and NCUSIF protect what?

Insurance for member loans Deposit insurance for member shares up to insured limits; NCUSIF protects deposits in federally insured credit unions Insurance for vendor services Insurance for mortgage deposits

Correct Answer:

Deposit insurance for member shares up to insured limits; NCUSIF protects deposits in federally insured credit unions

Explanation:

The main idea here is that share insurance and the NCUSIF protect your money when it’s deposited in a federally insured credit union. The coverage applies to member share accounts—like savings, checking, and money market accounts—up to the insured limit (currently up to $250,000 per depositor, per insured credit union). If a credit union were to fail, the NCUSIF would reimburse insured deposits up to that limit, just as the FDIC does for banks. This protection is specifically for deposits held at credit unions, not for loans, vendor services, or investments outside standard deposit accounts.

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