FDIC Flashcards
What is the amount of coverage for FDIC insurance?
Deposits are insured up to $250,000 indexed for inflation
FDIC insurance coverage is based on:
the ownership capacities in which deposit accounts are maintained.
How is FDIC insurance coverage calculated?
All of the interests of the same person that are held in the same ownership capacity are added together and insured up to the appropriate maximum deposit insurance amount.
T or F
Deposits at separately chartered institutions are separately insured, even if the institutions are affiliated.
TRUE
Deposit accounts are insured for principal and interest unconditionally credited to the account plus:
interest accrued to the date of default of the institution
The death of a depositor will not affect insurance coverage for ____ following the owner’s death unless:
* 6 months
* the deposit account is restructured
If insured institutions merge, separate insurance of deposits continue for _____ after the date of merger.
6 months
If insured institutions merge, CDs will continue to be insured separately until:
the first renewal that occurs six months after the merger date.
For FDIC insurance, accounts owned by sole proprietorships will be treated as:
a single ownership account
For FDIC insurance, community property funds deposited into a single named account will be treated:
as though owned by the individual account holder
What is the general rule for applying FDIC insurance to joint accounts?
The interests of a person in all joint accounts in one institution are added together, separately from single ownership accounts
For FDIC insurance, the interest of a person in a nonqualified joint account will be treated as:
a single ownership account and added to all the other single ownership accounts of that person in the same institution
What is the general rule for applying FDIC insurance to revocable trust accounts?
The funds owned by an individual and deposited into revocable trust accounts will be insured up to the total number of different beneficiaries multiplied by the coverage totals as long as each beneficiary has an equal share of the account.
How is FDIC insurance coverage applied for accounts with more than five times the maximum coverage and more than five beneficiaries?
Insurance will be limited to the greater of five time the maximum coverage or the aggregate amount of the interests of each beneficiary in the account, limited to the amount of maximum coverage for each beneficiary.
What is the general rule for applying FDIC insurance coverage to accounts held on behalf of others?
Accounts held by others are insured on a pass through basis as long as the FDIC recordkeeping requirements are met
