Date: | 08/01/1997 |
---|---|
Organization: | Division of Banks |
Docket Number: | 97-160 |
This opinion was issued in the third quarter of 1997.
Date: | 08/01/1997 |
---|---|
Organization: | Division of Banks |
Docket Number: | 97-160 |
This opinion was issued in the third quarter of 1997.
Under Massachusetts General Laws chapter 171 § 25, it is the position of the Division of Banks that a state-chartered credit union cannot extend life insurance coverage to honorary directors. In addition, such credit unions may only provide those insurance benefits delineated in the statute to employees, officers and directors. Therefore, a credit union seeking to extend its directors access to a family insurance plan may do so, but only as long as the difference between the cost of the individual plan and family plan premiums is reimbursed to the credit union by those directors which opt for such insurance.