N.D. Admin. Code 13-03-24-05

Current through Supplement No. 394, October, 2024

Section 13-03-24-05 - Maximum allowable deductibles

1. The maximum amount of allowable deductibles is computed based on a credit union's asset size, as follows:

Assets	Maximum Deductible
$0 - $100,000	No deductibles allowed
$100,001 - $250,000	$1,000
$250,001 - $1,000,000	$2,000
Over $1,000,000	$2,000 plus 1/1000 of total assets up to a maximum deductible of $200,000; for credit unions that have received a composite capital, asset quality, management, earnings, liquidity, and sensitivity to market risk rating of "1" or "2" for the last two full examinations and maintained a net worth classification of well capitalized for the six immediately preceding quarters, the maximum deductible is $1,000,000

2. The deductibles may apply to one or more insurance clauses in a policy. Any deductibles in excess of the above amounts must receive the prior written permission of the state credit union board.

3. A deductible may not exceed ten percent of a credit union's net worth.

N.D. Admin Code 13-03-24-05

Effective January 1, 2007.

Amended by Administrative Rules Supplement 2022-384, April 2022, effective 4/1/2022.

General Authority: NDCC 6-01-04

Law Implemented: NDCC 6-06-06