Midwest Bankers Insurance Services LLC (MBIS), a new agency created from a partnership between Wisconsin Bankers Association (WBA) Employee Benefits Corporation (EBC) and the Minnesota Bankers Association (MBA), leverages the resources of both partners to bring member banks comprehensive insurance options. The latest product available to members is Excess Deposit Bond (EDB) coverage through AmTrust North America financial company.
This single-policy solution helps banks protect their depositors in excess of FDIC insurance limits, allowing them to attract and retain larger deposits while providing their key account holders with peace of mind. Banks can provide EDB to all account and depositor types and allows the depositor to maintain complete control over their coverage.
“This product will be especially helpful for banks looking to bid on municipal and public sector deposits,” said Jeff Otteson, sales director for MBIS. “It allows the institution to make a very competitive offer to large potential depositors.”
Banks electing to use this product will complete a Specified Account Holder form every six months, listing the depositor and how much they wish to insure their funds for. The bank will then receive the insurance certificate for the deposits. Premiums are calculated based on limits used, rather than limits available, making this a very cost-effective product. A further benefit is the inclusion of pro-rated refunds for the bank, should an insured depositor withdraw their excess funds prior to their policy renewal.
While there are several risk guidelines requiring the bank to meet certain requirements prior to purchasing the EDB product, MBIS can negotiate with AmTrust to secure coverage even if not all the requirements are met. However, the bank must have AmTrust’s FI Bond or D&O Liability coverage to be eligible for EDB.