CUNA Mutual Gets OK
To Reorganize Structure
WAVERLY, Iowa-More than 90% of CUNA Mutual's policyholders who voted have approved a plan to reorganize CUNA Mutual Insurance Society (CMIS) from a mutual insurance company into a mutual insurance holding company structure. As a mutual insurance holding company, CUNA Mutual Group will continue to be mutually owned with policyholders having full ownership of the new parent mutual holding company entity. A two-thirds majority was needed for approval; more than 80,000 policyholders voted.
The new structure still requires regulatory approval from the state insurance commissioner in Iowa, where CUNA Mutual Insurance Society is domiciled. The commissioner will consider the reorganization plan at a public hearing Sept. 8. If approved, the new structure could become effective by Jan. 31, 2012.
Flooding Forces Branch
Closures Across Penn.
HERSHEY, Penn.-Heavy rains last week in the aftermath of Tropical Storm Lee set off flash flooding across much of central Pennsylvania. Paul Wagner, VP-operations with the $50-million Hershey FCU, said the credit union's Annville location was closed due to flooding in its basement and that damage had yet to be assessed.
Concerns over flash floods had the Pennsylvania CU Association closing its doors for several days out of safety concerns for staff.
Greg Smith, CEO of the $3.8-billion Pennsylvania State Employees CU, said its Harrisburg office was OK. "But staff are having difficulty getting in. We've had enough rain to last us quite a while but it looks like even more is on the way. When we have weather events like this we leave it to staff to make the call as to whether they can safely get to the office."
MasterCard Urges ATM Upgrade
PURCHASE, N.Y.-MasterCard Inc. is urging ATM owners to add hardware for accepting chip-card payments. Those that don't may be faced with a higher level of liability, according to the card association. MasterCard's plan affects inter-regional transactions on its Maestro network. The company sent a bulletin to top banks and ATM makers last week detailing the new requirements, which would take effect April 19, 2013. The purpose of the liability shift is "to align technology efforts to prevent and manage fraud," MasterCard said.
Cast Your Vote On Idea Idol
MADISON, Wis.-Credit union executives will be able to vote for the best of the latest slew of innovations proposed by the Filene Research Institute in an online "Idea Idol" being aired Sept. 14. Representatives from the Filene Research Institute's i3 program will present their proposed product or service ideas in three-minute pitches, followed by a brief Q&A. The audience will be asked to provide feedback and vote for their favorite idea based on positive impact on consumers and credit unions, and willingness to pilot and implement the idea. For info: http://bit.ly/ideaidol
CU Card Also Campus ID
POCATELLO, Idaho-Idaho State University CU is issuing MasterCard debit/credit cards that double as student identifications to 15,000 students at the university's campus. If a student or faculty member has an account with ISU CU, or chooses to create one, he or she can get the Bengal Card Plus at the new branch of ISU CU located on campus. The new Bengal Card Plus is orange and black, with the student's picture in the upper left hand corner. The student's name still appears on the card, but the student ID number does not, in order to protect personal information.
The university cannot access any of the financial information on the card, and the credit union cannot access any of the school information on the orange stripe.
Corrections & Clarifications
A story on the Indiana league's "ignite" program in the Aug. 22 issue incorrectly stated that social media tools associated with a new Web site from the Indiana CU League's "ignite" program help users get in touch with their legislators.
*The name of the Credit Union Association of the Dakotas and its CEO, Robbie Thompson, appeared incorrectly in the Aug. 29 issue.