Each depositor insured to at least $250,000 per insured bank

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FDIC Consumer News - Summer 2003

Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

A Final Exam

Test your knowledge by taking a quiz based on information in this issue.

1. In general, credit insurance and similar programs called "debt cancellation" and "debt suspension" will pay off a debt if the borrower dies or suspend monthly payments if the borrower becomes ill or unemployed. True or False?

2. Credit insurance and debt cancellation/suspension programs offered by lenders are the same as traditional insurance (such as term life insurance and disability insurance) not sold with a loan. Coverage and costs are the same. True or False?

3. Most credit insurance, debt cancellation and debt suspension coverage is optional — you do not need to purchase it to get the loan. An exception is property insurance that a creditor may require to cover the costs of repairing or replacing property (such as your home or auto) that serves as loan collateral. True or False?

4. . If you fail to maintain sufficient property insurance for a loan or if you forget to give the lender evidence of your coverage, the creditor typically reserves the right to purchase property insurance and charge you for it. True or False?

5. Because your credit card offers the option to pay a minimum amount due each month, it's always smart to send in the minimum and stretch out the card payments as long as possible instead of paying the bill in full. True or False?

6. If an FDIC-insured bank fails, the $100,000 federal insurance coverage includes both principal and interest. True or False?

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Last Updated 09/15/2003 communications@fdic.gov