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NCUA yesterday disputed a short-lived online report that suggested it and American Share Insurance, the country's only private insurer of credit unions, were discussing an ASI "wind-down."

The story was centered on one state-chartered credit union's reported decision to withdraw from federal share insurance and sign up with ASI instead.

John McKechnie, NCUA's director of public and congressional affairs, responded to a query from NAFCU with an e-mail denying any such discussions. "ASI's financial condition is a matter for ASI and the nine states and 156 state-chartered credit unions that have opted for this insurance alternative," McKechnie said."NCUA has neither responsibility for nor jurisdiction over ASI and its insured institutions, and NCUA is not in discussions with ASI about 'winding down their business.'"

ASI is licensed by Ohio's insurance department and can provide primary share insurance to state-chartered credit unions where state law permits. Primary coverage is capped at $250,000. A subsidiary offers coverage exceeding the primary amount.

ASI has no connection with NCUA or the federal government. By contrast, NCUA, through the National Credit Union Share Insurance Fund, insures credit union member shares to $250,000 and is backed by the full faith and credit of the U.S. government.

This year, ASI is planning its first-ever insurance premium, 0.15 percent of insured shares, reportedly to return the fund to a level exceeding its minimum level of 1.3 percent of insured shares.

NCUA and FDIC both assessed premiums in 2009. More premiums are anticipated.

One of ASI's largest insured credit unions, Silver State Schools CU (Las Vegas), has had financial challenges and is working with the private insurer to resolve those, according torecent reports by the Las Vegas Review Journal.