CREDS 4.4 Insurance against fraud or other dishonesty

A credit union must at all times maintain in force a policy of insurance complying with CREDS 4.4.2 R.

In order to comply with CREDS 4.4.1 R, a policy of insurance (subject to the exception in CREDS 4.4.3 R):

1. (1)

   must insure the credit union in respect of every description of loss suffered or liability incurred by reason of the fraud or other dishonesty of any of its officers or employees;

2. (2)

   must so insure the credit union up to the limits set out in CREDS 4 Annex 1 R in respect of any one claim, except that the liability of the insurer may be restricted to the amounts set out in CREDS 4 Annex 1 R in respect of the total of the claims made in any one year; and

3. (3)

   must not provide, in relation to any claim, for any amount greater than one per cent of the limits on any one claim set out in CREDS 4 Annex 1 R to be met by the credit union.

From the losses and liabilities against which a policy complying with CREDS 4.4.2 R must insure, there must be excepted all loss suffered or liability incurred by a credit union other than direct pecuniary loss discovered during the currency of the policy of insurance or within 18 months of the date on which either the policy of insurance lapses, or the duties of the officer or employee concerned are terminated, whichever occurs first.

The "aggregate value" in CREDS 4 Annex 1 R comprises the shares and deposits (including those held in a CTF) referred to in CREDS 4.3.1 R (1)(a) and (b).