Ref. 401/404 on NCUA Insurance: before Ken responds, I would like to put in my two cents:
it is an unnecessary concern on the part of CU members.
(1) As long as one is qualified as a member, one is covered. It is up to to individual CU to dertermine the qualifications (which may be the obvious residence, employer (SEG), as well as the "less obvious" clubs/associations. It is important to know that NCUA will not (and should not) micro-manage such a process.
(2) If the worst happens (i.e., CU closure), as long as one is a "valid member" of the closed CU, one's money should be fully insured up to the legal limit.
(3) it is up to the NCUA and individual CU to determine whether the membership is too liberal or in compliance with NCUA regulations (e.g., the recent Air Force Federal CU Case). It has nothing to do with CU Members. If such membership is revoked due to NCUA revieww, then it is another story. Otherwise, as long as one has a valid mebership, one should not be worried.
(4) There is no point of any concerns at all, if one can deposit funds into CU, one has to be qualified as a member; and thus fully insured.
Just my input for further discussions.