After consulting the Deposit insurance regulations in Part 330 of FDIC Rules and Regulations, I am a bit confused on “pass-through” insurance on trust funds. Any clarification would be appreciated.
For example if there are 50 participants in an employee benefit trust, are the accounts insured to $5,000,000.00? Or do I need to determine those participants who have eligible deposits in excess of 100,000.00 and pledge for the uninsured portion of the deposit? Or it a combination of the two?
How often does this calculation have to be performed?