OLYMPIA, Wash. — The Washington Credit Union League has emphasized four issues it still has with the Department of Financial Institutions' proposal on private deposit insurance that it generally supports.

First, WCUL President/CEO John Annaloro wrote in a comment letter that there is no reason for a private insurer to seek licensure from the insurance regulator, as the legislature entrusted that to DFI in writing the law permitting private insurance.

WCUL expressed concern that the regulator can revoke the approval of an insurance provider without the normal non-public due process, including notification and supervisory hearings. "The League has a reasonable worry that a future Director could make an arbitrary or hasty adverse finding based on matters outside of safety and soundness or fact. Following the procedures under the proposed rule, before this decision is reviewed and determined to be unfounded, the damage to the effected credit unions and the state system as a whole will have already been done," Annaloro wrote.