Corporations, partnerships, and unincorporated associations, including for-profit and not-for-profit organizations, are insured under the same ownership category.
To qualify for coverage under this category, a corporation, partnership, or unincorporated association must be engaged in an "independent activity," meaning that the entity is operated primarily for some purpose other than to increase insurance coverage.
Deposits owned by a corporation, partnership, or unincorporated association
are insured up to $250,000
at a single bank, but are insured separately from the personal accounts
of the entity's stockholders, partners, or members.
Accounts owned by the same corporation, partnership, or unincorporated association
but designated for different purposes are not separately insured. Instead,
such accounts are added together and insured up to $250,000.
For example, if a corporation has divisions or units that are not separately
incorporated, the deposit accounts of those divisions or units would be added
to any other deposit accounts of the corporation and the total insured up to
$250,000.
The number of partners, members, or account signatories that a corporation,
partnership, or unincorporated association has does not affect coverage. For
example, deposits owned by a homeowners association are insured up to $250,000
in total, not $250,000
for each member of the association.
Unincorporated associations typically insured under this category include churches and other religious organizations, community and civic organizations, and social clubs.
Accounts in the names of sole proprietorships (for example, "DBA accounts")
are not insured in this category. Rather, they are added to the owner's other
single accounts, if any, at the same insured bank and the total is insured
up to $250,000.
(See Single Accounts
section.)