Deposit Insurance Coverage If a depositor has more than $200,000 (the current insured limit) in a closed institution and is paid $200,000 by the DIC, what happens to the amount in excess of $200,000?

If a depositor has more than $200,000 (the current insured limit) in a closed institution and is paid $200,000 by the DIC, what happens to the amount in excess of $200,000?

Deposit Insurance Corporation •June 10, 2014,

If, for example, a depositor has a total claim of $205,000 he or she would, if the claim is approved, be paid $200,000. The depositor will be issued with a Liquidator’s Certificate by the DIC for the remaining $5,000.

The Liquidator’s Certificate is a document issued by the DIC to depositors of a closed institution whose claim for deposit insurance payment exceeds the deposit insurance coverage limit.

This Liquidator’s Certificate should then be presented to the Liquidator by the depositor who will be eligible to receive pro rata payment out of the assets of the institution, as and when they are realized or disposed of, in accordance with the laws of distribution in a liquidation.

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