The company’s statutory net worth through the most recent quarter available. Consumers may wish to limit the size of any policy so that the policyholder’s maximum potential claims do not exceed approximately 1% of the company’s capital. For example, when buying a policy from a company with capital of $10,000,000, the 1% limit would be $100,000.

Capitalization Index

A Weiss index that measures the adequacy of the institution’s capital resources to deal with potentially adverse business and economic situations that could arise. It is based on an evaluation of the company’s degree of leverage compared to total assets as well as risk-adjusted assets.

Charge-Offs to Avg. Loans

The ratio of foreclosed loans written off the institution’s books since the beginning of the year (less previous write-offs that were recovered) as a percentage of average loans for the year. This ratio answers the question: What percentage of the credit union’s past loans have actually become uncollectable? Past loan charge-off experience is often a very good indication of what can be expected in the future, and high loan charge-off levels are usually an indication of poor underwriting practices.



Weiss Ratings