To calculate the NCUA coverage:
\[ \text{Coverage} = \min(\text{Account Balance}, 250,000) \]
\[ \text{Excess Amount} = \max(0, \text{Account Balance} - 250,000) \]
NCUA coverage is provided by the National Credit Union Administration to insure member share accounts at federally insured credit unions. It covers individual accounts up to $250,000, and joint accounts up to $250,000 per member[^1^][^2^].
Let's assume the following values:
Using the formula:
\[ \text{Coverage} = \min(300,000, 250,000) = 250,000 \text{ dollars} \]
\[ \text{Excess Amount} = \max(0, 300,000 - 250,000) = 50,000 \text{ dollars} \]
The NCUA coverage is $250,000, and the excess amount is $50,000.
Let's assume the following values:
Using the formula:
\[ \text{Coverage} = \min(200,000, 250,000) = 200,000 \text{ dollars} \]
\[ \text{Excess Amount} = \max(0, 200,000 - 250,000) = 0 \text{ dollars} \]
The NCUA coverage is $200,000, and there is no excess amount.