USAA membership

[haulingthescoreup]

I respect your angle on this, but I do want to point out that USAA isn't a government entity that offers benefits to military members. It actually is a "profit-maker," although it's very generous about sharing its profits with members (for instance, the insurance dividend rebates.) It was founded by Army officers, thus its long-term focus on the military and its needs.

It's a bidness like any other bidness, but more honorably run, and one that chooses to serve those with military ties. And if it weren't for the military spouses at home keeping things going, those in uniform would have much tougher jobs, so I think they deserve membership as well. I know my mom happily gave up the future that the wife of a civilian cardiothoracic surgeon might have had in order to move every two or three years and run a home on the top pay of $44K that my dad made in his last years, while she sweated out his tours in Korea and Viet Nam.

I hope you'll consider joining. You'll find that they will be happy (and honored) to serve you as well!

[creditwherecreditisdue]

USAA is actually a mutual insurance company (policyholder owned) so it will never be operated for anything other than the profit of the policyholder membership. That's a very good thing.

Now if I can only get Dad in and get him to buy an insurance policy...

[Anonymous]

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@creditwherecreditisdue wrote:

USAA is actually a mutual insurance company (policyholder owned) so it will never be operated for anything other than the profit of the policyholder membership. That's a very good thing.

Now if I can only get Dad in and get him to buy an insurance policy...

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Actually USAA is an insurance exchange for people who were in the military. For people who are family members of those who were in the military I believe our insurance products are actually handled by a different part of USAA. This is the reason my father-in-laws dividend check is a lot more than mine even though I use many more of their products. Different entities within the USAA umbrella handle our insurance. 

Message Edited by idmd on 10-22-2009 07:24 PM

[creditwherecreditisdue]

USAA is a mutual insurance company:

     http://www.hoovers.com/usaa/--ID__40508--/free-co-factsheet.xhtml

The mutual insurance company owns the FSB and the FSB issues the CC's and other credit products.

[Anonymous]

This is what I was inarticulately trying to say:

Legal structure

One of the characteristics that allows USAA to operate differently than almost every other Fortune 500 company is that it is not a corporation. The parent company, United Services Automobile Association is an inter-insurance exchange, the establishment of which is provided for under the Texas Insurance Code.[21] This insurance exchange is made up of current and former military officers and NCOs who have taken out P&C policies with USAA; thus they simultaneously are insured by each other and, as a group, own USAA's assets. Theoretically, this implies that each member could be held completely responsible for all the losses of all the other members. However, the insurance code (Sec 942.142) stipulates that should an entity such as USAA accrue a substantial amount of assets, member liability is limited only to the premiums they have paid to USAA. In other words, if an enormous disaster were to result in claims that would wipe out all the assets of USAA, individual members could not legally be called upon to pay for any amount USAA is unable to pay out in claims.

Other insurance services are provided by a variety of wholly-owned subsidiaries. Adult children of USAA members and U.S. military junior enlisted personnel make up a group known at USAA as "associate members" insured through a subsidiary called USAA-Casualty Insurance Company (USAA-CIC). USAA-CIC is not an insurance exchange but rather a Delaware Insurance Corporation. This is a subtle nuance but is important concerning the return of profits - described below. Non-standard-risk drivers are insured by subsidiaries like USAA's County Mutual Insurance Company or USAA-General Indemnity Company. USAA also insures members in Europe through its subsidiary, USAA Limited. It is uncommon for a U.S. based insurance company to provide international P&C coverage, but USAA does so because so many military families are stationed out-of-country. 

Guess my point is the organization of USAA is kinda complicated  

Message Edited by idmd on 10-22-2009 08:14 PM

[creditwherecreditisdue]

Yes. In plain English that makes it a mutual insurance company.

[Anonymous]

inter-insurance exchange sounds fancier IMO.

It's funny because I've been a member for years and never really realized the difference between my products and my father-in-law's products but I did wonder about his much bigger dividend check!  

[haulingthescoreup]

Thanks for the clarification, idmd! I almost understand it now, lol.

If you don't mind, could you hit "edit" on your post above, the one with the quote, and provide the source? It's something we try to do here on the forums, and it also sounds like a source of interesting reading. thx

[haulingthescoreup]

Thanks, txjohn! A great summary of before-and-after abilities with differing member status.

[Anonymous]

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Hmm, this is very interesting.  My husband is a full member.  Honorably discharged from the army after serving 12 Years. USAA benefits are one of the few benefits he gets for serving his country, although I do reap the benefits because I am his wife., However, I am not considered a member, never tried to be and dont think I should. I personally think it should be keep for military members only. That is one of the few benefits our service men and women get for serving their country.  Once they open it up to the general public it loses its value and becomes a profit maker life everything else. Hence, it will no longer be the best plus, that will be the end of those nice yearly dividend checks. Sorry, I am just ranting, I mean no disrespect to anyone, its no of my business, I am just thinking out loud,

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I respect your opinion but couldn't disagree more. USAA is a company like all other companies and it needs to change to stay competitive. If they decide to open  membership it is because they feel it makes the most business sense. There is no moral question about whether or not someone should or shouldn't become a member. USAA NEEDS members to survive. So long as a person legitimately qualifies and USAA keeps up their past track record of non-risky behavior this will be a benefit to all.  

 It's nice too because I just received my dividend check for $100!