Is a cashiers check before it is cashed covered by fdic insurance in the event of a bank collapse?

Question

Is a cashiers check before it is cashed covered by fdic insurance in the event of a bank collapse?

Answer 1

FDIC insurance covers deposit accounts.  If the cashiers check was already issued, then it should clear the banking system without any problem.  If you have a cashiers check from a bank that 'collapsed' in the past, then the banks remaining assets/liabilities should have been absorbed by another bank - you would have to do some digging to find out which one.

Answer 2

No.