BILLS TO UPDATE TERRITORY’S INSURANCE CODE WITH INSURANCE COMPANIES MOVES FORWARD

BILLS TO UPDATE TERRITORY’S INSURANCE CODE WITH INSURANCE COMPANIES MOVES FORWARD

BILLS TO UPDATE TERRITORY’S INSURANCE CODE WITH INSURANCE COMPANIES MOVES FORWARD

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St. Thomas – The Committee on Rules and Judiciary, chaired by Sen. Novelle Francis, held a meeting at the Capitol Building on Thursday, to vote favorably on three bills that updates the Territory’s Insurance Code with insurance companies in the mainland and to gain National Association of Insurance Commissioners (NAIC) Accreditation.

The measures are Bill No. 32-0233-to provide for an annual audit and financial reporting to meet the accreditation standards established by NAIC and to update Insurance laws; Bill No. 32-0232- as it relates to life and health insurance agreements; and Bill No. 32-0234- to enact the Property and Casualty Actuarial Opinion Act to meet the accreditation standards established by the National Association of Insurance Commissioners in its model laws to update the Insurance Laws of the Territory.

“The bills ensure the financial solvency of insurance companies. In accordance to Lieutenant Governor Potter, 75% of properties were closed, and the payout from insurance companies were over $2 million. The bills also bring the Territory up to date with accreditation with the NAIC,” said Sen. Francis

The standards of NAIC Accreditation Program requires state and territorial insurance departments to have adequate statutory and administrative authority to regulate insurer’s corporate and financial affairs. NAIC ensures active company financial solvency and regulation.

“This is just a few of the many bills to ensure the Office of the Governor Division of Banking, Insurance and Financial Regulation for the Virgin Islands have the same laws and standards as major insurance companies nationwide, the District of Columbia and Puerto Rico,” said Sponsor of the Bills Sen. Kurt Vialet. “This is a unique opportunity to update laws created since 1968.”

Amendment to Bill No. 32-0234, offered by the Sen. Vialet, has several provisions to include (a) Title 22, sections 1054,1055 and 1056 as enacted in section 2 of this act take effect December 31 of the first full calendar year following the enactment of this act; and (2) Title 22, section 1057 and 1058 take effect sixty days after the enactment.

Sen. Sammuel Sanes stated that his primary concern is that once the bills enacted into law, implementation of them will not take place. “These are all excellent bills. Since there is a lack of staff across all government departments and agencies, the implementation may be an issue.”

 

All bills approved will be forwarded to the Full Body for further consideration. Senators present are Novelle Francis, Positive Nelson, Sammuel Sanes, Jean Forde, Kurt Vialet and Myron Jackson, Janette Millin Young. Access photos: http://www.legvi.org/committeemeetings/Media/                                                                     ###

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