July 8, 2003 – A company receiving tax benefits under the territory's investment incentive program sought at a show cause hearing on Tuesday to convince the Economic Development Commission that it should continue doing so.
An EDC official said Medical Air Services Association was the subject of the hearing because "we have to ensure the people of the Virgin Islands get a return on the investment that they're making."
MASA is a company that sells what is defined as insurance to cover the cost of emergency transport in case of accident, illness or death and operates the aircraft to perform such services. It was first granted what were then Industrial Development Commission benefits in the mid-1990s — a 90 percent exemption on income taxes and 100 percent exemption on gross receipts and excise taxes.
EDC compliance officers told commission members on Tuesday that the company has failed to comply with its agreement to hire 38 full-time employees and that it has failed to set up a corporate headquarters in the Virgin Islands.
Attorney George Dudley, representing MASA, said the company had missed the mark in failing to set up its corporate headquarters. But he said this occurred because the company got caught in a real estate crunch after Hurricane Marilyn while it also was awaiting an opportunity to build a hangar at the St. Thomas airport to house its aircraft.
Dudley also said that Medical Air does in fact employ the number of people called for in its EDC certificate but that some of the personnel are contract workers whose names do not appear on the company payroll.
According to Dudley, the commission's challenge of the size of MASA's work force is puzzling. "As a part of its business plan, from Day 1, it counted for the requirement of the 38 employed persons its agents, its independent contract workers, as opposed to its payroll workers," he said. "If you include the persons working for Medical Air as independent contractors with the persons working for Medical Air as payroll employees, you see that Medical Air has met the criteria of 38 employees."
EDC compliance officer Margarita Benjamin disagreed, saying her review of the company's personnel records found that many of the contract workers fell short of the minimum 32-hour work week needed to qualify as full-time workers. In some cases, she said, contract personnel logged only 10 to 15 hours a week.
Frank Halley, MASA chief executive and board chair, pledged at the hearing to act quickly to set up the required headquarters in the territory.
Halley also said that part of the under-employment problem would be corrected by the hiring of aircraft mechanics and maintenance people once a planned hangar is built at Henry E. Rohlsen Airport. The company currently maintains its aircraft in Puerto Rico and Florida. But even with the hangar crew added, he said, MASA can only realistically employ 25 people.
After hearing the arguments of both sides, Dean Plaskett, EDC chair, said the commission would review the documents submitted relating to the case and notify MASA of its decision.
Frank Schulterbrandt, Economic Development Authority chief executive officer and EDC assistant chair, said Tuesday's show cause hearing could have been avoided if MASA had contacted the EDC to request a modification in its tax certificate. "If Medical Air had filed a waiver or a modification notice to the EDC, this issue with employment should have never occurred," he said, "but that was never done."
The commission has several options in dealing with the case. It can revoke Medical Air's benefits; it can modify the company's certificate and adjust its benefits; or it can decide to take no action.
Schulterbrandt said the EDC wants to demonstrate to other beneficiaries and potential applicants that it wants to do business with them. For that reason, he said, when there are problems, the commission seeks wherever possible to encourage compliance without adopting an adversarial stance.
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SENATORS SEEK INPUT; LEAGUE LOOKS FOR A PLAN
July 8, 2003 – One of the issues raised in debates over the governor's proposals to borrow another $235 million and impose new and increased taxes on the business community to cope with the current fiscal crisis is that there have been no public forums for discussion of the issues.
Three senators have unilaterally taken it upon themselves to change that.
Sen. Louis Hill of St. Thomas and Sens. Luther Renee and Ronald Russell of St. Croix announced their plans to host two town meetings for residents to make their views known on "the fiscal recovery of the V.I. government." The first was held Tuesday night on St. Croix at the Education Complex; the second is scheduled for Friday night on St. Thomas at the Holiday Inn Windward Passage Hotel.
Meanwhile, on Tuesday, the League of Women Voters of the Virgin Islands took aim at the Legislature for what it termed the body's "recent actions" regarding the territory's fiscal crisis that "have given the league grave cause for concern."
In a release, Rosalie Simmonds Ballantine, league president, reiterated the group's "adamant opposition to more borrowing at this time" by the government, and its concern that there is no "comprehensive deficit-elimination plan that includes realistic short-term and long-term options to reduce expenditures and aggressively collect all taxes, current and delinquent."
"It has been over eight weeks since the governor announced that the Virgin Islands was in a fiscal crisis," the league release stated. "Where is the plan to get the Virgin Islands out of this fiscal quagmire?"
Saying that "apparently our leaders cannot make the hard decisions," the league suggested that it may be time "to consider the institution of a financial control board" to manage the government's fiscal affairs.
Noting that the Senate Finance Committee has passed the governor's proposal to borrow up to $235 million more on the bond market, $100 million of it for working capital, Ballantine said: "Once again, this government proposes to travel the fiscally irresponsible and easy route and borrow itself out of a crisis, rather than having a comprehensive approach that addresses all facets of the fiscal problem."
Hill, Renee and Russell, in a release distributed on Tuesday, said they are looking in particular for discussion of Bill No. 25-0040, the governor's proposal to float the $235 million in bonds for working capital and capital investment.
Friday's St. Thomas forum is scheduled for 6 to 9 p.m. That places it after the Senate Rules Committee's 10 a.m. Friday meeting, when it is scheduled to take up the bill. Of the three senators, only Russell is a member of the committee. There has been speculation that the full Senate could act on the measure next week.
"Suggestions from the public with regard to capital improvement projects in the V.I., the economic future of the territory and the crisis the government is facing are strongly encouraged," the senators' release stated. They want to know what capital improvement projects people consider most important for the various islands.
The league release stated that the new and increased revenue measures approved last month by the Senate "will generate a mere 7 percent of the revenues needed to reduce the projected $152 million deficit" for the fiscal year ending Sept. 30 — "a deficit that continues to grow."
Ballantine said that a comprehensive plan to address the deficit "must include realistic goals and timetables, as well as mechanisms to monitor, enforce and provide for published status reports on the financial condition of the government." Without such a plan, she said, the government is "stumbling in the dark" and headed for bankruptcy.
Hill, Renee and Russell are all freshman lawmakers; all three were elected as members of the Democratic Party, as was Gov. Charles W. Turnbull. They said invitations to attend the town meetings went out to their fellow lawmakers and to community action groups, labor organizations and others. Any and all groups "are urged to send representatives," their release said.
Those wishing to sign up in advance to speak at the Friday night forum or wanting more information are asked to call 693-3523 or 693-3616.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
Three senators have unilaterally taken it upon themselves to change that.
Sen. Louis Hill of St. Thomas and Sens. Luther Renee and Ronald Russell of St. Croix announced their plans to host two town meetings for residents to make their views known on "the fiscal recovery of the V.I. government." The first was held Tuesday night on St. Croix at the Education Complex; the second is scheduled for Friday night on St. Thomas at the Holiday Inn Windward Passage Hotel.
Meanwhile, on Tuesday, the League of Women Voters of the Virgin Islands took aim at the Legislature for what it termed the body's "recent actions" regarding the territory's fiscal crisis that "have given the league grave cause for concern."
In a release, Rosalie Simmonds Ballantine, league president, reiterated the group's "adamant opposition to more borrowing at this time" by the government, and its concern that there is no "comprehensive deficit-elimination plan that includes realistic short-term and long-term options to reduce expenditures and aggressively collect all taxes, current and delinquent."
"It has been over eight weeks since the governor announced that the Virgin Islands was in a fiscal crisis," the league release stated. "Where is the plan to get the Virgin Islands out of this fiscal quagmire?"
Saying that "apparently our leaders cannot make the hard decisions," the league suggested that it may be time "to consider the institution of a financial control board" to manage the government's fiscal affairs.
Noting that the Senate Finance Committee has passed the governor's proposal to borrow up to $235 million more on the bond market, $100 million of it for working capital, Ballantine said: "Once again, this government proposes to travel the fiscally irresponsible and easy route and borrow itself out of a crisis, rather than having a comprehensive approach that addresses all facets of the fiscal problem."
Hill, Renee and Russell, in a release distributed on Tuesday, said they are looking in particular for discussion of Bill No. 25-0040, the governor's proposal to float the $235 million in bonds for working capital and capital investment.
Friday's St. Thomas forum is scheduled for 6 to 9 p.m. That places it after the Senate Rules Committee's 10 a.m. Friday meeting, when it is scheduled to take up the bill. Of the three senators, only Russell is a member of the committee. There has been speculation that the full Senate could act on the measure next week.
"Suggestions from the public with regard to capital improvement projects in the V.I., the economic future of the territory and the crisis the government is facing are strongly encouraged," the senators' release stated. They want to know what capital improvement projects people consider most important for the various islands.
The league release stated that the new and increased revenue measures approved last month by the Senate "will generate a mere 7 percent of the revenues needed to reduce the projected $152 million deficit" for the fiscal year ending Sept. 30 — "a deficit that continues to grow."
Ballantine said that a comprehensive plan to address the deficit "must include realistic goals and timetables, as well as mechanisms to monitor, enforce and provide for published status reports on the financial condition of the government." Without such a plan, she said, the government is "stumbling in the dark" and headed for bankruptcy.
Hill, Renee and Russell are all freshman lawmakers; all three were elected as members of the Democratic Party, as was Gov. Charles W. Turnbull. They said invitations to attend the town meetings went out to their fellow lawmakers and to community action groups, labor organizations and others. Any and all groups "are urged to send representatives," their release said.
Those wishing to sign up in advance to speak at the Friday night forum or wanting more information are asked to call 693-3523 or 693-3616.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
SENATORS SEEK INPUT; LEAGUE LOOKS FOR A PLAN
July 8, 2003 – One of the issues raised in debates over the governor's proposals to borrow another $235 million and impose new and increased taxes on the business community to cope with the current fiscal crisis is that there have been no public forums for discussion of the issues.
Three senators have unilaterally taken it upon themselves to change that.
Sen. Louis Hill of St. Thomas and Sens. Luther Renee and Ronald Russell of St. Croix announced their plans to host two town meetings for residents to make their views known on "the fiscal recovery of the V.I. government." The first was held Tuesday night on St. Croix at the Education Complex; the second is scheduled for Friday night on St. Thomas at the Holiday Inn Windward Passage Hotel.
Meanwhile, on Tuesday, the League of Women Voters of the Virgin Islands took aim at the Legislature for what it termed the body's "recent actions" regarding the territory's fiscal crisis that "have given the league grave cause for concern."
In a release, Rosalie Simmonds Ballantine, league president, reiterated the group's "adamant opposition to more borrowing at this time" by the government and its concern that there is no "comprehensive deficit-elimination plan that includes realistic short-term and long-term options to reduce expenditures and aggressively collect all taxes, current and delinquent."
"It has been over eight weeks since the governor announced that the Virgin Islands was in a fiscal crisis," the league release stated. "Where is the plan to get the Virgin Islands out of this fiscal quagmire?"
Saying that "apparently our leaders cannot make the hard decisions," the league suggested that it may be time "to consider the institution of a financial control board" to manage the government's fiscal affairs.
Noting that the Senate Finance Committee has passed the governor's proposal to borrow up to $235 million more on the bond market, $100 million of it for working capital, Ballantine said: "Once again, this government proposes to travel the fiscally irresponsible and easy route and borrow itself out of a crisis, rather than having a comprehensive approach that addresses all facets of the fiscal problem."
Hill, Renee and Russell, in a release distributed on Tuesday, said they are looking in particular for discussion of Bill No. 25-0040, the governor's proposal to float the $235 million in bonds for working capital and capital investment.
Friday's St. Thomas forum is scheduled for 6 to 9 p.m. That places it after the Senate Rules Committee's 10 a.m. Friday meeting, when it is scheduled to take up the bill. Of the three senators, only Russell is a member of the committee. There has been speculation that the full Senate could act on the measure next week.
"Suggestions from the public with regard to capital improvement projects in the V.I., the economic future of the territory and the crisis the government is facing are strongly encouraged," the senators' release stated. They want to know what capital improvement projects people consider most important for the various islands.
The league release stated that the new and increased revenue measures approved last month by the Senate "will generate a mere 7 percent of the revenues needed to reduce the projected $152 million deficit" for the fiscal year ending Sept. 30 — "a deficit that continues to grow."
Ballantine said that a comprehensive plan to address the deficit "must include realistic goals and timetables, as well as mechanisms to monitor, enforce and provide for published status reports on the financial condition of the government." Without such a plan, she said, the government is "stumbling in the dark" and headed for bankruptcy.
Hill, Renee and Russell are all freshman lawmakers; all three were elected as members of the Democratic Party, as was Gov. Charles W. Turnbull. They said invitations to attend the town meetings went out to their fellow lawmakers and to community action groups, labor organizations and others. Any and all groups "are urged to send representatives," their release said.
Those wishing to sign up in advance to speak at the Friday night forum or wanting more information are asked to call 693-3523 or 693-3616.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
Three senators have unilaterally taken it upon themselves to change that.
Sen. Louis Hill of St. Thomas and Sens. Luther Renee and Ronald Russell of St. Croix announced their plans to host two town meetings for residents to make their views known on "the fiscal recovery of the V.I. government." The first was held Tuesday night on St. Croix at the Education Complex; the second is scheduled for Friday night on St. Thomas at the Holiday Inn Windward Passage Hotel.
Meanwhile, on Tuesday, the League of Women Voters of the Virgin Islands took aim at the Legislature for what it termed the body's "recent actions" regarding the territory's fiscal crisis that "have given the league grave cause for concern."
In a release, Rosalie Simmonds Ballantine, league president, reiterated the group's "adamant opposition to more borrowing at this time" by the government and its concern that there is no "comprehensive deficit-elimination plan that includes realistic short-term and long-term options to reduce expenditures and aggressively collect all taxes, current and delinquent."
"It has been over eight weeks since the governor announced that the Virgin Islands was in a fiscal crisis," the league release stated. "Where is the plan to get the Virgin Islands out of this fiscal quagmire?"
Saying that "apparently our leaders cannot make the hard decisions," the league suggested that it may be time "to consider the institution of a financial control board" to manage the government's fiscal affairs.
Noting that the Senate Finance Committee has passed the governor's proposal to borrow up to $235 million more on the bond market, $100 million of it for working capital, Ballantine said: "Once again, this government proposes to travel the fiscally irresponsible and easy route and borrow itself out of a crisis, rather than having a comprehensive approach that addresses all facets of the fiscal problem."
Hill, Renee and Russell, in a release distributed on Tuesday, said they are looking in particular for discussion of Bill No. 25-0040, the governor's proposal to float the $235 million in bonds for working capital and capital investment.
Friday's St. Thomas forum is scheduled for 6 to 9 p.m. That places it after the Senate Rules Committee's 10 a.m. Friday meeting, when it is scheduled to take up the bill. Of the three senators, only Russell is a member of the committee. There has been speculation that the full Senate could act on the measure next week.
"Suggestions from the public with regard to capital improvement projects in the V.I., the economic future of the territory and the crisis the government is facing are strongly encouraged," the senators' release stated. They want to know what capital improvement projects people consider most important for the various islands.
The league release stated that the new and increased revenue measures approved last month by the Senate "will generate a mere 7 percent of the revenues needed to reduce the projected $152 million deficit" for the fiscal year ending Sept. 30 — "a deficit that continues to grow."
Ballantine said that a comprehensive plan to address the deficit "must include realistic goals and timetables, as well as mechanisms to monitor, enforce and provide for published status reports on the financial condition of the government." Without such a plan, she said, the government is "stumbling in the dark" and headed for bankruptcy.
Hill, Renee and Russell are all freshman lawmakers; all three were elected as members of the Democratic Party, as was Gov. Charles W. Turnbull. They said invitations to attend the town meetings went out to their fellow lawmakers and to community action groups, labor organizations and others. Any and all groups "are urged to send representatives," their release said.
Those wishing to sign up in advance to speak at the Friday night forum or wanting more information are asked to call 693-3523 or 693-3616.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
SENATORS SEEK INPUT; LEAGUE LOOKS FOR A PLAN
July 8, 2003 – One of the issues raised in debates over the governor's proposals to borrow another $235 million and impose new and increased taxes on the business community to cope with the current fiscal crisis is that there have been no public forums for discussion of the issues.
Three senators have unilaterally taken it upon themselves to change that.
Sen. Louis Hill of St. Thomas and Sens. Luther Renee and Ronald Russell of St. Croix announced their plans to host two town meetings for residents to make their views known on "the fiscal recovery of the V.I. government." The first was held Tuesday night on St. Croix at the Education Complex; the second is scheduled for Friday night on St. Thomas at the Holiday Inn Windward Passage Hotel.
Meanwhile, on Tuesday, the League of Women Voters of the Virgin Islands took aim at the Legislature for what it termed the body's "recent actions" regarding the territory's fiscal crisis that "have given the league grave cause for concern."
In a release, Rosalie Simmonds Ballantine, league president, reiterated the group's "adamant opposition to more borrowing at this time" by the government and its concern that there is no "comprehensive deficit-elimination plan that includes realistic short-term and long-term options to reduce expenditures and aggressively collect all taxes, current and delinquent."
"It has been over eight weeks since the governor announced that the Virgin Islands was in a fiscal crisis," the league release stated. "Where is the plan to get the Virgin Islands out of this fiscal quagmire?"
Saying that "apparently our leaders cannot make the hard decisions," the league suggested that it may be time "to consider the institution of a financial control board" to manage the government's fiscal affairs.
Noting that the Senate Finance Committee has passed the governor's proposal to borrow up to $235 million more on the bond market, $100 million of it for working capital, Ballantine said: "Once again, this government proposes to travel the fiscally irresponsible and easy route and borrow itself out of a crisis, rather than having a comprehensive approach that addresses all facets of the fiscal problem."
Hill, Renee and Russell, in a release distributed on Tuesday, said they are looking in particular for discussion of Bill No. 25-0040, the governor's proposal to float the $235 million in bonds for working capital and capital investment.
Friday's St. Thomas forum is scheduled for 6 to 9 p.m. That places it after the Senate Rules Committee's 10 a.m. Friday meeting, when it is scheduled to take up the bill. Of the three senators, only Russell is a member of the committee. There has been speculation that the full Senate could act on the measure next week.
"Suggestions from the public with regard to capital improvement projects in the V.I., the economic future of the territory and the crisis the government is facing are strongly encouraged," the senators' release stated. They want to know what capital improvement projects people consider most important for the various islands.
The league release stated that the new and increased revenue measures approved last month by the Senate "will generate a mere 7 percent of the revenues needed to reduce the projected $152 million deficit" for the fiscal year ending Sept. 30 — "a deficit that continues to grow."
Ballantine said that a comprehensive plan to address the deficit "must include realistic goals and timetables, as well as mechanisms to monitor, enforce and provide for published status reports on the financial condition of the government." Without such a plan, she said, the government is "stumbling in the dark" and headed for bankruptcy.
Hill, Renee and Russell are all freshman lawmakers; all three were elected as members of the Democratic Party, as was Gov. Charles W. Turnbull. They said invitations to attend the town meetings went out to their fellow lawmakers and to community action groups, labor organizations and others. Any and all groups "are urged to send representatives," their release said.
Those wishing to sign up in advance to speak at the Friday night forum or wanting more information are asked to call 693-3523 or 693-3616.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
Three senators have unilaterally taken it upon themselves to change that.
Sen. Louis Hill of St. Thomas and Sens. Luther Renee and Ronald Russell of St. Croix announced their plans to host two town meetings for residents to make their views known on "the fiscal recovery of the V.I. government." The first was held Tuesday night on St. Croix at the Education Complex; the second is scheduled for Friday night on St. Thomas at the Holiday Inn Windward Passage Hotel.
Meanwhile, on Tuesday, the League of Women Voters of the Virgin Islands took aim at the Legislature for what it termed the body's "recent actions" regarding the territory's fiscal crisis that "have given the league grave cause for concern."
In a release, Rosalie Simmonds Ballantine, league president, reiterated the group's "adamant opposition to more borrowing at this time" by the government and its concern that there is no "comprehensive deficit-elimination plan that includes realistic short-term and long-term options to reduce expenditures and aggressively collect all taxes, current and delinquent."
"It has been over eight weeks since the governor announced that the Virgin Islands was in a fiscal crisis," the league release stated. "Where is the plan to get the Virgin Islands out of this fiscal quagmire?"
Saying that "apparently our leaders cannot make the hard decisions," the league suggested that it may be time "to consider the institution of a financial control board" to manage the government's fiscal affairs.
Noting that the Senate Finance Committee has passed the governor's proposal to borrow up to $235 million more on the bond market, $100 million of it for working capital, Ballantine said: "Once again, this government proposes to travel the fiscally irresponsible and easy route and borrow itself out of a crisis, rather than having a comprehensive approach that addresses all facets of the fiscal problem."
Hill, Renee and Russell, in a release distributed on Tuesday, said they are looking in particular for discussion of Bill No. 25-0040, the governor's proposal to float the $235 million in bonds for working capital and capital investment.
Friday's St. Thomas forum is scheduled for 6 to 9 p.m. That places it after the Senate Rules Committee's 10 a.m. Friday meeting, when it is scheduled to take up the bill. Of the three senators, only Russell is a member of the committee. There has been speculation that the full Senate could act on the measure next week.
"Suggestions from the public with regard to capital improvement projects in the V.I., the economic future of the territory and the crisis the government is facing are strongly encouraged," the senators' release stated. They want to know what capital improvement projects people consider most important for the various islands.
The league release stated that the new and increased revenue measures approved last month by the Senate "will generate a mere 7 percent of the revenues needed to reduce the projected $152 million deficit" for the fiscal year ending Sept. 30 — "a deficit that continues to grow."
Ballantine said that a comprehensive plan to address the deficit "must include realistic goals and timetables, as well as mechanisms to monitor, enforce and provide for published status reports on the financial condition of the government." Without such a plan, she said, the government is "stumbling in the dark" and headed for bankruptcy.
Hill, Renee and Russell are all freshman lawmakers; all three were elected as members of the Democratic Party, as was Gov. Charles W. Turnbull. They said invitations to attend the town meetings went out to their fellow lawmakers and to community action groups, labor organizations and others. Any and all groups "are urged to send representatives," their release said.
Those wishing to sign up in advance to speak at the Friday night forum or wanting more information are asked to call 693-3523 or 693-3616.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
TURNBULL ASKED TO VETO BORROWING FROM FUND
July, 8, 2003 – Lt. Gov. Vargrave Richards and David Ridgway, president of the V.I. Insurance Association, have both called on Gov. Charles W. Turnbull to veto an amendment approved in a June Senate session that would see the Insurance Guaranty Fund "raided" to the tune of $30 million.
The amendment allowing the governor to use the Insurance Guaranty Fund was expected to help ward off a payless payday during the last pay period in June, senators said during the June session. However, according to administration officials, the payroll was met by holding up income tax refunds and vendor payments.
The amendment involves the transfer from the insurance fund into an Economic Development Fund of money which may be substituted with a letter of credit, surety bond or reinsurance certificate. It urges the governor to substitute up to $30 million with a standby letter of credit.
But Richards, who as lieutenant governor serves as commissioner of insurance, and Ridgway agree that repeatedly tapping the fund has sent a bad message to potential insurers, putting the territory's insurance industry, and therefore Virgin Islanders, at great risk.
Ridgway expressed his concerns in a July 2 letter to newspaper editors. (See "Misuse of guaranty fund could hurt V.I.")
"Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season)," Ridgway wrote, "this action sends a damaging message to all property and casualty insurers active in the territory and, as importantly, to those insurers that may be considering entering or re-entering the territory."
Further, in a release sent on Tuesday, Richards said: "The repeated raids or attempts to raid the Insurance Guaranty Fund undermine the purpose for which it was established." That was to protect islanders in the event that insurance companies went belly up under the strain of catastrophic occurrences — as happened after Hurricane Hugo in 1989.
Damages from that storm exceeded the ability of some of the territory's insurance companies to pay, and they folded under the weight of the huge claims, leaving policyholders with no insurance and little recourse. The guaranty fund was used to pay $10 million in Hugo claims, Richards said in his release.
The legislation establishing the fund calls for it to have up to $50 million. Once it reaches that threshold, any excess spills over into the General Fund. The guaranty fund is financed primarily by a 5 percent premium tax paid by all insurance companies doing business in the Virgin Islands.
At the annual Insurance Association of the Caribbean conference in the Dominican Republic last month, Ridgway, Richards and Deverita Sturdivant, director of the Division of Banking and Insurance, met with potential insurers. Ridgway said they expressed "concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund."
Richards echoed Ridgway, saying that "the repeated raids on the fund will hamper my efforts as commissioner of insurance [in] trying to lure potential companies to the territory to establish businesses sorely needed to fuel the economy."
Between September 1999 and December 2002, Richards said, $800,000 in claims and attendant costs were paid out of the fund. Currently, he said, $1.6 million is being held in reserve to pay pending claims.
If the territory is to be successful in attracting more insurance companies to the territory, Richards said, the integrity of the fund "must be made a high priority."
Ridgway said that "time and time again" the raids on the fund are cited by potential insurers as one big reason they are skittish about doing business in the Virgin Islands.
"The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment," Ridgway's release stated.
"The solution to both the shortage and the high price of property and casualty insurance in the U.S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems," Ridgway said.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice.. click here.
The amendment allowing the governor to use the Insurance Guaranty Fund was expected to help ward off a payless payday during the last pay period in June, senators said during the June session. However, according to administration officials, the payroll was met by holding up income tax refunds and vendor payments.
The amendment involves the transfer from the insurance fund into an Economic Development Fund of money which may be substituted with a letter of credit, surety bond or reinsurance certificate. It urges the governor to substitute up to $30 million with a standby letter of credit.
But Richards, who as lieutenant governor serves as commissioner of insurance, and Ridgway agree that repeatedly tapping the fund has sent a bad message to potential insurers, putting the territory's insurance industry, and therefore Virgin Islanders, at great risk.
Ridgway expressed his concerns in a July 2 letter to newspaper editors. (See "Misuse of guaranty fund could hurt V.I.")
"Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season)," Ridgway wrote, "this action sends a damaging message to all property and casualty insurers active in the territory and, as importantly, to those insurers that may be considering entering or re-entering the territory."
Further, in a release sent on Tuesday, Richards said: "The repeated raids or attempts to raid the Insurance Guaranty Fund undermine the purpose for which it was established." That was to protect islanders in the event that insurance companies went belly up under the strain of catastrophic occurrences — as happened after Hurricane Hugo in 1989.
Damages from that storm exceeded the ability of some of the territory's insurance companies to pay, and they folded under the weight of the huge claims, leaving policyholders with no insurance and little recourse. The guaranty fund was used to pay $10 million in Hugo claims, Richards said in his release.
The legislation establishing the fund calls for it to have up to $50 million. Once it reaches that threshold, any excess spills over into the General Fund. The guaranty fund is financed primarily by a 5 percent premium tax paid by all insurance companies doing business in the Virgin Islands.
At the annual Insurance Association of the Caribbean conference in the Dominican Republic last month, Ridgway, Richards and Deverita Sturdivant, director of the Division of Banking and Insurance, met with potential insurers. Ridgway said they expressed "concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund."
Richards echoed Ridgway, saying that "the repeated raids on the fund will hamper my efforts as commissioner of insurance [in] trying to lure potential companies to the territory to establish businesses sorely needed to fuel the economy."
Between September 1999 and December 2002, Richards said, $800,000 in claims and attendant costs were paid out of the fund. Currently, he said, $1.6 million is being held in reserve to pay pending claims.
If the territory is to be successful in attracting more insurance companies to the territory, Richards said, the integrity of the fund "must be made a high priority."
Ridgway said that "time and time again" the raids on the fund are cited by potential insurers as one big reason they are skittish about doing business in the Virgin Islands.
"The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment," Ridgway's release stated.
"The solution to both the shortage and the high price of property and casualty insurance in the U.S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems," Ridgway said.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice.. click here.
TURNBULL ASKED TO VETO BORROWING FROM FUND
July, 8, 2003 – Lt. Gov. Vargrave Richards and David Ridgway, president of the V.I. Insurance Association, have both called on Gov. Charles W. Turnbull to veto an amendment approved in a June Senate session that would see the Insurance Guaranty Fund "raided" to the tune of $30 million.
The amendment allowing the governor to use the Insurance Guaranty Fund was expected to help ward off a payless payday during the last pay period in June, senators said during the June session. However, according to administration officials, the payroll was met by holding up income tax refunds and vendor payments.
The amendment involves the transfer from the insurance fund into an Economic Development Fund of money which may be substituted with a letter of credit, surety bond or reinsurance certificate. It urges the governor to substitute up to $30 million with a standby letter of credit.
But Richards, who as lieutenant governor serves as commissioner of insurance, and Ridgway agree that repeatedly tapping the fund has sent a bad message to potential insurers, putting the territory's insurance industry, and therefore Virgin Islanders, at great risk.
Ridgway expressed his concerns in a July 2 letter to newspaper editors. (See "Misuse of guaranty fund could hurt V.I.")
"Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season)," Ridgway wrote, "this action sends a damaging message to all property and casualty insurers active in the territory and, as importantly, to those insurers that may be considering entering or re-entering the territory."
Further, in a release sent on Tuesday, Richards said: "The repeated raids or attempts to raid the Insurance Guaranty Fund undermine the purpose for which it was established." That was to protect islanders in the event that insurance companies went belly up under the strain of catastrophic occurrences — as happened after Hurricane Hugo in 1989.
Damages from that storm exceeded the ability of some of the territory's insurance companies to pay, and they folded under the weight of the huge claims, leaving policyholders with no insurance and little recourse. The guaranty fund was used to pay $10 million in Hugo claims, Richards said in his release.
The legislation establishing the fund calls for it to have up to $50 million. Once it reaches that threshold, any excess spills over into the General Fund. The guaranty fund is financed primarily by a 5 percent premium tax paid by all insurance companies doing business in the Virgin Islands.
At the annual Insurance Association of the Caribbean conference in the Dominican Republic last month, Ridgway, Richards and Deverita Sturdivant, director of the Division of Banking and Insurance, met with potential insurers. Ridgway said they expressed "concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund."
Richards echoed Ridgway, saying that "the repeated raids on the fund will hamper my efforts as commissioner of insurance [in] trying to lure potential companies to the territory to establish businesses sorely needed to fuel the economy."
Between September 1999 and December 2002, Richards said, $800,000 in claims and attendant costs were paid out of the fund. Currently, he said, $1.6 million is being held in reserve to pay pending claims.
If the territory is to be successful in attracting more insurance companies to the territory, Richards said, the integrity of the fund "must be made a high priority."
Ridgway said that "time and time again" the raids on the fund are cited by potential insurers as one big reason they are skittish about doing business in the Virgin Islands.
"The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment," Ridgway's release stated.
"The solution to both the shortage and the high price of property and casualty insurance in the U.S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems," Ridgway said.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
The amendment allowing the governor to use the Insurance Guaranty Fund was expected to help ward off a payless payday during the last pay period in June, senators said during the June session. However, according to administration officials, the payroll was met by holding up income tax refunds and vendor payments.
The amendment involves the transfer from the insurance fund into an Economic Development Fund of money which may be substituted with a letter of credit, surety bond or reinsurance certificate. It urges the governor to substitute up to $30 million with a standby letter of credit.
But Richards, who as lieutenant governor serves as commissioner of insurance, and Ridgway agree that repeatedly tapping the fund has sent a bad message to potential insurers, putting the territory's insurance industry, and therefore Virgin Islanders, at great risk.
Ridgway expressed his concerns in a July 2 letter to newspaper editors. (See "Misuse of guaranty fund could hurt V.I.")
"Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season)," Ridgway wrote, "this action sends a damaging message to all property and casualty insurers active in the territory and, as importantly, to those insurers that may be considering entering or re-entering the territory."
Further, in a release sent on Tuesday, Richards said: "The repeated raids or attempts to raid the Insurance Guaranty Fund undermine the purpose for which it was established." That was to protect islanders in the event that insurance companies went belly up under the strain of catastrophic occurrences — as happened after Hurricane Hugo in 1989.
Damages from that storm exceeded the ability of some of the territory's insurance companies to pay, and they folded under the weight of the huge claims, leaving policyholders with no insurance and little recourse. The guaranty fund was used to pay $10 million in Hugo claims, Richards said in his release.
The legislation establishing the fund calls for it to have up to $50 million. Once it reaches that threshold, any excess spills over into the General Fund. The guaranty fund is financed primarily by a 5 percent premium tax paid by all insurance companies doing business in the Virgin Islands.
At the annual Insurance Association of the Caribbean conference in the Dominican Republic last month, Ridgway, Richards and Deverita Sturdivant, director of the Division of Banking and Insurance, met with potential insurers. Ridgway said they expressed "concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund."
Richards echoed Ridgway, saying that "the repeated raids on the fund will hamper my efforts as commissioner of insurance [in] trying to lure potential companies to the territory to establish businesses sorely needed to fuel the economy."
Between September 1999 and December 2002, Richards said, $800,000 in claims and attendant costs were paid out of the fund. Currently, he said, $1.6 million is being held in reserve to pay pending claims.
If the territory is to be successful in attracting more insurance companies to the territory, Richards said, the integrity of the fund "must be made a high priority."
Ridgway said that "time and time again" the raids on the fund are cited by potential insurers as one big reason they are skittish about doing business in the Virgin Islands.
"The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment," Ridgway's release stated.
"The solution to both the shortage and the high price of property and casualty insurance in the U.S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems," Ridgway said.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
TURNBULL ASKED TO VETO BORROWING FROM FUND
July, 8, 2003 – Lt. Gov. Vargrave Richards and David Ridgway, president of the V.I. Insurance Association, have both called on Gov. Charles W. Turnbull to veto an amendment approved in a June Senate session that would see the Insurance Guaranty Fund "raided" to the tune of $30 million.
The amendment allowing the governor to use the Insurance Guaranty Fund was expected to help ward off a payless payday during the last pay period in June, senators said during the June session. However, according to administration officials, the payroll was met by holding up income tax refunds and vendor payments.
The amendment involves the transfer from the insurance fund into an Economic Development Fund of money which may be substituted with a letter of credit, surety bond or reinsurance certificate. It urges the governor to substitute up to $30 million with a standby letter of credit.
But Richards, who as lieutenant governor serves as commissioner of insurance, and Ridgway agree that repeatedly tapping the fund has sent a bad message to potential insurers, putting the territory's insurance industry, and therefore Virgin Islanders, at great risk.
Ridgway expressed his concerns in a July 2 letter to newspaper editors. (See "Misuse of guaranty fund could hurt V.I.")
"Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season)," Ridgway wrote, "this action sends a damaging message to all property and casualty insurers active in the territory and, as importantly, to those insurers that may be considering entering or re-entering the territory."
Further, in a release sent on Tuesday, Richards said: "The repeated raids or attempts to raid the Insurance Guaranty Fund undermine the purpose for which it was established." That was to protect islanders in the event that insurance companies went belly up under the strain of catastrophic occurrences — as happened after Hurricane Hugo in 1989.
Damages from that storm exceeded the ability of some of the territory's insurance companies to pay, and they folded under the weight of the huge claims, leaving policyholders with no insurance and little recourse. The guaranty fund was used to pay $10 million in Hugo claims, Richards said in his release.
The legislation establishing the fund calls for it to have up to $50 million. Once it reaches that threshold, any excess spills over into the General Fund. The guaranty fund is financed primarily by a 5 percent premium tax paid by all insurance companies doing business in the Virgin Islands.
At the annual Insurance Association of the Caribbean conference in the Dominican Republic last month, Ridgway, Richards and Deverita Sturdivant, director of the Division of Banking and Insurance, met with potential insurers. Ridgway said they expressed "concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund."
Richards echoed Ridgway, saying that "the repeated raids on the fund will hamper my efforts as commissioner of insurance [in] trying to lure potential companies to the territory to establish businesses sorely needed to fuel the economy."
Between September 1999 and December 2002, Richards said, $800,000 in claims and attendant costs were paid out of the fund. Currently, he said, $1.6 million is being held in reserve to pay pending claims.
If the territory is to be successful in attracting more insurance companies to the territory, Richards said, the integrity of the fund "must be made a high priority."
Ridgway said that "time and time again" the raids on the fund are cited by potential insurers as one big reason they are skittish about doing business in the Virgin Islands.
"The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment," Ridgway's release stated.
"The solution to both the shortage and the high price of property and casualty insurance in the U.S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems," Ridgway said.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
The amendment allowing the governor to use the Insurance Guaranty Fund was expected to help ward off a payless payday during the last pay period in June, senators said during the June session. However, according to administration officials, the payroll was met by holding up income tax refunds and vendor payments.
The amendment involves the transfer from the insurance fund into an Economic Development Fund of money which may be substituted with a letter of credit, surety bond or reinsurance certificate. It urges the governor to substitute up to $30 million with a standby letter of credit.
But Richards, who as lieutenant governor serves as commissioner of insurance, and Ridgway agree that repeatedly tapping the fund has sent a bad message to potential insurers, putting the territory's insurance industry, and therefore Virgin Islanders, at great risk.
Ridgway expressed his concerns in a July 2 letter to newspaper editors. (See "Misuse of guaranty fund could hurt V.I.")
"Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season)," Ridgway wrote, "this action sends a damaging message to all property and casualty insurers active in the territory and, as importantly, to those insurers that may be considering entering or re-entering the territory."
Further, in a release sent on Tuesday, Richards said: "The repeated raids or attempts to raid the Insurance Guaranty Fund undermine the purpose for which it was established." That was to protect islanders in the event that insurance companies went belly up under the strain of catastrophic occurrences — as happened after Hurricane Hugo in 1989.
Damages from that storm exceeded the ability of some of the territory's insurance companies to pay, and they folded under the weight of the huge claims, leaving policyholders with no insurance and little recourse. The guaranty fund was used to pay $10 million in Hugo claims, Richards said in his release.
The legislation establishing the fund calls for it to have up to $50 million. Once it reaches that threshold, any excess spills over into the General Fund. The guaranty fund is financed primarily by a 5 percent premium tax paid by all insurance companies doing business in the Virgin Islands.
At the annual Insurance Association of the Caribbean conference in the Dominican Republic last month, Ridgway, Richards and Deverita Sturdivant, director of the Division of Banking and Insurance, met with potential insurers. Ridgway said they expressed "concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund."
Richards echoed Ridgway, saying that "the repeated raids on the fund will hamper my efforts as commissioner of insurance [in] trying to lure potential companies to the territory to establish businesses sorely needed to fuel the economy."
Between September 1999 and December 2002, Richards said, $800,000 in claims and attendant costs were paid out of the fund. Currently, he said, $1.6 million is being held in reserve to pay pending claims.
If the territory is to be successful in attracting more insurance companies to the territory, Richards said, the integrity of the fund "must be made a high priority."
Ridgway said that "time and time again" the raids on the fund are cited by potential insurers as one big reason they are skittish about doing business in the Virgin Islands.
"The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment," Ridgway's release stated.
"The solution to both the shortage and the high price of property and casualty insurance in the U.S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems," Ridgway said.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
MISUSE OF GUARANTY FUND COULD HURT V.I
The Legislature’s decision to use up to $30 million from the Insurance Guaranty Fund to meet government obligations will hurt Virgin Islanders. Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season), this action sends a damaging message to all property and casualty insurers active in the Territory and, as importantly, to those insurers that may be considering entering or re-entering the Territory. The Insurance Guaranty Fund was set up to protect policyholders in case of failure of a licensed property and casualty insurer. The fund has unfortunately been called on many times in the last 14 years. Insurers view the repeated raids on the guaranty fund to meet various ongoing government obligations as irresponsible government. The solution to both the shortage and the high price of property and casualty insurance in the U. S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems.
The members of the Virgin Islands Insurance Association were very pleased to see Lt. Governor Vargrave Richards and Deverita Sturdivant, the director of the Division of Banking and Insurance at the recent annual conference of the Insurance Association of the Caribbean.
Delegates from throughout the region along with underwriters and brokers from all over the world met in Punta Cana, Dominican Republic June 9 – 11. The lieutenant. governor and the director made themselves available for several meetings with present and potential insurers to see what could be done to encourage them to make more insurance available in the territory. A common message that was delivered by many insurers was a concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund. Representatives of several syndicates at Lloyd’s, some of which had stopped writing in the U. S. Virgin Islands over the last couple of years, were the most vocal about these issues.
The involvement of the lieutenant governor and the director of Banking and Insurance in the recent conference and their positive message to many insurers represented a new beginning in relations between insurers and the Virgin Islands insurance market. Meetings were positive and encouraging. Unfortunately, the very next week, the Legislature passed an amendment allowing the government to tap the Insurance Guaranty Fund for up to $30 million.
The members of the Virgin Islands Insurance Association work very hard to attract additional insurers to this territory. Unfortunately, many local agents and brokers experience difficulty attracting new insurers to the territory. Among the reasons cited time and time again by these insurers is actions such as raids on the Insurance Guaranty Fund. The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment allowing the use of the Insurance Guaranty Fund for purposes other than those for which it is intended.
David C. Ridgway
President
Virgin Islands Insurance Association
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice.. click here.
The members of the Virgin Islands Insurance Association were very pleased to see Lt. Governor Vargrave Richards and Deverita Sturdivant, the director of the Division of Banking and Insurance at the recent annual conference of the Insurance Association of the Caribbean.
Delegates from throughout the region along with underwriters and brokers from all over the world met in Punta Cana, Dominican Republic June 9 – 11. The lieutenant. governor and the director made themselves available for several meetings with present and potential insurers to see what could be done to encourage them to make more insurance available in the territory. A common message that was delivered by many insurers was a concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund. Representatives of several syndicates at Lloyd’s, some of which had stopped writing in the U. S. Virgin Islands over the last couple of years, were the most vocal about these issues.
The involvement of the lieutenant governor and the director of Banking and Insurance in the recent conference and their positive message to many insurers represented a new beginning in relations between insurers and the Virgin Islands insurance market. Meetings were positive and encouraging. Unfortunately, the very next week, the Legislature passed an amendment allowing the government to tap the Insurance Guaranty Fund for up to $30 million.
The members of the Virgin Islands Insurance Association work very hard to attract additional insurers to this territory. Unfortunately, many local agents and brokers experience difficulty attracting new insurers to the territory. Among the reasons cited time and time again by these insurers is actions such as raids on the Insurance Guaranty Fund. The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment allowing the use of the Insurance Guaranty Fund for purposes other than those for which it is intended.
David C. Ridgway
President
Virgin Islands Insurance Association
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice.. click here.
MISUSE OF GUARANTY FUND COULD HURT V.I
The Legislature’s decision to use up to $30 million from the Insurance Guaranty Fund to meet government obligations will hurt Virgin Islanders. Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season), this action sends a damaging message to all property and casualty insurers active in the Territory and, as importantly, to those insurers that may be considering entering or re-entering the Territory. The Insurance Guaranty Fund was set up to protect policyholders in case of failure of a licensed property and casualty insurer. The fund has unfortunately been called on many times in the last 14 years. Insurers view the repeated raids on the guaranty fund to meet various ongoing government obligations as irresponsible government. The solution to both the shortage and the high price of property and casualty insurance in the U. S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems.
The members of the Virgin Islands Insurance Association were very pleased to see Lt. Governor Vargrave Richards and Deverita Sturdivant, the director of the Division of Banking and Insurance at the recent annual conference of the Insurance Association of the Caribbean.
Delegates from throughout the region along with underwriters and brokers from all over the world met in Punta Cana, Dominican Republic June 9 – 11. The lieutenant. governor and the director made themselves available for several meetings with present and potential insurers to see what could be done to encourage them to make more insurance available in the territory. A common message that was delivered by many insurers was a concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund. Representatives of several syndicates at Lloyd’s, some of which had stopped writing in the U. S. Virgin Islands over the last couple of years, were the most vocal about these issues.
The involvement of the lieutenant governor and the director of Banking and Insurance in the recent conference and their positive message to many insurers represented a new beginning in relations between insurers and the Virgin Islands insurance market. Meetings were positive and encouraging. Unfortunately, the very next week, the Legislature passed an amendment allowing the government to tap the Insurance Guaranty Fund for up to $30 million.
The members of the Virgin Islands Insurance Association work very hard to attract additional insurers to this territory. Unfortunately, many local agents and brokers experience difficulty attracting new insurers to the territory. Among the reasons cited time and time again by these insurers is actions such as raids on the Insurance Guaranty Fund. The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment allowing the use of the Insurance Guaranty Fund for purposes other than those for which it is intended.
David C. Ridgway
President
Virgin Islands Insurance Association
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
The members of the Virgin Islands Insurance Association were very pleased to see Lt. Governor Vargrave Richards and Deverita Sturdivant, the director of the Division of Banking and Insurance at the recent annual conference of the Insurance Association of the Caribbean.
Delegates from throughout the region along with underwriters and brokers from all over the world met in Punta Cana, Dominican Republic June 9 – 11. The lieutenant. governor and the director made themselves available for several meetings with present and potential insurers to see what could be done to encourage them to make more insurance available in the territory. A common message that was delivered by many insurers was a concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund. Representatives of several syndicates at Lloyd’s, some of which had stopped writing in the U. S. Virgin Islands over the last couple of years, were the most vocal about these issues.
The involvement of the lieutenant governor and the director of Banking and Insurance in the recent conference and their positive message to many insurers represented a new beginning in relations between insurers and the Virgin Islands insurance market. Meetings were positive and encouraging. Unfortunately, the very next week, the Legislature passed an amendment allowing the government to tap the Insurance Guaranty Fund for up to $30 million.
The members of the Virgin Islands Insurance Association work very hard to attract additional insurers to this territory. Unfortunately, many local agents and brokers experience difficulty attracting new insurers to the territory. Among the reasons cited time and time again by these insurers is actions such as raids on the Insurance Guaranty Fund. The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment allowing the use of the Insurance Guaranty Fund for purposes other than those for which it is intended.
David C. Ridgway
President
Virgin Islands Insurance Association
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
MISUSE OF GUARANTY FUND COULD HURT V.I
The Legislature’s decision to use up to $30 million from the Insurance Guaranty Fund to meet government obligations will hurt Virgin Islanders. Aside from the obvious risk created for policyholders in the Virgin Islands (we have just entered the second month of the hurricane season), this action sends a damaging message to all property and casualty insurers active in the Territory and, as importantly, to those insurers that may be considering entering or re-entering the Territory. The Insurance Guaranty Fund was set up to protect policyholders in case of failure of a licensed property and casualty insurer. The fund has unfortunately been called on many times in the last 14 years. Insurers view the repeated raids on the guaranty fund to meet various ongoing government obligations as irresponsible government. The solution to both the shortage and the high price of property and casualty insurance in the U. S. Virgin Islands is to attract more providers. This latest raid will surely worsen the territory’s insurance problems.
The members of the Virgin Islands Insurance Association were very pleased to see Lt. Governor Vargrave Richards and Deverita Sturdivant, the director of the Division of Banking and Insurance at the recent annual conference of the Insurance Association of the Caribbean.
Delegates from throughout the region along with underwriters and brokers from all over the world met in Punta Cana, Dominican Republic June 9 – 11. The lieutenant. governor and the director made themselves available for several meetings with present and potential insurers to see what could be done to encourage them to make more insurance available in the territory. A common message that was delivered by many insurers was a concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund. Representatives of several syndicates at Lloyd’s, some of which had stopped writing in the U. S. Virgin Islands over the last couple of years, were the most vocal about these issues.
The involvement of the lieutenant governor and the director of Banking and Insurance in the recent conference and their positive message to many insurers represented a new beginning in relations between insurers and the Virgin Islands insurance market. Meetings were positive and encouraging. Unfortunately, the very next week, the Legislature passed an amendment allowing the government to tap the Insurance Guaranty Fund for up to $30 million.
The members of the Virgin Islands Insurance Association work very hard to attract additional insurers to this territory. Unfortunately, many local agents and brokers experience difficulty attracting new insurers to the territory. Among the reasons cited time and time again by these insurers is actions such as raids on the Insurance Guaranty Fund. The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment allowing the use of the Insurance Guaranty Fund for purposes other than those for which it is intended.
David C. Ridgway
President
Virgin Islands Insurance Association
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
The members of the Virgin Islands Insurance Association were very pleased to see Lt. Governor Vargrave Richards and Deverita Sturdivant, the director of the Division of Banking and Insurance at the recent annual conference of the Insurance Association of the Caribbean.
Delegates from throughout the region along with underwriters and brokers from all over the world met in Punta Cana, Dominican Republic June 9 – 11. The lieutenant. governor and the director made themselves available for several meetings with present and potential insurers to see what could be done to encourage them to make more insurance available in the territory. A common message that was delivered by many insurers was a concern over unpredictable government actions, including specifically the repeated raids on the Insurance Guaranty Fund. Representatives of several syndicates at Lloyd’s, some of which had stopped writing in the U. S. Virgin Islands over the last couple of years, were the most vocal about these issues.
The involvement of the lieutenant governor and the director of Banking and Insurance in the recent conference and their positive message to many insurers represented a new beginning in relations between insurers and the Virgin Islands insurance market. Meetings were positive and encouraging. Unfortunately, the very next week, the Legislature passed an amendment allowing the government to tap the Insurance Guaranty Fund for up to $30 million.
The members of the Virgin Islands Insurance Association work very hard to attract additional insurers to this territory. Unfortunately, many local agents and brokers experience difficulty attracting new insurers to the territory. Among the reasons cited time and time again by these insurers is actions such as raids on the Insurance Guaranty Fund. The Virgin Islands Insurance Association encourages Gov. Turnbull to veto the amendment allowing the use of the Insurance Guaranty Fund for purposes other than those for which it is intended.
David C. Ridgway
President
Virgin Islands Insurance Association
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice… click here.
