Insurance (Amendment) Act, 2024

Summary

This Act amends section 22 of the Insurance Act, Revised Edition 2020, to tighten controls on changes in ownership or control of foreign insurers licensed in the Virgin Islands. It introduces a requirement for prior Commission approval before certain ownership changes occur and adds a notification duty for lesser changes in interest.

• Prior approval required: A foreign insurer must not cause, permit or acquiesce in any change in the persons who own or hold a significant or controlling interest in it unless the Commission's prior written approval has been obtained.
• Fit and proper test: The Commission may only grant such approval if satisfied that, following the change, the person acquiring the significant or controlling interest meets the prescribed fit and proper criteria.
• Notification for lesser changes: Where a change in interest occurs that does not amount to a significant or controlling interest, the foreign insurer must notify the Commission within 14 days of the change occurring.
• Expanded contravention provision: The existing offence provision in section 22(3) is amended so that it also applies to a contravention of the new notification requirement in subsection (1B), not just subsection (1).

The Act itself does not commence immediately; it comes into force on a date to be appointed by the Minister by Notice published in the Gazette.

Key obligations

• A foreign insurer must obtain the Commission's prior written approval before any change occurs in the persons who own or hold a significant interest or controlling interest in the insurer.
• A foreign insurer must notify the Commission within 14 days of the occurrence of any change in interest that is not a significant interest or controlling interest.
• The Commission must be satisfied that a person acquiring a significant or controlling interest satisfies the prescribed fit and proper criteria before granting approval under section 22(1).

Applies to

foreign insurers

Deadlines

• within 14 days of the occurrence of the change: Foreign insurer must notify the Commission of a change in interest that is not a significant or controlling interest
• such date as the Minister may appoint by Notice published in the Gazette: Commencement date of the Insurance (Amendment) Act, 2024

Related documents

• This document amends Insurance Act (Revised 2020)