Directive - Caribbean Insurers Limited (2012-01-08)

Summary

This is an enforcement Directive issued by the BVI Financial Services Commission against Caribbean Insurers Limited, a licensed insurer, under section 40(1)(a) of the Financial Services Commission Act, 2001. It arises from Caribbean Insurers Limited's dealings with Gulf Insurance Limited and imposes three specific requirements on the company, effective immediately or by a stated deadline.

• Immediate cessation: Caribbean Insurers Limited must immediately cease and desist from accepting or binding any risks, whether new or renewal, in the Virgin Islands through Gulf Insurance Limited.
• Policy transfer deadline: On or before 31 August 2012, Caribbean Insurers Limited must transfer all Gulf Insurance Limited policies it issued to another licensed insurer in the Virgin Islands.
• Remittance ban: Caribbean Insurers Limited must immediately cease and desist from sending any remittances to Gulf Insurance Limited.

The matter is recorded under Matter ID INS0730/115. This Directive is specific to Caribbean Insurers Limited and does not impose general obligations on the wider insurance industry, though it signals the Commission's willingness to use section 40(1)(a) powers against insurers found dealing improperly with unlicensed or problematic counterparties.

Key obligations

• Caribbean Insurers Limited must immediately cease and desist from accepting or binding any new or renewal risks in the Virgin Islands through Gulf Insurance Limited.
• Caribbean Insurers Limited must, on or before 31 August 2012, transfer all Gulf Insurance Limited policies it issued to another licensed insurer in the Virgin Islands.
• Caribbean Insurers Limited must immediately cease and desist from sending any remittances to Gulf Insurance Limited.

Applies to

insurers, insurance companies

Deadlines

• 31 August 2012: Deadline for Caribbean Insurers Limited to transfer all Gulf Insurance Limited policies to another licensed insurer in the Virgin Islands.