Directive - Caribbean Insurers Limited (2012-09-10)

Summary

This is an enforcement directive issued by the BVI Financial Services Commission against Caribbean Insurers Limited and Caribbean Insurers (Marine) Limited, under section 40(1)(b) of the Financial Services Commission Act, 2001. It restricts the two companies' dealings with Lemma Europe Insurance Company Limited and requires an orderly transfer of affected policies.

• Immediate cease and desist: The companies must immediately stop accepting or binding any new or renewal risks in the Virgin Islands through Lemma Europe Insurance Company Limited.
• Stop remittances: The companies must immediately stop sending any remittances to Lemma Europe Insurance Company Limited.
• Policy transfer: On or before 31 October 2012, all Lemma Europe Insurance Company Limited policies issued by or through the companies must be transferred to another licensed insurer or insurers in the Virgin Islands.

The matter is recorded under Matter ID INS1008/170. This directive is specific to the named entities and does not impose general obligations on the wider insurance industry.

Key obligations

• Caribbean Insurers Limited and Caribbean Insurers (Marine) Limited must immediately cease and desist from accepting or binding any new or renewal risks in the Virgin Islands through Lemma Europe Insurance Company Limited.
• Caribbean Insurers Limited and Caribbean Insurers (Marine) Limited must immediately cease and desist from sending any remittances to Lemma Europe Insurance Company Limited.
• Caribbean Insurers Limited and Caribbean Insurers (Marine) Limited must transfer all Lemma Europe Insurance Company Limited policies issued by or through them to another licensed insurer or insurers in the Virgin Islands on or before 31 October 2012.

Applies to

Caribbean Insurers Limited, Caribbean Insurers (Marine) Limited, insurers

Deadlines

• immediate effect: Cease and desist from accepting or binding any risks through Lemma Europe Insurance Company Limited
• immediate effect: Cease and desist from sending remittances to Lemma Europe Insurance Company Limited
• 31 October 2012: Transfer all Lemma Europe Insurance Company Limited policies to another licensed insurer or insurers in the Virgin Islands