Directive - Caribbean Insurers (Marine) 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 arises from these entities' dealings with Lemma Europe Insurance Company Limited and imposes immediate operational restrictions plus a policy transfer deadline.

• Immediate cessation of new business: Caribbean Insurers Limited and Caribbean Insurers (Marine) Limited must cease and desist, with immediate effect, from accepting or binding any risks (new or renewal) in the Virgin Islands through Lemma Europe Insurance Company Limited.
• Immediate cessation of remittances: Both companies must cease and desist, with immediate effect, from sending any remittances to Lemma Europe Insurance Company Limited.
• Transfer of existing policies: On or before 31 October 2012, both companies must transfer all Lemma Europe Insurance Company Limited policies issued by or through them to another licensed insurer or insurers in the Virgin Islands.

The matter is recorded under Matter ID INS1008/170 as a published enforcement action against the two named insurance entities specifically, rather than a rule of general application to the wider insurance industry.

Key obligations

• Cease and desist, with immediate effect, from accepting or binding any risks (new or renewal) in the Virgin Islands through Lemma Europe Insurance Company Limited
• Cease and desist, with immediate effect, from sending remittances to Lemma Europe Insurance Company Limited
• Transfer all Lemma Europe Insurance Company Limited policies 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: Cessation of accepting or binding risks through Lemma Europe Insurance Company Limited
• immediate effect: Cessation of sending remittances to Lemma Europe Insurance Company Limited
• on or before 31 October 2012: Transfer of all Lemma Europe Insurance Company Limited policies to another licensed insurer or insurers in the Virgin Islands