Directive - Creque's Insurance Agency Limited (2012-01-08)

Summary

This is a regulatory Directive issued by the BVI Financial Services Commission under section 40(1)(a) of the Financial Services Commission Act, 2001, against Creque's Insurance Agency Limited. It arises from that agency's dealings with Gulf Insurance Limited and imposes specific restrictions and a policy transfer requirement. A later order from the Eastern Caribbean Supreme Court has stayed the transfer requirement, so its current operative status is uncertain.

• Immediate cessation: Creque's Insurance Agency Limited must, with immediate effect, cease and desist from accepting or binding any new or renewal risks in the Virgin Islands through Gulf Insurance Limited.
• Policy transfer: On or before 31 August 2012, Creque's Insurance must transfer all Gulf Insurance Limited policies it issued to another licensed insurer in the Virgin Islands (this requirement has since been stayed by a court order).
• No remittances: With immediate effect, Creque's Insurance must cease and desist from sending any remittances to Gulf Insurance Limited.

The directive is specific to Creque's Insurance Agency Limited and its dealings with Gulf Insurance Limited; it does not impose general obligations on the wider insurance industry. Readers should note the subsequent court stay noted in the document, which affects enforceability of the transfer requirement.

Key obligations

• Cease and desist, with immediate effect, from accepting or binding any new or renewal risks in the Virgin Islands through Gulf Insurance Limited
• Transfer all Gulf Insurance Limited policies issued by Creque's Insurance to another licensed insurer in the Virgin Islands on or before 31 August 2012 (subject to a subsequent court-ordered stay)
• Cease and desist, with immediate effect, from sending any remittances to Gulf Insurance Limited

Applies to

Creque's Insurance Agency Limited (insurance agency), Gulf Insurance Limited (insurer), licensed insurers in the Virgin Islands

Deadlines

• 31 August 2012: Deadline for Creque's Insurance Agency Limited to transfer all Gulf Insurance Limited policies to another licensed insurer in the Virgin Islands (subsequently stayed by a court order)
• immediate effect: Requirement to cease and desist from accepting/binding risks through Gulf Insurance Limited and from sending remittances to Gulf Insurance Limited