Directive - Gulf Insurance Limited (2012-01-08)

Summary

This is an enforcement Directive issued by the BVI Financial Services Commission against Gulf Insurance Limited, a domestic insurance licensee, under section 40(1)(a) of the Financial Services Commission Act, 2001. It orders Gulf Insurance to stop writing business in the Virgin Islands and restricts dealings with its named intermediaries, remaining in force until specified conditions are met.

• Cease new/renewal business: With effect from 1 August 2012, Gulf Insurance must cease and desist from accepting or binding any risks (new or renewal) in the Virgin Islands and from entering into any new contracts for any class or type of business.
• No transfers from intermediaries: Gulf Insurance must not accept transfers, remittances or payments of any kind from its Virgin Islands intermediaries, namely Creque's Insurance Agency Limited and Caribbean Insurers Limited.
• Conditions for lifting the Directive: The Directive remains effective until the Commission is satisfied that Gulf has: (i) filed annual returns under section 192(1) of the BVI Business Companies Act, 2004; (ii) submitted satisfactory evidence of its reinsurance arrangements and copies of related treaties for its VI business; and (iii) is maintaining its business in a financially sound condition, with sufficient admissible assets and adequate provision for liabilities.

The Directive is specific to Gulf Insurance Limited (Matter ID INS0730/115) and its named intermediaries; it does not impose general obligations on other insurance licensees.

Key obligations

• Gulf Insurance Limited must cease and desist, with effect from 1 August 2012, from accepting or binding any new or renewal risks in the Virgin Islands and from entering into any new contracts of any class or type of business.
• Gulf Insurance Limited must not accept transfers, remittances or payments of any kind from Creque's Insurance Agency Limited or Caribbean Insurers Limited.
• Gulf Insurance Limited must file annual returns in accordance with section 192(1) of the BVI Business Companies Act, 2004 before the Directive can be lifted.
• Gulf Insurance Limited must submit satisfactory evidence of its reinsurance arrangements, including copies of all reinsurance treaties relating to its Virgin Islands insurance business.
• Gulf Insurance Limited must maintain its business in a financially sound condition, with sufficient admissible assets and adequate provision for liabilities, to be in a position to meet liabilities as they fall due.

Applies to

Domestic insurance licensee (Gulf Insurance Limited), Insurance intermediaries (Creque's Insurance Agency Limited, Caribbean Insurers Limited)

Deadlines

• 1 August 2012: Effective date from which Gulf Insurance Limited must cease and desist from accepting or binding risks or entering new contracts in the Virgin Islands.