Directive - Lemma Europe Insurance Company Limited (2012-09-10)

Summary

This is a regulatory Directive issued by the BVI Financial Services Commission against Lemma Europe Insurance Company Limited, a domestic insurer, under section 40(1)(a) of the Financial Services Commission Act, 2001. It is an enforcement action, not a general rule, and applies specifically to this company, its intermediary Caribbean Insurers Limited, and the named bank account.

• Cease and desist from underwriting: The Company must immediately stop accepting or binding any risks, new or renewal, in the Virgin Islands, and stop entering into any new contracts for any class or type of business.
• No dealings with intermediary: The Company must not accept transfers, remittances or payments of any kind from its Virgin Islands intermediary, Caribbean Insurers Limited.
• Asset freeze: The Company, its agents, employees, assigns and successors are prevented from transferring, disposing of or otherwise dealing with funds held in the specified account (account no. 15.202.532.900), which held approximately $1,504,622.80 as at 24 August 2012.

The Directive took effect immediately upon issuance and does not state an expiry or review date. It is published as part of the Commission's enforcement action alerts and primarily serves as public notice of the restrictions imposed on this specific licensee.

Key obligations

• Lemma Europe Insurance Company Limited must immediately cease and desist from accepting or binding any new or renewal risks in the Virgin Islands
• Lemma Europe Insurance Company Limited must immediately cease and desist from entering into any new insurance contracts of any class or type
• Lemma Europe Insurance Company Limited must not accept transfers, remittances or payments of any kind from its intermediary, Caribbean Insurers Limited
• The Company, its agents, employees, assigns and successors must not transfer, dispose of or otherwise deal with funds held in account no. 15.202.532.900

Applies to

domestic insurer, insurance company, insurance intermediary

Deadlines

• with immediate effect: Cessation of underwriting new or renewal risks and new contracts takes effect immediately
• with immediate effect: Prohibition on accepting transfers/remittances/payments from Caribbean Insurers Limited takes effect immediately
• with immediate effect: Freeze on dealing with funds in account no. 15.202.532.900 takes effect immediately