The purpose of this chapter is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide […]
This chapter shall apply to all kinds of direct insurance, except life, title, surety, disability, credit, mortgage guaranty and ocean marine insurance.
This chapter shall be liberally construed to effect the purpose propounded in section 231 of this title which shall constitute an aid and guide to interpretation.
As used in this chapter, unless the context clearly indicates otherwise: (a) “Association” means the Virgin Islands Insurance Guaranty Association created in section 235 of this title. (b) “Commissioner” means the Commissioner of Insurance. (c) “Covered claim” means an unpaid claim or judgment, including an unearned premium claim, that has been timely filed with the […]
There is created a nonprofit unincorporated legal entity to be known as the Virgin Islands Insurance Guaranty Association. All insurers defined as member insurers by subsection (e) of section 234 of this title shall be and remain members of the Association as a condition of their authority to transact insurance in this territory. The Association […]
(a) The Board of Directors of the Association shall consist of not less than five nor more than nine persons serving terms as established in the plan of operation. The members of the Board shall be selected by member insurers subject to the approval of the Commissioner. Vacancies on the Board shall be filled for […]
(a) The Association shall: (1) Be obligated to the extent of the covered claims existing prior to the determination of insolvency, or arising within 30 days after the determination of insolvency, before the policy expiration date if less than 30 days after the determination, or before the insured replaces the policy or on request effects […]
(a) (1) The Association shall submit to the Commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the Association. The plan of operation or any amendments thereto shall become effective upon approval in writing by the Commissioner. (2) If the Association fails to […]
(a) The Commissioner shall: (1) Notify the Association of the existence of an insolvent insurer not later than three days after he receives notice of the determination of the insolvency; (2) Upon request of the Board of Directors, provide the Association with a statement of the net direct written premiums of each member insurer. (b) […]
(a) Any person recovering under this chapter shall be deemed to have assigned his rights under the policy to the Association to the extent of his recovery from the Association. Every insured or claimant seeking the protection of this chapter shall cooperate with the Association to the same extent as such person would have been […]
(a) Any person having a claim against an insurer under any provision in his insurance policy which is also a covered claim shall be required to exhaust first his right under such policy. Any amount payable on a covered claim pursuant to this chapter shall be reduced by the amount of such recovery under the […]
The Board of Directors of the Association may make recommendations to the Commissioner for the detection and prevention of insurer insolvencies.
The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the Commissioner.
The Association shall be exempt from payment of all fees and all taxes levied by this territory except taxes levied on real or personal property.
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the Association or its agents or employees, the Board of Directors, or the Commissioner or his representatives for any authorized action taken by them in performance of their powers and duties pursuant […]
All proceedings in which the insolvent insurer is a party in any court in this territory shall be stayed for 60 days from the date the insolvency is determined to permit proper defense by the Association of all pending causes of action. As to any covered claims arising from a judgment under any decision, verdict, […]
(a) Except as provided in subsection (b) of this section, the provisions of this chapter are severable. If any provision of this chapter or its application to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision […]
