Some 1,200 former customers of the defunct Phoenix Fire and Marine Insurance Company can expect refunds, eight years after the firm went under.
According to Lt. Gov. Gerard Luz James II, who is also the commissioner of Insurance, his office has received authorization to pay $500,000 in unearned premiums to Virgin Islanders who had insured their homes and businesses.
Phoenix went into conservatorship in 1991 after it was unable to pay claims following Hurricane Hugo in 1989, James said. Based on cancellation notices from various insurance agencies, 1,210 policy holders are owed unearned premiums worth $482,514.
"With the authorization to use these funds," said James, "any Phoenix policy holder having an unearned premium claim will now receive a refund, and is encouraged to complete a proof claim with our Banking and Insurance Division by September 30, 1999."
The Office of Lieutenant Governor was successful in petitioning the District Court to authorize the payment of unearned premiums out of the $500,000 statutory deposit Phoenix made as a condition of doing business in the territory.
"Since individuals did not receive payments from Hurricane Hugo fund monies, it’s about time they received some compensation," James said.
A proof claim form may be obtained from the Division of Banking and Insurance, Suite 200 in Nisky Center on St. Thomas or at 1131 King Street in Christiansted, St. Croix.