Home News Local news HANSEN VOWS TO REPEAL MANDATORY AUTO INSURANCE

HANSEN VOWS TO REPEAL MANDATORY AUTO INSURANCE

0

With about a month until compulsory auto insurance begins in the territory, Sen. Alicia "Chucky" Hansen is on the road trying to head off implementation of the law.
In a letter to Lt. Gov. Gerard Luz James II on Tuesday, Hansen presented two ways to stop the law from going into effect on Feb. 15. Hansen wrote James, who also serves as the commissioner of banking and insurance, that "reliable sources" in the local insurance industry told her there was not sufficient insurance capacity in the territory to accommodate the mandatory requirement of the act.
Because of that, she requested James to delay by 60 days the start of the law. Hansen said she was basing her opposition to the act on calls from constituents who can’t afford mandatory insurance premiums.
Extension or not, Hansen said she has already started the process aimed at repealing the mandatory insurance law.
"My office has received numerous calls from concerned voters expressing their outrage over another financial burden that they must now face," Hansen wrote. "For many taxpaying citizens, this requirement is just an impossible hurdle, especially since many have not received their tax returns or negotiated pay increases."
On Wednesday, however, James released a copy of a report sent to Senate President Vargrave Richards that found there is sufficient insurance capacity in the territory to support mandatory auto insurance.
The report found that if 30,724 vehicles on St. Croix pay an average premium of $332.88; 30,003 on St. Thomas pay an average of $293.53 and 3,040 on St. John pay $253.73, there would be a premium capacity of approximately $19.8 million to accommodate the requirements of the compulsory auto insurance law.
Information supplied to the Division of Banking and Insurance by 18 insurance carriers and underwriters in the territory showed there is approximately $51.8 million in premium capacity.
"When compared to the estimated premium capacity of $19.8 million required for all registered vehicles in the territory, there is approximately $31.7 million in excess insurance capacity for automobile insurance coverage," the report stated.
Hansen, meanwhile, said she will "provide a reasonable alternative" to the compulsory insurance law.

LEAVE A REPLY

Please enter your comment!
Please enter your name here