Jan. 25, 2002 – At the V.I. Democratic Action Club's public forum on insurance Saturday, Sen. Lorraine Berry will introduce a proposal to back up her often-expressed opinion that politics has no place in the regulating of the insurance and banking industries.
Long in the planning, Berry's draft proposal would remove the Division of Banking and Insurance from the Lieutenant Governor's Office and create a Bureau of Banking and Insurance as a separate department within the executive branch of government.
At Saturday's forum, a number of the territory's top insurance and banking figures will join in a round-table discussion to be moderated by Derek Hodge, who served as lieutenant governor in the Alexander Farrelly administration. One key figure who will be missing is Lt. Gov. Gerard Luz James II, the territory's commissioner of Insurance and chair of the V.I. Banking Board.
James and Henry Feuerzeig, Lloyd's of London's Virgin Islands representative, were to have been the major presenters at the forum on problems facing the industry. Feuerzeig confirmed Friday that he will attend the session, set for 10 a.m. to 3 p.m. at the Holiday Inn Windward Passage Hotel.
Berry, who is president of the Democratic Action Club, said the first she learned that James would not attend was when she heard it on the radio Thursday morning. The reason given was that he would be out of the territory meeting with mainland insurance officers. Berry said her office received a letter from James to that effect shortly before 2 p.m. Thursday.
The letter states that James will be meeting with "high level executives of Lloyd's to discuss Lloyd's continued presence in the territory, and other important issues."
James told Berry she could consult transcripts of a July 2001 Senate Finance Committee hearing at which he gave "extensive testimony of the state of insurance in the territory."
Berry commented in response, "I've been planning this forum for about two months, which he knows." She added, "This isn't a Senate hearing; this is a round-table discussion. This was planned around his availability to attend. This forum is for the people to understand the issues — banking, insurance and real estate will have a dialogue. People will be asking questions."
Plans for the forum were under way before a current conflict arose between James and the local insurance industry. In December, the lieutenant governor issued an order prohibiting the cancellation or non-renewal of property insurance policies through June 3. He said he took the action based on complaints his office had received that residents could not get reasonable property insurance.
Lloyd's of London underwriters filed a complaint against James over the moratorium, saying he had overstepped his authority as head of the Insurance Division. The company contended that James's decision was not based on actuarial evidence and that the moratorium would force insurance carriers to renew policies that put the carriers at financial risk.
Pending a court ruling on the matter, Lloyd's asked for a temporary restraining order, a preliminary injunction and a stay of the order, all of which Territorial Court Judge Rhys Hodge denied. Hodge did, however, schedule a hearing to hear arguments on whether James acted illegally in ordering the moratorium. Subsequently, both parties agreed to deal with the matter out of court.
James has a hearing scheduled on Jan. 29 to examine insurance companies' proposed rate increases. He said he issued the moratorium to keep current policies in effect until his office can make a decision on requested rate increases and determine whether any companies are attempting unlawfully to control insurance rates.
Joining Hodge and Feuerzeig for the round-table discussion will be Jim Tunick, president of Theodore Tunick & Co. and agent for Heritage Insurance; David C. Ridgeway, president of the V.I. Insurance Association; James Crites, vice president of the V.I. Bankers Association; Nick Bailey, president, and Roland Groder, president-elect, of the V.I. Association of Realtors; and Raymond Fournier, president of Guardian Insurance.
Berry said she anticipates a lively forum with active audience participation. It will be broadcast live on WIUJ-102.9 FM radio.