Home News Local news 2ND INSURANCE MORATORIUM HEARING IS THURSDAY

2ND INSURANCE MORATORIUM HEARING IS THURSDAY

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Feb. 18, 2002 – Lt. Gov. Gerard Luz James II will hold his second show-cause hearing Thursday morning on why his moratorium on cancellation of property insurance should not remain in effect. The meeting is set for 10 a.m. in his office on St. Thomas.
James said in a Tuesday press release that the hearing will be a continuation of the one he held on Jan. 30. He plans to discuss facts gathered so far, hear additional testimony and determine whether the moratorium should remain in effect.
He is urging residents to attend the hearing.
In December, James, who as lieutenant governor serves as the territory's insurance commissioner, imposed a moratorium on insurance companies dropping property and casualty insurance. This caused Lloyd's of London underwriters to file a complaint in Territorial Court on Jan. 7 asking for a temporary restraining order on James's moratorium. The court denied that request.
The moratorium capped a year of clashes between officials of the Banking and Insurance Division and the V.I. Insurance Association. At issue are the views of James and others that the cost of insurance in the territory is too high; the mutually agreed-upon facts that there is a dearth of new insurers in the territory and a lack of insurance capacity; and the Insurance Association's view that the failure of James's office to grant legitimate rate increases has kept new companies from doing business in the territory.
For more information, call the Division of Banking and Insurance at 774-7166.

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