Title 22 — Insurance
49 chapters · 1,014 sections in this title.
22 V.I.C. § 6601 Definitions
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(a) As used in this chapter, unless the context requires otherwise:(1) “Actuary” means a person qualified as an actuary by examination of the Institute of Actuaries in England or the Faculty of Actuaries in Scotland Casualty Actuarial Society, or the Society of Actuaries in the U…
22 V.I.C. § 6602 Creation of alternative markets and captive reinsurance section
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There is established within the Office of the Commissioner of Insurance the Division of Alternative Markets and Captive Reinsurance. The Commissioner of Insurance, with the advice and consent of the Governor, shall appoint the SAM and determine the SAM's compensation, and the SAM…
22 V.I.C. § 6603 Authority of the SAM
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(a) The SAM may:(1) generally supervise the alternative market business being carried on in or from the Territory;(2) ensure compliance with and enforcement of the laws and regulations relating to the conduct of the alternative market businesses;(3) examine and prepare reports pu…
22 V.I.C. § 6604 Registers
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(a) The SAM shall keep the following registers:(a) A register of all licenses issued to Securitization Entities under this chapter, in which must appear:(1) the name of the Securitization Entity;(2) the address of the Securitization Entity's principal office within the Territory;…
22 V.I.C. § 6606 Revolving fund established
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(a) There is established in the Treasury of the Virgin Islands a special account known as the “Alternative Market Revolving Fund” for providing the financial means for the SAM to administer this chapter and for reasonable expenses incurred in promoting the asset securitization an…
22 V.I.C. § 6607 License and Registration fees
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(a) The following initial license application fees and initial annual license fees, subject to regulation and with full discretion of the SAM, must be charged by and collected by the SAM and deposited in the Alternative Market Revolving Fund:(1) Annual License Fees:(A) Qualified …
22 V.I.C. § 6608 Licensing; required information and documentation; fee; renewal
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(a) The Qualified Manager, intermediary, broker, actuary or auditor when permitted by its articles of incorporation, articles of organization, operating agreement, or charter, may apply to the SAM for a license to do all alternative business. (b) To conduct asset securitization a…
22 V.I.C. § 6609 Conditions of all licenses
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(a) It is a condition of every license issued under this chapter, breach of which renders the license subject to cancellation by the SAM, that:(1) The Qualified Manager, intermediary, broker, actuary and auditor must be aware of the content of each license application and busines…
22 V.I.C. § 6610 Adoption of name
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The Qualified Manager intermediary, broker, auditor, actuary or any other entity that may be licensed under this chapter may not adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for any other existing business name registered in …
22 V.I.C. § 6611 Restriction on payment of dividends; liability
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(a) A corporation or other entity may declare and pay dividends or make other distributions in cash or its bonds or its property, including the shares or bonds of other corporations, on its outstanding shares, except when the corporation is insolvent or would thereby be made inso…
22 V.I.C. § 6612 Suspension or revocation of license
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(a) The license of the Qualified Manager, intermediary broker, actuary and auditor to conduct a business in this Territory may be suspended or revoked by the SAM for:(1) insolvency or impairment of capital or surplus;(2) refusal or failure to submit an annual report, or any other…
22 V.I.C. § 6613 Rules, regulations, and orders
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The SAM may promulgate and from time to time amend rules and regulations, and issue such orders relating to Securitization Entities or SPFCs as are necessary to enable the SAM to carry out the provisions of this chapter.
22 V.I.C. § 6614 Formation of protect celled insurance company; establishing protected cells
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(a) One or more entities may form a protected cell insurance company under this chapter. (b) A protected cell insurance company formed or licensed under this chapter may establish and maintain one or more protected cells to insure risks of one or more participants, subject to the…
22 V.I.C. § 6615 Participants in protected cell insurance companies
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(a) An association, a corporation, a limited liability company, a partnership, a trust, or other business entity may be a participant in a protected cell insurance company formed or licensed pursuant to this chapter. (b) The owner may be a participant in a protected cell insuranc…
22 V.I.C. § 6616 Terms and conditions for protected cell insurance companies; exception
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(a) In the case of a protected cell insurance company:(a) a protected cell need not be established solely for the purpose of effecting insurance securitizations, but may be established for the purpose of isolating the expenses and claims of a protected cell insurance company part…
22 V.I.C. § 6617 Tax rates and payment schedules
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Each Securitization Entity must be taxed in the same manner as an SPFC pursuant to section 6670(c), (d), (e) and (f) of Subchapter III of this chapter.
22 V.I.C. § 6640 Title
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This subchapter may be cited as the “Asset-Backed Securities Facilitation Act.”
22 V.I.C. § 6641 Intent
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It is intended by the Legislature that the term “securitization transaction” must be construed broadly.
22 V.I.C. § 6642 Securitization transaction
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(a) Notwithstanding any other provision of law, to the extent set forth in the transaction documents relating to a securitization transaction, including a transaction entered into pursuant to subchapter II of this chapter:(1) Any property, assets or rights purported to be transfe…
22 V.I.C. § 6651 Purpose
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This subchapter provides for the creation of Special Purpose Financial Captives (SPFCs) exclusively to facilitate the securitization of one or more risks, as a means of accessing alternative sources of capital and achieving the benefits of securitization. SPFCs are created for th…
22 V.I.C. § 6652 Definitions
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(a) For purposes of this subchapter, the following definitions apply in addition to the definitions set out in Subchapter I of this chapter:(a) “Contested case” means a proceeding in which the legal rights, duties, obligations, or privileges of a party are required by law to be d…
22 V.I.C. § 6653 Relation to other Title 22 provisions
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(a) No provisions of title 22 other than those specifically referenced in this subchapter apply to an SPFC, and those provisions apply only as modified by this subchapter. If a conflict occurs between a provision of title 22 and a provision of this subchapter, the latter controls…
22 V.I.C. § 6654 License to transact business in Territory; contents of application; fees; foreign corporations
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(a) An SPFC, when permitted by its organizational documents, may apply to the SAM for a license to transact insurance or reinsurance business as authorized by this subchapter. An SPFC may insure or reinsure only the risks of its counterparty. An SPFC may purchase reinsurance to c…
22 V.I.C. § 6655 Organization requirements; privileges and restrictions
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(a) An SPFC may be established as a stock corporation, limited liability company, mutual, partnership, trust or other form of organization approved by the SAM. (b) The SPFC's organizational documents must limit the SPFC's authority to transact the business of insurance or reinsur…
22 V.I.C. § 6656 Capitalization
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(a) An SPFC initially shall possess and after that maintain minimum capitalization of not less than $250,000. All of the minimum initial capitalization must be in cash. All other funds of the SPFC in excess of its minimum initial capitalization must be in the form of cash, cash e…
22 V.I.C. § 6657 Authorized contracts
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(a) An SPFC may insure only the risks of a counter party. (b) An SPFC may not issue a contract for assumption of risk or indemnification of loss other than an SPFC contract. However, the SPFC may cede risks assumed through an SPFC contract to third-party captive reinsurers throug…
22 V.I.C. § 6658 Protected cells
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(a) This section and section 6659 of this subchapter provide a basis for the creation and use of protected cells by an SPFC as a means of accessing alternative sources of capital, lowering formation and administrative expenses, and generally making insurance securitizations more …
22 V.I.C. § 6659 Effect of creation of protected cell; naming; management of assets
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(a) (1) The creation of a protected cell does not create, with respect to that protected cell, a legal person separate from the SPFC.(2) Notwithstanding paragraph (1), a protected cell must have its own distinct name or designation that includes the words “protected cell”. The SP…
22 V.I.C. § 6660 Issuance of securities
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(a) An SPFC may issue securities, including surplus notes and other forms of financial instruments, subject to and in accordance with applicable law, its approved plan of operation, and its organizational documents. (b) An SPFC, in connection with the issuance of securities, may …
22 V.I.C. § 6661 Swap agreements and other forms of asset management agreements
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An SPFC may enter into swap agreements, or other forms of asset management agreements, including guaranteed investment contracts, or other transactions that have the objective of leveling timing differences in funding of up-front or ongoing transaction expenses or managing asset,…
22 V.I.C. § 6662 Authority to enter into contracts; contents
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(a) An SPFC, at any given time, may enter into and effectuate an SPFC contract with a counterparty, if the SPFC contract obligates the SPFC to indemnify the counterparty for losses and that contingent obligations of the SPFC under the SPFC contract are securitized through an SPFC…
22 V.I.C. § 6663 Securities issued by SPFC as insurance contract; underwriters or selling agents as insurance producers
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Securities issued by an SPFC pursuant to an insurance securitization may not be considered to be insurance or reinsurance contracts. An investor in these securities or a holder of these securities, by sole means of this investment or holding, may not be considered to be transacti…
22 V.I.C. § 6664 Requirements and guidelines for asset management
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(a) In fulfilling its function, the SPFC must adhere to the following requirements and, to the extent of its powers, must ensure that contracts obligating other parties to perform certain functions incident to its operations are substantively and materially consistent with the fo…
22 V.I.C. § 6665 Trust agreements for assets held in trust or pledged to secure obligations
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(a) Assets of the SPFC held in trust to secure obligations under the SPFC contract must at all times be held in:(1) cash and cash equivalents;(2) securities listed by the Securities Valuation Office of the NAIC and qualifying as admitted assets under statutory accounting conventi…
22 V.I.C. § 6666 Payment of dividends
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(a) An SPFC may not declare or pay dividends in any form to its owners other than in accordance with the insurance securitization transaction agreements, and in no extent may the dividends decrease the capital of the SPFC below two hundred fifty thousand dollars, and, after givin…
22 V.I.C. § 6667 Material changes of SPFC'S plan; filing of audit and statement of operations; examination of records
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(a) Any material change of the SPFC's plan of operation pursuant to the section 6654 of this suchapter, whether or not through an SPFC protected cell, requires prior approval of the SAM, provided however:(1) if initially approved in the plan of operation, securities subsequently …
22 V.I.C. § 6668 Examinations by the SAM; confidentiality of examination reports
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(a) At least once every three years, and if the SAM determines it to be prudent, the SAM, or his designee, shall visit each SPFC and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complie…
22 V.I.C. § 6669 Expiration of authority granted by the SAM on cessation of business; suspension or revocation of license; penalties; administrative hearing
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(a) At the cessation of business of an SPFC following termination or cancellation of an SPFC contract and the redemption of any related securities issued in connection with them, the authority granted by the SAM expires or, in the case of retiring and surviving protected cells, b…
22 V.I.C. § 6670 Tax rates and payment schedules
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(a) An SPFC shall pay to the SAM by April 15 of each year, a tax at the rate of four tenths of one percent on the first $20,000,000 and three tenths of one percent on each dollar after the first $20,000,000, subject to a minimum annual tax of $5,000 and a maximum annual tax of $7…
22 V.I.C. § 6671 Conditions for SPFC contract being granted credit for reinsurance treatment or otherwise qualifying as asset or reduction from liability for benefit of counterparty
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(a) An SPFC contract meeting the provisions of this subchapter must be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to an SPFC as an assuming insurer for the benefit of the co…
22 V.I.C. § 6672 Conservation, rehabilitation, or liquidation of SPFC
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(a) Except as otherwise modified in this section, the terms and conditions set forth in this chapter pertaining to administrative supervision of insurers and the rehabilitation, receiverships, and liquidation of insurers apply in full to SPFCs or each of the SPFC's protected cell…
22 V.I.C. § 6673 Disclosure of information by the SAM
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(a) Information submitted pursuant to this subchapter is confidential and may not be made public by the SAM or an agent or employee of the SAM without the prior written consent of the SPFC, except that:(a) information submitted pursuant to this subchapter is discoverable by a par…
22 V.I.C. § 6674 Standards and criteria applicable in contested case brought by third party and certain actions by the SAM; asset protection
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(a) A contested case brought by a third party based on a decision of the SAM pursuant to this subchapter is governed by applicable law of the Territory except that the third party shall:(1) prove its case by a clear and convincing evidence standard;(2) demonstrate irreparable har…
22 V.I.C. § 6675 Promulgation of regulations
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The SAM may, in accordance with Title 3, Chapter 35, Virgin Islands Code, promulgate regulations necessary to effectuate the purposes of this subchapter. Regulations promulgated pursuant to this section do not affect an SPFC insurance securitization in effect at the time of the p…