Minimum surplus; letter of credit

1. Law
2. US Virgin Islands Code
3. Insurance
4. Virgin Islands International Insurers Act
5. Virgin Islands International Insurers Act
6. Minimum surplus; letter of credit

• No International Insurance Company shall be issued a license unless it shall possess and thereafter maintain free surplus of:

  • (1) in the case of a Single-parent International Insurance Company, not less than $100,000;

  • (2) in the case of an Industrial Insured International Insurance Company incorporated as a stock insurer, not less than $125,000;

  • (3) in the case of an Association International Insurance Company incorporated as a stock insurer, not less than $250,000;

  • (4) in the case of an Industrial Insured International Insurance Company incorporated as a mutual insurer, not less than $200,000;

  • (5) in the case of an Association International Insurance Company incorporated as a mutual insurer, not less than $325,000; or

  • (6) such sums as may be reasonably determined necessary for the maintenance of the insurance business of the International Insurance Company by the SAM at the time of application or as may be reviewed from time to time.

• Such surplus may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by the Territory of the Virgin Islands, a local bank, a foreign bank, or a member bank of the United States Federal Reserve System, properly qualified to do business in, and having a branch situated in, the Territory or similar financial or accredited investment institution situated in the Territory.

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