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 reinsurance to those activities the SPFC conducts to accomplish its purpose as expressed in this subchapter.

  • (c) The SPFC may not adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for another existing business name registered in this Territory.

  • (d) An SPFC may not have fewer than three incorporators or organizers of whom not fewer than two must be bona fide residents of this Territory.

  • (e) Before transmitting its organizational documents to the Office of the Lieutenant Governor, the incorporators or organizers shall petition the SAM to issue a certificate setting forth a finding that the establishment and maintenance of the proposed SPFC promotes the general good of the Territory. In arriving at this finding the SAM shall consider:

    • (1) the character, reputation, financial standing, and purposes of the incorporators or organizers;

    • (2) the character, reputation, financial responsibility, insurance experience, and business qualifications of the officers, directors, partners, members, manager, or organizers, as applicable; and

    • (3) other aspects as the SAM considers advisable.

  • (f) The organizational documents, the certificate issued pursuant to subsection (e), and the required organization fees must be transmitted to the SAM and the Office of the Lieutenant Governor, Division of Corporations and Trademarks who shall record the relevant organizational documents.

  • (g) At least one of the members of the management of the SPFC, or the Qualified Manager representing the SPFC must be a resident of this Territory.

  • (h) An SPFC formed pursuant to the provisions of this subchapter has the privileges of and is subject to the provisions of the Virgin Islands Code, applicable to its formation, as well as the applicable provisions contained in this subchapter. If a conflict occurs between a provision of the applicable law and a provision of this subchapter, the latter controls. Nothing contained in this subsection with respect to an SPFC may abrogate, limit, or rescind in any way the authority of the Office of the Lieutenant Governor, Division of Banking, Insurance and Financial Regulation.


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