Jan. 14, 2002 – Top insurance authorities headed by Lt. Gov. Gerard Luz James II and Henry Feuerzeig, the Lloyd's of London representative, will discuss problems facing the industry at a forum sponsored by the V.I. Democratic Action Club on Jan. 26 at the Holiday Inn Windward Passage Hotel.
Sen. Lorraine Berry, VIDAC president, said she hopes the round-table meeting will provide information to help the industry and property owners who may find themselves caught in a "Catch 22 quagmire" created by recent actions taken by James and countered by the insurance industry. The Saturday forum, from 10 a.m. to 3 p.m., is open to the public.
In December, James issued an ordered 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 sued James over the moratorium, saying he had overstepped his authority as commissioner of the Insurance Division with the Lieutenant Governor's Office. 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. 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 has a court hearing scheduled for Tuesday to hear arguments on whether James acted illegally in ordering the moratorium.
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.
Berry said, "The often-bitter publicly and privately held discussions taking place on insurance matters call for honest, in-depth analysis and solutions by key stakeholders." She said the VIDAC round table will provide a forum where "these individuals can come together … to thrash out problems."
At the forum, Berry said, she will present a proposal to establish an independent Bureau of Banking and Insurance.
The forum will be moderated by attorney Derek Hodge, lieutenant governor in the Alexander Farrelly administration. Those who've agreed to take part comprise a number of insurance, real estate and banking officials, including Jim Tunick, president of Theodore Tunick & Co. and agent for Heritage Insurance; David C.Ridgeway, president of the V.I. Insurance Asociation; James Crites, vice president of the V.I. Bankers Association; Nick Bailey, president of the V.I. Association of Realtors; and Roland Groder, president-elect of that association.
Since its reactivation last year, VIDAC has sponsored several community forums on public issues.
