2019 US Virgin Islands Code
Title 22 - Insurance
Chapter 26 - Annual Audit and Financial Reporting
§ 638. Discretionary grant of exemptions and effective dates
(a) Upon written application of any insurer, the Commissioner may grant an exemption from compliance with any and all provisions of this Chapter if the Commissioner finds, upon review of the application, that compliance with this Chapter would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. Not more than 10 days after a denial of an insurer’s written request for an exemption from this Chapter, the insurer may request in writing a hearing on its application for an exemption. The hearing shall be held in accordance with the regulations of the Division pertaining to administrative hearing procedures.
(b) Domestic insurers retaining a certified public accountant who qualifies as independent on the effective date of this Chapter shall comply with this section for the end of the year following the effective date of this Chapter, and each year thereafter unless the Commissioner permits otherwise.
(c) Domestic insurers not retaining a certified public accountant who qualifies as independent on the effective date of this Chapter may meet the following schedule for compliance unless the Commissioner permits otherwise:
(1) As of the end of the year following the effective date of this Chapter, file with the Commissioner an audited financial report
(2) For each year thereafter, insurers shall file with the Commissioner all reports and communication required by this section.
(d) Foreign insurers shall comply with this Chapter for the end of the year following the effective date of this Chapter, and each year thereafter, unless the Commissioner permits otherwise.
(e) The requirements of section 627(d)(1) apply to audits occurring January 1 of the second calendar year following the effective date of this Chapter.
(f) The requirements of section 634 are effective January 1 of the second calendar year following the effective date of this Chapter. An insurer or group of insurers that is not required to have independent audit committee members or only a majority of independent audit committee members, as opposed to a supermajority, because the total written and assumed premium is below the threshold and subsequently becomes subject to one of the independence requirements due to changes in premium shall have one year following the year the threshold is exceeded, but not earlier than January 1 of the second calendar year following the enactment of this Chapter, to comply with the independence requirements. Likewise, an insurer that becomes subject to one of the independence requirements as a result of a business combination shall have 1 calendar year following the date of acquisition or combination to comply with the independence requirements.
(g) The requirements of section 637 and other modified sections, except for section 634 covered above, are effective beginning with the reporting period ending December 31 of the second calendar year following the effective date of this Chapter, and each year thereafter. An insurer or group of insurers that is not required to file a report because the total written premium is below the threshold and subsequently becomes subject to the reporting requirements has two years following the year the threshold is exceeded to file a report. Likewise, an insurer acquired in a business combination has two calendar years following the date of acquisition or combination to comply with the reporting requirements.
(h) The requirements of section 635 are effective January 1 of the second calendar year following the effective date of this Chapter. If an insurer or group of insurers that is exempt from the section 635 requirements no longer qualifies for that exemption, it has one year after the year the threshold is exceeded to comply with the requirements of this Chapter.
