2019 US Virgin Islands Code
Title 22 - Insurance
Chapter 51 - Mergers, Rehabilitation, Liquidation
§ 1286. Purchase of insolvent domestic insurer; tax benefits
(a) Any time after the District Court has ordered the Commissioner to rehabilitate an insolvent domestic insurer under this chapter, the Commissioner may enter into an agreement, subject to the approval of the Legislature, with any party qualified to hold a certificate of authority under this title concerning the purchase of the insurer being rehabilitated. The Commissioner may not enter into such an agreement unless the purchaser demonstrates the capability to fully perform each of the elements of the purchase agreement. In addition, the Commissioner must be satisfied that the purchase is in the best interests of the persons insured by the rehabilitated insurer. Any agreement under this section must provide that all valid claims by insured against the rehabilitated insurer will be paid by the purchaser.
(b) As part of the negotiation of a purchase agreement under subsection (a), the Commissioner may offer the prospective purchaser:
(1) any or all of the benefits granted to persons qualifying for industrial development certificates under Title 29, section 713a, Virgin Islands Code; and
(2) total or partial exemption from any insurance premium tax assessed by the Virgin Islands.
This subsection shall not be construed as requiring a purchaser to meet any of the requirements for the issuance of an industrial development certificate.
(c) Tax benefits offered or granted under this section:
(1) must be attributable to income or premiums earned or property acquired as a direct result of the purchase of the rehabilitated insurer (including any premium income attributable to renewals of insurance policies in force immediately prior to the District Court's order of rehabilitation); and
(2) may not be granted for a period exceeding ten (10) years.
