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Office of the Lieutenant Governor Division of Banking, Insurance and Financial Regulation #5049 Kongens Gade, Charlotte Amalie, St. Thomas, USVI 00802-6487 @ (340) 774-7166 @ Fax (340) 774-9458 1131 King Street, Suite 101, Christiansted, St. Croix, USVI 00820 @ (340) 773-6459 @ Fax (340) 719-3801 Itg.gov.vi BULLETIN 2020-15 TO: Property and Casualty Insurers, Insurance Producers and General Public FROM: Tregenza A. Roach, Esq., Lieutenant Governor and Commissioner of Insurance RE: Notice of cancellation of policy; Suspension of registration This Bulletin is being issued to all U.S. Virgin Islands licensed or authorized property and casualty insurers, insurance producers and the general public to explain as concisely as possible, the requirements that must be met by an insurance company or its agent or the owner of the vehicle to cancel a motor vehicle liability policy in the Territory pursuant to Title 20, Chapter 47 of the Virgin Islands Code, Compulsory Automobile Liability Insurance. By way of background, the Office of the Lieutenant Governor, Division of Banking, Insurance and Financial Regulation (“Division”) has received inquiries from the insurance industry and owners of motor vehicles about the requirements that must be met by an insurance company, its agents and owners of vehicles in order to cancel a motor vehicle liability policy after a vehicle is sold to a new owner. Discussions with the Virgin Islands Bureau of Motor Vehicles (“BMV”) have revealed that some owners of motor vehicles sell their vehicle without notifying BMV within twenty-four hours of the transfer as mandated in 20 V.I.C. § 335. Many sellers forego going to BMV with the buyer to officially transfer ownership in the new buyer’s name and cancel the registration of the seller. Instead, the buyer and seller execute and notarize the back of the certificate of title or registration and do not follow through with notifying BMV as provided in Section 335. The issue many sellers encounter is that signing the back of the certificate of title or registration does not serve to officially cancel the registration of the seller. Thus, insurance companies and their agents have denied requests by the owners of record to cancel the motor vehicle insurance until the transfer is effectuated in a new buyer’s name and the registration of the seller is cancelled by BMV. Bulletin No. 2020-15 premium for cancellation of a policy unless the insured has complied with the provisions of subsections (aX(3) or (b) of this Section.” To that end, the Division realizes there is a need to educate the public on the Compulsory Automobile Liability law. The Division will take part in outreach activities and make educational information available on the Office of the Lieutenant Governor’s web site, Itg.gov.vi. Questions regarding this Bulletin may be directed to the Division by calling Glendina Matthew, Esq., Assistant Director/Legal Counsel at (340) 773-6459. Dated this 9th day of September 2020 at St. Thomas, U.S. > Islands. Ant Kal Treg 7Roach,Esq, Lieutenant Governor/ Commissioner of Insurance