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TESTIMONY ON BILL NO 36-0219 PROVIDED BY THE OFFICE OF THE LIEUTENANT GOVERNOR DIVISION OF BANKING, INSURANCE AND FINANCIAL REGULATION before the THIRTY-SIXTH LEGISLATURE OF THE VIRGIN ISLANDS COMMITTEE ON BUDGET, APPROPRIATIONS AND FINANCE Tuesday, February 3, 2026 Good day, Committee Chairman Honorable Milton E. Potter, Honorable Members of the Thirty-Sixth Legislature of the Virgin Islands Committee on Budget, Appropriations and Finance, and members of the viewing and listening audience. I am Attorney Glendina P. Matthew, Director of the Division of Banking, Insurance and Financial Regulation (“Division”), within the Office of the Lieutenant Governor and Commissioner of Insurance, The Honorable Tregenza A. Roach, Esq. I respectfully appear before you today to testify on Bill No. 36-0219 (An Act amending title 22 Virgin Islands Code, Chapter 31 relating to the Virgin Islands Producer and Adjuster Licensing Act by modifying renewal provisions for insurance producer licenses. The Division strongly supports this Bill with one recommended modification to the implementation date cited in Section 2 of Bill No. 36-0219. Specifically, the Division requests that the implementation date set forth in Section 2 be revised from January 1, 2026 to October 1, 2026. The renewal period for current calendar year has already begun, and next renewal period will commence October 1, 2026. Revising the implementation date will ensure a smooth transition and avoid disruption to the existing renewal cycle. To provide some context, I will provide a brief overview on the Virgin Islands Producer and Adjuster Licensing Act and discuss Bill Number 36-0219, which amends Act No. 7964. Act No. 7964, which was codified on February 19, 2017, in Chapter 31 of Title 22 of the Virgin Islands 2 of 3 Code, the Virgin Islands Producer and Adjuster Licensing Act (“Producer and Adjuster Licensing Act”), sets forth the licensing requirements for Producers, formerly known as insurance agents, brokers, solicitors, adjusters and managing general agents. Specifically, the Act governs the qualifications and procedures for the licensing of insurance producers, adjusters and managing general agents and simplifies and organizes some statutory language to improve efficiency, permits the use of new technology and reduces costs associated with issuing and renewing insurance licenses. In addition, the Act creates a new regulatory environment, which allows other States and territories to recognize the Virgin Islands’ insurance producer license in the same manner as other jurisdictions, thereby allowing for reciprocity between the Virgin Islands and other states and territories. Specifically included in the Producer and Adjuster Licensing Act are the following provisions: (1) twenty (20) hours of pre-licensing courses of study; (2) a standardized examination requirement; (3) a national criminal record check with fingerprinting; and (4) twenty-four (24) hours of Continuing Education coursework requirement every two years as a condition of licensure. The Act also includes provisions which clearly identifies violations which can result in the refusal, nonrenewal, suspension or revocation of a license as well as a provision which increases the possible penalty for a violation to not less than $250.00 and not more than $10,000 depending on the severity of the offense. The Act also allows the Virgin Islands to participate in the National Association of Insurance Commissioners (NAIC) on-line systems including the National Insurance Producer Registry (“NIPR”) and State Based System (“SBS”) platform. These systems streamline the licensing process, reduce submissions and improve regulatory efficiency. Both systems are operational in the Territory. 3 of 3 Bill No. 36-0219 seeks to align the two-year continuing education requirement with the licensure period for individual insurance producers. The Bill accomplishes this by eliminating the current one-year licensure term for individual insurance producer and replacing it with a two-year licensure term. The focus of this Bill is to streamline the licensure process for individual insurance producers who are already required to complete continuing education on a two-year cycle. The continuing education provision was implemented in the Virgin Islands in January 2024. Accordingly, adopting a two-year licensure term creates consistency, reduces administrative burden, and aligns the Territory with national standards. The following reflects licensure periods among states and territory. One-year licenses: 2 jurisdictions (United States Virgin Islands and Guam) Two-year licenses: 45 states Three-year licenses: Iowa, Massachusetts, Nevada Perpetual licenses: Florida, Maine, Michigan, North Carolina and Virginia Chairman Potter and Honorable Members of the Committee, this concludes my testimony. I am available to respond to any questions the Committee may have on behalf of the Division of Banking, Insurance and Financial Regulation.