Changeover date approaches – New compliance arrangements for the U.S. Virgin Islands
This article is a reminder to all relevant stakeholders of the new arrangements for compliance functions in support of Lloyd’s Underwriters’ licensed business from the U.S. Virgin Islands.
As announced in Market Bulletin Y4879 and by letter to all agents and producers of U.S. Virgin Islands (USVI) business to Lloyd’s Underwriters, most of Lloyd’s USVI compliance functions are being transferred from the offices of Henry (Hank) L. Feuerzeig to Lloyd’s offices in Chicago, Illinois, and Frankfort, Kentucky. This article provides details relating to those changes, including implementation dates and key contact information. This information has been previously communicated and is permanently located in Crystal.
Effective 15 January 2015, the Attorney-in-Fact for the U.S. Virgin Islands was changed from Henry L. Feuerzeig to Lloyd’s Kentucky, Inc. This was done so that Lloyd’s Kentucky would have the necessary authorisation on behalf of underwriters to make financial and other filings with the Division of Banking and Insurance (the “Division”). Mr. Feuerzeig’s new title is General Representative, and he will remain Lloyd’s primary contact in the USVI, retaining responsibility for coordinating Lloyd’s regulatory and legislative affairs in the territory.
The compliance functions subject to this change of responsibilities include: all prudential regulatory filings submitted to the USVI on behalf of Underwriters at Lloyd’s, policy and rate filings submitted on behalf of Underwriters at Lloyd’s and the appointment of agents / territorial extension & appointment of producers required under USVI statute and in accordance with Lloyd’s Coverholder and Open Market Correspondent (OMC) requirements. The effective dates for these changes are detailed below, along with any additional guidance. Unless noted otherwise, all reports and filings will, for now, remain identical as to content, format and due date. The only change will be where documents are submitted, and whom you should contact for questions and support.
Starting with reporting period Q2 2015 all submissions and other correspondence should be sent to:
Lloyd’s Illinois, Inc.
ATTN: Grace McCormack
181 West Madison Street
Chicago, IL 60602
New compliance arrangements and dates of implementation1. Quarterly and Annual Gross, Return and Net Premiums and Paid, Outstanding and Incurred but Not Reported Losses and Allocated Loss Adjustment Expenses.
Lloyd’s Market Bulletin Y4863, issued on 21 January 2015, provides detailed guidance on changes in reporting of quarterly premiums and how the 5% gross premiums tax will be collected. Beginning period Q2 2015, Lloyd’s will deduct the USVI premium tax centrally. Therefore, local agents and producers should already be ensuring that they no longer deduct and send the premiums tax to Hank Feuerzeig (see Market Bulletin Y4863 for transitional arrangements). Instead, premium taxes on licensed USVI business should be sent to London along with the premium. Starting with Q2 2015, and thereafter, the report of quarterly premiums (which will not be accompanied by any tax payments) should be submitted to the USVI mail box, fax number or in hard copy to Grace McCormack as described above.
Beginning Q3 2015, the reports should be submitted to the USVI mail box, fax number or in hard copy to Grace McCormack as described above.
Beginning Q3 2015, Lloyd’s staff will also be taking over the policy form and rate filings. Going forward, filings will be made using the NAIC’s online web portal, SERFF, which the Division recently began using.
Effective 1 July 2015, agent and producer appointments will also be handled by Lloyd’s staff and they will be able to assist with any questions regarding these issues.