How to File A Complaint With The U.S. Virgin Islands Department of Insurance About Your Delaying, Denying and Bad Treating Insurance Company

The Office of the Lieutenant Governor Division of Banking, Insurance and Financial Regulation has a dual responsibility of regulating the insurance industry and protecting consumer interest in the U.S. Virgin Islands. As of January 30, 2018, the most recent data on insurance claims provided by the Division of Banking, Insurance and Financial Regulation (“Division”) indicated the following:¹

Hurricane Irma:
Total Claims Reported: 9,332
Total Claims Closed with Payment: 3,032
Total Amount Paid in Claims: $435,661,453.61
Total Percent of Claims Closed: 38%

Hurricane Maria:
Total Claims Reported: 5,549
Total Claims Closed with Payment: 1,314
Total Amount Paid in Claims: $82,837,319.06
Total Percent of Claims Closed: 32%

Merlin Law Group contacted the Division regarding the most recent data. The Division informed us that the updated information is not available because the Division is constantly processing complaints based on carriers’ treatment of their policyholders in the aftermath of both hurricanes.

Among other challenges faced by policyholders during the claims adjustment process, many claims were denied due to insufficient insurance coverage at the time of loss. According to the Division, many policyholders maintained that they were unaware that they were underinsured. These complaints formed the basis of Bulletin 2018-01, which placed the burden on the insurance companies to ensure the public education takes and to notify the policyholders of underinsurance.

Under Virgin Islands law, insurance companies doing business in the territory, must promptly pay claims within thirty days from the date on which an agreement to settled is signed or a proof of claim has been filed.² Virgin Islands law also prohibits any person engaged in the business of insurance from engaging in unfair methods of competition or in unfair or deceptive acts or practices in the conduct of such business, which includes the adjusting of a claim for benefits.³

When things go wrong, policyholders in the territory are encouraged to file a complaint with the Division using the Complaint Form link or by filling out a copy of the Complaint Form and mailing or faxing it to the Division.

Government of the United States Virgin Islands
Office of the Lieutenant Governor
Division of Banking, Insurance, and Financial Regulation
5049 Kongens Gade,
Charlotte Amalie, St. Thomas, VI 00802
Tel: (340) 774-7166
Fax: (340) 774-9458

Government of the United States Virgin Islands
Office of the Lieutenant Governor
Division of Banking, Insurance, and Financial Regulation
1131 King Street, Suite 101
Christiansted, VI 00820
Tel: (340) 773-6459
Fax: (340) 719-3801

If the problem persists or if you are not certain of your insurance claim rights or if you have questions about your policy benefits, please do not hesitate to call Merlin Law Group attorneys.
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¹ Hurricane Insurance Claims Press Conference – https://ltg.gov.vi/press-release/hurricane-insurance-claims-press-conference/
² 22 V.I.C. § 228(a).
³ 22 V.I.C. § 1201(a).