Lawmakers Advance Bill Raising Insurance Guarantee Fund to $55 Million Despite OMB Objections

Lawmakers on the Committee on Budget, Appropriations, and Finance on Friday voted to advance legislation increasing the minimum balance required in the Virgin Islands Insurance Guarantee Fund, despite objections from the Office of Management and Budget and the Department of Finance.

The measure, Bill 36-0236, sponsored by Senator Kurt Vialet, would amend Title 33 of the Virgin Islands Code to raise the minimum balance of the Fund from $50 million to $55 million before any interest can be transferred into the General Fund.

The Insurance Guarantee Fund, created after Hurricane Hugo, exists to pay claims if an insurance company becomes insolvent. Current law requires that the Fund maintain a $50 million balance, while allowing up to $20 million to be deposited into the General Fund for multiple uses. The minimum threshold has remained unchanged for years, Senator Vialet noted.

Calling it a “simple bill,” Vialet argued that increasing the minimum by $5 million was reasonable, particularly since the Fund currently holds over $60 million and continues to receive collections throughout the year.