Office of the Lieutenant Governor



Division of Banking and Insurance



Virgin Islands



#5049 Kongens Gade, Charlotte Amalie, St. Thomas, USVT 00802-6487 @ (340) 774-7166 @ Fax (340) 774-9458



1131 Ning Street, Suite 101, Christansted, St. Croix, USVT 00820 © (340) 773-6459 @ Fax (340) 719-3801



BULLETIN 2013-01



TO: ALL AGENTS OR BROKERS SPONSORING APPRENTICE AGENTS OR

SOLICITORS



RE: APPRENTICE AGENTS OR SOLICITORS



It has come to the Division’s attention that a number of insurance agents are

allowing their apprentice agents and apprentice solicitors to solicit and directly transact

insurance with persons in the public, without any involvement by the licensed agent,

other than the signing of the policy. Sections 758 and 768 of Title 22, Virgin Islands

Code provides as a requirement to qualify for an agent or solicitor license an applicant

must among other requirements successfully pass an insurance examination and if for an

agent license, be appointed by one or more authorized insurer.



Section 751 of Title 22, Virgin Islands Code defines an agent as “any person

appointed by an insurer to solicit applications for insurance on its behalf ...” In addition,

it defines a solicitor as “an individual authorized by an agent or broker to solicit

applications for insurance as a representative of such agent or broker...” The word

apprentice by its common definition means a person who works for another in order to

learn a trade. The intent of Section 788 of Title 22, Virgin Islands Code is that the

apprentice agent or apprentice solicitor would be shadowing the licensed agent or broker

in order to learn about the insurance industry prior to being required to pass the insurance

examination and obtain an insurance agent or solicitor license. As such, an apprentice

agent or apprentice solicitor should not be performing solicitation or insurance

transactions on their own outside of the supervision of the licensed agent or broker. Any

solicitation or transaction must be performed by a licensed agent and broker with the

appropriate license.



Accordingly, any licensee found to be transacting insurance business outside of

the supervision of the agent or broker will be held in violation of the law and all

applicable penalties and enforcement actions will be brought against the licensee. Please

also note the agent or broker responsible for the supervision of the apprentice agent or

apprentice solicitor will be responsible for all actions and promises of their apprentice

and will be subject to all applicable penalties and enforcement actions for their failure to

adequately supervise these individuals.



Dated this Zz» day of July 2013 at St. Croix, U.S. Virgin Islands



Pac, as



Gregory R. Francis

enant Governor/Commissioner of Insurance