Local Businesses Wrongly Included In D.O.J.’s Notice Of Failure To Pay Into Unemployment Insurance Fund

ST. CROIX — In a release issued on Tuesday, the St. Croix Chamber of Commerce Board of Directors relayed its dissatisfaction with letters sent out by the local Department of Justice to businesses, notifying them of their failure to pay into the Department of Labor’s Unemployment Insurance Fund, without confirming the accuracy of its actions.

According to Chamber President Kimberly McCollum, Attorney General Claude Walker’s letter stated that failure to pay may result in legal action, causing much serious discussion in the business community.

Yet, according to the release, the Chamber has determined that numerous businesses are not only current but also may be due credits that D.O.L. is failing to apply or address. The Chamber is reaching out to both D.O.L. and the Office of the Attorney General to request information regarding the situation and expects that rectified actions will occur swiftly.

D.O.L. has acknowledged that some letters were indeed erroneously issued.

The Chamber said it is also troubled about the status of the V.I. Government’s Insurance Guaranty Fund which remains far below the original legislated minimum of $50 million. In 2012, the cap was lowered to $10 million to allow the government to move any surplus funds into the general fund to meet operating expenses. It is mandatory that all insurers licensed in the territory be members of the V.I. Guaranty Association, and in the event of insolvency of any insurer, if remaining funds are insufficient to pay claims, other licensed insurers can be assessed a penalty to cover the gap, according to the release. This would negatively affect corporate underwriters operating in the territory and potentially lead to higher rates and lesser coverage options.

“At a time when this fund should be increased especially in light of predictions of more frequent climate change catastrophes in the region such as earthquakes tsunamis, hurricanes, etc., the Chamber along with the Lt. Governor and the Director of the Division of Banking and Insurance has requested that the Senate place this among its top priorities to address and correct,” reads the release.

“To further cause concern with the state of insurance coverage in the Virgin Islands, the territory is faced with losing one of the only two carriers that will cover small businesses with healthcare insurance programs. While current healthcare insurance conditions are far from good, the announcement of the departure of Blue Cross/Blue Shield from the territory brings renewed and strengthened cause to question the future of health care and insurance for the citizens of the Virgin Islands,” the release added.

The Chamber said it is requesting a meeting with Governor Kenneth Mapp and Gwendolyn Brady, director of the Division of Banking and Insurance to further discuss how to mitigate the damage of this decision on small businesses and residents of the territory.

The release concluded by stating that the Board of Directors of the St. Croix Chamber of Commerce is diligently working to address these concerns and will report to its members and the public as information is verified and details are confirmed.

Feature Image: A.G. Claude Walker.