Source: https://www.propertyinsurancecoveragelaw.com/2017/10/articles/bad-faith/insurance-bad-faith-in-the-virgin-islands/
Timestamp: 2019-04-19 16:40:08+00:00

Document:
What duties do the insurance carriers owe to their insureds?
The business of insurance is one affected by the public interest, requiring that all persons be actuated by good faith, abstain from deception, and practice honesty and equity in all insurance matters. Upon the insurer, the insured and their representatives rests the duty of preserving inviolate the integrity of insurance.
What remedies are available if the carrier does not fulfill its duties?
A person who is an insured, can sue the insurance company under a claim of bad faith under certain circumstances. If, after the insurance company did an investigation, the company decided that the claim was valid, but it refused to pay the claim, or the insurance company intentionally refused, or failed to investigate whether there was any lawful reason for denying the claim, then it may be liable to the person to whom it issued the policy for its bad faith.
Hopefully, in the adjustment of the claims that will follow, the carriers that serve the territory (and their representatives) will remain mindful and fulfill their obligations to the residents of the USVI.
1 The Virgin Islands Division of Banking and Insurance licenses and regulates public adjusters. “‘Public adjuster’ means a person, who for money, commission, or any other thing of value, prepares, completes, or files an insurance claim form for an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage covered by an insurance contract or who advertises for employment as an adjuster of such claims.” 22 V.I.C. § 751a(3). Public adjusters are generally compensated at a percentage of the proceeds that they recover from the insurance company. The maximum fee that a public adjuster can charge on residential losses is 5%. See http://ltg.gov.vi/downloads/forms/b&i/Bulletins/bulletin_re_public_adjusters_fees.pdf.
2 22 V.I.C. § 2.
3 22 V.I.C. § 5.
4 22 V.I.C. § 1201(a).
5 22 V.I.C. § 1204.
6 22 V.I.C. § 228(a).
7 Charleswell v. Chase Manhattan Bank, N.A., 308 F.Supp.2d 545, 572, 45 V.I. 495, 527 (D. VI. 2004); In re Tutu Water Wells Contamination Litigation, 78 F.Supp.2d 436, 442, 42 V.I. 299, 308-309 (D. VI. 1999); Justin v. Guardian Ins. Co., 670 F.Supp. 614, 616, 23 V.I. 278, 281-282 (D. VI. 1987); see also Restatement (Second) of Contracts § 205, entitled “Duty of Good Faith and Fair Dealing” (“Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.”).
9 Charleswell, 308 F.Supp.2d at 573-574, 45 V.I. at 529; Justin, 670 F.Supp. at 617, 23 V.I. at 282.

References: § 751
 § 2
 § 5
 § 1201
 § 1204
 § 228
 v. 
 v. 
 § 205