WASHINGTON–A federal judge in the Virgin Islands ruled Fridaythat the territory's countersignature law is unconstitutional, butagents and brokers were advised to continue following the law untilappeals are exhausted.

The decision continued a string of victories on the issue forthe Council of Insurance Agents & Brokers, which has beenwaging a decade-long battle to end the disparity in treatmentbetween in-state and out-of-state brokers.

The judge in Charlotte Amalie, St. Thomas, made the decision ina bench ruling.

The rulings prohibit states or territories from forcingnonresident insurance brokers and agents to pay fees to a residentagent in order to do business in that jurisdiction.

But the ruling is not final because the territory has the rightto appeal the judge's ruling. As a result, the Washington,D.C-based association said it is cautioning brokers and agents tocontinue following the countersignature law requirements until theruling is final.

The Virgin Islands case was the final CIAB lawsuit on the issueto be adjudicated.

Previously, countersignature laws in Florida, South Dakota,Nevada and Puerto Rico were struck down by federal judges in thosejurisdictions, and the West Virginia legislature repealed its lawrather than defend it in court.

The rulings on countersignature laws in Nevada and Puerto Ricoare still in the appeals process and are not yet final, a CIABofficial said.

“This victory means the CIAB has prevailed against the odds andsuccessfully challenged the constitutionality of every one of theseprotectionist laws on behalf of our members who suffered from thiscostly barrier to free commerce,” said Ken A. Crerar, theassociation's president.

The CIAB won its first countersignature lawsuit in Florida inSeptember 2003, followed by similar victories in Nevada, SouthDakota and Puerto Rico.