Title 22, Business Regulation

The Agency may promote the administration of this Chapter by accepting and utilizing information, services, and facilities made available to it by the Department.

If any provision of this law or its application to any person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisions or applications of this Law which can be given effect without the invalid provisions or application, and to t…

This Title may be cited as the Insurance Law. SOURCE: GC '43000.

The provisions of this Title insofar as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations thereof, and not as new enactments. SOURCE: SOURCE: GC § 43001.

No action or proceedings commenced, and no right accrued, prior to the effective date hereof, is affected by the provisions of this Title, but all procedure hereafter taken shall conform to the provisions of this Title so far as possible. SOURCE: GC § 43002.

The rules and definitions contained in this section shall be used in interpreting the provisions of this Title. (a) The present tense includes the past and future tenses; and the future, the present. (b) The masculine gender includes the feminine and neuter. (c) The singular numb…

Whenever, by the provisions of this Title, a power is granted to a public officer or a duty imposed upon such officer, the power or duty may be performed by a deputy or assistant of such officer authorized to do so. SOURCE: GC § 43004.

Whenever any notice is required by this Title, it shall be in writing unless expressly otherwise provided. Any required notice may be given by mailing such notice, postage prepaid, addressed to the person to be notified, at his last known residence or his principal place of busin…

Any date or time mentioned in this Title, or in any policy of insurance issued under authority thereof, shall be conclusively presumed to refer to Guam time unless specifically and clearly otherwise stated. SOURCE: GC § 43006.

All insurance transacted in Guam is governed by the provisions of this Title. SOURCE: GC § 43007.

Any person violating any of the provisions of this Title, or of any regulation issued hereunder, or any lawful order of the Commissioner, for COL10312014 which a penalty is not otherwise specifically provided, shall be guilty of a misdemeanor. SOURCE: GC § 43008. Amended by P.L. …

Any person who shall knowingly swear to, or verify, any false or fraudulent statement, or who, when testifying at any hearing, examination or inquiry pursuant to this Title shall make any false or fraudulent statement, shall be guilty of a felony. SOURCE: GC § 43009. Amended by P…

(a) If the provisions of a policy of insurance impose a duty to defend upon an insurer and a conflict of interest arises which creates a duty on the part of the insurer to provide independent counsel to the insured, the insurer shall provide independent counsel to represent the i…

(a) No person shall: (1) make, issue, circulate, or cause to be made, issued or circulated, any estimate, circular or statement misrepresenting the terms of any policy issued, or to be issued, or the benefits or advantages promised thereby, or the dividends or share of the surplu…

No person shall make or issue, nor cause to be made or issued, any written statement misrepresenting or making incomplete comparisons as to the terms, conditions or benefits contained in any policy for the purpose of inducing, or attempting to induce, the policyholder to lapse, f…

The provisions of this Chapter shall not prohibit or apply to Air Ambulance Services Membership Plans. SOURCE: Added by P.L. 29-113:VI:56(d) (Sept. 30, 2008). ---------- COL10312014 ARTICLE 2 SERVICE CONTRACTS SOURCE: P.L. 04-102 (Sept. 12, 1958) added Article 2, §§ 43025-43036, …

The marketing, sale, offering for sale, issuance, making, proposing to make and administration of a service contract shall not be construed to be the business of insurance, and shall be exempt from regulation as insurance under this Division. Express or implied warranties shall b…

COL10312014 (a) Administrator means a person appointed or designated by a provider who administers service contracts and service contract plans on behalf of the provider, and subject to the requirements of this Article. (b) Commissioner means the Insurance and Banking Commissione…

It shall be unlawful for any person to act as, or offer to act as, or hold himself or herself out to be a service contract provider, nor may a service contract be sold to a consumer, unless the service contract provider has a valid license as a service contract provider issued by…

(a) Any service contract provider applying for a license shall be solvent and shall meet the minimum requirements under this Section. If the financial responsibility requirement under this Section is to be maintained by the service contract provider’s parent company, the parent c…

The Commissioner shall: COL10312014 (a) receive applications for certification or license of service contract providers; (b) establish the procedure for processing applications made under this Article; (c) retain all applications and other records submitted to him or her; (d) mai…

(a) The service contract provider or service contract provider’s administrator shall keep accurate accounts, books, and records of all transactions regulated under this Article. (b) Accounts, books, and records maintained as required by this Section shall include the following: (…

(a) Every registered service contract provider must file an annual report for the preceding calendar year with the Commissioner on or before July 1st of each year, or within any extension of the time the Commissioner for good cause may grant. The report must be in the form and co…

(a) Service contract providers shall provide purchasers of a service contract with: (1) a receipt or other written evidence of the purchase of the service contract that shall be provided to the service contract holder; (2) a copy of the service contract that shall be provided wit…

(a) Service contracts shall state that the service contract holder may return the contract within: (1) thirty (30) days of the date that the service contract was mailed to the service contract holder; (2) twenty (20) days of the date the service contract was delivered to the serv…

(a) No service contract provider shall use in its name, the word insurance, casualty, surety, mutual, guarantee, or any other word descriptive of the insurance, casualty, or surety business, or a name deceptively similar to the name or description of any insurance or surety corpo…

The Commissioner may adopt rules to implement and administer this Article pursuant to the Administration Adjudication Act.

COL10312014 (a) The Commissioner shall take any action necessary or appropriate to enforce this Article, and the rules adopted and orders issued hereunder. The Commissioner shall conduct investigations and examinations of service contract providers and administrators, or other pe…

This Act shall take effect upon its enactment and apply prospectively.

If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this Act which can be given effect without the invalid provision or application and to this end the provisions of thi…

A person shall not transact insurance in Guam as an insurer without being admitted, and when admitted, shall not transact any class of insurance which is not specifically authorized by his certificate. SOURCE: GC § 43100.

(a) Admission is secured by obtaining a Certificate of Authority from the Commissioner. Such Certificate shall not be granted until the applicant conforms with the applicable requirements of this Title, and of the other laws of Guam prerequisite to its issuance. After a certifica…

Any person desiring to transact insurance business in Guam as an insurer, shall file with the Commissioner an application for a certificate stating the class or classes of insurance which it proposes to transact accompanied by the following: (a) A copy of its charter, articles of…

Unless sooner revoked by the Commissioner, every certificate shall expire on the first day of July after its issuance, unless renewed annually as provided in this article, or extended by the Commissioner, for a period of not exceeding sixty (60) days, for good cause. SOURCE: GC §…

All insurers holding a current certificate shall annually, not later than June 1, file with the Commissioner an application for renewal together with the information required by this section: (a) A request for renewal of general agent’s licenses; (b) An affidavit setting forth th…

The Commissioner may refuse to grant or renew a certificate, or may suspend or revoke a certificate, for any one of the reasons provided in this section: (a) The insurer's refusal or failure to comply with, or the violation of, any of the provisions of this Title applicable to su…

(a) Whenever the Commissioner shall refuse, suspend or revoke a certificate, he shall issue an order to that effect and promptly give notice of the same by mailing a copy of such order in a sealed, postpaid, registered envelope to each licensed general agent and to the principal …

(a) Whenever the Commissioner shall order the suspension of a certificate, such suspension shall be for a period of not more than ninety (90) days. (b) The period of suspension set by the Commissioner shall run from the date the order becomes final. (c) The Commissioner may grant…

Any insurer whose certificate has expired or has been revoked shall transact no new insurance in Guam thereafter but shall continue in business solely for the benefit of its policy holders and claimants under insurance effected while its certificate was valid and in force until s…

(a) The Commissioner shall require the payment in advance of the following fees: Filing of application for certificate of authority $ 900.00 Filing of application for renewal of certificate of authority $ 500.00 Filing of any other certificate, statement, paper or exhibit require…

The maximum single risk which may be assumed by any insurer after deduction of any reinsurance taking effect simultaneously with the policy, shall be ten percent (10%) of the paid in capital and surplus of such insurer; provided, however, that a corporate insurer may assume any n…

Except as provided in § 15313, every insurer authorized to transact insurance, or transacting insurance, in Guam shall at all times maintain, in addition to reserves for all other liabilities, reserves as follows: (a) Loss or claim reserves in an amount estimated in the aggregate…

(a) An insurer who desires to withdraw from Guam must first make application to the Commissioner for an order granting permission to withdraw. (b) Such application shall be accompanied by an affidavit of its principal officer and general agent, that: (1) It desires to withdraw an…

Any person violating any provision of this Article shall be fined no more than Five Thousand Dollars ($5,000.00). SOURCE: GC § 43113. Repealed by P.L. 13-187:214. Added by P.L. 29- 002:V:I:87 (May 18, 2007). ARTICLE 2 UNIFORM UNAUTHORIZED INSURERS ACT

Unauthorized Insurers Prohibited. No person, corporation, association or partnership shall, in Guam, act as agent for any insurer not authorized to transact business in Guam, or negotiate for or place or aid in placing insurance coverage in Guam for another with any such insurer.…

[Temporary Authorization]. (a) Legislative Findings and Intent. I Liheslaturan Guåhan [Guam Legislature] finds that Youth Sports Organizations were previously insured by [a] National or International Insurance Company at a rate affordable by the local organizations and which no i…