Title 22 — Business Regulation

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…

Youth Recreational Organizations. Youth Recreational Organizations shall have the authority to procure accident, liability and volunteer insurance from off-island carriers recommended or designated by any national organization in which they are an affiliate. For the purposes of t…

No person, corporation, association or partnership shall, in Guam, aid any unauthorized insurer in adjusting insurance or in transacting insurance business in Guam, either by fixing rates by adjusting or investigating losses, by inspecting or examining risks, by acting as attorne…

Insurance on Property or Risk in Unauthorized State. No person, corporation, association or partnership shall make, negotiate for or place, or aid in negotiating or placing any insurance contract in Guam for another who is an applicant for insurance covering any property or risk …

The provisions of the foregoing sections do not apply to contracts of reinsurance or to contracts of insurance covering risks of transportation and navigation, or to contracts of insurance made through authorized surplus line broker or agents, nor do they apply to an insurer not …

(a) The transacting of business in Guam by a foreign or alien insurer without a certificate of authority and the issuance or delivery by such foreign or alien insurer of a policy or contract of insurance to a citizen of Guam or to a resident thereof, or to a corporation authorize…

No unauthorized insurer shall institute or file, or cause to be instituted or filed, any suit, action or proceeding in Guam to enforce any right, claim or demand arising out of the transaction of business in Guam until such insurer shall have obtained a certificate of authority t…

(a) Before any unauthorized insurer shall file or cause to be filed any pleading in any action, suit or proceeding instituted against it, such unauthorized insurer shall either (1) file with the clerk of the court in which such action, suit or proceeding is pending a bond with go…

Any person, corporation, association or partnership violating any of the provisions of § 15201 through § 15207 shall be guilty of a misdemeanor and shall, in addition to any other penalty authorized by law, be subject to a fine of not more than five thousand dollars ($5,000.00). …

This Act shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states and territories which enact it. SOURCE: GC § 43133.

This Article may be cited as the Uniform Unauthorized Insurers Act. SOURCE: GC § 43134. ARTICLE 3 DOMESTIC INSURERS

The provisions of this article shall apply only to domestic insurers; provided, that such domestic insurers are also subject to all other applicable provisions of this Title from which they are not otherwise specifically excepted. SOURCE: GC § 43150.

It shall be unlawful for a domestic insurer to be formed, or to transact insurance in Guam, unless it is incorporated under the laws of Guam and in conformance with the applicable provisions of this Title and unless all of its voting shares of stock have a par value as certified …

Any number of persons sufficient to organize a corporation in Guam may file an application with the Commissioner for authority to organize as an insurance corporation. No person shall organize an insurance corporation until written authority for that purpose has been obtained fro…

The applicant shall publish notice of the filing of such application at least once a week for three (3) consecutive weeks in a daily newspaper of general circulation in Guam in a form approved by the Commissioner; the notice shall contain the date of filing of the application, th…

(a) Upon receipt of the application the Commissioner shall make investigation and after publication of notice, shall hold a hearing to hear any objections, if any, to the proposed organization. (b) The Commissioner. may provide for the procedure and conduct of such hearing by reg…

Within ninety (90) days after the date of the Commissioner’s approval, the applicant shall file articles of incorporation in the Department of Revenue and Taxation and pay the fee required in accordance with law. SOURCE: GC § 43155.

After its incorporation, it shall be unlawful for the applicant to transact insurance until it has obtained a certificate of authority. SOURCE: GC § 43156.

The Commissioner shall not issue a certificate to any domestic insurer where the Commissioner’s examination shows that the expense of organization and promotion exceeds ten percent (10%) of the total amount actually paid on its capital stock. SOURCE: GC § 43157.

Every domestic insurer shall have a minimum paid-in capital of twenty-five thousand dollars ($25,000.00), which shall be sufficient for the transaction of any one (1) class of insurance authorized under this Title, except life insurance. For each additional class of insurance to …

Decrease. (a) Any admitted domestic insurer may increase or decrease the amount of its capital after giving notice once a week for four (4) consecutive weeks in a newspaper of general circulation in Guam of such intention, and by filing with the Commissioner a copy of such advert…

(a) In accordance to rules and regulations promulgated by the Commissioner pursuant to the Administrative Adjudication Law found in Chapter 9, Title 5 Guam Code Annotated, no domestic company may pay any extraordinary dividend or make any other extraordinary distribution to its s…

No domestic company may make loans or advances to any Officer, Director, Shareholder or affiliated company without prior approval by the Insurance Commissioner in accordance to the rules and regulations promulgated by the Commissioner pursuant to the Administrative Adjudication L…

Hearing to Determine the Reasonableness of the Disapproval. In the event that the Commissioner of Banking and Insurance disapproves the request for the distribution of extraordinary dividends and/or loans and advances outlined in §§ 15320.1 and 15310.2, respectively, the Commissi…

A domestic insurer may merge or consolidate with another insurer, subject to the following conditions: (a) The plan of merger or consolidation must be submitted to and be approved by the Commissioner in advance of the merger and consolidation. (b) The Commissioner shall not appro…

Every domestic insurer desiring to transact, or transacting, life insurance in Guam, shall have a minimum paid-in capital of one hundred thousand dollars ($100,000.00) exclusive of and in addition to the minimum paid-in capital required for other classes of insurance as provided …

(a) Every domestic insurer authorized to transact, or transacting, life insurance shall provide, hold and maintain minimum reserves for each such life policy based upon the Commissioner’s Standard Ordinary Mortality Table. (b) The minimum reserves required by this section to be m…

Every life policy form used by a domestic insurer shall be approved by the Commissioner prior to such issuance as provided in § 18306; provided that it shall contain in substance the following provisions: (a) A provision that the insured, after three (3) months’ premiums have bee…

Any policy issued in violation of § 15314 shall nevertheless be held valid but shall be construed as provided in § 15314, and when any provision therein conflicts with any provision of said section, or of any other statutory provision, the rights, duties and obligations of the in…

(a) Every admitted domestic insurer shall, on or before April 1 of each year, file with the Commissioner a financial statement, verified under oath, setting forth its financial condition, transactions and affairs as of the 31st day of December immediately preceding, in general fo…

It shall be unlawful for any domestic insurer to invest any of its assets otherwise than is authorized by this section: (a) Real estate as may be reasonably required for its home and branch offices; except that where title to real estate is, or has been, acquired under the condit…

Any person violating any provision of this Article shall be fined no more than Five Thousand Dollars ($5,000.00). SOURCE: GC § 43167. Repealed by P.L. 13-187:216 (Sept. 2, 1976). Added by P.L. 29-002:V:I:89 (May 18, 2007). ARTICLE 4 FOREIGN INSURERS

The provisions of this article shall apply only to foreign insurers; provided that such foreign insurers are also subject to all other provisions of this Title from which they are not otherwise specifically excepted. SOURCE: GC § 43175.

A foreign insurer shall not be granted a certificate unless and until it has duly complied with the provisions of this section: (a) Duly appointed a licensed resident general agent who shall have a power of attorney of the insurer which authorizes him to appoint sub-agents and so…

Whenever any foreign insurer applies for admission, the Commissioner may cause to be made by the insurance authority of the jurisdiction where such insurer is organized, an examination of its business and affairs, and report of such examination be made to him. At such other times…

Every admitted foreign insurer shall, on or before April 1 of each year, file with the Commissioner an annual financial statement, verified under oath, setting forth its financial condition, transactions and affairs as of the 31st day of December immediately preceding, in general…

The filing fee for an annual financial statement shall be Fifty Dollars ($50.00). Any foreign insurer that fails to file an annual financial statement on or before April 1st of each year as required in §15404 shall pay a penalty of Five Hundred Dollars ($500.00). After May 15th, …

The provisions of this article shall be applicable only to alien insurers, provided that such alien insurers are also subject to all other provisions of this Title from which they are not otherwise specifically excepted. SOURCE: GC § 43200.

An alien insurer shall not be granted a certificate unless and until it has complied with the provisions of this section: (a) Duly appointed a licensed resident general agent who shall have the power of attorney of the insurer which authorizes him to appoint sub-agents and solici…

(a) An alien insurer, as a prerequisite to the transaction of any insurance in Guam, shall furnish such proof as the Commissioner shall require that it has, in Guam, unencumbered United States dollar assets available for the payment of claims in Guam in a minimum amount equal to …

Every admitted alien insurer shall, on or before April 1 of each year, file with the Commissioner an annual financial statement, verified under oath, setting forth its financial conditions, transactions and affairs as of the 31st day of December immediately preceding, in general …

Whenever any alien insurer applies for admission, the Commissioner may cause to be made by the proper authority of the jurisdiction where such insurer is organized, or if authorized to transact insurance business in a United States jurisdiction other than Guam, by the insurance a…

The filing fee for an annual financial statement shall be Fifty Dollars ($50.00). Any alien insurer that fails to file a financial statement on or before April 1st of each year as required in §15504 shall pay a penalty of Five Hundred Dollars ($500.00). After May 15th, the alien …

For the purpose of this article: (a) Insurer means any person, firm, corporation, association, or aggregation of persons doing any insurance business subject to the insurance supervisory authority of the Commissioner of Banking and Insurance of Guam, or the equivalent insurance s…

Insurers Domiciled in Guam. (a) Whenever under the laws of Guam a receiver is to be appointed in delinquency proceedings for an insurer domiciled in Guam, the court shall appoint a competent receiver who shall furnish proper bond in an amount determined by said court. The court s…

Insurers not Domiciled in Guam. (a) Whenever under the laws of Guam an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in Guam, the Commissioner shall file a petition requesting the appointment (1) if he finds that there are sufficien…

Delinquent Insurers Domiciled in Guam. (a) In a delinquency proceeding begun in Guam against an insurer domiciled in Guam, claimants residing in reciprocal states may file claims either, with the ancillary receivers, if any, in their respective states, or with the domiciliary rec…

Delinquent Insurers Domiciled in Reciprocal States. (a) In a delinquency proceeding in a reciprocal state against an insurer domiciled in that state, claimants against such insurer who reside within Guam may file claims either with the ancillary receiver, if any, appointed in Gua…

(a) In a delinquency proceeding against an insurer domiciled in Guam, claims owing to residents of ancillary states shall be preferred claims if like claims are preferred under the laws of Guam. All such claims whether owing to residents or non- residents shall be given equal pri…