Guam § 15316 - Supervision.

§ 15316. Supervision.

(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 form and context as approved

by the National Association of Insurance Commissioners, plus

any additional information required by the Commissioner.

(b) Every such insurer shall keep full and complete books,

records, accounts, and vouchers, and shall keep them at all times

in such a manner that its financial condition can be readily

ascertained, its financial statement readily verified, and its

compliance with this Title seen.

(c) The Commissioner may make a detailed examination into

the affairs of any domestic insurer as often as he deems it

expedient for the protection of the people of Guam, and shall make

such detailed examination of every domestic insurer at least once

in every three (3) years. The cost of such examination shall be paid

by the insurer examined.

(d) The Commissioner shall make a full and true report of

every examination made by him together with such conclusions

and recommendations as may be reasonably warranted by the

facts, which report shall be filed in the official permanent files of

the Commissioner and shall be admissible in evidence in any

action, or proceeding in the name of the government against the

insurer.

(e) When the assets of any domestic insurer, computed at

their actual fair value, are less than the aggregate amount of such

insurer’s liabilities and outstanding capital stock, the

Commissioner shall determine the amount of such impairment of

capital and, shall order such insurer to eliminate such impairment

within such period as he shall designate, not more than six (6)

months from the service of the order; the Commissioner may also

by order prohibit such insurer from issuing any new policies while

such impairment exists. If the amount of such impairment is equal

to or more than twenty-five per centum (25%) of the insurer’s

outstanding capital stock, or is such that the insurer does not have

the minimum capital required by this Title, the Commissioner

shall suspend such insurer’s certificate of authority until such time

as the impairment is fully eliminated; and if such impairment is

not fully eliminated within the period designated by the

Commissioner, he shall by order revoke the insurer’s certificate

and shall apply to the Superior Court for an order upon such

insurer to show cause why its articles should not be revoked and

a receiver appointed to liquidate its affairs.

(f) Filing Fee for Annual Statement: Penalty. The filing fee

for an annual financial statement shall be Fifty Dollars ($50.00).

Any domestic insurer that fails to file an annual financial

statement on or before April 1st of each year as required by

subsection (a) hereof, shall pay a penalty of Five Hundred Dollars

($500.00). After May 15th the domestic insurer shall pay an

additional late filing fee of One Hundred Dollars ($100.00) per

day. The failure of a domestic insurer or company to file the

required annual financial statement shall compel the automatic

suspension or revocation of the domestic insurer’s or company’s

certificate of authority.