Guam § 15317 - Investments.

§ 15317. Investments.

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 conditions of any

mortgage, or by purchase or set off on execution upon

judgment for debts contracted in the course of business, or by

other process in settlement for debts, the same may be held

for a period not to exceed five (5) years unless permission to

hold for a longer period is granted in writing by the

Commissioner;

(b) Bonds or notes secured by first mortgages or deeds

of trust upon improved real estate, which improvements may

be or include those to be placed thereon by the proceeds of

said bonds or notes, in a maximum amount not to exceed

twenty percent (20%) of its assets; provided that the value of

the security shall, at the time of the investment, be at least

fifty percent (50%) more than the principal of the obligations

secured thereby, except when the mortgage loans are

guaranteed or insured by the government of the United States

or any agency thereof;

(c) Interest bearing bonds, notes or obligations of the

United States, or any political subdivision of the United

States or any incorporated city of the United States of a

population of not less than fifty thousand (50,000)

inhabitants as shown by the next preceding Federal census,

provided that there has been no default in the payment of

either principal or interest on any of the general obligations

of issuer for a period of fifteen (15) years next preceding the

date of such investment;

(d) Stock issued by any Federal home loan bank of

which such insurer may be eligible to become a member;

bonds, debentures and notes issued by any Federal home loan

bank;

(e) Not more than ten percent (10%) of an insurer’s

capital and surplus may be invested in or loaned upon the

security of any one person, nor loaned upon the security of

any one parcel of property; provided, however, that there

shall be a fifty percent (50%) limitation of the total amount

of an insurer’s capital and surplus that may be invested and/or

deposited in any bank that provides evidence to the domestic

insurer that it has met each of following requirements:

(1) It is insured by the Federal Deposit Insurance

Corporation (“FDIC”) or by the Federal Savings and

Loan Corporation (“FSLC”), or meets the minimum

levels of capital-to-asset ratio measures for Tier One and

Tier Two capital as established by the Bank of

International Settlement and is otherwise licensed and

authorized to transact business and otherwise accept

deposits without restrictions in Guam.

(2) The total amount of its deposits from all

domestic insurers shall not exceed ten percent (10%) of

its total assets; and

(3) The bank is not listed as a troubled institution

by FDIC.

(f) Loans upon the security of its own policies not

exceeding the cash surrender value thereof at the time of

making the loan.