Guam § 15503 - Deposit of Securities.

§ 15503. Deposit of Securities.

(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 the paid-in capital required of domestic

insurers by Article III of this Title, or it shall make a deposit with

the Commissioner of securities, of a class or classes authorized for

investment of the assets of domestic insurers, in an amount equal

to the minimum amount of paid-in capital required of domestic

insurers by Article III of this Title.

(b) For the purpose of computing the amount of the deposit,

the securities shall be valued by the Commissioner at their current

market value; such deposit shall always be in an amount that such

value meets the above stated minimum requirements.

(c) The deposit shall be continuously maintained so long as

any obligation arising out of any insurance transacted by such

alien insurer in Guam remains in existence for any purpose

whatsoever.

(d) Such deposit shall be for the benefit and security of all

policy holders and creditors of such alien insurer in Guam and the

Commissioner shall be the trustee for such beneficiaries in the

event of any default by the insurer in accordance with the terms of

the policy.

(e) On receipt of such deposit, the Commissioner shall issue

the depositing insurer a receipt stating the items and amount of

securities so deposited; the Commissioner may provide for the

deposit or safekeeping of such securities in any bank or banks or

other financial institutions located in Guam as shall be approved

for such purposes.