Guam § 23102 - Licensing Authority.

§ 23102. Licensing Authority.

(a) Any captive insurance company, when permitted by its articles of

association, or charter, may apply to the Commissioner for a license to do

any and all insurance comprised in Article 1 of Chapter 18, Title 22, Guam

Code Annotated; provided, however, that:

(1) no pure captive insurance company may insure any risks other

than those of its parent and affiliated entities;

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(2) no group captive insurance company may insure any risks

other than those of the member organization of its group, and their

affiliated entities;

(3) no industrial insured captive insurance company may insure

any risks other than those of the industrial insured that comprise the

industrial insured group, and their affiliated entities, or controlled

unaffiliated businesses;

(4) no captive insurance company, except a duly registered and

licensed rent-a-captive or protected cell facility, may accept or cede

reinsurance except as provided in § 23111 of this Chapter; and

(5) any captive insurance company may provide excess workers

compensation insurance to its parent and affiliated companies, unless

prohibited by the laws of the state having jurisdiction over the

transaction. Any captive insurance company may reinsure workers

compensation of a qualified self-insured plan of its parent and

affiliated entities.

(b) No captive insurance company shall do any insurance business on

Guam unless:

(1) It first obtains from the Commissioner a license authorizing it

to do business on Guam;

(2) It maintains its principal place of business on Guam;

(3) It appoints a resident registered agent to accept service of

process and to otherwise act on its behalf on Guam. Whenever such

registered agent cannot with reasonable diligence be found at the

registered office of the captive insurance company, the Director shall

be an agent of such captive insurance company upon whom any

process, notice or demand may be served; and

(4) It is incorporated in Guam, except that a non-domestic

insurance company that has operated as an insurance company on

Guam pursuant to a Guam Certificate of Authority during the five (5)

years immediately preceding enactment of this Chapter shall be issued

a license under this Chapter; provided that it maintains a place of

business on Guam and otherwise qualifies for a license under this

Chapter, except it shall not be required to comply with '§ 23102(b)(2)

and 23102(b)(3) of this Section and § 23106 of this Chapter.

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(c)(1) Before receiving a license, a captive insurance company

shall file with the Commissioner a certified copy of its Charter and By-

Laws, a statement under oath of its President and Secretary showing its

financial condition, and any other statements or documents required by

the Commissioner.

(2) In addition to the information required by Subdivision (1) of

this Subsection (c), each applicant captive insurance company shall file

with the Commissioner evidence of the following:

(A) the amount of liquidity of its assets relative to the risks

to be assumed;

(B) the adequacy of the expertise, experience, and character

of the person or persons who will manage it;

(C) the overall soundness of its plan of operation;

(D) the adequacy of the loss prevention programs of its

parent, group member organizations, or industrial insureds as

applicable; and

(E) such other factors deemed relevant by the Commissioner

in ascertaining whether the proposed captive insurance company

will be able to meet its policy obligations.

(d) Each captive insurance company shall pay the Commissioner a

non-refundable fee of Two Hundred Dollars ($200.00) for examining,

investigating and processing its application for license.

(e) Any insurance company already chartered and doing business in

Guam that is a captive insurance company in compliance with the

provisions of this Chapter shall automatically qualify for Licensure.

(f) If the Commissioner is satisfied that the documents and statements

that such captive insurance company has filed comply with the provisions

of this Chapter, he may grant a license authorizing it to do insurance

business on Guam July 1 thereafter, which license may be renewed.