Guam § 23107 - Financial Statements and Reports.

§ 23107. Financial Statements and Reports.

(a) Each pure captive insurance company shall submit to the

Commissioner a statement of financial condition written according to

generally accepted accounting principles and audited by an independent

certified public accountant on or before the last day of the sixth (6th) month

following the end of the company=s fiscal year.

(b) Each captive insurance company that is not a pure captive

insurance company shall annually file with the Commissioner the

following:

(1) Annual statement and audit:

(a) On or before March 1, or such day subsequent thereto as

the Commissioner upon request and for cause may specify, an

annual statement using the National Association of Insurance

Commissioners= annual statement form plus any additional

information required by the Commissioner, which shall be a true

statement of its financial condition, transactions, and affairs as of

the immediately preceding December 31. The reported

information shall be verified by oaths of at least two (2) of the

captive=s principal officers;

COL120106

(b) On or before June 1, or such day subsequent thereto as

the Commissioner upon request and for cause may specify, an

audit by a designated independent certified public accountant or

accounting firm of the financial statements reporting the financial

condition and results of the operation of the captive;

(c) The annual statement and audit shall be prepared in

accordance with the National Association of Insurance

Commissioners= annual statement instructions and Accounting

Practices and Procedures Manual; and

(2) On or before each March 1, or such day subsequent thereto as

the Commissioner upon request and for cause may specify, a risk-

based capital report; provided that the RAC insurance companies shall

not be required to file their risk-based capital reports with the National

Association of Insurance Commissioners.

(c) The statements required to be filed in Subsections (a) and (b) shall

include, but not be limited to, actuarially appropriate reserves for:

(1) known claims and expenses associated therewith;

(2) claims incurred but not reported and expenses associated

therewith;

(3) unearned premiums; and

(4) bad debts, reserves for which shall be shown as liabilities.

An actuarial opinion regarding reserves for known claims and expenses

associated therewith and claims incurred but not reported and expenses

associated therewith shall be included in the audited statements, except that

the actuarial opinion for captive insurance companies other than pure

captive insurance companies shall be filed with the annual statement

required under Subsection (b), on or before March 1 each year. The

actuarial opinion shall be given by a member of the American Academy of

Actuaries or other qualified loss reserve specialist as defined in the annual

statement adopted by the National Association of Insurance Commissioners.

(d) The Commissioner may prescribe the format and frequency of

other reports which may include, but shall not be limited to, summary loss

reports and quarterly financial statements.

(e) The Commissioner may suspend or revoke the certificate of

authority or fine any captive insurer that fails to file any of the documents

COL120106

required by Subsections (a) and (b). The fine shall not be more than Five

Hundred Dollars ($500) per day past the due date.

(f) The failure of any captive insurance company to file a report of

financial condition prior to the due date of each year shall constitute

grounds for suspension, revocation or non-renewal of the license to transact

captive insurance business in Guam.