Guam § 23111 - Reinsurance.

§ 23111. Reinsurance.

(a) Any captive insurance company may provide reinsurance, as

defined and authorized in Article 8 of Chapter 18 of this Title, on risks

ceded by any other insurer.

(b) Any captive insurance company may take credit for reserves on

risks ceded to a reinsurer; provided, however, that no captive insurance

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company shall reinsure a risk or part thereof with reinsurers not complying

with the provisions of '18802 of this Title.

(c) A captive insurance company may take credit for reserves on risks

or portions of risks ceded to a pool, exchange or association acting as a

reinsurer which has been authorized by the Commissioner. The

Commissioner may require any other documents, financial information or

other evidence that such a pool, exchange or association will be able to

provide adequate security for its financial obligations. The Commissioner

may deny authorization or impose any limitations on the activities of a

reinsurance pool, exchange or association that, in his judgement, are

necessary and proper to provide adequate security for the ceding captive

insurance company and for the protection and consequent benefit of the

public at large.

(d) For all purposes of this Chapter, insurance by a captive insurance

company of any workers’ compensation qualified self-insured plan of its

parent and affiliates shall be deemed to be reinsurance.