Guam § 28113 - Motor Vehicle Insurance Policy; Procedures.

§ 28113. Motor Vehicle Insurance Policy; Procedures.

(a) A motor vehicle insurance policy shall:

(1) designate by description or by appropriate reference

all motor vehicles to which coverage is to be granted; and

(2) insure the person named in the policy and a person

with permissive use of any such motor vehicle with the express

or implied permission of the named insured against loss from

the liability imposed by law for damages arising out of the

ownership, maintenance or use of the motor vehicle within the

jurisdiction of Guam, subject to the requirement to provide

evidence of financial responsibility pursuant to the required

mandatory insurance in Chapter 19 of Title 16, Guam Code

Annotated.

(3) (A) A motor vehicle insurance policy shall insure a

person named as insured against loss from the liability

imposed upon the person by law for damages arising out

of the use, with the express or implied permission of the

owner or person in lawful possession, of a motor vehicle

that the insured person does not own.

(B) The policy shall insure the person within the

same territorial limits and in compliance with the

requirement of evidence of financial responsibility as set

forth in the mandatory insurance provisions of Chapter 19

of Title 16, Guam Code Annotated, with respect to a

motor vehicle insurance policy.

(b) Permitted exceptions to coverage otherwise required by

this Section may include the following if excluded by the motor

vehicle insurance policy:

(1) an automobile business exclusion;

(2) a furnished for regular use exclusion;

(3) a vehicle rented for business use exclusion if the

exclusion is contained in the motor vehicle insurance policy

and is enforceable;

(4) an exclusion for any liability of the United States

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government or its agencies when the provisions of the Federal

Tort Claims Act apply;

(5) an exclusion for liability of the insured under any

workers’ compensation law;

(6) an exclusion for damages to property owned by,

rented to, in the charge of or transported by an insured;

provided, however, that this exclusion shall not apply to

damages to a residence or private garage rented by an insured;

and

(7) an exclusion to apply when a vehicle is rented to

others or used to carry persons for a charge, including when a

vehicle is being used while logged on to a transportation

network company’s or a taxicab transportation network

company’s digital network or while a driver provides a

prearranged ride; provided, however, that this exclusion shall

not apply to use on a shared expense basis.

(c) The motor vehicle insurance policy shall state the name

and address of the insured, the coverage afforded by the policy, the

premium charged, the policy period and the limits of liability. The

policy shall also contain an agreement or endorsement that states

that the insurance is:

(1) provided in accordance with the coverage defined in

the mandatory insurance provisions of Chapter 19 of Title 16,

Guam Code Annotated, regarding bodily injury and death or

property damage or both; and

(2) subject to all the provisions of Chapter 19 of Title

16, Guam Code Annotated.

(d) Every motor vehicle insurance policy shall be subject to

the following provisions, which may be contained in the policy:

(1) The policy may not be canceled or annulled as to the

liability of the insurance carrier with respect to the insurance

required in the mandatory insurance provisions of Chapter 19

of Title 16, Guam Code Annotated, by an agreement between

the insurance carrier and the insured after the occurrence of the

injury or damage;

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(2) The satisfaction by the insured of a judgment for

injury or damage shall not be a condition precedent to the right

or duty of the insurance carrier to pay on account of injury or

damage;

(3) The insurance carrier has the right to settle a claim

covered by the policy. If the settlement is made in good faith,

the amount of the settlement is deductible from the limits of

liability specified in the Mandatory Financial Responsibility

Act;

(4) The policy, the declarations page, the written

application and a rider or an endorsement that does not conflict

with the provisions of the Mandatory Financial Responsibility

Act constitute the entire contract between the parties; and

(5) A binder issued pending the issuance of a motor

vehicle insurance policy is deemed to fulfill the requirements

for the policy.

2018 NOTE: Subitem designations added in subsection (a)(3) pursuant to

the authority of 1 GCA § 1606.