(1) (a) very person applying to register a motor vehicle in Guam shall certify at the time of registration of his vehicle to the Director of Revenue and Taxation (the “Director”), on a form supplied by the Director, that the insurance required by this Chapter is in effect with respect to the vehicle which is to be registered.

(b) The Director may request an insurer to verify any information provided pursuant to subparagraph (a) of paragraph (1) of this Section.

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The insurer shall accurately respond to the Director’s request within ten
(10) business days.

(c) The Director may request that the person who has certified to the Director pursuant to said subparagraph (a), submit proof, within fifteen (15) days, that the required insurance is in effect.

(2) The Director shall refuse to register a motor vehicle if the registrant fails to make appropriate certifications as set forth in paragraph (1)(a) above.

(3) The Director shall suspend or revoke the license or registration certificate issued to the owner or operator of a motor vehicle who has been convicted of a violation of this Chapter, or who knowingly operates or knowingly permits the operation of an uninsured motor vehicle, or who falsely certifies to the Director that a motor vehicle is an insured motor vehicle, or who knowingly provides the Director with false or inaccurate information pursuant to the request by the Director pursuant to this Chapter.

(a) Whenever a license, or registration certificate has been revoked or suspended under the provisions of this Section, the reasons therefor shall be set forth in the order of revocation or suspension. The order shall take effect five (5) days after service of notice on the person whose license or registration certificate is revoked or suspended unless the person shall have filed with the Director, within the five (5) day period, written application for a hearing; provided, that application to the Director for a hearing shall not operate as a stay of the order of the Director when the order has been issued revoking or suspending a registration certificate. The hearing by the Director shall only cover the issues of whether a policy of motor vehicle insurance has been issued to the person and has been in effect on the day the order of revocation or suspension was issued and whether the person provided the Director with false or inaccurate information. A verbatim record of the hearing shall be prepared by the Director.

(b) If, following the hearing provided for in this Section, the Director shall sustain the order of revocation or suspension, the order shall become effectively immediately.

(c) When a registration certificate or license has been revoked, no new registration certificate or license shall be issued to the person for six (6) months after the effective date of the order of revocation;

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provided, that no new registration certificate shall be issued to that person until the motor vehicle is insured as required by this Chapter.

(d) If a person’s registration certificate has been suspended or revoked as provided for in this Section, the registration certificate shall not be transferred and the motor vehicle with respect to which the registration certificate was issued shall not be registered in any other name until the Director is satisfied that the transfer of the registration certificate was made in good faith and not for the purpose or with the effect of defeating the purposes of this Chapter.

(e) Nothing in this Section shall affect the rights of any conditional vendor, chattel mortgagee or lessor of the motor vehicle.

(f) The Director shall suspend or revoke the registration certificate of any motor vehicle transferred in violation of the provisions of this Section.

(g) Decisions of the Director shall be subject to review by the Superior Court of Guam. Orders and decisions of the Director shall be appealable pursuant to Code of Civil Procedure, § 1084, et seq., on a petition for writ of mandate to the Superior Court of Guam.

(h) A motor vehicle with respect to which the registration certificate is suspended under this Section may be immobilized by the Guam Police Department until the insurance required by this Section is in effect.

(4) (a) All insurers authorized to sell motor vehicle insurance on Guam shall electronically submit to the Department of Revenue and Taxation, using the department’s established mechanism for electronic submission over the internet or secure network, notice of motor vehicle insurance issuance, cancellations or non-renewals within ten (10) working days after the effective date of issuance, cancellation or non-renewal. All insurers authorized to sell motor vehicle insurance on Guam shall comply with this electronic submission requirement within one hundred eighty (180) days of the enactment of this Act. All insurance companies authorized to sell motor vehicle insurance on Guam shall provide notification to the Department of Revenue and Taxation by electronic mail, written form or the Department of Revenue and Taxation’s mechanism for electronic transmission over the internet or secure network prior to the effective date to meet notification requirements of this Section. In the event power or system failure does not

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permit electronic notice, insurers shall submit written notice to the Department of Revenue and Taxation within ten (10) working days after the effective date of issuance, cancellation or non-renewal.

Upon receipt of the notice of cancellation concerning a motor vehicle insurance policy on a vehicle registered in Guam, the Director shall notify the person in whose name the vehicle is registered and the lien holder that the Director will revoke or cancel registration of the vehicle pursuant to law.

(b) Insurers shall provide information and cooperate with the
Director in his efforts to enforce this Chapter.

(5) (a) Failure of the insurer to provide notice of cancellation or non- renewal of a policy to the Director shall be punished by a fine in the sum of Five Hundred Dollars ($500) per policy. The penalty assessed by this Section shall be payable to the party found not at fault in an accident where it has been determined that the party at fault was not covered with auto insurance and the insurance company failed to notify the proper authorities pursuant to Title 16 Guam Code Ann. § 19103, paragraph (4), item (a). This provision in no way settles or releases the insurance companies or responsible parties of claims that may arise from the accident.

(b) The Director shall notify the insured by certified letter or other appropriate means that his insurance has been canceled. The insured will have thirty (30) days to procure a new policy or re-instate his policy. Failure to cure such deficiency in coverage shall be punished by a fine in the sum of Five Hundred Dollars ($500) and shall subject the vehicle in question to impoundment, which impounded vehicle may only be released on the presentation of proof of insurance.

SOURCE: Subsection 5 added by P.L. 22-102:3. Subsection 5 (a) amended by P.L.
29-045:2 (Jan. 2, 2008). Subsection 4 (a) amended by P.L. 29-059:1 (Apr..4, 2008).

NOTE: Subsection (4) has been changed to subsection (5). Amended by Compiler in order to reflect the correct citation.