(a) Every admitted domestic insurer shall, on or before April 1 of each year, file with the Commissioner a financial statement, verified under oath, setting forth its financial condition, transactions and affairs as of the 31st day of December immediately preceding, in general form and context as approved by the National Association of Insurance Commissioners, plus any additional information required by the Commissioner.

(b) Every such insurer shall keep full and complete books, records, accounts, and vouchers, and shall keep them at all times in such a manner that its financial condition can be readily ascertained, its financial statement readily verified, and its compliance with this Title seen.

(c) The Commissioner may make a detailed examination into the affairs of any domestic insurer as often as he deems it expedient for the protection of the people of Guam, and shall make such detailed examination of every domestic insurer at least once in every three (3) years. The cost of such examination shall be paid by the insurer examined.

(d) The Commissioner shall make a full and true report of every examination made by him together with such conclusions

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and recommendations as may be reasonably warranted by the facts, which report shall be filed in the official permanent files of the Commissioner and shall be admissible in evidence in any action, or proceeding in the name of the government against the insurer.

(e) When the assets of any domestic insurer, computed at their actual fair value, are less than the aggregate amount of such insurer’s liabilities and outstanding capital stock, the Commissioner shall determine the amount of such impairment of capital and, shall order such insurer to eliminate such impairment within such period as he shall designate, not more than six (6) months from the service of the order; the Commissioner may also by order prohibit such insurer from issuing any new policies while such impairment exists. If the amount of such impairment is equal to or more than twenty-five per centum (25%) of the insurer’s outstanding capital stock, or is such that the insurer does not have the minimum capital required by this Title, the Commissioner shall suspend such insurer’s certificate of authority until such time as the impairment is fully eliminated; and if such impairment is not fully eliminated within the period designated by the Commissioner, he shall by order revoke the insurer’s certificate and shall apply to the Superior Court for an order upon such insurer to show cause why its articles should not be revoked and a receiver appointed to liquidate its affairs.

(f) Filing Fee for Annual Statement: Penalty. The filing fee for an annual financial statement shall be Fifty Dollars ($50.00). Any domestic insurer that fails to file an annual financial statement on or before April 1st of each year as required by subsection (a) hereof, shall pay a penalty of Five Hundred Dollars ($500.00). After May 15th the domestic insurer shall pay an additional late filing fee of One Hundred Dollars ($100.00) per day. The failure of a domestic insurer or company to file the required annual financial statement shall compel the automatic suspension or revocation of the domestic insurer’s or company’s certificate of authority.

SOURCE: GC § 43165. Subsection (f) added by P.L. 29-002:V:I:88 (May 18, 2007).

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NOTE: Reference to “”Insurance Commissioner”” changed to “”Commissioner of Banking and Insurance”” pursuant to P.L. 27-088:10 (May 6, 2004).