(a) Any captive insurance company, when permitted by its articles of association, or charter, may apply to the Commissioner for a license to do any and all insurance comprised in Article 1 of Chapter 18, Title 22, Guam Code Annotated; provided, however, that:

(1) no pure captive insurance company may insure any risks other than those of its parent and affiliated entities;

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(2) no group captive insurance company may insure any risks other than those of the member organization of its group, and their affiliated entities;

(3) no industrial insured captive insurance company may insure any risks other than those of the industrial insured that comprise the industrial insured group, and their affiliated entities, or controlled unaffiliated businesses;

(4) no captive insurance company, except a duly registered and licensed rent-a-captive or protected cell facility, may accept or cede reinsurance except as provided in § 23111 of this Chapter; and

(5) any captive insurance company may provide excess workers compensation insurance to its parent and affiliated companies, unless prohibited by the laws of the state having jurisdiction over the transaction. Any captive insurance company may reinsure workers compensation of a qualified self-insured plan of its parent and affiliated entities.

(b) No captive insurance company shall do any insurance business on
Guam unless:

(1) It first obtains from the Commissioner a license authorizing it to do business on Guam;

(2) It maintains its principal place of business on Guam;

(3) It appoints a resident registered agent to accept service of process and to otherwise act on its behalf on Guam. Whenever such registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the Director shall be an agent of such captive insurance company upon whom any process, notice or demand may be served; and

(4) It is incorporated in Guam, except that a non-domestic insurance company that has operated as an insurance company on Guam pursuant to a Guam Certificate of Authority during the five (5) years immediately preceding enactment of this Chapter shall be issued a license under this Chapter; provided that it maintains a place of business on Guam and otherwise qualifies for a license under this
Chapter, except it shall not be required to comply with Ԥ 23102(b)(2)
and 23102(b)(3) of this Section and § 23106 of this Chapter.

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(c)(1) Before receiving a license, a captive insurance company shall file with the Commissioner a certified copy of its Charter and By- Laws, a statement under oath of its President and Secretary showing its financial condition, and any other statements or documents required by the Commissioner.

(2) In addition to the information required by Subdivision (1) of this Subsection (c), each applicant captive insurance company shall file with the Commissioner evidence of the following:

(A) the amount of liquidity of its assets relative to the risks to be assumed;

(B) the adequacy of the expertise, experience, and character of the person or persons who will manage it;

(C) the overall soundness of its plan of operation;

(D) the adequacy of the loss prevention programs of its parent, group member organizations, or industrial insureds as applicable; and

(E) such other factors deemed relevant by the Commissioner in ascertaining whether the proposed captive insurance company will be able to meet its policy obligations.

(d) Each captive insurance company shall pay the Commissioner a non-refundable fee of Two Hundred Dollars ($200.00) for examining, investigating and processing its application for license.

(e) Any insurance company already chartered and doing business in Guam that is a captive insurance company in compliance with the provisions of this Chapter shall automatically qualify for Licensure.

(f) If the Commissioner is satisfied that the documents and statements that such captive insurance company has filed comply with the provisions of this Chapter, he may grant a license authorizing it to do insurance business on Guam July 1 thereafter, which license may be renewed.

SOURCE: GC § 43702; added by P.L. 17-85:1. Amended by P.L. 24-104:2. subsection (a) amended by P.L. 27-54:3.