(a) Each pure captive insurance company shall submit to the Commissioner a statement of financial condition written according to generally accepted accounting principles and audited by an independent certified public accountant on or before the last day of the sixth (6th) month
following the end of the company=s fiscal year.

(b) Each captive insurance company that is not a pure captive insurance company shall annually file with the Commissioner the following:

(1) Annual statement and audit:

(a) On or before March 1, or such day subsequent thereto as the Commissioner upon request and for cause may specify, an annual statement using the National Association of Insurance
Commissioners= annual statement form plus any additional
information required by the Commissioner, which shall be a true statement of its financial condition, transactions, and affairs as of the immediately preceding December 31. The reported information shall be verified by oaths of at least two (2) of the
captive=s principal officers;

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(b) On or before June 1, or such day subsequent thereto as the Commissioner upon request and for cause may specify, an audit by a designated independent certified public accountant or accounting firm of the financial statements reporting the financial condition and results of the operation of the captive;

(c) The annual statement and audit shall be prepared in accordance with the National Association of Insurance
Commissioners= annual statement instructions and Accounting
Practices and Procedures Manual; and

(2) On or before each March 1, or such day subsequent thereto as the Commissioner upon request and for cause may specify, a risk- based capital report; provided that the RAC insurance companies shall not be required to file their risk-based capital reports with the National Association of Insurance Commissioners.

(c) The statements required to be filed in Subsections (a) and (b) shall include, but not be limited to, actuarially appropriate reserves for:

(1) known claims and expenses associated therewith;

(2) claims incurred but not reported and expenses associated therewith;

(3) unearned premiums; and
(4) bad debts, reserves for which shall be shown as liabilities. An actuarial opinion regarding reserves for known claims and expenses
associated therewith and claims incurred but not reported and expenses associated therewith shall be included in the audited statements, except that the actuarial opinion for captive insurance companies other than pure captive insurance companies shall be filed with the annual statement required under Subsection (b), on or before March 1 each year. The actuarial opinion shall be given by a member of the American Academy of Actuaries or other qualified loss reserve specialist as defined in the annual statement adopted by the National Association of Insurance Commissioners.

(d) The Commissioner may prescribe the format and frequency of other reports which may include, but shall not be limited to, summary loss reports and quarterly financial statements.

(e) The Commissioner may suspend or revoke the certificate of authority or fine any captive insurer that fails to file any of the documents

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required by Subsections (a) and (b). The fine shall not be more than Five
Hundred Dollars ($500) per day past the due date.

(f) The failure of any captive insurance company to file a report of financial condition prior to the due date of each year shall constitute grounds for suspension, revocation or non-renewal of the license to transact captive insurance business in Guam.

SOURCE: GC § 43707; added by P.L. 17-85:1. Amended by P.L. 24-104:6. Amended by P.L. 27-54:7.