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TITLE 12

INSURANCE

CHAPTER 1INSURANCE

§1101. Licenses: Certificate of Authority.§1102. Same: General Agent's License.§1103. Same: Subagent's License.§1104. Same: Solicitor's License.§1105. Same. Cancellation of License Upon Termination of

Appointment.§1106. Same: Forms.§1107. Same: Licensing Forms.§1108. Approval of Forms: Legal Authority.§1109. Same: Filing - Bureau Members.§1110. Same: Filing - for Insurers, Not Bureau Members.§1111. Same: Filing Procedure.§1112. Same: Duration of Binders.§1113. Same: Renewal of Binders.§1114. Rate Filing: Legal Authority.§1115. Same: Applications.§1116. Same: General Requirements.§1117. Same: Underwriting Profit Report.§1118. Proceedings for the Investigation, Hearings and Resolution of

Complaints: Legal Authority.§1119. Same: Filing of Complaint.§1120. Same: Complaint, Notice of Hearing and Answer.§1121. Same: Intervention.§1122. Same: Motions.§1123. Same: Consolidation of Severance.§1124. Same: Prehearing Conferences.§1125. Same: Hearings.§1126. Same: Contemptuous Conduct.§1127. Same: Record.§1128. Same: Order.§1129. Same: Duties and Powers of the Commissioner Representing the

Complainant.§1130. Same: Witnesses and Subpoenas.§1131. Books of Accounts, Registers and Documents - Required of

Domestic Insurers: Legal Authority.§1132. Same: General.§1133. Same: Life and Disability Insurance.§1134. Same: Property, Casualty and Miscellaneous Risks.§1135. Books of Accounts, Registers and Documents - Required of

General Agents, Managers and Agents Authorized to CountersignPolicies: Legal Authority.

§1136. Same: General.§1137. Same: Life and Disability Insurance.§1138. Same: Property and Casualty Insurance.§1139. Annual Statement of Insurers.§1140. Advertisements.§1141. Surplus Line Agents and Surplus Line Brokers.§1142. Deviation From Approved Rates.

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NOTE: Rule-making authority cited for formulation of regulationsby the Insurance Commissioner, 22 GCA §12212. The InsuranceLaw can be found in 22 GCA Division 2.

§1101. Licenses: Certificate of Authority. (LegalAuthority: 22 GCA §§15103, 18305, 15402, 15403, 15502,15505 Insurance Law.) (a) Domestic Insurance Company.Domestic insurers, in order to obtain a Certificate ofAuthority, shall file with the Commissioner the following:

(1) Application for Certificate of Authority (Form I-1).

(2) Agreement and Power of Attorney (Form I-2).

(3) A copy of its annual statement in the formprescribed by the National Association of InsuranceCommissioners for the year immediately preceding theapplication for a Certificate of Authority.

(4) Insurance Company's Bond (Form I-3), or in lieuthereof Deposit Agreement in Lieu of Bond (Form I-4).

(b) Foreign Insurers. Foreign insurers, in order toobtain a Certificate of Authority, shall file with theCommissioner the following:

(1) Application for Certificate of Authority (Form I-1).

(2) Agreement and Power of Attorney (Form I-2).

(3) A copy of its annual statement in the formprescribed by the National Association of InsuranceCommissioners for the year immediately preceding theapplication for a Certificate of Authority.

(4) Insurance Company's Bond (Form I-3), or in lieuthereof Deposit Agreement in Lieu of Bond (Form I-4).

(5) Appointment of General Agent, Authority toAppoint Subagents and Solicitors, Authority to AcceptService of Legal Process, Authority to Countersign Policiesof Insurance (Form I-5).

(6) A copy of the last report of examination certified toby the Commissioner, or like officer of the state or territoryin which the company is organized.

(c) Alien Insurers. Alien insurers, in order to obtain aCertificate of Authority, shall file with the Commissionerthe following:

(1) Application for Certificate of Authority (Form I-1).

(2) Agreement and Power of Attorney (Form I-2).

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(3) A copy of its annual statement in the formprescribed by the National Association of InsuranceCommissioners for the year immediately preceding theapplication for Certificate of Authority.

(4) (Insurance Company's Bond) together with swornproof that such insurance company has, in Guam,unencumbered United States dollar assets available for thepayment of claims in a minimum amount equal to thepaid-in capital required of domestic insurers by 22 GCAChapter 15 Article 3, or in lieu of such bond and proof ofsuch funds, a Deposit Agreement (Form I-4a) in an amountequal to the minimum amount of paid-in capital requiredof domestic insurers by 22 GCA Chapter 15 Article 3 withthe Commissioner, but not less than Fifty ThousandDollars ($50,000.00).

(5) Appointment of General Agent, Authority toAppoint Subagents and Solicitors, Authority to AcceptService of Legal Process, Authority to Countersign Policiesof Insurance (Form I-5).

(6) A copy of the last report of examination certified toby the Commissioner, or like officer of the country inwhich the company is organized.

(d) Forms I-1, I-2, I-3, I-4, I-4a and I-5, which areattached hereto and are made a part hereof are adopted asa regulation and the information contained therein, whereapplicable, is required for a all insurers applying for aCertificate of Authority.

(e) All documents filed with the Director of Finance inaccordance with 18 GCA §7101 shall be considered to belikewise filed in support of an application for a Certificateof Authority.

§1102. Same: General Agent's License. (LegalAuthority: 22 GCA §§15402, 15502, 15702, 15704, 15705Insurance Law.) In addition to Form I-5 which is filed withan application for a Certificate of Authority, in order toobtain a General Agent's License, there shall be filed withthe Commissioner Application for General Agent's LicenseForm I-10.

§1103. Same: Subagent's License. (Legal Authority: 22GCA §§15701, 15702, 15704, 15705 Insurance Law.) Inorder to obtain a Subagent's License, there shall be filedwith the Commissioner the following:

(a) Application for Subagent's License (Form I-10).

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(b) Appointment of Subagent (Form I-12).

§1104. Same: Solicitor's License. (Legal Authority: 22GCA §§15701, 15702, 15704, 15705 Insurance Law.) Inorder to obtain a Solicitor's License, there shall be filedwith the Commissioner the following:

(a) Application for Solicitor's License (Form I-11).

(b) Appointment of Solicitor (Form I-13).

§1105. Same: Cancellation of License UponTermination of Appointment. (Legal Authority: 22 GCA§15704 Insurance Law.) Whenever the appointment ofSubagent or Solicitor is terminated, the Commissioner shallbe immediately notified thereof in writing accompanied byproof that notice of termination has also been delivered ormailed to such Subagent or Solicitor. Such notice oftermination may state the causes therefor, and anyinformation so furnished the Commissioner shall beprivileged insofar as it shall not be used in any actionagainst the Insurer, General Agent or Subagent furnishingsuch information. Whenever an appointment isterminated, the license issued pursuant to the appointmentshall be revoked by the Commissioner in its entirety or tosuch extent as shall conform with any continuingappointment. Such revocation shall not be effective untilsufficient time shall have elapsed for receipt of the noticeof termination through the regular course of the mailsunless there has been a prior delivery.

§1106. Same: Forms. Forms I-10, I-11, I-12 and I-13,which are attached hereto and are made a part hereof areadopted as a regulation and the information containedtherein, where applicable is required for all personsapplying for General Agent's, Subagent's and Solicitor'sLicenses.

§1107. Same: Licensing Forms. Forms to be used inconjunction with licensing regulations of the InsuranceLaw are listed as follows:

(a) Application for Certificate of Authority Form I-1(b) Agreement and Power of Attorney Form I-2(c) Insurance Company's Bond Form I-3(d) Deposit Agreement in Lieu of Bond Form I-4(e) Deposit Agreement of Alien Insurance

Company Form I-4A(f) Appointment of General Agent,

Authority to Appoint Subagents and Solicitors, Authority to Accept

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Service of Legal Process, Authorityto Countersign Policies of Insurance Form I-5

(g) Application for GeneralAgent's or Subagent's License Form I-10

(h) Application for Solicitor's License Form I-11(i) Appointment of Subagent Form I-12(j) Appointment of Solicitor Form I-13

The above cited forms can be found on thefollowing pages.

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Form I-1

APPLICATION FOR CERTIFICATE OF AUTHORITY

________________________, 20_______

TO THE INSURANCE COMMISSIONER OF GUAM:

The _________company of ______________________________(Address of City)

State of _________by ________________________________________,does hereby apply for authority to transact for the year endingJune 30, 20__ , as an Insurer, the following classes of insurance inGuam:

/___/ Fire /___/ Fidelity /___/ Life& Surety

/___/ Motor Vehicle /___/ Title /___/ Marine/___/ Accident, /___/ Worker's /___/Miscellaneous

Health Property CompensationDamage Liability

and states that it is so authorized by Articles of Incorporation (orCharter) or (or Articles of Association) under the laws of its homestate of ______________________, and answers the followingquestions pertaining to the Company:Date incorporated _______________ or organized_______________________ and where _____________________.Commenced business _________________ Authorized capital stock_______________________ Paid up capital stock __________ as ofDecember 31st preceding, admitted assets, _______________;liabilities _______________________; surplus ____________________________.Location and Post Office Address of Principal Office___________________________________________________________(The Insurance Commissioner must be notified promptly in case ofchange of Address)Date of last examination __________________________________States Company authorized to transact business in:____________________________________________________________________________________________________________________________________________________________

_____________________________By _____________________________

(Form I-1)Form I-2

AGREEMENTand

POWER OF ATTORNEYKNOW ALL MEN BY THESE PRESENTS:

That the _________________________________ hereinafterreferred to as "Company," a corporation (or association) createdand organized under the laws of the State of_____________________ and thereby authorized to transact thebusiness of _________________ Insurance, desiring to transact suchbusiness within the territory of Guam, pursuant to the laws

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thereof, does hereby agree that any legal process affecting the saidCompany may be served upon the Insurance Commissioner of thegovernment of Guam or his Deputy, or upon______________________________, Agent for said Company, at______________________ who is hereby specified and authorizedto receive and accept service of process for said Company, andthat in case the said Company should cease to transact business inthe territory of Guam, or to maintain the Agent hereinbeforedesignated, then such process may thereafter be served on theInsurance Commissioner of the government of Guam or hisDeputy, in any action against the Company, upon any policy ofliability issued or contracted by said Company, and any suchservice of process shall have the same effect and shall be taken andheld to be as if served personally on the Company within theterritory of Guam.

The said Company does hereby further consent to being suedby an injured person or his heirs or representatives in a directaction on any policy or liability insurance in accordance with 22GCA §18305.

IN TESTIMONY WHEREOF, The Company inaccordance with a resolution of its Board of Directors, dulyadopted by the Board on the ______________ day of__________ 20__, (certified copy is hereto attached), and tothese presents has affixed its corporate seal and caused thesame to be subscribed and attested to by its President andSecretary at the City of ____ _________, in the State of ______________ on the _____ day of _________, 20__.

__________________________________President

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ATTEST:_________________________________

SecretaryI, _______ Secretary of the ___________________________________of __________________________________________ do herebycertify that the following is a true and correct copy from thecorporate records of the Company of a resolution duly adopted bythe Board of Directors thereof at a ___________________ meetingof the Board, a quorum thereof present and acting, on the___________________ day of _________, 20__, that is to say:

RESOLVED, that the President and Secretary of thisCompany are hereby authorized to execute, under the corporateseal of the Company, an Agreement and Power of Attorney inaccordance with 22 GCA 15103(b), 15103(b) and 18305.

GIVEN and certified at the principal office of theCompany, in the City of __________, State of__________, and the common seal thereof affixed by theundersigned, having custody of the seal as Secretary ofthe Company, this __________ day of ____________,20__.

__________________________________Secretary

(Form I-2)

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INSURANCE COMPANY'S BONDKNOW ALL MEN BY THESE PRESENTS:

That we, ________________________________________________________________________________________________________as principal and __________________________________________________________________________________________________, assurety, are held and firmly bound unto the InsuranceCommissioner and his successors in office, in the sum of FiftyThousand Dollars ($50,000.00), lawful money of the United States,for the payment of which, well and truly to be made, we herebybind ourselves, our executors, administrators and assigns, jointly,severally and firmly by these presents.WITNESS our hands and seals this _______ day of ______, 20__.The conditions of the above obligation are such that:

WHEREAS: The said ___________________________________________________________________________________________________ has filed its charter and statement, and in other respectsconformed to the requirements of the Statutes in such cases madeand provided; and,

WHEREAS: The said Company proposes to enter thisTerritory (or continue in this Territory) for the purpose oft r a n s a c t i n g t h e b u s i n e s s o f______________________________________ Insurance for theperiod of one year ending June 30, 20__.

N O W , T H E R E F O R E , I f t h e s a i d_______________________________shall promptly pay all claims arising and accruing to any person orpersons, by virtue of any policy issued by the said Company,during the term of this bond, upon the life or person of anyresident of Guam, or upon any property situated in the territory ofGuam, when the same shall become due then this obligation shallbecome void; otherwise to remain in full force and effect.

(SEAL) ___________________________(SEAL)(SEAL) ___________________________(SEAL)

___________________________(SEAL)___________________________(SEAL)___________________________(SEAL)SIGNATURE WRITTEN above mustbe typewritten below.

COUNTERSIGNED:__________________________________

Resident Agent NOTE: This Bond must be countersigned by a licensed ResidentAgent in Guam of the Surety.

(Form I-3)

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DEPOSIT AGREEMENT IN LIEU OF BONDPursuant to the provisions of 22 GCA §15102(f), the

_ _ _ _ _ _ _ _ _ _ _ _ _ _ ______________________________________________________________ of ___________________________________________ desires toq u a l i f y i t s e l f t o t r a n s a c t t h e b u s i n e s s o f_____________________________________________ in Guam andenters into this agreement with the Insurance Commissioner ofGuam and deposits with him the following described securities to- wit:

It is agreed between the parties hereto that this FiftyThousand Dollars ($50,000.00) deposit of securities is made in lieuof a Fifty Thousand Dollars ($50,000.00) bond and that securities ofthe value of at least Fifty Thousand Dollars ($50,000.00) shallremain on deposit (though securities may be substituted with theapproval of the Commissioner) for the benefit and protection ofthe policyholders and creditors of the Company so long as theCompany has any liability outstanding in Guam.

The Company may collect and retain the interest when dueon the securities deposited.

IN WITNESS WHEREOF, we have hereunto affixed oursignatures and seals on the dates indicated below.

_________________________________Company

By ______________________________Name and Title

Attest: __________________________Secretary

Date: _______________________________________________________________Commissioner of Insurance of GuamDate: _____________________________

(Form I-4)

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DEPOSIT AGREEMENT ALIEN INSURANCE CO.Pursuant to the provisions of Section 202, the

___________________of ___________________________________desires to qualify itself to transact the business of___________________________ in Guam and enters into thisagreement with the Insurance Commissioner of Guam anddeposits with him the following described securities to - wit:

It is agreed between the parties hereto that this deposit ofsecurities of the value of at least $ ____________ shall remain ondeposit (though securities may be substituted with the approval ofthe Commissioner) for the benefit and protection of thepolicyholders and creditors of the Company so long as theCompany has any liability outstanding in Guam.

The Company may collect and retain the interest when dueon the securities deposited.

IN WITNESS WHEREOF, we have hereunto affixed oursignatures and seals on the dates indicated below.

_________________________________Company

By ______________________________Name and Title

Attest: __________________________Secretary

Date: _______________________________________________________________Commissioner of Insurance of Guam___________________________________Date (Form I-4A)

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Form I-5APPOINTMENT OF GENERAL AGENT

AUTHORITY TO APPOINT SUBAGENTS ANDSOLICITORS AUTHORITY TO ACCEPT SERVICE

OF LEGAL PROCESS AUTHORITY TOCOUNTERSIGN POLICIES OF INSURANCE

______________

KNOW ALL MEN BY THESE PRESENTS:That pursuant to the requirements of the 22 GCA Division 2,

the _________________________________, an Insurer organizedunder the laws of _____________________________ and authorizedto do business therein, and desiring to carry on business ofinsurance in Guam as authorized by law (hereinafter called the"Insurer"), does hereby:

(1) Designate and appoint ______________________________and having _____________________________ principal office andp l a c e o f b u s i n e s s a t _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ______________________________, in Guam, as its General Agent inGuam (hereinafter called the General Agent);

(2) Authorize and empower the General Agent to appointSubagents and Solicitors pursuant to the requirements of the 22GCA Chapter 16, and does hereby grant and give to the GeneralAgent full power and authority to do and perform each and everyact or transaction necessary to be done in the premises, as fullyand completely as said Insurer might or could do if personallypresent, and does hereby ratify and confirm all acts that theGeneral Agent may do under and by virtue of these presents; and

(3) Authorize the General Agent to accept service of anynotice or process in any action or proceeding brought or pendingin Guam upon any cause of action arising in or growing out ofbusiness transacted in Guam; such authorization to be valid untilsuch time as it shall be revoked by a notice in writing filed in theoffice of the Insurance Commissioner of Guam;

(4) Authorize the General Agent to countersign all policies ofinsurance effected on risks in Guam by the Insurer.

IN WITNESS WHEREOF, said Insurer has caused thisinstrument to be executed in its name and behalf, by its properauthorized officers, this ___________ day of ____________, 20__.

_______________________________(SEAL) By ________________________

By ______________________________

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State of ____________________ )) SS.

County of ___________________ )On this ______________ day of ________________, 20___, beforeme, the subscriber, a _______________________________________duly appointed to take the proof and acknowledgement of Deedsa n d o t h e r i n s t r u m e n t s , p e r s o n a l l y a p p e a r e d_____________________________________, President, and_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ o f t h e____________________________________________________ to mepersonally known and known to me to be the persons described inand who executed the foregoing instrument; and they each dulyacknowledged to me that they executed the same freely andvoluntarily and for the uses and purposes therein set forth; andbeing by me each duly sworn, severally and each for himself,deposes and says that they are the said officers of the Insureraforesaid, and that the seal affixed to the preceding instrument isthe corporate seal of the said Insurer; and that the corporate sealand their signatures as such officers were duly affixed andsubscribed to the said instrument by the authority and direction ofsaid corporation as and for the act and deed of said corporation.

IN TESTIMONY WHEREOF, I have hereunto set my handand affixed the official seal at ________________________________the day and year first above written.

_____________________________

_____________________________ (Form I-5)

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Form I-10APPLICATION FOR GENERAL AGENT'S OR

SUBAGENT'S LICENSET h e u n d e r s i g n e d h e r e b y a p p l i e s f o r a

_________________________ License authorizing the transaction ofthe business of insurance in Guam of the following classes ofinsurance:

____ ____ ____/___/ Fire /___/ Fidelity & Surety

/___/ Life ____ ____ ____/___/ Motor Vehicle /___/ Title

/___/ Marine ____ ____ ____/___/ Accident, /___/ Worker's

/___/ Miscellaneous Health PropertyCompensation

Damage Liability1. Name of Applicant ______________________________ Age__________2. R e s i d e n c e A d d r e s s______________________________________________3. B u s i n e s s A d d r e s s_______________________________________________4. A p p l i c a n t ' s f o r m o f o r g a n i z a t i o nis:_________________________________

(proprietorship, partnership,corporation)5. Do you use any other name than the one set forth to answer

question No. 1 in the conduct of your business? ____ ____/___/ Yes /___/ No

6. If the answer to question No. 5 is Yes, give the name of yourbusiness:

_____________________________________________________________7. If the answer to question No. 5 is Yes, have you complied

with 18 GCA §26101? ____ ____/___/ Yes /___/ No

8. Is the license to be issued in the name of your business or inyour personal name?9. If applicant is a partnership or association, give the name of

all members thereof; if a corporation, the names and address of allofficers of the corporation.____________________________________________________________

Name Title Address____________________________________________________________

Name Title Address10. If applicant is a partnership, association or corporation, list

the names of all individuals who are to be authorized to act underthis license.____________________________________________________________(Name and applicable class or classes of insurance for eachindividual)____________________________________________________________(All so listed must qualify)

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11. Is applicant, or each person listed under item No. 10 aresident of Guam?

____ ____/___/ Yes /___/ No

12. If answer to item No. 11 is No, give address of permanentresidence of each.

____________________________________________________________

____________________________________________________________

____________________________________________________________13. Have you or any person listed under item No. 9 or No. 10

ever been denied or had an insurance license revoked? ____ ____

/___/ Yes /___/ No If answer is Yes, a letter of explanation, indetail, must accompany application.14. Have you or any person listed under item No. 9 or No. 10

ever been convicted of a felony? ____ ____

/___/ Yes /___/ No If answer is Yes, a letter of explanation, indetail, must accompany application.15. Are you, and each person under item No. 9 or No. 10,

familiar with the Insurance Laws of Guam and do you agree toconduct your business in accordance there with and do youunderstand that if you are required to take an examination therewill be several questions on the laws that you must answersatisfactorily?

____ ____/___/ Yes /___/ No

16. Is applicant, or any person listed under item No. 9 or No. 10,engaged in any other business, either full-time or part-time?

____ ____/___/ Yes /___/ No

If Yes, what is the nature of the other business?_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____________________________________________________________17. Give the following information with regard to your previous

insurance experience, if any:

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GeneralDate Address Agent

Class or of Subagent or

Classes ofFromTo Employer Employer Solicitor Insurance _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________18. The applicant hereby certifies that the principal use of the

license applied for is not to effect insurance on the applicant's ownlife, property or risks, or the life property or risks of employers ormembers of applicant's family.Territory of Guam )Municipality of _______________ )SS.

AFFIDAVITThe undersigned, being duly sworn, deposes and says that

he is the person named in the foregoing application, that he knowsthe contents thereof, and that each of the statements made, andanswers to the questions therein, are true of his own knowledge.

__________________________________(Signature of Applicant)

Subscribed and sworn to before me this ____________ day of______, 20__.(SEAL)____________________________

(Notary Public)(Form I-10)

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Form I-11APPLICATION FOR SOLICITOR'S LICENSE

The undersigned hereby applies for a solicitor's license forthe following classes of insurance. ____ ____ ____/___/ Fire /___/ Fidelity & Surety/___/ Life ____ ____ ____/___/ Motor Vehicle /___/ Title/___/ Marine ____ ____ ____/___/ Accident, Health /___/Worker's /___/ Miscellaneous

Property Damage CompensationLiability

1. Name of Applicant __________________________________Age _______2. R e s i d e n c e A d d r e s s

____________________________________________3. B u s i n e s s A d d r e s s

_____________________________________________4. Are you a permanent resident of Guam?

____________________________5. Will your time be devoted exclusively to the insurance

b u s i n e s s ?____________________________________________________________6. If No, what portion of your time will be devoted to

i n s u r a n c e ?____________________________________________________________7. Give the following information with regard to your previous

insurance experience, if any:General Agent

Class orDate Address of Subagent or

Classes ofFrom To Employer Employer Solicitor Insurance ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________8. Have you ever been denied or had an insurance license

revoked? ____ ___

/___/ Yes /___/ No If answer is Yes, a letter of explanation, indetail, must accompany application.9. Have you every been convicted of a felony?

____ ____/___/ Yes /___/ No If answer is Yes, a letter of explanation, indetail, must accompany application.

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10. Are you familiar with the provisions of the contract(s) ofi n s u r a n c e t o b e n e g o t i a t e d ?_____________________________________________________________________________________________________________11. What instruction in insurance have you had?

__________________________________________________________________________________12. What instruction in insurance do you expect to receive?

______________________________________________________________________________________________________________________________________13. Are you familiar with the Insurance Laws of Guam and do

you agree to conduct your business in accordance therewith anddo you understand that if you are required to take an examinationthere will be several questions on the laws that you must answersatisfactorily?

____ ____/___/ Yes /___/ No

14. The applicant hereby certifies that the principal use of thelicense applied for is not to effect insurance on the applicant's ownlife, property or risks, or the life, property or risks of employees ormembers of applicant's family.

AFFIDAVITTerritory of Guam )

)SS.Municipality of _______________)

The undersigned being duly sworn deposes and says that heis the person named in the foregoing application, that he knowsthe contents thereof, and that each of the statements made, andanswers to the questions therein, are true of his own knowledge.

_______________________________( S i g n a t u r e o f

Applicant)Subscribed and sworn to before me this ______ day of____________, 20__.

_______________________________(Notary Public)

(SEAL)My commission expires: __________________(Form I-11)

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Form I-12APPOINTMENT OF SUBAGENT

To the Insurance Commissioner of Guam:The undersigned _____________________________________

hereby (General Agent or Insurer)appoints ____________________________________ whose addressis _________________________________________________ to act inGuam as its Subagent for the following classes of Insurance:

____ ____ ____/___/ Fire /___/ Fidelity & Surety

/___/ Life ____ ____ ____/___/ Motor Vehicle /___/ Title

/___/ Marine ____ ____ ____/___/ Accident, Health /___/

Worker's /___/ MiscellaneousProperty Damage

CompensationLiability

Further, the undersigned _______________________________hereby:1. Certifies that this appointment shall remain in effectcontinuously until written notice of termination is received by theInsurance Commissioner or said Subagent's license to transactinsurance business in Guam is revoked or is not renewed.2. Authorizes said Subagent to appoint Solicitors in accordancewith 22 GCA §15704.3. Certifies that I have known the appointee for______________________, and I have investigated his character andreputation and recommend appointee as being worthy of aSubagent's license.4. Certifies that I have examined appointee and found that hehas sufficient knowledge of insurance and the insurance laws ofGuam to properly act as a Subagent.Dated at __________________ Guam, ___________ day of______________, 20__. _____________________________

(General Agent orInsurer)

b y__________________________

________________________________(Official Title)

(Form I-12)

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Form I-13APPOINTMENT OF SOLICITOR

To the Insurance Commissioner of Guam:The undersigned ____________________________________

hereby (Insurer, General Agent orSubagent)a p p o i n t s______________________________________________________w h o s e a d d r e s s i s__________________________________________________ to act inGuam as its Solicitor for the following classes of Insurance:

____ ____ ____/___/ Fire /___/ Fidelity & Surety

/___/ Life ____ ____ ____/___/ Motor Vehicle /___/ Title

/___/ Marine ____ ____ ____/___/ Accident, Health /___/ Worker's

/___/ MiscellaneousProperty Damage

CompensationLiability

F u r t h e r , t h e u n d e r s i g n e d____________________________________ hereby:1. Certifies that this appointment shall remain in effectcontinuously until written notice of termination is received by theInsurance Commissioner or said Subagent's license to transactinsurance business in Guam is revoked or is not renewed.2. Certifies that I have known the appointee for_______________________ and that I have investigated hischaracter and reputation and recommend appointee as beingworthy of a Solicitor's license.3. Certifies that I have examined appointee and found that hehas sufficient knowledge of insurance and the insurance laws ofGuam to properly act as a Solicitor.D a t e d _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ G u a m , _ _ _ _ _ _ _ d a y o f____________________, 20__.

________________________________________(Insurer, General Agent or

Subagent)b y

_________________________________

___________________________________(Form I-13)

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§1108. Approval of Forms: Legal Authority. Legalauthority cited for approval of Forms 22 GCA §18308Insurance Law. These Regulations shall govern thefiling with the Commissioner of policy forms (exceptsurety bond forms), application forms, printed ridersand endorsement forms.

§1109. Same: Filing - Bureau Members. The filingwith the Commissioner of policy forms, applicationforms, printed riders and endorsement forms made byrating bureaus whose charter, articles of incorporation,rules and regulations give them control over suchforms and riders to be used by their members andsubscribers shall be considered a filing by saidmembers and subscribers:

(a) Any deviation from such filing by a member orsubscriber shall be directly filed with theCommissioner by the deviating member or subscriber.

(b) It shall be taken for granted that any insureradmitted as a new member or subscriber of a ratingbureau shall use the forms of such rating bureau fromthe effective date of its membership or subscribership.

(c) Any insurer that ceases to be a member orsubscriber of a rating bureau shall immediatelycomply with the filing requirements established in 22GCA §18308 of the Insurance Law.

§1110. Same: Filing - For Insurers, Not BureauMembers. Any insurer not a member or subscriber ofa rating bureau shall file with the Commissioner,every policy form (other than surety bond forms)application forms, written riders and endorsementforms which it intends to use.

§1111. Same: Filing Procedure. The filing with theCommissioner of policy forms, application forms,written riders and endorsement forms shall be madeas follows:

(a) Every filing shall be accompanied by atransmittal letter indicating the following:

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(1) The name of the rating bureau or insurermaking the filing under the signature of anauthorized person.

(2) If a new form, it shall be so stated in thetransmittal letter, which shall also contain adescription of the coverage as well as of thesubmitted form.

(3) If a revision of a form previouslysubmitted it shall be so stated in the transmittalletter informing also the date of approval of theprevious form and the proposed changes.

(4) All the enclosed forms, with theirrespective titles and numbers shall be numeratedin the transmittal letter.

(5) A statement that the form has or has notbeen approved for use in the state in which theinsurer has its home office, or if the form issubmitted by a rating bureau, the state or states inthe United States in which the form is being used.

(6) If the form is not in use in the UnitedStates, a detailed statement setting forth thedifference in the form and forms customarily usedin the United States to effect the same insurancecoverage and the reasons for it use in thepreference to the forms customarily used in theUnited States.

§1112. Same: Duration of Binders. (a) Theduration of binders shall be limited according to thefollowing:

(1) Written binder shall have a maximumduration of thirty (30) days.

(2) Oral binders shall have a maximum durationof five (5) days.

(b) In the case of both written and oral bindersholidays are included in the duration period.

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§1113. Same: Renewal of Binders. Renewal ofbinders is permitted with the exception of oralbinders, but in no case shall binders be issued to covera total period for all binders which extends beyondninety (90) days.

§1114. Rate Filing: Legal Authority. Legalauthority cited for rate filing 22 GCA §§18501, 18502,18503 of the Insurance Law.

§1115. Same: Applications. All rate filings shallbe accompanied by a letter of transmittal setting forth:

(a) The name of the rating organization or insurermaking the filing under the signature of a personauthorized to make such filing.

(b) The manual, manual section, page number,rule number and classification or rate of the filing, andif the filing proposes a change or revision, such factshall be noted indicating clearly the difference fromthe previous filing.

(c) In the case of new insurance and in otherappropriate cases, a summary of the coveragecontemplated.

(d) Statistical data on which it is based, reasonsjustifying the filing and the information contained inForm I-20 for the five (5) preceding years for allinsurance except life, marine, sickness, accident andhealth insurance.

(e) In case of life, marine, sickness, and accidentand health, the rates charged for the same insurancecoverage in the United States jurisdiction most near toGuam in which the company is doing business and anexplanation of the difference in such rates and theproposed rates, if any.

The information required under Paragraphs (a)and (b) above may be sent in an explanatorymemorandum.

§1116. Same: General Requirements. (a) Theletter of transmittal shall be sent in duplicate.

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(b) The filing and explanatory memorandum shallbe sent in duplicate.

(c) The filing shall be not later than thirty (30)days prior to the proposed effective date.

§1117. Same: Underwriting Profit Report. Form I-20, which is attached hereto and made a part hereof, ishereby adopted as a regulation and the informationcontained therein is required in support of every filingfor approval of rates for each insurance coverage,except in the case of life, marine, sickness, accidentand health insurance.

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Form I-20UNDERWRITING PROFIT REPORT

(Direct writing basis only)(Do not include premiums, taxes, losses or

expenses on reinsurance ceded or assumed)

TO THE INSURANCE COMMISSIONER:Dear Sir: The following contains a true and correct report of

Direct ____________ premiums, Direct ____________ premiumsearned, Direct ______________ losses incurred and Direct____________________ expenses incurred on direct risks in theterritory of Guam by the ______________________ InsuranceCompany of ___________________ for the one (1) year periodbeginning January 1st, 20__, and ending December 31st, 20__.*Item 1. Direct ____________ premiums earned, bySched. "A" $

_______________Item 2. Direct ____________losses incurred, bySched. "B“ $

_______________Item 3. Direct ____________expenses incurred, bySched. "C" $

_______________Total of Items 2 and3 (extend) $

_______________Underwriting Profit(or loss) (Item 1 lesstotal of 2 and 3(above) $

_______________________________________________________________________

______________________________________________________________________________________________________

_____________

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AFFIDAVIT STATE OF __________________) )COUNTY OF _________________)

__________________________ states on oath that he is the_________

of the Company named above and that this report is true andcorrect, as shown by the books and records of that Company in theconduct of its direct underwriting business in Guam for said one(1) year. There is not included any item applying to any other classof risks or allied lines. No State of Federal Income excess profittaxes, investment expense or conflagration hazard costs areincluded herein.

__________________________________Subscribed and sworn to me this ______________ day of

_________, 20__.

__________________________________My Commission expires ________________.*NOTE: The totals on this page must be compiled according to

Schedules A, B and C attached, which are completed and filedwith and as part of this report.

(Form I-20)

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________________________Name of Company

SCHEDULE A - EARNED ---_________ PREMIUMS

1. Total gross direct__________ premiums

written during this period $ ______________(a) Less return

premiums $ ______________(b) Net direct

premiums $ ______________2. A d d u n e a r n e d

direct _________ premiumsat beginning of period $ ______________

3. Total of 1(b) and 2$______________

==============4. Deduct unearned

_____________ premiumsat end of period $ ______________5. E a r n e d d i r e c t

_______________ premiumsfor one (1) year period (carry resultto Item 1, Form I-20) $ ___________________________________________________________________________________________________________________________________________________________________________________

SCHEDULE B - ____________ LOSSES INCURRED1. _______________

losses paid on directwriting during period $ ______________2. Add unpaid direct

_________ losses atend of period $ ______________3. Total of 1 and 2 $

______________4. Deduct unpaid

direct _________ lossesat beginning of period $ ______________5. Balance $

______________6. Deduct salvage

recovered on directwriting $ ______________7. D i r e c t

_____________ losses incurred duringperiod (carry result to item 2, Form I-20). $ ___________________________________________________________________________________________________________________________________________________________________________________

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SCHEDULE C - GUAM DIRECT __________ EXPENSESINCURRED

(a) _ _ _ _ _ _ _ _ _ _ _ _Expenses Incurred

Report only such items as are paid for direct underwriting inGuam. Do not include any investment expense or expense on anyother classes.

1. ___________ lossadjustment expenses paid ondirect writing during period $ ______________2. A d d u n p a i d

adjustment expense on directwriting due at end of period $ ______________3. Total of Items 1 and

2 above $ ______________ ______________

4. Deduct unpaidadjustment due on direct

writing at beginning of period $ ______________5. Incurred direct

_________ expense (Item 3 less Item 4) $ ______________

6. A g e n t s 'compensation paid on direct only $ ______________7. Field supervision

expense paid on direct writing only $ ______________

8. G u a m t a x e s ,licenses and fees

(exclude territorial and federal income and excess profits taxes) $ ______________

9. Paid _________Inspection and Rating

Bureau on direct only $ ______________10. G u a m a g e n t s '

__________ balances chargedoff, less $ _______recoveries $ ______________11. O t h e r s p e c i f i c

expense on direct Guam underwriting (itemize):

________________________________________________________________________12. Total actual direct

expense Guam direct___________ underwriting $ ______________

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(b) Guam's Pro RataPart of General Underwriting Expense

(Investment expense not included. Exclude all taxes)Allocation

______________________________________Expenses To _____

To All(All lines) Business

Other (1) (2) (3) (4) L i ne s

(5) (6)

______________________________________13. Salaries and fees

to directors, officersand clerks. Homeoffice only direct.

14. Rents, Home officeonly direct

15. General Home officemaintenance and

expense on direct16. Depreciation on home

office furniture andfixtures; same asallowed by FederalGovernment as

deductions on income during past year

17. Home office postage,telegraph, telephone,exchange and expresson direct

18. Advertising andsubscriptions on

direct 19. Printing and stationery

on direct20. Miscellaneous under-

writing expense;itemize on back hereofon direct21. Home office legal

expenses on directwriting

22. Total all States______________________________________________________________23. Total ___________direct

premiums earned states $______________24. Earned direct ________ premiums

in Guam (Line 24 is _____ % ofline 23) $______________25. Pro rata general _____ expense for

Guam - apply above percentage to total

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expenses allocated to _______ business(line 22, column 3, above). Result $______________

RECAPITULATIONActual expense incurred(Schedule C, Line 12) $______________Pro rata of general expense(Line 25, above) $______________Total Guam actual and pro rataincurred expense (carry to Item 3, Form) $______________

*NOTE - To allocate general expense to __________ underwritinguse this method: Total earned direct _____________ premiums ofthe Company, all states for one year, $____________ divided bytotal earned, direct premiums, all classes, all states, for one (1)year, $_________ equals __________% (insert figures). Multiplytotal general expense, Column 1, Line 22, above, by this percentand place result in Column 3, Line 22, above.

(Form I-20)

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§1118. Proceedings for the Investigation,Hearings and Resolution of Complaints: LegalAuthority. Legal authority cited for proceedings forthe investigation, hearings and resolution ofcomplaints, 22 GCA §§12204, 12206 of the InsuranceLaw.

§1119. Same: Filing of Complaint. Any personmay file before the Commissioner a complaintcharging violations of the Insurance Law and itsregulations. Such complaint shall be made in writing:

(a) The complaint shall contain the full name andthe corporate name, in the case of a legal person, theaddress of the Complainant and the Respondent, anda clear and concise statement of the facts upon whichthe complaint is based.

(b) Following the filing of a complaint theCommissioner shall cause to be made a preliminaryinvestigation of the charges set forth therein.

(c) Should the Commissioner decide that thecomplaint should be issued, he shall order, accordingto the Insurance Law of Guam, 22 GCA §12206, ahearing to be held and shall prepare such complaint inthe name of the Office of the Commissioner and serveit with a copy to the Respondent, the Complainant,and to all persons directly affected by such hearing.

(d) Should the Commissioner decide that acomplaint will not be issued he shall so notify theperson filing the complaint by issuing a "Notice ofDismissal of the Complaint." In the event of suchdismissal, the person filing the complaint, within ten(10) days after the date of the "Notice of Dismissal,"may request from the Commissioner that a hearing beheld for the purpose of reconsideration of his order,according to the provisions of 22 GCA §12206 of theInsurance Law of Guam. The Commissioner mayconcede additional time if timely written request ismade in which reasonable grounds to sustain it arestated.

(e) Amendments. Any complaint may beamended by the person who filed it.

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(f) Withdrawal. A complaint may be withdrawnonly with the approval of the Commissioner.

§1120. Same: Complaint, Notice of Hearing andAnswer. (a) The issuance of a complaint shall beaccompanied by a "Notice of Hearing," which shall fixa date and place for the hearing, specifying the mattersto be considered thereat. The hearing shall not be helduntil a period of fifteen (15) days has elapsed after theparties are notified, excluding Sundays and holidays.

(b) The complaint shall be issued by theCommissioner in the name of the Complainant. Afterthe commencement of the hearing the complaint maybe amended only with the consent of and upon suchterms as the Commissioner may require.

(c) Answer: The Respondent may answer thecomplaint or its amendments. Such answer shall be inwriting and shall contain an admission or denial of thefacts set forth in the complaint or its amendmentstogether with any affirmative matter alleged as adefense or relied on by the Respondent to avoid ornegate the facts set forth in the complaint. Suchanswer shall be filed with the Office of theCommissioner within fifteen (15) days after notice ofcomplaint. The original thereof shall be signed by theRespondent or his duly authorized representative. TheRespondent shall serve copies of any answer oramendment thereof upon the Complainant and allpersons who are parties to the proceeding, and shallfile proof of such service with the Office of theCommissioner. Any allegation of any complaint oramendment thereof not denied by the answer shall bedeemed admitted by the Respondent, and theCommissioner may thereupon make findings of factsand conclusions of law based upon such admission.Upon application of the Respondent theCommissioner may extend the time for filing theanswer. Prior to the hearing the answer may beamended by the Respondent. After thecommencement of the hearing the answer may beamended with the consent of and upon such terms asthe Commissioner may require.

§1121. Same: Intervention. Prior to the opening ofany hearing any person having a valid interest in the

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proceeding and desiring to intervene in anyproceeding or hearing shall file with theCommissioner a motion in writing setting out thegrounds upon which such person claims to beinterested in such proceeding, and the extent of suchinterest. The Commissioner, if good cause is shown,may permit such person to intervene, appeal and beheard in the hearing.

§1122. Same: Motions. The Commissioner shallrule upon all motions made prior to thecommencement of the hearing. The Commissionershall rule upon all motions made during the hearing.

§1123. Same: Consolidation or Severance.Whenever the Commissioner deems it necessary inorder to effectuate the purposes of the law, he may, atany time after a complaint is filed, order that suchcomplaint or any other proceeding which may havebeen instituted in respect thereto:

(a) Be consolidated for the purpose of hearing orfor any other purpose with any other proceedingwhich may have been filed with the Office of theCommissioner.

(b) Be severed from any other proceeding withwhich it may have been consolidated.

§1124. Same: Prehearing Conferences. TheCommissioner may hold prehearing conferences forthe settlement or simplification of the issues. In suchconference will be considered the issues to be heard,the position of each party, the simplification of proof,the exchange of exhibits and all other matters whichmay be of help to the final disposition of the case. TheCommissioner shall prepare a report containing thematters agreed upon, which will control thesubsequent course of the proceedings.

§1125. Same: Hearings. Hearings shall be heldbefore the Commissioner or Deputy Commissioner.

Any person in the proceeding shall have the rightto appear at such hearing in person or by counsel.Such person will have the right to call, examine andcross-examine witnesses, and to introduce into therecord documentary or other evidence. Formal rules of

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pleading or evidence need not be observed in thehearing. In any such proceeding stipulations of factsmay be introduced in evidence with respect to anyissue. Any objection with respect to conduct of thehearing, including any objection to the introduction ofevidence, may be stated orally or in writingaccompanied by a short statement of the grounds ofsuch objection and included in the record. Any of theparties shall be entitled, upon request made at orbefore the close of the hearing, to file a brief with theCommissioner, who may fix the time for such filing. Inthe discretion of the Commissioner the hearing may becontinued from day to day, or adjourned to a laterdate or to a different place, by announcement thereofat the hearing by the Commissioner or by otherappropriate notice. The Commissioner may, at anytime prior to the service of his Order upon appropriatenotice to the parties, direct that the hearing bereopened.

§1126. Same: Contemptuous Conduct. It shall besufficient reason for exclusion from the hearing forany person to engage in disorderly, disrespectful orcontemptuous conduct before the Commissioner

§1127. Same: Record. The Commissioner shallkeep a true and concise record of the proceeding of thehearings.

§1128. Same: Order. Within ten (10) days after thetermination of the hearing the Commissioner shallmake his order thereon. Such order shall contain hisfindings of facts and conclusions of law, it shall setforth the action taken and the effective date of suchaction. A copy of such order shall be sent to eachperson to whom notice of the hearing was given.

§1129. Same: Duties and Powers of theCommissioner Representing the Complainant. Itshall be the duty of the Commissioner to inquire fullyinto the facts as to whether the Respondent hasengaged in or is engaging in any violation, set forth inthe complaint, of the Insurance Law of Guam or itsregulations. For this purpose the Commissioner shallhave the power to call, examine and cross-examinewitnesses and to introduce into the recorddocumentary or other evidence. It shall be the duty of

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the Commissioner to represent the public policy of thestatute in the hearing.

§1130. Same: Witnesses and Subpoenas. (a)Witnesses shall be examined orally under oath oraffirmation except that for good cause shown theCommissioner may permit their testimony to be takenoutside the hearing by deposition under oath. Anysuch deposition shall be taken in accordance with theprocedural requirements under the laws of Guam forthe taking of depositions.

(b) Applications for the issuance of subpoenasmay be filed by any party to the proceedings prior tothe hearing with the Office of the Commissioner orduring any hearing with the Commissioner. Suchapplications shall be timely filed before the date of thehearing specifying the name and address of thewitnesses and the nature of the facts to be proved andmust specify the documents, the production of whichis desired, with such particularity as will enable themto be identified for the purpose of production, and thenecessity of the issuance of the subpoena.

§1131. Books of Accounts, Registers andDocuments - Required of Domestic Insurers: LegalAuthority. Legal authority cited for requirements thatdomestic insurer's keep books of accounts, registersand documents, 22 GCA §§12204, 12212 of theInsurance Law.

§1132. Same: General. Every domestic insurershall keep in his main office in Guam in an adequatemanner and according to sound methods ofaccounting, books of accounts for all its operations andtransactions. Said books, as well as the contracts,vouchers, records and any other documents shall behandled and arranged so that the financial conditionof the company may be readily ascertained and thestatements and reports submitted to the Office of theInsurance Commissioner verified at any time.

§1133. Same: Life and Disability Insurance. Thefollowing shall be an essential part of the accountingsystem of every domestic life and disability insurer:

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(a) An application register that may be formedwith the originals of the applications received dulynumbered and which shall contain the date andnumber of the application, name and address of theapplicant, age, deposit with application, final actionindicating whether approved or denied date andnumber of the policy and name of the producer.

(b) A register of insureds that may be kept oncards. Each card shall contain, besides the essentialinformation on the insured, and the insurancecontract, record of payment of premiums by theinsured and loans and interest. The card shall be filedfollowing the numerical order of the policy and shallconstitute a permanent record of insureds. The cardsof policies in force shall be kept separated from thosethat have ceased to be active, which may bewithdrawn to be kept in the same numerical order.Instead of this register, for industrial life insurance aregister of insureds shall be maintained by policynumber. This register may consist of the lists ofpolicies issued, reinstated and transferred, lists ofpolicies lapsed, and lists of policies transferred.

(c) An insured's register by alphabetical order,that shall constitute a permanent register. The cardshall contain the name of the insured, address, policynumber and date of birth. The cards of policies not inforce shall be kept separately in the same order. Forindustrial life insurance this register is not required.

(d) A collection register where all daily premiumsreceived shall be entered, including premiums onautomatic loans at the time the loan is granted, andpremiums on dividends used for the purchase ofadditional insurance. The register shall contain thedate of entry policy number, insured, how payment isto be made, premiums collected classified into life,disability and annuities premiums on automatic loans,premiums on dividends used for the purchase ofadditional insurance, partial payments of loansindicating payments to principal and interest, depositswith the application, premiums paid in advance, nameof the producer and commission paid. For industriallife insurance this register shall be formed with theagent's reports to the company on premiums collected.These reports shall be kept by their order of dates.

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(e) A current accounts book with the generalagent, managers and agents, indicating amountscharged, amounts paid and pending balance.

(f) A register of investments containing basicinformation on each kind of investment necessary tocomplete the annual statement required by theCommissioner.

(g) A claims register containing the policynumber, amount paid, person receiving payment, dateof payment and reasons for denial in case the claimhas been refused.

(h) A register of dividends paid to insureds whichshall be kept by the order of dates on which thedividend is granted.

§1133. Same: Property, Casualty andMiscellaneous Risks. The following shall be anessential part of the bookkeeping system of domesticproperty and casualty insurers:

(a) A copy of every policy issued or an insurancememorandum or an equivalent document stating riskscovered, endorsements, insurance limits, rates,premium, percent of coinsurance (when applicable),deductions, and any other related information.

(b) A register of policies issued, that shall be keptseparately according to the classification of risks. Itshall contain the date of entry, number of the policy,name of the insured, effective date of the policy, term,amount insured or limits, premium and name of theproducer. Endorsements bearing payment ofadditional premium shall be included in this register.

(c) A register of cancelled policies that shall bemaintained separately according to the classificationof risks. It shall contain the date of entry, policynumber, effective date of the policy, number of thecredit note, effective date of the cancellation, premiumreturned, producer and indication whether thecancellation was ordered by the insurer or by theinsured.

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(d) A register of losses paid and adjustmentexpenses classified by risks that may be a cashdisbursement auxiliary book. Said register shallcontain the date of payment, check number, amountpaid, person to whom the check is drawn, claimnumber, losses paid and adjustment expenses.

(e) A register of claims received that shall containthe date of the claim, claim number, kind of risk,claimant, date of occurrence, amount claimed, insured,policy number, estimated reserve, final action, withcolumns to indicate if paid or not, date of such action,and for any additional information.

(f) A register of premiums of policies in force thatmay be formed with tabulating machines lists and thatshall contain the kind of risks covered, term, date due,premiums of policies in force of the preceding year,net premiums written during the year, reinsurance inforce and net premium in force.

(g) A current accounts book with the generalagents, managers and agents, indicating the amountscharged, partial payments and balance due.

(h) A register of investments containing such basicinformation on each kind of investment necessary tocomplete the annual statement required by theCommissioner.

(i) A register of premiums written that may beformed with tabulating machines lists and that shallcontain the policy number, policy year, kind ofinsurance, premium paid and premium on reserve.This register shall be kept by general agent or agent.

(j) A register of reinsurance ceded and reinsuranceassumed. It shall contain the date, the name of theother company involved in the transaction, kind ofrisk, term, date due expressing the year, month andday and premium ceded or assumed. Whenapplicable, this register may be formed with the copiesof the vouchers used in operations of this kind.

§1135. Books of Accounts, Registers andDocuments - Required of General Agents, Managersand Agents Authorized to Countersign Policies:

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Legal Authority. Legal authority for requirement thatgeneral agents, managers and agents authorized tocountersign policies keep books of accounts, registersand documents cited 22 GCA §§12204 and 12212 of theInsurance Law.

§1136. Same: General. Every general agent,manager or agent authorized to countersign policiesshall keep in his principal office in Guam, in anappropriate form and following approved methods ofaccounting, books of accounts for all kinds of businessand transactions of the company he represents inGuam. These books of accounts, registers, records andfiles of documents shall be controlled and arranged sothat any examination directed by the InsuranceCommissioner can be easily executed at any time.

§1137. Same: Life and Disability Insurance. Thefollowing shall be an essential part of the accountingsystem of the general agent and manager of life anddisability insurers:

(a) An insureds register that shall contain thename of the insured, address and date of birth or age.This register shall also contain basic information onthe insurance contract, the record of payment ofpremiums by the insured, loans, interest and any otherinformation desired. The card shall be filed in thenumerical order of the policy and shall constitute apermanent register of insureds. The card of thosepolicies in force shall be kept in file but those ofpolicies no longer in force may be withdrawn andkept, following the same order, in an inactive register.Instead of this register for industrial life insurance, aregister of insureds shall be maintained by policynumber. This register may consist of the list of policieswritten, reinstated and transferred, lists of policieslapsed, and lists of policies transferred. The generalagent or manager shall keep the records of thoseinsureds that transfer their residence to Guam, as wellas those who move out of Guam.

(b) An alphabetical register of insureds that shallconstitute a permanent register of insureds. The cardshall contain the name and address of the insured,policy number and birth date or age at the time thepolicy is issued. It shall be kept following the

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alphabetical order of the last name of the insureds.The cards corresponding to policies in force shall bekept in file, but those of policies no longer in forcemay be withdrawn and kept, following the samealphabetical order, in an inactive register. Forindustrial life insurance this register is not required.

(c) A collections register where all daily premiumsreceived for the company shall be entered, includingpremiums on automatic loans at the time they aregranted, and premiums on dividends used topurchase additional insurance. The register shallcontain the date of entry, policy number, name of theinsured, how payment is made, premiums collectedclassified on dividends used to purchase additionalinsurance, partial payments of loans indicatingpayments to principal and interest, deposits with theapplication, premiums paid in advance, name of theproducer and commission paid. For industrial lifeinsurance this register may be formed with the reportsof the agents to the company on premiums collected.They shall be kept by order of date of the reports.

(d) An application register containing the dateand number of the application, name and address ofthe applicant, age, plan and amount applied for,annual premium, how payment is to be made, amountpaid with the application, final action with anindication of whether it was approved or rejected bythe company, date and number of the policy and nameof the producer.

(e) A register of dividends paid to insureds thatmay consist of monthly lists of dividends on whichcredit is granted. Said lists shall be kept by order ofdates in which credit for the dividend is taken. Thereshall also be maintained a separate record of thosedividends applied to the purchase of additionalinsurance or paid-up insurance. The company shallnot take credit on this kind of dividends unless it isshown that the corresponding premiums foradditional insurance or paid-up insurance wereincluded in the business reports. The lists shall containthe number of the policy, the insured and dividend forwhich credit is taken.

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(f) A register of premiums on automatic loans toinsureds that may consist of a list of loans approvedduring the business month. The lists shall bemaintained in the order of dates in which the loans aregranted.

(g) A claim register that shall contain the numberof the policy, amount insured, amount paid, person towhom payment is made, date of payment, and reasonfor denial in the case the claim has been rejected.

(h) A subsidiary ledger in which an account witheach producer shall be maintained. The ledger shallcontain enough columns to indicate the date, policynumber, name of the insured, amount insured in newbusiness, and accounting for commissions indicatingdebits, credits and balances.

§1138. Same: Property and Casualty Insurance.The following shall be an essential part of theaccounting system of the general agent, manager andagent authorized to countersign policies of propertyand casualty insurers:

(a) A copy of every policy issued or an insurancememorandum or an equivalent document stating riskscovered, endorsements, insurance limits, rates,premium, percent of coinsurance (when applicable),deductions and any other related information.

(b) A copy of the invoice which shall be numberedand that shall be kept in numerical order and shallconstitute a voucher of original entry. The invoiceshall contain the date, policy number, name andaddress of the insured, insurance company, insuredamount or limits, covered risk, description of theinsured object, policy period, premium charged, nameof the producer and commission.

(c) A copy of every credit note, that shall be keptin numerical order and that shall constitute a voucherof original entry. It shall contain the date of the creditnote, policy number, name and address of the insured,insurance company, risk and its description, effectivedate of the policy, effective date of cancellation,premium returned, producer and commission

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returned, and indication whether the cancellation wasordered by the insurer or by the insured.

(d) A register of policies issued, that shall bemaintained classified by risks and companies. It shallcontain the date of entry, policy number, number ofthe invoice, name of the insured, effective date, term,insured amount, premium, producer and commission.Endorsements bearing payment of additionalpremium shall be included in this register.

(e) A register of cancelled policies that shall bemaintained by classified risks and by companies. Itshall contain date of entry, policy number, effectivedate of the policy, number of the credit note, effectivedate of the cancellation, premium returned, producerand indication whether the cancellation was orderedby the insurer or by the insured.

(f) A register of binders that shall be kept bycompanies and that shall contain the number of thebinder, name and address of the insured, effectivedate, term, risk, amount insured or limits, producerand final action indicating the number of the policyissued or premium charged for liquidation, if any.

(g) A loss register that shall contain the number ofthe claim, policy number, name of the insured, date ofoccurrence of the loss, losses occurred during thequarter indicating the reserve, amount paid and dateof payment. This register shall be added and theamounts fixed in each quarterly period.

(h) The correspondence and records of the generalagent, manager and agent authorized to countersignpolicies.

§1139. Annual Statement of Insurers. (a) Legalauthority cited for annual statement of insurers, 22GCA §15504 and §15404 Insurance Law.

(b) The annual statement of insurers shall beprepared in the official forms approved by theNational Association of Insurance Commissioners asthey may be revised from time to time. The form shallbe completed in its entirety in such a manner that the

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financial condition and the annual transactions andaffairs can be easily determined.

(c) Besides the provisions of Paragraph (b) above,a copy of Insurance Expense Exhibit (Form 12) of theNational Association of Insurance Commissionersshall be furnished.

§1140. Advertisements. (a) Legal authority citedfor advertisements, 22 GCA §§15705 and 15708Insurance Law.

(b) Every insurer, general agent, agent, broker orsolicitor duly authorized by the Commissioner totransact insurance business in Guam, shall send to theOffice of the Commissioner a copy of anyadvertisement published and the form number of anypolicy advertised. This information shall be submittedwithin ten (10) days following the date of the firstadvertisement.

(c) If at any time the Commissioner determinesthat an advertisement has been disseminated by aninsurer, general agent, agent, broker or solicitor inviolation of any provision of the Insurance Law inaddition to any other penalty that might be imposed,the person or entity responsible for such violationshall be under obligation to publish an advertisementin the same way and manner in which the originaladvertisement was made, expressly correcting theerror

§1141. Surplus Line Agents and Surplus LineBrokers. (a) Legal authority cited for surplus lineagents and surplus line brokers, 22 GCA §15204Insurance Law.

(b) General agents and subagents licensed totransact insurance in Guam shall, with prior approvalof the Commissioner, have the authority of anauthorized surplus line agent or authorized surplusline broker to place surplus lines with unauthorizedinsurers after the Commissioner has made adetermination that such insurance cannot be placedwith an authorized insurer at reasonable rates.

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§1142. Deviation From Approved Rates.Application for deviation from approved rates will besubmitted in writing in duplicate and must includeexperience, statistical and/or other supporting reasonsfor the request.

All application for deviation from approved ratesmust be submitted not later than fifteen (15) days priorto the proposed effective date.

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