Defense of Action by Unauthorized Insurer

(a)Before any unauthorized insurer shall file or cause to be filed any pleading in any action, suit or proceeding instituted against it, such unauthorized insurer shall either

(1)file with the clerk of the court in which such action, suit or proceeding is pending a bond with good and sufficient sureties, to be approved by the court, in an amount to be fixed by the court sufficient to secure the payment of any final judgment which may be rendered in such action; or

(2)procure a certificate of authority to transact the business of insurance in Guam.

(b)The court in any action, suit, or proceeding, in which service is made in the manner provided in subsection

(b)or

(c)of § 15205 may order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection

(a)of this section and to defend such action.

(c)Nothing in subsection

(a)of this section is to be construed to prevent an unauthorized insurer from filing a motion to quash a writ or to set aside service therefor made in the manner provided in subsections

(b)or

(c)of § 15205 hereof on the ground either

(1)that no policy or contract of insurance has been issued or delivered to a citizen or resident of Guam or to a corporation authorized to do business therein, or COL 1/26/2024 CH. 15 BUSINESS OF INSURANCE

(2)that such insurer has not been transacting business in Guam, or

(3)that the person on whom service was made pursuant to subsection

(c)of § 15205 was not doing any of the acts therein enumerated.