Deposit of Securities

(a)An alien insurer, as a prerequisite to the transaction of any insurance in Guam, shall furnish such proof as the Commissioner shall require that it has, in Guam, unencumbered United States dollar assets available for the payment of claims in Guam in a minimum amount equal to the paid-in capital required of domestic insurers by Article III of this Title, or it shall make a deposit with the Commissioner of securities, of a class or classes authorized for investment of the assets of domestic insurers, in an amount equal to the minimum amount of paid-in capital required of domestic insurers by Article III of this Title.

(b)For the purpose of computing the amount of the deposit, the securities shall be valued by the Commissioner at their current market value; such deposit shall always be in an amount that such value meets the above stated minimum requirements.

(c)The deposit shall be continuously maintained so long as any obligation arising out of any insurance transacted by such alien insurer in Guam remains in existence for any purpose whatsoever.

(d)Such deposit shall be for the benefit and security of all policy holders and creditors of such alien insurer in Guam and the Commissioner shall be the trustee for such beneficiaries in the event of any default by the insurer in accordance with the terms of the policy.

(e)On receipt of such deposit, the Commissioner shall issue the depositing insurer a receipt stating the items and amount of securities so deposited; the Commissioner may provide for the deposit or safekeeping of such securities in any bank or banks or other financial institutions located in Guam as shall be approved for such purposes.