Conduct of Delinquency Proceedings Against

Insurers not Domiciled in Guam.

(a)Whenever under the laws of Guam an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in Guam, the Commissioner shall file a petition requesting the appointment

(1)if he finds that there are sufficient assets of such insurer located in Guam to justify the appointment of an ancillary receiver, or COL 1/26/2024 CH. 15 BUSINESS OF INSURANCE

(2)if ten

(10)or more persons resident in Guam, having claims against such insurer, file a petition with the Commissioner requesting the appointment of such ancillary receiver.

(b)The domiciliary receiver of an insurer domiciled in a reciprocal state shall be vested by operation of law with the title to all of the property, contracts, and rights of action, and all of the books and records of the insurer located in Guam, and he shall have the immediate right to recover balances due from local agents and to obtain possession of any books and records of the insurer found in Guam. He shall also be entitled to recover the other assets of the insurer located in Guam except that upon the appointment of an ancillary receiver in Guam, the ancillary receiver shall, during the ancillary receivership proceedings, have the sole right to recover such other assets. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in Guam and shall pay the necessary expenses of the proceedings. All remaining assets he shall promptly transfer to the domiciliary receiver. Subject to the foregoing provisions, the ancillary receiver and his deputies shall have the same powers and be subject to the same duties with respect to the administration of such assets as a receiver of an insurer domiciled in Guam.