Licensing of Agents

(a)[No text.]

(1)No person, corporation or bank shall act as an agent of any:

(A)local mutual aid association;

(B)local mutual burial association;

(C)statewide mutual assessment corporation;

(D)government mutual insurance company;

(E)casualty company writing accident and health insurance;

(F)health maintenance organization; or

(G)any other type of insurance carrier licensed to do business on Guam and which insurance carrier’s agents are required to be licensed under the provisions of this Article, on the date that this Chapter shall become effective; shall have first procured a license from the Department as in this Article is provided, unless that individual or entity, and no such insurance carrier shall appoint any person, corporation, or bank shall have COL 1/26/2024 CH. 15 BUSINESS OF INSURANCE obtained a license under the provisions of this Article; and no such person, corporation or bank who obtains a license shall engage in business as an agent until that individual or entity shall have been appointed to act as an agent by some duly authorized insurance carrier designated by the provisions of this Article, and authorized to do business on Guam.

(2)Any person, corporation or bank desiring to act as an agent of any insurance carrier licensed to do business on Guam and writing health and accident insurance may obtain a separate license as an agent to write health and accident insurance; provided, such person, corporation or bank complies with the provisions of this Article, and has been appointed to act as an agent by some duly authorized insurance carrier authorized to do health and accident insurance business on Guam.

(b)No insurer or licensed insurance agent doing business on Guam shall pay directly or indirectly any commission, or other valuable consideration, to any person, corporation or bank for services as an insurance agent within Guam, unless such person, corporation or bank shall hold a currently valid license to act as an insurance agent as required by the laws of Guam; nor shall any person, corporation or bank, other than a duly licensed agent, accept any such commission or other valuable consideration.

(c)Unless denied licensure pursuant to this Section, persons who have met the requirements of §§ 15703 and 15704.1 shall be issued an insurance producer license. An insurance producer may receive qualification for a license in one

(1)or more of the following lines of authority:

(1)life-insurance coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income;

(2)accident and health, health maintenance organization or sickness insurance coverage for sickness, bodily injury or accidental death, and may include benefits for disability income; COL 1/26/2024 CH. 15 BUSINESS OF INSURANCE

(3)property-insurance coverage for the direct or consequential loss or damage to property of every kind;

(4)casualty-insurance coverage against legal liability, including that for death, injury or disability, or damage to real or personal property;

(5)variable life and variable annuity products-insurance coverage provided under variable life insurance contracts and variable annuities;

(6)personal lines-property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes;

(7)credit-limited line credit insurance; or

(8)any other line of insurance permitted under Guam laws or regulations.

(d)An insurance producer license shall remain in effect unless revoked or suspended as long as the fee set forth in this Title is paid.

(e)A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance may request a waiver of those procedures. The producer may also request a waiver of any examination requirement, or any other fine or sanction imposed for failure to comply with renewal procedures.

(f)The license shall contain the licensee’s name, address, personal identification number, the date of issuance, the lines of authority, the expiration date and any other information the Commissioner of Banking and Insurance deems necessary.

(g)Licensees shall inform the Commissioner of Banking and Insurance by any means acceptable to the Commissioner of Banking and Insurance of a change of address within ninety

(90)days of the change.

(h)In order to assist in the performance of the duties of the Commissioner of Banking and Insurance, the Commissioner of Banking and Insurance may contract with non governmental COL 1/26/2024 CH. 15 BUSINESS OF INSURANCE entities, including the National Association of Insurance Commissioners (“NAIC”), or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees, related to producer licensing that the Commissioner of Banking and Insurance and the non governmental entity may deem appropriate.