Guam - It was Tuesday when Senator Rory Respicio introduced Bill 167 that would not only remove the current tax exemption on premiums collected by insurance companies as part of the qualifying certificate program but would also suspend and revoke existing QCs granted to insurance companies.
The measure came following an audit of the QC program and Governor Eddie Calvo urging lawmakers to change the QC law. Today Governor Calvo thanked Senator Respicio for taking the audit findings into consideration. "So I congratulate him and I want to work with him into see how we can effectuate at least the spirit of the bill we understand that there's a bit of complication because these are current QCs and these are contracts and we have to see how we can legally move this process forward," he said.
In the QC audit, the Public Auditor revealed the generous benefits allowed under the qc program to insurance companies amounts to millions of dollars annually in lost revenue.