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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/301/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 301 - Definitions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 301 - Definitions
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For purposes of this chapter, the following terms shall have the meaning stated below, except where the context clearly indicates otherwise.
(1) Domestic insurer.— Is one constituted under the laws of Puerto Rico.
(2) Foreign insurer.— Is one constituted under the laws of any state or country other than Puerto Rico.
(3) Administration.— Means the Puerto Rico Health Insurance Administration (ASES, Spanish acronym), as established pursuant to §§ 7001 et seq. of Title 24.
(4) Department of Health.— Means the Department of Health of the Government of Puerto Rico, as established pursuant to §§ 171 et seq. of Title 3.
(5) State.— Means any state of the United States of America, the District of Columbia, and the territories, except as otherwise intended by the context.
(6) United States.— Means the United States of America, and when used to mean a place, it should also include the District of Columbia and the territories.
(7) Subcontractor.— Means the party legally or contractually responsible for rendering services under the Medical Assistance Program in Puerto Rico.
(8) Third party.— Means an administrator, a health care payer, a pharmacy benefit manager, or a health services organization, as defined in § 7002 of Title 24.
History —Ins. Code § 3.010; Dec. 21, 2010, No. 210, § 1, eff. 90 days after Dec. 21, 2010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/303/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 303 - Authority to transact insurance required
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 303 - Authority to transact insurance required
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(1) No person shall act as an insurer and no insurer shall transact insurance in Puerto Rico except as authorized by a subsisting authority granted to it by the Commissioner, except as to such transactions as are expressly otherwise provided for in this title.
(2) No such authority shall be required for an insurer, formerly so authorized, to enable it to investigate and settle losses under its policies lawfully written in Puerto Rico, or to liquidate such assets and liabilities of the insurer (other than collection of new premiums) as may have resulted from its former authorized operations in Puerto Rico.
(3) An insurer not transacting new insurance business in Puerto Rico, but continuing collection of premiums on and servicing of policies remaining in force as to residents of or risks located in Puerto Rico, is transacting insurance in Puerto Rico for the purpose of premium tax requirements only and is not required to hold a certificate of authority therefor.
(4) As to an insurance coverage on a subject of insurance not resident, located, or expressly to be performed in Puerto Rico at time of insurance, and solicited, written, and delivered outside Puerto Rico, no such authority shall be required of an insurer as to subsequent transactions in Puerto Rico on account thereof.
History —Ins. Code § 3.030, renumbered as § 3.020 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/304/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 304 - Qualification for authority
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 304 - Qualification for authority
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To qualify and hold authority to transact insurance in Puerto Rico as insurer, an insurer must:
(1) Be a stock, mutual, reciprocal, cooperative or Lloyd’s insurer of the same general type as may be formed as a domestic insurer under this title, except, that no foreign insurer formed or transacting insurance upon the assessment plan shall be authorized to transact insurance in Puerto Rico. An insurer organized under special charter provisions shall indicate in its application for certificate of authority and in its policies that manner of operating in Puerto Rico.
(2) Have paid-in capital or surplus as specified and required under this title, based upon the type and domicile of the insurer and the kinds of insurance proposed to be transacted; except, that the amount of such capital or surplus shall not be less than would be required if the insurer proposed to transact in Puerto Rico all those kinds of insurance which it is then transacting elsewhere.
(3) Transact or propose to transact in Puerto Rico only those insurances which are among those authorized by its charter and among those it is authorized to transact in the state where is held its deposit hereinafter required, and only such insurance as meets the standards and requirements of this title.
(4) Be not ineligible for such authority by reason of any provision of its charter or law of the state or country of its domicile.
(5) In the case of a foreign insurer, be organized and continuously active for a term not less than five years immediately preceding the date of the application; Provided, That compliance with such requirement shall not be binding to subsidiaries wholly owned by authorized insured operating in Puerto Rico during the five years prior to the date on which the subsidiary applied for admission.
(6) Fully comply with, and qualify according to, the other provisions of this title. The Commissioner may refuse the authorization to do business in Puerto Rico to a stock insurer if the majority of stocks in circulation of said insurer are owned or controlled directly or indirectly by a single individual; or if one single individual has faculty to dispose freely of the assets of the insurer.
(7) [Repealed. Act Mar. 6, 1995, No. 28, § 1, eff. Mar. 6, 1995].
History —Ins. Code § 3.040; June 26, 1959, No. 84, p. 220, § 2; July 21, 1960, No. 147, p. 571, § 1; June 19, 1969, No. 48, p. 88, § 1; June 5, 1973, No. 98, p. 419, § 1; July 23, 1974, No. 151, Part 1, p. 695, § 1; March 6, 1995, No. 28, § 1; renumbered as § 3.030 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/304-1/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 304-1 - Affiliation to financial institutions prohibited
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 304-1 - Affiliation to financial institutions prohibited
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(1) In addition to the requirements established in § 304 of this title, an insurer must comply with the following, in order to be authorized to contract insurance in Puerto Rico:
(a) That any one or more of the financial institutions described in subsection (4) of this section shall not have any direct or indirect substantial financial interest or control over the insurer.
(b) That said insurer shall not have any direct or indirect substantial financial interest, or relationship as the owner or affiliate of a financial institution as defined in subsection (4) of this section.
(2) An insurer who otherwise meets the requirements as such, but who has any of the relationships indicated in subsection (1) of this section with an entity engaged in the money-lending business in Puerto Rico, which is not one of the financial institutions defined in subsection (4) of this section, may be authorized to contract or process insurance policies in Puerto Rico, provided the following requirements are met:
(a) The insurer does not contract credit life insurance, credit disability insurance, or any other insurance business related to a specific loan or other credit transaction. Nor shall the insurer carry out, directly or indirectly, any insurance, reinsurance, insurance business exchange or subscription agreement, or any other transaction of such nature on an object, subject or exposure of insurance resulting from or related to the credit activity generated by said entity. To such effects, the Commissioner shall be authorized to limit the scope of the certificate of authority he issues to said insurer.
(b) Said entity shall not select, whether directly or indirectly, the insurer that shall underwrite the objects, subjects or exposures of insurance that arise from or are related to the credit activity generated by said entity, nor shall it induce the potential insured directly or indirectly, to select such insurer, nor carry out any business transaction that may place the insurer in a position of competitive advantage with regard to an object, subject or exposure to insurance arising from, or related to the credit activity generated by said entity.
(3) The Commissioner shall promulgate rules and regulations to strictly enforce the purposes of this section, which include, among others, to keep the money-lending business in Puerto Rico apart from the insurance business, and to limit the possibility of unfair practices by insurers related to lending institutions, in order to attain a healthy competition for the protection of the consumers of insurance and their right to freely select an insurer, producer, and in order to guarantee a healthy balance of opportunities for all the components of the insurance industry in Puerto Rico.
(4) Financial institution.— Means any bank, savings and loan association, institution engaged in the business of receiving deposits and lending money in Puerto Rico, and any entity or corporation in which any of said institutions has any direct or indirect substantial financial interest or relationship as an owner, subsidiary or affiliate, or any entity or corporation that directly or indirectly owns a substantial financial interest in any of said institutions.
(5) Substantial financial interest.— Means holding more than five percent (5%) of any type of outstanding stock or combination thereof.
(6) None of the provisions of this section shall prohibit or prevent an insurer, who otherwise meets the requirements as such, from being authorized to contract insurance in Puerto Rico because said insurer:
(a) Has, directly or indirectly, a substantial financial interest in a financial holding company or a depository institution or a direct or indirect relationship as owner, subsidiary or affiliate with a financial holding company or with a depository institution regardless of whether the holding company or depository institution has, directly or indirectly, a relationship as owner, subsidiary or affiliate of other non-depository institutions engaged in the business of lending money, provided that the applicable provisions and requirements of the Gramm-Leach-Bliley Act and the laws of Puerto Rico are complied with;
(b) is a financial holding company, provided that the applicable provisions and requirements of the Gramm-Leach-Bliley Act are complied with.
(7) For the purposes of subsection (6) of this section and §§ 307, 320, 412, Articles 6.050, 9.070 and 9.160, and § § 2713a, 2915, 2920 and 2921 of this title, the following terms shall have the meaning stated below:
(a) Gramm-Leach-Bliley Act.— Means the Federal law entitled “Gramm-Leach-Bliley Financial Modernization Act of 1999”, Public Law No. 106-102, 113 Stat. 1338 (1999), as amended.
(b) The term “depository institution” shall be limited to those institutions included under the term “depository institution”, pursuant to Section 104(g)(3) of the Gramm-Leach-Bliley Act.
(c) The term “financial holding company” shall be limited to those institutions included under the term “financial holding company”, pursuant to Section 103(p) of the Gramm-Leach-Bliley Act.
(8) The Commissioner may establish the rules and regulations to assure that the application of the provisions of subsection (6) of this section are not in conflict with the provisions of the Gramm-Leach-Bliley Act.
History —Ins. Code, added as § 3.041 on Mar. 6, 1995 No. 28, § 2; Sept. 6, 2000, No. 382, § 1; Jan. 19, 2006, No. 10, § 9; renumbered as § 3.031 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/304a/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 304a - Foreign insurers formed under inadequate laws
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 304a - Foreign insurers formed under inadequate laws
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The Commissioner may deny, suspend or revoke the authority to transact insurance in Puerto Rico to any foreign insurer organized in any country or jurisdiction, whose laws or enforcement thereof he may consider inadequate with respect to capital requirements and public intervention or supervision applicable to its domestic insurers for the protection of the policyholders and creditors of said insurers.
History —Ins. Code § 3.041, renumbered as § 3.042 on Mar. 6, 1995, No. 28, § 3; renumbered as § 3.032 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/305/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 305 - Charter, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 305 - Charter, defined
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Charter.— Means articles of incorporation, of agreement, of association or other basic constituent document of a corporation, or subscribers’ agreement and power of attorney of a reciprocal insurer, or underwriters’ agreement and power of attorney of a Lloyd’s plan insurer.
History —Ins. Code § 3.050; renumbered as § 3.040 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/306/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 306 - Required reports and information sharing
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 306 - Required reports and information sharing
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Any insurer or third party shall submit to the Department of Health the Puerto Rico Health Insurance Administration (ASES, Spanish acronym), any information about coverage and/or benefits paid or available to beneficiaries of the Medical Assistance Program (PAM, Spanish acronym) and any other information required. The information about eligibility and coverage shall include, but is not limited to:
(1) Name and addresses of the insured.
(2) Beneficiary identity number.
(3) Policy numbers.
(4) Group identification number.
(5) Names of covered dependents.
(6) Types of services covered under the policy.
(7) Policy effective date.
(8) Termination date for each covered individual.
The insurer or the third parties shall provide the information described in this section in electronic file format according to the specifications of the written request from the Health Department, ASES, or the Administration or its duly authorized subcontractor. The notice to the Administration shall include all the information about eligibility and available coverage from the date of the request and up to three (3) years before the request.
Any insurer or third parties that receive a written request or an electronic file regarding eligibility or the subscriber from the Department of Health, ASES, or its subcontractor shall be required to:
(a) Deliver the file to the Department of Health, ASES, and its duly authorized subcontractor within thirty (30) calendar days from the request.
(b) Supplement the initial file with monthly electronic updates of its national eligibility data to ensure that the Department of Health, the Administration, or its duly authorized subcontractor have the most current eligibility file at all times.
(c) Provide the Department of Health and ASES with Internet access to its data base.
Furthermore, insurers and third parties shall reply to the investigations conducted by the aforementioned entities and shall provide them with the information about specific individuals as required.
No fees shall be imposed to the Department of Health, the Administration, or its subcontractor for sharing electronic data as required by this section.
No insurer or third party who provides data requested by the Department of Health, ASES, or its duly authorized subcontractor may refuse to provide the same or allege that the data is confidential; however, the necessary measures shall be adopted to prevent disclosure of patient information which is not pertinent to the claim as a result of which such information is being shared. Any insurer or third party that does not comply with the provisions of this Act by failing to provide required information within a term of one hundred eighty (180) days from the date of the written request shall be subject to an administrative fine of one thousand dollars ($1,000) for each day of noncompliance with the request.
History —Ins. Code, added as § 3.050 on Dec. 21, 2010, No. 210, § 3, eff. 90 days after Dec. 21, 2010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/307/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 307 - Insurer not to engage in other business
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 307 - Insurer not to engage in other business
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No person shall be authorized as an insurer in Puerto Rico if engaged in any business other than the insurance business, and in the operations and transactions incidental thereto. Without limiting the general meaning of the foregoing clause, banking, securities, industrial, agricultural, mercantile, transportation, real estate and similar businesses and enterprises, are deemed not to be incidental to the insurance business. This section does not prohibit activities incidental to the management of legal investments of insurers, or the proper management and liquidation of certain assets of insurers, if said assets are lawfully acquired and held by them pursuant to salvage and subrogation rights under their policies, or have been acquired under the investment provisions of this Code. Neither does this section prohibit those activities incidental to the issuance of annuities or life insurance payable in variable amounts or in a combination of fixed and variable amounts, by life insurance companies in accordance with the provisions of §§ 1329–1335 of this title. This section does not prohibit insurers from being financial holding companies, provided they comply with the applicable provisions and requirements of the Gramm-Leach-Bliley Act.
History —Ins. Code § 3.070; June 13, 1974, No. 67, Part 1, p. 266, § 1; May 29, 1984, No. 28, p. 60, § 1; Sept. 6, 2000, No. 382, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/308/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 308 - Kinds of insurance—An insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 308 - Kinds of insurance—An insurer
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An insurer who otherwise qualifies therefor may be authorized to transact any one kind or combination of kinds of insurance as defined in §§ 401–414 of this title, except that:
(1) A life insurer may not be authorized to contract any other kind of insurance except for disability. Provided, That this limitation shall not apply to insurers who deal exclusively with reinsurance.
(2) A reciprocal or Lloyd’s insurer shall not transact life insurance.
(3) A title insurer shall be a stock or cooperative insurer.
(4) A domestic mutual insurer doing business on the assessment premium plan shall transact agricultural insurance only.
History —Ins. Code § 3.080; June 25, 1965, No. 86, p. 200, § 13; Feb. 16, 1979, No. 15, p. 28, § 3.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/309/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 309 - Funds required from insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 309 - Funds required from insurers
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(1) To qualify to receive the authority to transact any kind of insurance, an insurer must have and hold paid-in capital or surplus stock in an amount which shall not be less than what appears in the applicable portion of the following schedule:
Stock, mutual, or cooperative insurers Reciprocals Capital or surplus or Lloyd’s Kind of Insurance required Surplus required Life $1,500,000 Not applicable Life and disability $2,500,000 Not applicable Disability $1,000,000 $1,000,000 Property $2.000,000 $2,000,000 Agricultural only Must qualify for property insurance Marine and Transport $1,500,000 $1,500,000 Casualty $2,000,000 $2,000,000 Vehicle only $1,500,000 $1,500,000 Surety and fidelity $1,500,000 $1,500,000 Title $1,500,000 Not applicable Mortgage loans $3,000,000 Not applicable All insurance except life and mortgage loans $3,000,000 $3,000,000
(2) The Commissioner may increase the aforementioned requirements as may be determined by the economic condition of the country up to the amount he deems necessary for the adequate protection of the interests of the insured and the creditors of the insurer.
(3) [Repealed. Act July 20, 1979, No. 154, p. 395, § 1, eff. July 20, 1979.]
History —Ins. Code § 3.090; June 5, 1973, No. 98, p. 419, § 2; July 20, 1979, No. 154, p. 395, § 1; Dec. 16, 2003, No. 303, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/310/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 310 - Additional kinds of insurance, funds required of insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 310 - Additional kinds of insurance, funds required of insurers
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An insurer who is otherwise qualified therefore may be authorized to transact combinations of kinds of insurance other than the combinations stipulated in § 309 of this title, while possessing and maintaining additional paid-in capital, if a stock insurer, or additional surplus funds, if a mutual, cooperative, reciprocal or Lloyd’s insurer, in an amount not less than that which is determined as follows:
For any lawful combination, add two hundred thousand dollars ($200,000) for each additional kind included in the combination to: the amount required under § 309 of this title for that one kind in the combination for which the largest amount is required under § 309 of this title, except that:
(1) Vehicle and disability insurance may be combined with casualty and in any combination including casualty, without need of funds in addition to those required for casualty alone.
(2) With such paid-in capital or such surplus in the amount of not less than three million dollars ($3,000,000), an insurer, if otherwise qualified therefore, may be authorized to transact all kinds of insurance except life insurance.
(3) This section shall not be applicable to mortgage loan insurers.
History —Ins. Code § 3.100; June 5, 1973, No. 98, p. 419, § 3; July 20, 1979, No. 154, p. 395, § 2; Dec. 16, 2003, No. 303, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/312/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 312 - New insurer, additional surplus required
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 312 - New insurer, additional surplus required
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(1) In addition to the minimum paid-in capital with regard to stock insurers, or minimum surplus with regard to mutual, cooperative, reciprocal and Lloyd’s insurers, as required under §§ 309 and 310 of this title, every insurer shall hold at the time of the original authorization in Puerto Rico surplus funds in an amount not less than one-half of the amount of such minimum paid-in capital or minimum surplus, and each addition of a kind of insurance to said certificate of authority shall be deemed as if it were the original authorization.
(2) This section shall not apply to insurers of mortgage loans.
(3) [Repealed. Act July 20, 1979, No. 154, p. 395, § 4, eff. July 20, 1979.]
History —Ins. Code § 3.120; June 26, 1959, No. 84, p. 220, § 2; June 25, 1965, No. 86, p. 200, § 14; June 5, 1973, No. 98, p. 419, § 5; July 20, 1979, No. 154, p. 395, § 4.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/313/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 313 - Deposit requirements—Insurers organized in the United States
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 313 - Deposit requirements—Insurers organized in the United States
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(1) No insurer organized under the laws of a state of the United States may be authorized to transact insurance in Puerto Rico, unless it deposits and maintains on deposit assets worth not less than fifty percent (50%) of the amount of the paid-in capital if a stock insurer, or surplus if a mutual, cooperative, reciprocal or Lloyd’s plan insurer, as required to be maintained for the kind or kinds of insurance to be offered in Puerto Rico notwithstanding the provision contained in § 304(2) of this title. Provided, That in no case shall said deposit be greater than one million dollars ($1,000,000).
(2) The deposit, among other reasonable purposes of protection of policyholders and/or creditors, shall be for the protection of all the insurer’s policyholders, or for all its policyholders and creditors, in Puerto Rico.
(3) The deposit shall be made in trust with the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the Office of the Commissioner; except that the Commissioner, provided that by the laws of the state where the insurer is domiciled is extended a similar privilege to insurers domiciled in Puerto Rico, may accept, in lieu of a deposit, or any part thereof, in Puerto Rico, the certificate of the public official having the supervision over insurance in a state, showing that a deposit by such insurer, or like part thereof, is being maintained in trust in such state for the purpose stated in subsection (2) of this section, if the total deposit in Puerto Rico and that evidenced by such certificate or certificates is an amount not less than that required under subsection (1) of this section.
(4) Assets so deposited in Puerto Rico shall be administered as provided in §§ 801–809 of this title.
History —Ins. Code § 3.130; June 5, 1973, No. 98, p. 419, § 6; July 23, 1974, No. 151, Part 1, p. 695, § 2; July 20, 1979, No. 154, p. 395, § 5; Dec. 16, 2003, No. 303, § 3.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/314/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 314 - Deposit requirements—Insurers not organized in United States
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 314 - Deposit requirements—Insurers not organized in United States
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(1) A foreign insurer not organized under the laws of a state of the United States, but which is authorized to transact insurance in one or more such states, shall be subject to the provisions of § 313 of this title.
(2) An insurer not organized under the laws of a state of the United States nor authorized to transact insurance in any of such states may not be authorized to transact insurance in Puerto Rico, unless it deposits and maintains on deposit in Puerto Rico assets worth not less than fifty percent (50%) of the required capital if a stock insurer, or surplus if a mutual, cooperative, reciprocal or Lloyd’s plan insurer, as shown under § 309 of this title for the kind or kinds of insurance to be so offered in Puerto Rico. Provided, That in no case shall said deposit be greater than one million dollars ($1,000,000). In addition to such deposit, the Commissioner may, in his discretion, require such an insurer to maintain in Puerto Rico such of its assets representing reserves, or part thereof, of its insurance business operating in Puerto Rico as the Commissioner deems advisable for the protection of policyholders in Puerto Rico.
(3) The deposit and assets referred to in subsection (2) shall be for the exclusive protection of the insurer’s policyholders and creditors in Puerto Rico; except, that if the insurer subsequently becomes authorized to transact insurance in one or more of the states of the United States, such deposit shall, upon written request of the insurer, be only for the protection of all the insurer’s policyholders, or all its policyholders and creditors, in the United States and Puerto Rico.
(4) The deposit shall be made in trust with the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the office of the Commissioner.
(5) Assets so deposited shall be administered as provided in §§ 801–809 of this title.
History —Ins. Code § 3.140; June 5, 1973, No. 98, p. 419, § 7; July 23, 1974, No. 150, Part 1, p. 685, § 3; July 20, 1979, No. 154, p. 395, § 6; Dec. 16, 2003, No. 303, § 4.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/315/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 315 - Requirements of capital or surplus, deposits and/or investment in Puerto Rican securities; a...
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 315 - Requirements of capital or surplus, deposits and/or investment in Puerto Rican securities; authorized insurers; escalator provisions
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Every insurer authorized to transact insurance in Puerto Rico with capital or surplus funds or with a deposit and/or investment in Puerto Rican securities, smaller than that otherwise required under this Code, may continue to be so authorized without immediately increasing its capital or surplus funds or its deposit and/or investment in Puerto Rican securities, if within each one (1) of the five (5) years immediately following the effective date of any increase in said requirement, the insurer increases its capital or surplus funds, deposit and/or investment in Puerto Rican securities, in such amounts as may be proportionally needed, within such five (5)-year period, up to the amounts otherwise required.
If the authorized insurer is not doing business in Puerto Rico at the date of any increase in such requirement, it shall not be necessary for it to immediately increase its capital or surplus funds, deposit and/or investment in Puerto Rican securities, if within said five (5)-year period, or at that date if later, on which it commences or resumes its insurance business activity in Puerto Rico, it increases its capital or surplus funds, deposit and/or investment in Puerto Rican securities in the amounts as may be proportionally needed within such five (5)-year period, up to the amounts otherwise required.
History —Ins. Code § 3.150; June 5, 1973, No. 98, p. 419, § 8; July 20, 1979, No. 154, p. 395, § 7; Dec. 16, 2003, No. 303, § 5.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/315a/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 315a - Requirement of deposit, domestic insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 315a - Requirement of deposit, domestic insurers
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(1) No domestic insurer shall be authorized to transact insurance in Puerto Rico unless it deposits and maintains on deposit assets of a value not less than fifty percent (50%) of the amount of the paid-in capital if a stock insurer or a cooperative insurer, or of the surplus funds if a mutual, reciprocal, or Lloyd’s plan insurer, as required to be maintained for such kind or kinds of insurance to be transacted in Puerto Rico, notwithstanding the provisions contained in § 304(2) of this title.
(2) The deposit, among other reasonable purposes for the protection of the insurers and creditors, shall be for the protection of the insurer’s policyholders or for all the policyholders and creditors in Puerto Rico.
(3) The deposit shall be made in trust with the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the Office of the Commissioner.
(4) The deposit shall be administered as provided in §§ 801–809 of this title.
History —Ins. Code, added as § 3.151 on June 21, 1965, No. 66, p. 136; Dec. 16, 2003, No. 303, § 6.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/316/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 316 - Required investment in Puerto Rican securities
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 316 - Required investment in Puerto Rican securities
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(1) An insurer shall not be authorized to transact insurance in Puerto Rico unless it has and maintains invested in the securities as designated in subsection (2) hereof an amount not less than one-half of the required capital, if a stock insurer, or surplus, if a mutual, reciprocal or Lloyd’s plan insurer, shown in § 309 of this title for the kind or kinds of insurance to be transacted in Puerto Rico. Provided, That in the case of foreign insurers, this amount shall not be greater than one million dollars ($1,000,000).
From the investment required in this subsection, the insurer shall invest fifty percent (50%) in the securities designated in clauses (a) and (b) of subsection (2) of this section, and may invest the remaining fifty percent (50%) in the securities designated in subsection (2)(c) of this section.
(2) The following securities only shall be eligible investments for the purposes of this section:
(a) Bonds of the People of Puerto Rico, or of the Commonwealth of Puerto Rico, or the municipalities thereof, for which the good faith and the credit of the People of Puerto Rico or the Commonwealth of Puerto Rico have been pledged.
(b) Bonds or other securities of Puerto Rico entities, public or private, which the Governor of Puerto Rico in his regulations may declare eligible as collateral security for public funds.
(c) First mortgages on real property located in Puerto Rico.
Upon request of the insurer, however, the Commissioner may waive the requirement of this section as to such investment or part thereof for such period as the Commissioner deems it reasonably impracticable for the insurer to make such investment, owing to the non-availability of securities of the kind herein required.
(3) The Commissioner shall provide insurers with the forms required for making proof as to such investment.
(4) [Repealed. Act July 20, 1979, No. 154, p. 395, § 8, eff. July 20, 1979.]
History —Ins. Code § 3.160; May 31, 1973, No. 73, p. 328, § 4; June 5, 1973, No. 98, p. 419, § 9; July 23, 1974, No. 151, Part 1, p. 695, § 3; May 10, 1976, No. 32, p. 84, § 3; July 20, 1979, No. 154, p. 395, § 8; Dec. 16, 2003, No. 303, § 7.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/317/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 317 - Application for authority
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 317 - Application for authority
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(1) To apply for an original certificate of authority an insurer shall file with the Commissioner its request therefor showing its name, location of home office, location of its principal office, if any, in the United States, type of insurer, organization date, and if a reciprocal or Lloyd’s, the name of its attorney-in-fact and address of its principal office in Puerto Rico.
The insurer shall also file or deposit with the Commissioner:
(a) Copy of the resolution of its board of directors or other governing body, determining to transact insurance in Puerto Rico and designating the officer or officers of the insurer who shall have authority from time to time to inform the Commissioner as to the kind or kinds of insurance to be so transacted. Such copy shall be certified by the insurer’s secretary and be authenticated by its corporate seal, if any.
(b) Certified copy of its charter duly authenticated by the office wherein the originals are on file.
(c) Copy of its bylaws, if any, certified by its president or secretary.
(d) Copy of its annual statement as of December 31 last preceding, the form of which shall substantially comply with the form generally required of insurers under § 331 of this title.
(e) Copy of the report of the last examination made of the insurer, if any, certified by the insurance supervisory official of its domicile, or of its state of entry into the United States (if it is a foreign insurer not formed in the United States but authorized to transact insurance in one or more states thereof).
(f) If a foreign insurer, a certificate from the insurance supervisory official of its domicile, or state of entry into the United States (if it is a foreign insurer not formed in the United States but authorized to transact insurance in one or more states thereof), stating the kinds of insurance it is authorized to transact in such state or country, and the amount of its paid-in capital (if a stock insurer) and surplus.
(g) The deposit of securities required by § 313 or 314 of this title, or in lieu thereof the certificate provided for by § 313(3) of this title, if applicable.
(h) If a foreign insurer, a certificate from the insurance supervisory official of the state or country of its domicile certifying that there are no provisions of the insurer’s charter or of the laws of its domicile which would prevent the insurer from extending its insurance operations in Puerto Rico.
(i) If a foreign insurer, or a domestic reciprocal insurer or domestic Lloyd’s insurer, a certificate duly signed by its executive head and authenticated by the corporate seal, if any, whereby the insurer consents to be sued in the courts of Puerto Rico for any cause of action arising against it in Puerto Rico, stating that legal process may be served on the Commissioner, or (if foreign insurer) on the insurer’s agent residing in Puerto Rico, whose name and address shall be shown in the certificate, and that any process so served shall be deemed served on the insurer. The Commissioner shall furnish the proper certificate form, which shall also comply with the requirements of § 327(1) of this title.
(j) Designation of the insurer’s manager or general agent to be resident in and have charge of its affairs in Puerto Rico, together with the written acceptance of the general agent, if any. Said general agent may be either a natural or a juridical person. If the general agent is a partnership, the acceptance shall be subscribed by all the partners. If the general agent is a corporation, the acceptance shall be executed by its president and be accompanied by a certified copy of the resolution of its board of directors authorizing acceptance of such general agency. This requirement shall be optional in the case of an insurer who is engaged only in reinsurance. The insurer must give notice in writing about the appointment to the Commissioner of the in the forms approved and supplied by the latter.
History —Ins. Code § 3.170; May 31, 1973, No. 73, p. 328, § 5; Jan. 19, 2006, No. 10, § 5, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/318/
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 318 - Issuance or refusal of authority
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 318 - Issuance or refusal of authority
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If upon application by an insurer the Commissioner finds that the insurer has met the requirements for and is entitled thereto under this title, he shall issue to the insurer a proper certificate of authority showing the kind or kinds of insurance the insurer is authorized to transact in Puerto Rico. If the Commissioner finds otherwise, he shall deny the authority within a reasonable period following completion by the insurer of the application therefor.
History —Ins. Code § 3.180.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/319/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 319 - Expirations, renewals, amendments to authorization certificates
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 319 - Expirations, renewals, amendments to authorization certificates
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(1) All authorization certificates issued to an insurer shall continue to be in effect until its expiration, but subject to the payment to the Commissioner of the corresponding annual fee set forth in § 701 of this title before midnight on the date of expiration.
(2) The Commissioner may amend a certificate of authority at any time to conform it to changes in the insurer’s charter or insuring power.
History —Ins. Code § 3.190; June 29, 1996, No. 62, § 6; Mar. 27, 2003, No. 96, § 1, retroactive to Jan. 1, 2003.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/320/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 320 - Refusal to renew, revoke or suspend authorization—Obligatory grounds
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 320 - Refusal to renew, revoke or suspend authorization—Obligatory grounds
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The Commissioner shall refuse to renew the authorization of an insurer to transact insurance, or may revoke or suspend said authorization when said insurer, in addition to other reasons prescribed in this Code:
(1) Is a foreign insurer and no longer qualifies or meets the requirements for the authority; or, is a domestic insurer and fails to make good a deficiency of assets as required by the Commissioner.
(2) Has knowingly exceeded its charter powers or its certificate of authority.
(3)
(a) Does not meet the requirements established in § 304-1 of this title.
(b) Said insurer has a relationship with a financial institution other than those defined in § 304-1(4) of this title, and said financial institution does not comply with the provisions of § 304-1(b)(2) of this title.
(c) Has a direct or indirect relationship with a depository institution or a financial holding company, pursuant to § 304-1(6) of this title and Article 9.070(3) of this Code, and said institution or company fails to comply with the applicable provisions and requirements of the Gramm-Leach-Bliley Act to maintain said relationship, in accordance with the final decision made by the federal regulatory agency with jurisdiction over said matter.
History —Ins. Code § 3.200; June 5, 1973, No. 98, p. 419, § 10; July 23, 1974, No. 151, Part 1, p. 695, § 4; Mar. 28, 1995, No. 28, § 4; Sept. 6, 2000, No. 382, § 3.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/321/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 321 - Refusal to renew, revocation or suspension of authority—Discretionary grounds
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 321 - Refusal to renew, revocation or suspension of authority—Discretionary grounds
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The Commissioner may after a hearing refuse, suspend, or revoke an insurer’s authority to transact insurance, in addition to other grounds therefor in this title, if the insurer:
(1) Fails to comply with or violates any provision of this title, other than those as to which refusal, suspension, or revocation is mandatory for noncompliance or violation.
(2) Fails to comply with lawful rules and regulations under this title, or with any proper order of the Commissioner within the time properly allowed in such order.
(3) Is found by the Commissioner upon examination, or other evidence, to be in unsound condition or in such condition as to render its further proceedings hazardous to the public or to its policyholders.
(4) Usually compels claimants under its policies either to accept less than the amount due them or to bring suit against it to secure full payment thereof.
(5) Is under the same general management or interlocking directorate or ownership as another insurer which transacts direct insurance in Puerto Rico without having a certificate of authority therefor, except as permitted under §§ 1001–1020 of this title (surplus lines).
(6) Refuses to be examined, or if its directors, officers, employees or representatives refuse to submit to examination or give testimony concerning its affairs or to produce its accounts, records, and files for examination by the Commissioner when required, or refuse to perform any legal obligation relative to the examination.
(7) Fails to pay or satisfy any final judgment rendered against it in Puerto Rico upon any policy, bond, contract, or undertaking issued or guaranteed by it, within sixty days after the judgment became final or within sixty days after time for taking an appeal has expired, or within sixty days after dismissal of an appeal before final determination, whichever date is the later.
(8) If a stock insurer and the majority of the stocks in circulation of said insurer are owned or controlled directly or indirectly by one single individual; or if a stock insurer where one single individual has faculty to dispose freely of the assets of said insurer.
(9) With a view to preventing the existence of relations leading or tending to lead to an unreasonable restriction or to a monopoly of the insurance business, the Commissioner may determine after an investigation that there exists a relationship of control directly or indirectly similar to that described in Article 9.080(3) between the insurer and any of the institutions described in § 320(3) of this title.
History —Ins. Code § 3.210; June 19, 1969, No. 48, p. 88, § 2; July 23, 1974, No. 151, Part 1, p. 695, § 5.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/321a/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 321a - Additional penalty for violations
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 321a - Additional penalty for violations
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In addition to, or in lieu of refusal, revocation or suspension of the authorization of an insurer to make insurance, any insurer violating the provision of this title may be punished by an administrative fine which shall not exceed five thousand dollars ($5,000) for each offense; Provided, That the total amount of fines for the different violations does not exceed fifty thousand dollars ($50,000).
History —Ins. Code, added as § 3.211 on May 24, 1974, No. 46, Part 1, p. 200, § 9.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/322/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 322 - Notice of revocation or suspension; effect on agents’ licenses
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 322 - Notice of revocation or suspension; effect on agents’ licenses
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(1) Upon determining to revoke or suspend an insurer’s certificate of authority, the Commissioner shall give notice thereof to the insurer not less than ten days in advance of the effective date of revocation or suspension.
(2) Within such ten-day period the Commissioner shall likewise revoke or suspend as of the same effective date the licenses of all general agents and agents licensed to represent the insurer in Puerto Rico, and give notice thereof to such general agents and agents.
(3) After the effective date of revocation of an insurer’s certificate of authority the Commissioner shall publish in a newspaper of general circulation throughout Puerto Rico, once a week for four consecutive weeks, notice of such revocation in Spanish and English. The cost of such publication shall be borne by the insurer.
History —Ins. Code § 3.220.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/323/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 323 - Duration of suspension or revocation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 323 - Duration of suspension or revocation
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(1) Unless the Commissioner specifies the duration of the revocation in his order of revocation, the insurer may be granted another certificate of authority at any time upon application and qualification therefor as provided in this chapter.
(2) A certificate of authority may be suspended for not over twelve months, as specified in the order of suspension. Upon expiration of the suspension period, the insurer’s certificate of authority and the licenses of its general agents and agents which were suspended concurrently, shall be eligible for reinstatement or renewal.
History —Ins. Code § 3.230.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/324/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 324 - Ownership of certificate; surrender to Commissioner
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 324 - Ownership of certificate; surrender to Commissioner
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Ownership of all certificates of authority is vested in the Commissioner. Upon suspension or revocation of an insurer’s certificate of authority the insurer shall surrender the certificate to the Commissioner, who shall retain the certificate during the period of revocation or suspension.
History —Ins. Code § 3.240.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/325/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 325 - Insurer’s name
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 325 - Insurer’s name
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(1) Every insurer shall conduct its business in its own proper or corporate name, except as provided in subsection (2) hereof or in § 1122(1) of this title (underwriter’s department).
(2) No insurer shall be authorized to transact insurance in Puerto Rico which has or uses a name so similar to that of any insurer already so authorized as to cause uncertainty or confusion, except that in case of conflict of names between two insurers the Commissioner may permit or require one of the insurers to use in Puerto Rico such supplementation of its name as may reasonably be necessary to avoid such conflict.
(3) No insurer shall be authorized to transact insurance in Puerto Rico which has or uses a name which tends to deceive or mislead as to the type of organization of the insurer.
History —Ins. Code § 3.250.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/326/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 326 - Disqualified supervisors of Puerto Rico business
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 326 - Disqualified supervisors of Puerto Rico business
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(1) The Puerto Rico business of any authorized insurer shall not be under the direct or indirect supervision or control, from Puerto Rico or elsewhere, of any individual deemed by the Commissioner to be unreliable, untrustworthy, or incompetent by reason of:
(a) Acts of such individual resulting previously in suspension, revocation, or refusal as to such individual, or an insurer with which such individual was associated, of any insurance license or certificate of authority.
(b) Unlawful, unfair, or sharp practices on the part of such individual in insurance or other transactions.
(2) Upon believing that this section is being violated, the Commissioner shall give both the insurer and the individual notice thereof, naming the individual concerned and stating the general grounds for such belief. The insurer and the individual involved shall be entitled to a hearing upon the matter if the hearing is requested within thirty days after the issuance of the Commissioner’s notice. Upon expiration of such thirty-day period, if hearing is not requested, or upon completion of the hearing, if the Commissioner finds that such violation exists, the Commissioner may issue to the insurer his order requiring the insurer to cease in and desist of such violation within a reasonable time as specified therein. Failure of the insurer to comply with such order constitutes grounds for suspension or revocation of its certificate of authority.
History —Ins. Code § 3.260.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/327/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 327 - Suits against insurers, service of process on Commissioner
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 327 - Suits against insurers, service of process on Commissioner
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(1) Each authorized foreign insurer and each domestic reciprocal and Lloyd’s insurer shall appoint the Commissioner as its attorney-in-fact to receive service of legal process against it in Puerto Rico. The appointment shall be irrevocable, shall bind any successor in interest or successor to the assets or liabilities of the insurer, and shall remain in effect as long as there is in force in Puerto Rico any contract made by the insurer, or obligation arising therefrom.
(2) Service of such process upon such an insurer may be made either upon the agent of the insurer designated for the purpose pursuant to § 317(1)(i) of this title (if a foreign insurer), upon the insurer’s attorney-in-fact (if a domestic reciprocal or domestic Lloyd’s plan insurer), or upon the Commissioner. As to such insurers, service of process shall be had only as provided in this subsection.
As to insurers formerly authorized to transact insurance in Puerto Rico, such service of process may be made upon the Commissioner.
Process served as provided in this subsection shall be deemed effective service thereof upon the insurer.
History —Ins. Code § 3.270.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/328/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 328 - How service made; duties of Commissioner
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 328 - How service made; duties of Commissioner
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(1) Manifold copies of legal process against an insurer for whom the Commissioner is attorney-in-fact shall be served upon him. At time of service the plaintiff shall pay to the Commissioner three dollars ($3), taxable as costs in the action.
(2) Within two business days after such service, the Commissioner shall inform the insurer thereof by registered letter, with return receipt requested, addressed to its principal office having supervision of its transactions in Puerto Rico, or to its home office, or to its attorney-in-fact if a domestic reciprocal or Lloyd’s insurer, enclosing with the letter a copy of the process so served.
(3) The Commissioner shall keep a record showing in alphabetical order the names of the plaintiffs and defendants, nature of the action, date and hour of service on the Commissioner, and the action taken by the Commissioner as to each service of process.
(4) No further proceedings shall be had against the insurer, and the insurer shall not be required to appear, answer, or plead until expiration of forty-five days after date of such service upon the Commissioner.
History —Ins. Code § 3.280.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/329/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 329 - Business must be transacted through resident agents or broker producers; countersignature
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 329 - Business must be transacted through resident agents or broker producers; countersignature
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(1) No insurer may effectuate any direct insurance upon or relative to any person, property or other material object of insurance that resides, is located in or is to be carried out in Puerto Rico, nor any insurance related thereto, except through an authorized representative of said insurer residing in Puerto Rico.
If the insured is represented by a producer residing in Puerto Rico, said insurance shall be executed through the manager, general agent or authorized representative of the insurer residing in Puerto Rico.
(2) Such policies or contracts shall be countersigned by the manager, general agent or authorized representative of the insurer residing in Puerto Rico.
If an insurance policy transacted or issued outside of Puerto Rico also covers any person, property or other material object of insurance that resides, is located in or is to be carried out in Puerto Rico, the same must be countersigned by a manager, general agent or authorized representative of the insurer residing in Puerto Rico, and in addition it shall indicate the proportional part of the premium corresponding to the person, property or object of insurance that resides, is located in or is to be carried out in Puerto Rico.
(3) No countersignature shall be made in blank.
(4) This section shall not apply:
(a) To surplus lines coverages written in accordance with §§ 1001–1020 of this title.
(b) With respect to countersignature, to group life insurance or group disability insurance, or to policies sold through vending machines licensed by the Commissioner.
(c) To ocean marine insurance coverages, and coverages upon, and/or any liability or risk with respect to, property in course of transportation in trade by sea or air.
(d) To reinsurances.
History —Ins. Code § 3.290; May 31, 1973, No. 73, p. 328, § 6; July 23, 1974, No. 133, Part 1, p. 598, § 2; Sept. 25, 1983, No. 28, p. 429, § 1; Jan. 19, 2006, No. 10, § 6, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/330/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 330 - Records of insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 330 - Records of insurers
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Every insurer shall keep full and accurate accounts and records of its assets, obligations, transactions, and affairs, with proper separation as to the different kinds of insurance transacted by it, in accordance with accounting methods and practices generally recognized in such business or approved by the Commissioner. All such records and accounts shall be kept in such manner as to facilitate preparation of the required reports of the insurer, and of examination of the insurer’s affairs by the Commissioner.
History —Ins. Code § 3.300.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/331/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 331 - Annual statement required
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 331 - Annual statement required
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(1) Each authorized insurer shall annually, before the thirty-first day of March, file with the Commissioner a true statement of its financial condition, transactions, and affairs as of the December 31st preceding. The statement shall be on forms as prescribed by the Commissioner, shall contain information as required by this title and by the Commissioner, and shall be verified by the oath of at least two of the insurer’s principal officers. The annual statement of a reciprocal or Lloyd’s insurer shall be verified by his attorney-in-fact.
(2) The annual statement of a foreign insurer not formed in the United States but authorized to transact insurance in a state of the United States, may relate only to its assets, transactions, and affairs in the United States and Puerto Rico (and including, at the insurer’s option, the Virgin Islands and the Canal Zone) unless the Commissioner requires otherwise. The statement may be verified by the insurer’s United States manager or by its officers duly authorized.
(3) The Commissioner may suspend or revoke the authority of any insurer failing to file its annual statement when due, or failing to file it during any extension of time therefor which the Commissioner may, for good cause, grant.
History —Ins. Code § 3.310.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/332/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 332 - Report for statistical purposes
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 332 - Report for statistical purposes
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Each authorized insurer shall, at the request of the Commissioner, furnish or cause to be furnished to the Commissioner data for compilation and study of statistics relative to insurance of such insurer effected or in force in Puerto Rico. Such data may include information as to losses suffered on account of any risk or risks, cause of such losses, and other information deemed necessary by the Commissioner.
History —Ins. Code § 3.320.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/333/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 333 - Special reports
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 333 - Special reports
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The Commissioner, by rule or regulations, may require an insurer to make such special reports with respect to particular losses or claims or particular classes of losses or claims in Puerto Rico as he deems advisable, and on any matter when he deems it necessary or convenient and they are pertinent and related to the Commissioner’s investigative powers for the best performance of the functions and duties imposed on him by this title.
History —Ins. Code § 3.330; June 27, 1987, No. 62, p. 206.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/334/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 334 - General agents and managers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 334 - General agents and managers
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(1) In order to comply with the provisions of § 317 of this title, an insurer shall appoint and contract a manager or general agent to represent the insurer in Puerto Rico to carry out those functions consistent with this Code that may be conferred upon said manager or general agent by the insurer.
(2) The insurer that appoints and contracts a person as general agent or manager to represent the former as such in Puerto Rico must comply with the provisions of § 951c of this title.
(3) Said general agent or manager must meet all requirements established in § 951b of this title in respect to a license.
History —Ins. Code § 3.340; July 23, 1974, No. 151, Part 1, p. 695, § 6; May 6, 1983, No. 36, p. 59, § 1; Mar. 27, 2003, No. 96, § 2; Jan. 19, 2006, No. 10, § 7, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-3/335/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335)›§ 335 - Reciprocal provisions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 335 - Reciprocal provisions
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(1) If by or pursuant to laws of any state or country any premium tax or income tax or other taxes, or any fees, fines, penalties, licenses, deposit requirements or other obligations, prohibitions, or restrictions are imposed upon Puerto Rico domiciled insurers doing business in such state or country, or upon its agents therein, which are in excess of such taxes, fees, fines, penalties, licenses, deposit requirements, or other obligations, prohibitions, or restrictions directly imposed upon insurers of such other state or country doing business in Puerto Rico, so long as such laws continue in force or are so applied, the same obligations, prohibitions, and restrictions of whatever kind may be imposed, at the Commissioner’s discretion, upon insurers of any such state or country doing business in Puerto Rico.
Any tax or obligation imposed by any city, county, or other political subdivision of a state or country on Puerto Rico domiciled insurers shall be deemed to be imposed by such state or country, and the Commissioner may, for the purpose of this section, compute the burden of any such tax or obligation on an aggregate statewide or countrywide basis as an addition to the rate of tax payable by similar Puerto Rico domiciled insurers in such state or country.
This subsection shall not apply to ad valorem taxes on real or personal property or to personal income taxes.
(2) If a state or country refuses to recognize deposits maintained in Puerto Rico pursuant to §§ 313 and 314 of this title by an insurer authorized to transact insurance in Puerto Rico, and to allow credit for such deposit as, or upon, any similar deposit requirement under the laws of such state or country, the Commissioner may refuse or revoke the certificate of authority to transact insurance in Puerto Rico of any insurer domiciled in such state or country.
History —Ins. Code § 3.350.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/401/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 401 - Definitions not mutually exclusive
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 401 - Definitions not mutually exclusive
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It is intended that certain coverages may come within the definitions of two or more kinds of insurance as set forth in this chapter, and the fact that such a coverage is included within one definition shall not exclude such coverage as to any other kind of insurance within the definition of which such coverage may likewise be reasonably includable.
History —Ins. Code § 4.010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/402/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 402 - Life insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 402 - Life insurance, defined
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Life insurance.— Is insurance of human lives and insurance appertaining thereto or connected therewith. For the purposes of this title, the transacting of life insurance includes the granting of annuities and endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the total and permanent disability of the insured, and optional modes of settlement of proceeds.
History —Ins. Code § 4.020.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/403/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 403 - Disability insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 403 - Disability insurance, defined
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“Disability insurance” is insurance against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, against disablement or expense resulting from sickness, and every insurance appertaining thereto.
History —Ins. Code § 4.030.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/404/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 404 - Property insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 404 - Property insurance, defined
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Property insurance.— Is insurance on real or personal property of every kind and interest therein, against loss or damage from any or all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for any such loss or damage. Property insurance shall also include miscellaneous insurance as defined in § 408(12) of this title except as to any liability coverage therein includable.
History —Ins. Code § 4.040.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/405/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 405 - Marine and transportation insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 405 - Marine and transportation insurance, defined
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Marine and transportation insurance.— Is:
(1) Insurance against loss of or damage to:
(a) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidence of debt, valuable papers, bottomry and respondentia interests, and all other kinds of property and interests therein, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment, or while awaiting the same, or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder’s risks and all personal property floater risks.
(b) Person or property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or surety bonds, nor insurance against loss by reason of bodily injury to person, arising out of the ownership, maintenance, or use of automobiles).
(c) Precious stones, jewels, jewelry, precious metals, whether in course of transportation or otherwise.
(d) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage); piers, wharves, docks and slips, and other aids to navigation and transportation, including dry docks and marine railways, dams and appurtenant facilities for the control of waterways.
(2) Marine protection and indemnity insurance.— Means insurance against, or against legal liability of the insured for, loss, damage, or expense incident to ownership, operation, chartering, maintenance, use, repair or construction of any vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to property of another person.
History —Ins. Code § 4.050.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/406/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 406 - Agricultural insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 406 - Agricultural insurance, defined
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Agricultural insurance.— Includes insurance on farm buildings, machinery, equipment, animals, fowl, plantings, and crops, appurtenant to farms, against loss or damage from any and all hazards and causes, including losses occurring during transportation and delivery of crops to shipping points, but not including risks of marine transportation or navigation or commercial storage.
History —Ins. Code § 4.060.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/407/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 407 - Vehicle insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 407 - Vehicle insurance, defined
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(1) Vehicle insurance.— Is insurance against loss of or damage to any land vehicle or aircraft, or any draft or riding animal, or to property while contained therein or thereon or while being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, expense, or liability for loss of or damage to persons or property, resulting from or incident to ownership, maintenance, or use of any such vehicle or aircraft or animal.
(2) Insurance against accidental death or accidental injury to individuals, including the name insured, while in, entering, alighting from, adjusting, repairing, cranking, or caused by being struck by a vehicle, aircraft, or draft or riding animal, if such insurance is issued as a part of insurance on the vehicle, aircraft, or draft animal, shall be deemed to be vehicle insurance.
History —Ins. Code § 4.070.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/408/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 408 - Casualty insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 408 - Casualty insurance, defined
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Casualty insurance.— Includes vehicle insurance as defined in § 407 of this title, and in addition is:
(1) Liability insurance.— Insurance against legal liability for the death, injury, or disability of any human being, or for damage to property; and provision of medical, hospital, surgical and funeral benefits to individuals insured, irrespective of legal liability of the insured, when issued as an incidental coverage with, or supplemental to, liability insurance.
(2) Workmen’s compensation and employer’s liability.— Insurance of the obligations accepted by, or assumed by employers under law for death, disablement, or injury of employees.
(3) Burglary and theft.— Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, counterfeiting, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt of any of the foregoing, also insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances, or any other valuable papers and documents, resulting from any cause, except while in the custody or possession of and being transported by any carrier for hire or in the mail.
(4) Personal property floater.— Insurance of individuals, by an all-risk type of policy commonly known as the “personal property floater”, against any and all kinds of loss of or damage to, or loss of use of, any personal property other than merchandise.
(5) Glass insurance.— Insurance against loss or damage to glass and its appurtenances resulting from breakage.
(6) Boiler and machinery.— Insurance against any liability and loss of or damage to property or interest therein, resulting from accidents to or explosion of boilers, pipes, pressure containers, machinery, or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery, and apparatus of any kind, whether or not insured.
(7) Elevator insurance.— Insurance against loss of or damage to any property of the insured resulting from the ownership, maintenance or use of elevators, except loss or damage by fire, and to make inspection of and issue certificates of inspection upon elevators.
(8) Leakage and fire extinguishing equipment.— Insurance against loss of or damage to any property or interest therein, caused by the breakge or leakage of sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus, water pipes and containers, or by water entering through leaks or opening in buildings, and insurance against loss of or damage to such sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus.
(9) Credit insurance.— Insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured.
(10) Malpractice.— Insurance against legal liability of the insured, and against loss, damage or expenses incident to a claim of such liability, and including medical, hospital, surgical and funeral benefits to injured persons, irrespective of legal liability of the insured, arising out of the death, injury, or disablement of any person, or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary, or professional service.
(11) Entertainments.— Insurance indemnifying the producer or promoter of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.
(12) Miscellaneous.— Insurance against any other kind of loss, damage, or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the Commissioner as being contrary to law or public policy.
History —Ins. Code § 4.080.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/409/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 409 - Surety insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 409 - Surety insurance, defined
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Surety insurance.— Includes:
(1) Credit insurance as defined in § 408(9) of this title.
(2) Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.
(3) Guaranteeing the performance of contracts, and guaranteeing and executing bonds, undertakings, and contracts of suretyship.
(4) Indemnifying banks, bankers, brokers, financial or moneyed corporations or associations or other persons against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts, or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also against loss or damage to such an insured’s premises, or to his furnishings, fixtures, equipment, safes and vaults therein, caused by burglary, robbery, theft, vandalism or malicios mischief, or any attempt thereat.
History —Ins. Code § 4.090.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/410/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 410 - Title insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 410 - Title insurance, defined
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Title insurance.— Is the insurance of owners of real or personal property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance or defective titles or invalidity or claims adverse to title and services connected therewith.
History —Ins. Code § 4.100; Aug. 26, 2005, No. 82, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/411/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 411 - Power to accept reinsurance
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 411 - Power to accept reinsurance
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(1) An authorized insurer shall accept reinsurance only of those kinds of insurance which it is authorized to transact direct in Puerto Rico or elsewhere.
(2) No authorized insurer shall accept reinsurance in whole or in part of any risk resident, located, or to be performed in Puerto Rico which was insured as direct insurance by an insurer not then authorized to transact such insurance in Puerto Rico. This provision shall not apply with respect to life insurance or disability insurance or to surplus line insurance written pursuant to §§ 1001–1020 of this title.
History —Ins. Code § 4.110.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/412/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 412 - Power to cede reinsurance
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 412 - Power to cede reinsurance
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(1) An insurer may reinsure the total or part of the risks in Puerto Rico with other insurers only as follows:
(a) In any insurer authorized to transact the same kind of insurance in Puerto Rico, or
(b) with the prior written approval of the Commissioner, when with any foreign insurer not authorized to transact insurance in Puerto Rico. This provision prohibits an insurer from unauthorized insurers in the following cases:
(i) The laws of the foreign insurer’s state of domicile would not permit the reinsuring of the risks of said state in such unauthorized insurer.
(ii) When directly or indirectly reinsuring its risks in Puerto Rico with an unauthorized insurer in which a substantial part of said unauthorized insurer’s outstanding shares are directly or indirectly owned or controlled by an institution engaged in the money-lending business in Puerto Rico, or when said unauthorized insurer has, directly or indirectly, a substantial financial interest in, or a relationship as owner, subsidiary or affiliate of, or when directly or indirectly owned or controlled by any entity to which an institution engaged in the money-lending business in Puerto Rico, directly or indirectly, has a substantial financial interest or relationship as owner, subsidiary or affiliate.
None of the provisions of this subparagraph shall prevent reinsurance with said unauthorized insurer because the latter has a direct or indirect relationship as owner, subsidiary or affiliate with a depository institution doing business in Puerto Rico or with a financial holding company doing business directly or indirectly in Puerto Rico through one of its subsidiaries or affiliates, provided the relationship described above complies with the applicable provisions of the Gramm-Leach-Bliley Act.
(iii) Directly or indirectly reinsures its risks in Puerto Rico in an unauthorized insurer in which a substantial part of the unauthorized insurer’s outstanding shares are directly or indirectly owned or controlled by a domestic insurer, or said unauthorized insurer has a relationship as an owner, subsidiary or affiliate of a domestic insurer.
(c) In addition to what is provided in paragraph (b), above, reinsurance in foreign unauthorized insurers may only be contracted when the following conditions are met:
(i) The Commissioner has received satisfactory evidence that the unauthorized insurer’s present financial standing and its claims-handling practices for the past five (5) years are sufficient to ensure that the public interest will be adequately protected.
(ii) The Commissioner has been shown that the unauthorized insurer is an authorized insurer in the state or country of his domicile for the class of reinsurance it thus proposes to accept, and it has been for a term of not less than five (5) years immediately prior to the date the contracting is proposed.
(iii) The Commissioner has been shown that the unauthorized insurer has a good reputation in the performance of his activities as such and that his business has been managed competently and capably.
(iv) The Commissioner has been shown that the unauthorized insurer meets such other conditions that the Commissioner has established by regulations.
The Commissioner shall publish and keep updated and available to the public a list of all the insurers who are eligible to accept reinsurance, and shall send a copy of said list to the Secretary of the Treasury, to all the heads of the public authorities who have the authority to contract for their insurance directly and to the insurers and brokers who transact and contract for insurance for such government entities. Said list shall be revised by the Commissioner at least once a year.
(2) Reinsurance in a foreign insurer not authorized to transact insurance in Puerto Rico shall also be subject to § 5.110 as to credit upon reserves.
(3) No domestic insurer shall reinsure seventy-five percent (75%) or more of all its direct risks in any kind of insurance without first securing the Commissioner’s written authorization.
(4) This section shall not apply to insurance of ocean marine risks or marine protection and indemnity risks.
History —Ins. Code § 4.120; May 31, 1973, No. 73, p. 328, § 7; May 6, 1983, No. 34, p. 57, § 1; July 12, 1986, No. 119, p. 385; Sept. 6, 2000, No. 382, § 4.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/413/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 413 - Third party’s rights against reinsurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 413 - Third party’s rights against reinsurer
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The original insured or policyholder or any person other than the ceding insurer, who enters a claim by virtue of any insured or policyholder’s insurance, shall not have any direct right of action against the reinsurer which is not specifically set forth in the reinsurance contract, or in a specific agreement between the reinsurer and such original insured or policyholder.
Upon the request of the insured, any insurer who cedes for reinsurance all, or any part of a risk, shall be obliged to furnish him with the following information:
(1) The reinsurer’s name and address.
(2) The total amount of the reinsured portion.
(3) The risks covered by the reinsurance agreement or contract.
The Secretary of the Treasury and the heads of those public authorities and corporations who have obtained the authorization to procure and contract their insurance directly, pursuant to subsection (3) of § 1202 of this title, shall have the obligation of procuring and obtaining the information described above from their insurers. In cases of reinsurance, the Secretary, or the head of those public authorities or corporations duly authorized pursuant to the above, shall be obliged to comply with the provisions of Article 4.130 of this Code [this section].
History —Ins. Code § 4.130; Feb. 16, 1979, No. 15, p. 28, § 4; May 23, 1984, No. 19, p. 41.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/414/
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 414 - Limit of risk
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 414 - Limit of risk
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(1) No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in Puerto Rico or elsewhere, in an amount exceeding ten percent (10%) of its surplus to policy holders, except that:
(a) A domestic mutual may insure up to such ten percent (10%) or up to the maximum applicable as set forth in § 28.160, paragraph (1), whichever is the larger.
(b) A cooperative may insure up to such ten percent (10%) or up to the maximum applicable as set forth in § 34.190, paragraph (1), whichever is greater.
(2) For the purposes of this section, a subject of insurance as to insurance against fire or other hazard insured against other than windstorm or earthquake, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or other such hazard insured against.
(3) Reinsurance authorized by § 412 of this title shall be deducted in determining risk retained. As to surety risks, deduction shall also be made of the amount assumed by any established incorporated co-surety and the value of any security deposited, pledged, or held subject to the surety’s consent and for the surety’s protection.
(4) For the purposes of this section, “surplus to policyholders” shall:
(a) Be deemed to include any voluntary reserves, or any part thereof, which are not required by or pursuant to law, and
(b) be determined from the last sworn statement of the insurer on file with the Commissioner pursuant to law, or by the last report of examination by the Commissioner, whichever is more recent at the time of assumption of such risk.
(5) In applying this section to foreign insurers not formed in a state of the United States but authorized to transact insurance in one or more of such states, the provisions shall relate only with respect to risks and surplus to policyholders of the United States branch of such insurer.
(6) This section shall not apply to life, disability, or title insurance, or to insurance of ocean marine risks, or marine protection and indemnity risks, nor to workmen’s compensation.
History —Ins. Code § 4.140; June 26, 1959, No. 84, p. 220, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-4/415/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415)›§ 415 - Limit of underwriting
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 415 - Limit of underwriting
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(1) Any authorized insurer, except the life insurance insurer, and as provided in the following subsection (2), shall keep, at all times, a ratio or rate between the net premiums underwritten, to their surplus, for policyholders, as defined in § 414(4) of this title, which shall not be greater than the rate established by the Commissioner through regulations.
(2) Nevertheless, the rate to be established by the Commissioner shall not be less than three dollars ($3) of underwritten premium for each dollar of surplus for the policyholders, except when due to prevailing circumstances in the insurance business of the country, the need to establish a smaller ratio between the premiums underwritten and the surplus arises, in which case the Commissioner shall hold a hearing, after a ten (10) day advance notice thereof, shall hear the interested parties, shall identify and evaluate the factors which affect the adequate direction of the index, and within thirty (30) days after the conclusion of the hearing, shall dictate the regulations which are in order, which shall be effective, pursuant to the provisions of § 204 of this title.
(3) The insurer who finds that he will exceed the limits established in subsection (2) of this section shall file a written petition before the Commissioner stating his arguments, and including the statistical evidence needed for the Commissioner to make an adequate determination as to whether he allows a larger rate or not.
History —Ins. Code, added as § 4.150 on May 6, 1983, No. 34, p. 57, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/516/
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 516 - Assets, definition
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 516 - Assets, definition
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For purposes of §§ 516–524 of this title, assets shall be defined as probable future economic benefits obtained or derived by an insurer as a result of past transactions or events.
History —Ins. Code, added as § 5.010 on Mar. 22, 2003, No. 90, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/517/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 517 - Liabilities, definition
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 517 - Liabilities, definition
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For purposes of §§ 516–524 of this title, liabilities shall be defined as probable future economic sacrifices that arise from the present obligations of an insurer, which consist of the transfer of assets, or the rendering of services to other entities in the future as a result of past transactions or events.
History —Ins. Code, added as § 5.020 on Mar. 22, 2003, No. 90, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/518/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 518 - Assets not allowed, definition
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 518 - Assets not allowed, definition
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It shall be considered that an asset is not allowed if it is specifically identified as such by the accounting practices and procedures adopted by the National Association of Insurance Commissioners or if it is not specifically identified as an allowed asset by the accounting practices and procedures adopted by the National Association of Insurance Commissioners.
History —Ins. Code, added as § 5.030 on Mar. 22, 2003, No. 90, § 1; Apr. 2, 2008, No. 34, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/519/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 519 - Reduced unearned premiums reserve, new local insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 519 - Reduced unearned premiums reserve, new local insurers
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(1) A local insurer of property, accidents, or guarantee insurance may, during the first five (5) natural years of its operations, subject to the dispositions set forth in subsections (2) and (3) of this section, maintain unearned premiums reserves in the following proportion of otherwise required reserves:
First complete natural year 50% Second complete natural year 60% Third complete natural year 70% Fourth complete natural year 80% Fifth complete natural year 90%
(2) From the third year onwards, none of the aforementioned reductions in the reserve shall be available for any natural year in which the expenses and disbursements of the insurer in the issuing and administration of insurance (which were not for boilers and machinery of elevators) performed by same, excluding paid losses, loss expense adjustments, investment expenses, dividends of policyholders, and contributions, exceeding the amount of:
(a) Forty percent (40%) of the net income of premiums during that year, after the deduction from same of the net reinsurance premiums earned in said year, plus
(b) all commissions for reinsurance received for reinsurance ceded by same.
(3) This section shall not apply to risks assumed by the insurer by means of reinsurance, whether by mass reinsurance or otherwise.
History —Ins. Code, added as § 5.040 on Mar. 22, 2003, No. 90, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/520/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 520 - Increase in reserves
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 520 - Increase in reserves
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(1) If the Commissioner determines that the non-earned premiums reserves of an insurer are inadequate, regardless of the manner in which same are calculated, he shall demand that the insurer maintains the reserves in an increased amount that turns out to be in agreement with any other generally acknowledged method.
(2) If the experience in losses of any insurer demonstrates that his loss reserves, regardless of the manner in which same are calculated, are inadequate, the Commissioner shall demand from the insurer to maintain loss reserves in the increased amount necessary to render them adequate.
History —Ins. Code, added as § 5.050 on Mar. 22, 2003, No. 90, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/521/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 521 - Credit in reserves for reinsurance
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 521 - Credit in reserves for reinsurance
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An insurer may obtain credit for reserves upon risks ceded to a reinsurer up to the amount reinsured, except:
(1) No credit shall be granted for reinsurance not authorized by § 412 of this title.
(2) No credit shall be granted as an asset nor as a deduction from the liabilities to any cedent insurer, unless the reinsurance is payable by the reinsurer based upon the liability of the cedent insurer, pursuant to the reinsured contracts, without decrease by reason of insolvency of the cedent insurer.
History —Ins. Code, added as § 5.060 on Mar. 22, 2003, No. 90, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/522/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 522 - Registry of liabilities
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 522 - Registry of liabilities
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An insurer must keep a complete detailed registry showing all losses and claims of which same has been notified, in regard to property, accident and guarantees insurance, including all notifications received due to the occurrence of any event that may result in losses.
History —Ins. Code, added as § 5.070 on Mar. 22, 2003, No. 90, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/523/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 523 - Valuation of life policies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 523 - Valuation of life policies
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(1) Minimum valuation standard for old policies.— The minimum standards for the valuation of all policies and contracts, except group annuity contracts, issued prior to January 1 of the year this Code becomes operative, shall be that pursuant to the laws in effect immediately prior to the effective date of this Code. Reserves for all such policies and contracts may be calculated, at the option of the insurer, pursuant to any standards which produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by this section.
(2) The minimum valuation standard for policies issued on or after January first of the year in which this Code becomes operative, but before January 1st, 1978.— This subsection shall apply only to policies and contracts, with the exception of group annuity contracts issued on or after January 1 of the year this Code becomes operative, but prior to January 1, 1978.
The minimum standard for the valuation of all such policies and contracts shall be the one-year-full-preliminary-term method, or such other method as may be required by the Commissioner consistent with the basis required for determination of nonforfeiture values and benefits pursuant to § 1328 of this title, three and one-half percent (3 1 / 2 %) interest, and the following tables:
(a) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies, the Commissioners’ 1941 Standard Ordinary Mortality Table, or such other table as may be approved by the Commissioner.
(b) For all industrial life insurance policies, excluding any disability and accidental death benefits in such policies, the 1941 Substandard Industrial Mortality Table, or such other recognized mortality table as may be approved by the Commissioner.
(c) For annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies, the 1937 Standard Annuity Mortality Table.
(d) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, Class Three Disability Table (1926) which, for active lives, shall be combined with a mortality table permitted for calculating the reserves for life insurance policies.
(e) For accidental death benefits in or supplementary to policies, the Inter-Company Double Indemnity Mortality Table, combined with a mortality table permitted for calculating the reserves for life insurance policies.
(f) For group life insurance, life insurance issued on the substandard basis and other special benefits, such tables as may be approved by the Commissioner.
(3) Minimum valuation standard for policies issued on or after January 1, 1978, and for all group annuity contracts.— This subsection shall apply only to policies and contracts issued on or after January 1, 1978, except that it shall also apply to all group annuity contracts issued prior to that date. The minimum valuation standard for said policies and contracts shall be that fixed by the Commissioner through regulations, but such standards shall not be inconsistent with the minimum valuation standards formulated or approved by the National Association of Insurance Commissioners.
History —Ins. Code, added as § 5.080 on Mar. 22, 2003, No. 90, § 1; Apr. 2, 2008, No. 34, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/523a/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 523a - Minimum reserves
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 523a - Minimum reserves
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(a) In no event shall an insurer’s aggregate reserves for said life insurance policies, excluding disability and accidental death benefits, be less than the aggregate reserves calculated pursuant to the method set forth in subsections (2) and (3) of § 523 of this title and in the regulations promulgated by the Commissioner, the mortality table or tables, and the rate or rates of interest used in calculating nonforfeiture benefits for such policies.
(b) In no event shall the aggregate reserves of all policies, contracts and benefits be less than the aggregate reserves determined by an actuary qualified to render actuarial opinion as required by § 523b of this title.
History —Ins. Code, added as § 5.090 on Apr. 2, 2008, No. 34, § 3.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/523b/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 523b - Actuarial opinion
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 523b - Actuarial opinion
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(a) Every insurer shall file annually, together with its annual report, the opinion of a qualified actuary stating whether the reserves of the policies and contracts specified by the Commissioner have been calculated properly, are based on assumptions that comply with the provisions of said contracts, are consistent with the sums previously reported, and comply with the laws of Puerto Rico. The Commissioner shall provide the contents and manner in which the actuarial opinion shall be issued.
(b) Every life insurer shall also file annually, together with the opinion required by subsection (a) of this section, an opinion of the same qualified actuary on whether the reserves of the policies and contracts specified by the Commissioner, in light of the assets of the insurer with respect to such reserves, adequately provide for the obligations that arise from such policies and contracts. The Commissioner may grant a transitional period for establishing any higher reserve deemed necessary by the qualified actuary to issue the opinion required by this section.
(c) The actuarial opinions required above shall be supported by a memorandum, which shall be provided as required by the Commissioner. If such memorandum is not provided or if it does not comply with the requirements of the Commissioner, the Commissioner may contract a qualified actuary, to be paid by the insurer, in order to review the opinion and the bases for the opinion and to prepare the required memorandum of support.
(d) The insurer shall file the actuarial opinions together with the annual reports, and the same shall show the value of the reserves for each year ending on December 31. Said opinions shall be based on the standards adopted from time to time by the Actuarial Standards Board and on those additional standards adopted by the Commissioner.
History —Ins. Code, added as § 5.100 on Apr. 2, 2008, No. 34, § 4.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-5/524/
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 5 - Assets and Liabilities (§§ 501-511 — 524)›§ 524 - Powers of the Commissioner
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 524 - Powers of the Commissioner
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The accounting practices and procedures adopted in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, as well as the amendments that from time to time shall be promulgated by said entity, are hereby adopted as the statutory accounting standards that govern local insurers.
The Commissioner, through regulations, may modify said standards regarding the determination of the assets and liabilities of a local insurer to the extent that the same are contrary to the public interest, unreasonably impact the financial situation of local insurers, or are in conflict with any of the provisions of this Code.
History —Ins. Code, added as § 5.080 [bis] on Mar. 22, 2003, No. 90, § 1; renumbered as § 5.110 and amended on Apr. 2, 2008, No. 34, § 5.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/648/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 648 - Definitions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 648 - Definitions
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(1) AFICA.— Is the Spanish acronym for the Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority created by Act No. 121 of June 27, 1977, as coded in Sections 12 L.P.R.A. §§ 1241 et seq.
(2) Preferred stock.— Means any preferred stock, preferent or secured of a corporation or other commercial entity authorized to issue such type of stock, with liquidation preference over common stock of the issuing commercial entity.
(3) Admitted assets.— Means the assets described in §§ 516–524 of this title, excluding the assets of separate accounts that are not subject to the provisions set forth in §§ 648–662 of this title.
(4) Affiliate.— Means, with respect to any person, another person who, directly or indirectly, through one (1) or more intermediaries, controls, is controlled by, or is under common control with the person.
(5) Qualified bank.— Means:
(a) A bank organized under the laws of Puerto Rico, or a national state bank or trust company adequately capitalized at all times pursuant to banking regulations of the United States or Puerto Rico, and which is subject to the regulations and/or banking laws of a State or Puerto Rico, or which is a member of the Federal Reserve system, or
(b) a bank or trust company, incorporated or organized under the laws of a foreign country and which is regulated by the laws of said country or by an agency of said government and which at all times is adequately capitalized as determined by the standards adopted by international banking authorities.
(6) Multilateral development bank.— Means an international development organization of which the United States is a member.
(7) Real estate.— Means:
(a)
(i) Real property;
(ii) interest in real property, such as surface rights, mineral, oil and gas, which have not been separated from the real property, and leasing rights on the same, and
(iii) capital improvements and fixed facilities located on or in the real property.
(8) Capital and surplus.— Means the sum of the capital and surplus of the insurer included in the last annual report submitted to the Commissioner pursuant to § 331 of this title.
(9) Letter of credit.— Means an irrevocable and unconditional letter of credit, issued by a financial institution listed under the financial institutions that comply with the norms to issue letters of credit pursuant to the Purposes and Procedures Handbook of the Securities Valuation Office (SVO), or any succeeding publication or other nationally recognized statistics rating agency. For purposes of § 658 of this title, a letter of credit shall have a maturity date subsequent to the term of the transaction to which it is subject.
(10) Registered exchange office.— Means:
(a) A securities exchange office registered as a national exchange office under the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78 et seq.), as amended, or as registered otherwise pursuant to said law whose price quotations shall be provided through an automated national quoting system approved by the National Association of Securities Dealers, Inc.
(b) A board of trade or stock exchange designated as a contracting market by the Commodity Futures Trading Commission, or its successor.
(11) Purchase warrant certificates.— Means an instrument that confers upon the holder the right to purchase underlying assets at fixed price and term or at a series of prices and terms indicated in the purchase agreement. Warrant certificates may be issued alone or in connection with the sale of other securities, as part of a merger or recapitalization plan or agreement, or to expedite the divestiture of securities of another corporation.
(12)
(a) Acceptable collateral.— For purposes of security loan transactions, it shall mean cash, cash equivalents, letters of credit, direct obligations of, or securities whose principal and interest are secured by the government of the United States or Puerto Rico, or by their respective agencies and instrumentalities, including the Federal Home Loan Mortgage Corporation; and with regard to the loaning of foreign securities, it shall mean every sovereign debt rated 1 by the Securities Valuation Office (SVO, Spanish acronym) or with an equivalent rating issued by a nationally renowned statistics rating agency, recognized by the Securities Valuation Office (SVO).
(b) For purposes of repurchasing transactions, it shall mean cash, cash equivalent, letters or credit, direct obligations of or securities the principal and interest of which are secured by the government of the United States or Puerto Rico, or by their respective agencies and instrumentalities, including the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
(c) For purposes of reverse repurchase agreements, it shall mean cash and cash equivalent.
(13) Registered investment company.— Means an investment company as defined in § 3(a) of the Investment Company Act of 1940, as amended, and any person described in § 3(c) of said act, or a registered investment company registered under the Investment Companies Act of Puerto Rico, §§ 661 et seq. of Title 10.
(14) Limited liability company.— Means any trade organization, excluding regular partnerships and corporations, organized or operated pursuant to the laws of the United States or any states thereof, or of Puerto Rico, which limits the personal liability of investors to their investment in equity in the trade entity.
(15) Control, controls or controlled.— Means the direct or indirect holding of power to direct or influence the direction of the administration and policies of a person, whether through the ownership of voting stock entitled to vote, through contract (other than a regular trade contract or a nonadministrative service contract), or otherwise, unless the power arises from the official or corporate position held by the person. It shall be presumed that there is control if any person, directly or indirectly, holds, controls, or has a voting power totaling five percent (5%) or more, or has empowerments totaling five percent (5%) or more of any other person’s voting stock. Said presumption may be defeated if it is proved that there is no such actual control. However, the Commissioner may conclude, after giving every person concerned due notice and opportunity to comment, based on the findings of fact grounding his conclusion, that there is indeed control, notwithstanding the absence of a presumption in that sense.
(16) Direct.— If used in connection with an obligation, means that the designated debtor is primarily responsible for the instrument that represents the obligation.
(17) Trade entity.— Includes a sole owner, a corporation, partnership, limited liability company, an association, limited liability partnership, a joint-stock company, a limited partnership, special partnership, joint venture, trust, joint partnership or other similar form of trade organization whether for profit or nonprofit.
(18) Registered trade entity.— Means a trade entity which:
(a) Has issued obligations or preferred stock that are classified 1 or 2 by SVO or is an issues of obligations, preferred stock or instruments derived thereof that have been classified the equivalent of 1 or 2 by the SVO or by a recognized statistics rating agency recognized nationally or by the SVO, or
(b) is a securities producer (primary dealer) of the United States Government, as recognized by the Federal Reserve Bank of New York.
(19) Government sponsored enterprise.— Means:
(a) A government agency, or
(b) a corporation, limited liability company, association, partnership, limited partnership, special partnership, limited liability partnership, joint stock company, joint venture, a trust or any entity or instrumentality organized by the United States, a state, a political subdivision of a state, Puerto Rico, a political subdivision of Puerto Rico, Canada, a province of Canada, or a political division of Canada in order to attain a public policy or other government purpose.
(20) State.— Means a state, territory or possession of the United States of America and the District of Columbia.
(21) Cash equivalents.— Means short term investments or stocks of high credit classification and great liquidity, easily convertible into known amounts of cash without incurring penalties and are so close to maturity that they represent a minimal risk of change in their value. Cash equivalents include money market mutual funds and funds of great liquidity, easily convertible into known amounts of cash without incurring penalties, which are so close to maturity that they represent a minimal risk of change in their value. Cash equivalents include Class One Money Market Mutual Funds. For purposes of this definition, “short term investments or stocks” shall mean investments or stock with a maturity term of ninety (90) days or less.
(22) Investment strategy.— Means the techniques and methods used by an insurer to accomplish their investment objectives such as the active management of an investment portfolio, the passive management of an investment portfolio, use of hedging transactions and other investment practices.
(23) Hedging transactions.— Means a derived transaction that has been executed and maintained to reduce:
(a) The risk of changes in the value, yield, price, cash flow or amount of assets or liabilities acquired or incurred, or about to be acquired or incurred, by the insurer, or
(b) the risk of changes in the money exchange rate or in the level of exposure regarding the assets or liabilities received or incurred, or about to be acquired or incurred by an insurer.
(24) Mutual fund.— Means an investment company registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 or any other entity subject to the provisions of the Investment Companies Act of Puerto Rico, §§ 661 et seq. of Title 10.
(25) Class One Bond Mutual Fund.— Means a mutual fund that qualifies at all times for investment using the reserve factor for class one bonds of the Purposes and Procedure Manual of the SVO or any other succeeding publication, or a mutual fund registered under the Investment Companies Act of Puerto Rico that has ninety percent (90%) or more of its assets in the credit instruments or preferential debts described in former § 639(1) of this title and in AFICA obligations, setting forth hereby that if investments in other stock or obligations by any of such funds exceeds ten percent (10%) of its assets, a percentage equivalent to the investment in stock or obligations of said fund shall be deemed as an investment in equity in interest investments as described in Article 9.090(1).
(26) Money market mutual fund.— Means a mutual fund that meets the conditions established in paragraphs 270.2a-7 of Title 17 of the Code of Federal Regulations, as amended.
(27) Class One Money Market Mutual Fund.— Means a mutual fund that qualifies at all times for investment using the reserve factor for Class One bonds of the Purposes and Procedure Manual of the SVO, NAIC or any succeeding publication.
(28) Government Money Market Mutual Fund.— Means a money market mutual fund that at all times:
(a) Invests in obligations that are issued, guaranteed or secured by the government of the United States, or invests in collateralized repurchase agreements composed by said obligations, and
(b) qualifies for investment without a reserve pursuant to the Purposes and Procedure Manual of the SVO or any succeeding publication.
(29) Guaranteed or secured.— When used jointly with an obligation acquired under §§ 668–662 of this title, means that the guarantor or insurer is bound to:
(a) Assume or secure the obligation of the debtor, or to buy the obligation, or
(b) make an unconditional commitment to maintain any conditions, which allow the debtor to pay the obligation in full.
(30) Income.— With respect to securities, means interest, accrued discounts, dividends or other distributions.
(31)
(a) Rated credit instrument.— Means a contractual right to receive cash or other rated credit instrument of another entity whose instrument is:
(i) Rated or subject to rating by the SVO; or
(ii) in case of an instrument with a maturity of three hundred and ninety-seven (397) days or less, said instrument is issued, guaranteed or underwritten by an entity rated by, or any other obligation of the entity that is rated by the SVO or by any other nationally recognized statistical rating agency, recognized by the SVO; or
(iii) in case of an instrument with a maturity of ninety (90) days or less, said instrument is issued by a qualified bank; or
(iv) is a share or shares from a Class One Bond Mutual Fund, or
(v) a share or shares from a money market mutual fund.
(b) However, “rated credit instrument” does not mean:
(i) A security with a par value, which provides that the net obligation of the issuer to repay all or part of its par value shall be determined through the performance of an interest in equity, commodity, foreign interest in equity or a foreign interest in equity index, foreign commodities, foreign currency or any combination thereof, or
(ii) instruments that, obligatorily or at the option of the issuer, are convertible into interests in equity.
(32) Derived instrument.— Means an agreement, option, instrument or any combination thereof:
(a) To deliver, receive or assume a specific amount from one or more underlying interest rates, or to conduct a liquidation in cash instead, or
(b) having a price, yield, value or cash flow based in the present or expected price, level, yield, value or cash flow of one or more underlying assets. Derived instruments include options, guaranties used in hedging transactions not subject to another trade instrument, covers certificates of acquisition, maximum limits, minimum limits, exchanges, dated transactions, futures transactions and any other agreements, options or instruments substantially similar to the same, or any combination thereof. Derived instruments shall not include investments authorized by §§ 654–659 and 662 of this title, and do not include, for purposes of this §§ 648–662 of this title, collateralized mortgage obligations.
(33) Underlying interest.— Means the assets, liabilities and other interest, or a combination of same that serve as a basis for a derived instrument, such as any one or more securities, currency, rates, indexes, commodities, or derived instruments.
(34) Interest in equity.— Means any of the following, provided the same are not classified credit instruments:
(a) Common stock.
(b) Preferred stock.
(c) Participation certificate in investment partnership.
(d) Equity investment in an investment company that is not a money market mutual fund or a Class One Bond Mutual Fund.
(e) Investment in a common trust fund of a bank regulated by a federal or state agency.
(f) Any proprietary interest in minerals, petroleum or gas, in which rights have been separated from real interest on the real estate in which the minerals, petroleum or gas are located.
(g) Instruments that obligatorily have to be converted into equity securities.
(h) Interest in limited liability partnerships.
(i) Interest in limited liability companies.
(j) Guaranties or other rights to acquire equity which are created by the entity that owns or that will issue the equity interest to be acquired.
(k) Instruments that would be classified credit instruments, a described in subsection (31)(b) of this section.
(35) Investments.— Means transactions of the kind described in §§ 654–657 and 659 of this title.
(36) Top rated investments.— Means, in the case of credit instruments, those rated 1 or 2 by the SVO; or in the case of short term investments, those rated P-1 by Moody’s Investor’s Service, Inc., or A-1 by Standard and Poor’s Rating Group; or investments with similar ratings by a nationally recognized statistics rating agency, and by the SVO.
(37) Low rated investments.— Means, in the case of credit instruments, those rated 4, 5 or 6 by the SVO, or rated BB to R by Standard and Poor’s Rating Group; or investments rated similarly by a nationally recognized statistics agency, and by the SVO.
(38) Foreign investments.— Means investments in any foreign jurisdiction, or foreign person, real property, real estate or assets domiciled in a foreign jurisdiction, which are substantially of the same nature as those qualifying for investment under §§ 648–662 of this title. An investment shall not be deemed foreign if the person issuing the securities, or the qualified primary credit source or the qualified guarantor is located in a domestic jurisdiction or is a person domiciled in a domestic jurisdiction, unless:
(a) The person issuing the securities is a shell business entity, and
(b) the investment is not assumed, secured, insured or otherwise supported by a person or domestic corporation which is not a shell business entity domiciled in a domestic jurisdiction. For purposes of this definition:
(i) Shell business entity.— Means a business entity which lacks financial substance, except as a vehicle to own interest in assets issued, owned or previously owned by a person domiciled in a foreign jurisdiction.
(ii) Qualified primary credit source.— Means a credit source to which the guarantor may claim the payment of an investment and against which the insurer has a direct claim for the full and timely payment of the debt, based on a contractual right under which he may file a foreclosure action in the domestic jurisdiction.
(iii) Qualified guarantor.— Means a guarantor against whom an insurer has a direct claim for the full and timely payment of the debt, based on a contractual right under which he may file a foreclosure action in the domestic jurisdiction.
(39) Middle rated investments.— Means, in the case of credit instruments, those classified 3 by the SVO; or in the case of short term investments, investments classified P-2 and P-3 by Moody’s Investor’s Service, Inc., or classified A-2 and A-3 by Standard and Poor’s Rating Group; or in the case of long term investments, those rated BBB by Moody’s Investor’s Service, Inc., or Standard and Poor’s Rating Group; or investments rated similarly by a nationally renowned statistics rating agency, acknowledged by the SVO.
(40) Short term investments or securities.— Means investments or securities with a remaining term of one (1) year or less for maturity.
(41) Domestic jurisdiction.— Means the United States, any state of the United States, the District of Columbia, and Puerto Rico.
(42) Foreign jurisdiction.— Means a jurisdiction outside of the United States, Puerto Rico or Canada.
(43) Foreign currency.— Means any currency other than that of the United States.
(44) NAIC.— Means the National Association of Insurance Commissioners.
(45) SVO.— Means the Securities Valuation Office of the NAIC.
(46) Obligations.— Means bonds, notes, bills, trust certificates on machinery, production payments, certificates of bank deposits, term deposits, bankers acceptances, credit loans for leaseholds, loans secured by the financing of net lease and other evidence of indebtedness for the payment of money (or shares, certificates or other evidence of an interest in any of the above) which constitute general obligations of the issuer or which must be paid solely from certain income or certain funds pledged or committed for said payment.
(47) Collateralized mortgage obligations or CMO’s.— Are obligations and other evidences of debt whose payments are collateralized by several mortgages that pay or accrue interest on their principal. For purposes of this §§ 648–662 of this title, residuals are not included. The word “residuals” means obligations known as (“Interest Only” or “IOs”) or (“Principal Only” or “Pos”).
(48) Liabilities.— Means all liabilities that must be included in the last annual statement presented to the Commissioner pursuant to § 331 of this title.
(49) Person.— Means a person, business entity, multilateral development bank, or a governmental or quasigovernmental body such as a political subdivision or government sponsored enterprise.
(50) Investment practices.— Means transactions of the kind described in §§ 658 and 660 of this title.
(51) Mortgage loan.— Means an obligation secured by a mortgage, trust deed, trust contract on real property.
(52) Home mortgage loan.— Means a loan primarily secured by a mortgage loan on real property improved with a residence for one to four families.
(53) Puerto Rico.— Means the Commonwealth of Puerto Rico, its agencies, instrumentalities, municipalities and political subdivisions.
(54) Mortgage loan insurance.— Means an insurance subscribed by a private insurer to protect the mortgage lender against losses caused by default, and which is issued by an insurance company authorized and rated by a nationally recognized statistics rating agency, recognized by the SVO, whose coverage protects in a loan-to-value ratio for losses of eighty percent (80%) or more.
(55) Derivative transaction.— Means a transaction involving the use of one or more derivative instruments, but for purposes of §§ 648–662 of this title, it does not include mortgage collateralized obligations.
(56) Securities lending transaction.— Means a transaction in which the securities are loaned by an insurer to a business entity which is bound to reimburse the loaned securities or equivalent or similar securities to the insurer, whether on demand by the insurer or within a specific period of time.
(57) Repurchase transaction.— Means a transaction in which an insurer purchases securities from a business entity that is bound to repurchase the securities purchased by the insurer (or equivalent securities) at a fixed price, whether on demand by the insurer or on a fixed date.
(58) Reverse repurchase transaction.— Means a transaction in which an insurer sells securities to a business entity and is bound to repurchase the securities sold or equivalent securities from the business entity at a fixed price, whether on demand by the entity or on a fixed date.
(59) Dollar roll transaction.— Means two (2) simultaneous transactions with different liquidation dates not more than ninety-six (96) days apart, so that in the transaction with the most recent liquidation date, the insurer may sell to a business entity and in the other transaction, the insurer is bound to purchase from the same business entity substantially the same securities if they are within the following categories:
(a) Securities guaranteed by other securities, assumed or guaranteed by the Government National Mortgage Association, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation, or their respective successor agencies, and
(b) other securities guaranteed by assets described in § 106, Title 1 of the Secondary Mortgage Market Enhancement Act of 1984, as amended, codified under 15 U.S.C.A. § 77r-1.
(60) Market value.— Means:
(a) Regarding cash and cash equivalent, the amounts of these items.
(b) Regarding securities, the current price obtained from a generally recognized source, or the most recent price quotation from a generally recognized source, or if there is no generally recognized source, the price of the security as determined by the Commissioner under § 652 of this title, including the income accrued but not paid, if not previously included in the price.
(61) Equivalent securities.— Means:
(a) In security loan transactions, securities that are identical to the securities loaned including the amount of the securities loaned, except that the same have a different certificate number (if in physical possession); but if different securities are exchanged for a security loaned as a result of a reorganization, merger, consolidation or other corporate action, the security exchanged shall be deemed as the loaned security;
(b) in a repurchase transaction, securities that are identical to purchased securities including the amount of the securities purchased except for the certificate number, if the same are in physical possession, or
(c) in a reverse repurchase transaction, securities that are identical to the securities sold including the amount of securities sold, except for the certificate number, if in physical possession.
(62) Asset backed securities.— Are those securities or other instruments (excluding mutual funds) which evidence an interest in, or the right to receive payments from, or are primarily payable from, the distributions of an asset or group of financial assets, or a specifically segregated cash flow, which are deposited in a trust or are segregated in a special purpose solvent business entity, under the following conditions:
(a) The trust or business entity has been established solely for the purpose of acquiring specific types of financial assets or cash flow rights, and issues securities and other instruments which represent an interest in or a right to receive cash flow from those assets; and it is engaged in the activities that are necessary to maintain assets or rights and the credit characteristics and support of the assets owned by the trust or other business entity, and
(b) the assets of the trust or other business entity consist solely of interest yielding obligations or other contractual obligations which represent the right to receive payments from the cash flow of the assets or rights. However, the credit enhancement or other credit support characteristics such as letters of credit, guaranties and exchange agreements shall not cause a security or other instrument to be an ineligible investment.
(63) Substantially similar securities.— Means securities that meet all the requirements of substantial similarity described in the Accounting and Practices Procedures Manual published by the NAIC, as amended, and in an amount which constitutes an acceptable form of delivery, as determined from time to time by the Public Securities Administration.
(64) Short sale.— Means a transaction involving the sale of securities that are not yet part of the investment portfolio of the insurer with the intention of subsequently repurchasing the same at a lower price.
History —Ins. Code, added as § 6.020 on May 16, 2003, No. 130, § 1; Jan. 19, 2006, No. 10, § 9, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/649/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 649 - Qualification and eligibility of investments
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 649 - Qualification and eligibility of investments
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(1) Insurers may acquire, own or invest in those investments, or engage in those investment practices described in §§ 648–662 of this title. Investments that do not adjust to §§ 648–662 of this title shall not be eligible investments and shall not be a part of the assets allowed to the insurer.
(2) An insurer shall not acquire an asset unless:
(a) Its acquisition price is equal to or less than its market value;
(b) it is eligible for the payment or accrual of interest or discount, or is eligible to receive dividends or other distributions;
(c) if the interest is accrued in other assets, such assets should be eligible pursuant to §§ 648–662 of this title;
(d) it is not in arrears regarding the payment of interest, dividends or other distributions;
(e) in the case of stock and other equity in interest that the investment shall otherwise generate income or have the potential to increase in value, or
(f) it is acquired under § 657(3) of this title, or constitutes an investment practice allowed under §§ 658 and 660 of this title.
(3) An insurer may acquire and maintain as an allowed investment, any investments that do not otherwise comply with the provisions of §§ 648–662 of this title:
(a) If the insurer did not acquire the same for the purpose of evading any of the limitations contained in §§ 648–662 of this title;
(b) if the investment is not an investment prohibited under § 651 of this title;
(c) if the investment meets the requirements in § 652 of this title, and
(d) if the insurer acquired it under any of the following circumstances:
(i) As a payment on account of obligations or existing debts or related to the refinancing or restructuring of the same, if it is to protect the interest of the insurer in said security or investment;
(ii) as execution of collateral for default of a payment obligation to the insurer;
(iii) in connection with any other eligible investment or any investment practice, if the security is obtained as interest, dividend or other distribution related to the investment or investment practice, or in connection with the refinancing of the investment, provided the same does not proceed from an investment in an affiliated company; however, in each case, such acquisition must occur at no additional cost to the insurer or only at a minimum or nominal cost;
(iv) pursuant to a legal and bona fide recapitalization or voluntary or involuntary reorganization agreement regarding an investment held by the insurer, provided the same does not proceed from a reorganization or voluntary reorganization of an affiliated company, or
(v) pursuant to a mass reinsurance agreement, merger or consolidation if the assets constitute legal and admissible investments for the ceding, merging or consolidated companies.
(4) An investment acquired by an insurer under the conditions established in subsection (3) of this section shall become an inadmissible asset within three (3) years from the date of acquisition, unless during said period the investment has become an eligible investment under any section other than subsection (3) of this section. Notwithstanding the above:
(a) Upon request of the insurer, and based on evidence by the insurer that determining an asset held by him/her to be inadmissible under subsection (3) of this section would materially affect the interests of the insurer, the Commissioner may extend the term for the disposition of the investment for two (2) additional years.
(b) The term for disposing of mortgage and real estate loans shall be of five (5) years. In this case, the dispositions established in subsection (a) of this section shall not apply.
(c) Any investment acquired under any mass reinsurance agreement, merger and consolidation may be withheld for a longer term if so provided in the reinsurance, merger or consolidation plan, as approved by the Commissioner.
(5) Except as provided in subsections (6) and (8) of this section, an investment shall qualify as an eligible investment under §§ 648–662 of this title if as of the date of its acquisition, or trade date, it qualified as an eligible investment under §§ 648–662 of this title. For the purpose of determining the limitations contained in §§ 648–662 of this title, insurers must recognize their investments by using the trade date.
(6) Investments owned by an insurer as of the effective date of this act, which were eligible investments under Chapter six (6) before said date, shall be deemed as eligible investments under §§ 648–662 of this title. Likewise, each specific transaction that constitutes an investment practice of the type described in §§ 648–662 of this title, legally executed by an insurer and in effect as of the effective date of this act, shall continue to be allowed under §§ 648–662 of this title until its expiration or termination pursuant to its terms.
(7) Except as otherwise indicated in §§ 648–662 of this title, the limitations established that are applicable to the investments effected based on the allowed assets or the capital and surplus of an insurer shall be determined according to the information found in the last annual statement filed with the Commissioner pursuant to § 331 of this title. For purposes of determining any limitation based on the allowed assets, the insurer shall subtract from the assets, the sum of the liabilities registered in the annual statement on account of:
(a) The return of collateral to the insurer as a result of a reverse repurchase agreement or securities loan;
(b) cash received in dollar roll transactions, and
(c) loans if not included in clauses (a) and (b) of this subsection.
(8) A qualified investment, for acquisition or possession in whole or in part, as an allowed asset, must be qualified or requalified in whole or in part at the time of its acquisition or on a subsequent date, under any other section of §§ 648–662 of this title, if all relevant conditions contained in said section are met at the time of its qualification or requalification. In the case of an investment that becomes ineligible after its acquisition because of its conversion to a low rating, the insurer shall have one (1) year from the occurrence of said ineligibility to dispose of said investment.
(9) An insurer must hold documents to show that each investment was acquired pursuant to the provisions of §§ 648–662 of this title, and such documents shall specify the section of §§ 648–662 of this title under which the investment was acquired.
(10) An insurer shall not execute any securities purchase agreement until the same are issued to the public for resale as part of the distribution of said securities by its issuer, nor may otherwise guarantee the distribution of said securities.
(11) The Commissioner may, for just cause, order the insurer to limit, dispose of, withdraw, or discontinue an investment or investment practice, or declare same as inadmissible asset. The authority of the Commissioner under this subsection is in addition to any other authority that the Commissioner may have.
(12) At the request of the insurer, the Commissioner may approve additional investments to those set forth in §§ 648–662 of this title, if he deems that the investment or prevention strategies and the financial condition of the insurer do so warrant.
(13) Insurance futures and insurance future options shall not be deemed as investments for the purposes of §§ 648–662 of this title.
History —Ins. Code, added as § 6.030 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/650/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 650 - Authorization of investments by the board of directors
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 650 - Authorization of investments by the board of directors
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(1) The board of directors of an insurer shall adopt a written plan to acquire and maintain investments and to outline their investment practices. This plan shall establish guidelines with regard to the quality, maturity, diversity of investments and other requirements, including investment strategies geared to ensure that the investments and investment practices are appropriate for the business conducted by the insurer, its liquidity needs, and its capital and surplus. The board of directors shall review and evaluate the technical and administrative capacity, and the experience and investment record of the company before adopting any written plan related to any investment or investment practice. The plan must contain objectives with regard to the composition of the kinds of investments, including maximum internal limits. The plan must state the professional qualifications of the persons that shall be making routine investment decisions in order to ensure their competence and ethical behavior. The plan must also outline the relation of the types of investment, to the composition of the business portfolio of the insurer and the risk rating that would be most appropriate for the insurer, taking into consideration its capitalization level and expertise in investment management.
(2) All investments acquired and held under §§ 648–662 of this title shall be acquired and owned under the supervision and direction of the board of directors of the insurer. The board of directors shall certify in writing, through a formal resolution to be adopted at least once a year, that all investments have been made pursuant to the delegation, standards, limitations and investment goals established by the board, or by a committee authorized by the board with the responsibility to administer the investments of the insurer.
(3) At least every three months, or more often if necessary, the board of directors of the insurer or a duly authorized committee shall:
(a) Receive and review a summary report of the investment portfolio of the insurer, its investment activities and the investment practices effected pursuant to its delegated authority, for the purpose of determining if the investment activity of the insurer is consistent with its written plan, and
(b) review and update the written plan, as appropriate.
(4) The board of directors or a duly authorized committee, in the discharge of their duties under this section, shall require that the files of any authorization or approval, and any other document that the board or committee may need, and the reports of any action taken pursuant to the authority delegated under subsection (1) of this section, shall always be at the disposal of the board or authorized committee.
(5) The directors of the insurer shall discharge their duties under this section with the degree of care that is proper to the trust relationship with the insurer.
(6) If the insurer does not have a board of directors, all references to a board of directors in §§ 648–662 of this title shall be understood as references to the governing body of the insurer with authority equivalent to that of a board of directors.
(7) Every director of the insurer who, in the discharge of his/her duties under this section incurs fraud, or a violation of the fiduciary duties, which causes financial damage to the insurer, shall incur personal liability.
History —Ins. Code, added as § 6.040 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/651/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 651 - Prohibited investments
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 651 - Prohibited investments
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An insurer shall not, directly or indirectly:
(1) Invest in an obligation or security of, or grant or offer a guaranty for the benefit of, or in favor of an official or director of the insurer.
(2) Invest in an obligation or security, grant a guaranty in benefit of or in favor of, or make other investments in a business entity of which five percent (5%) or more of the voting stock or interest in equity that belong directly or indirectly or are for the direct or indirect benefit of one or more officials or directors of the insurer.
(3) Participate, on its own, or through one or more affiliates of the insurer in one or a series of transactions geared to evade the prohibitions of §§ 648–662 this title.
(4) Invest in partnerships as a partner with unlimited liability except as provided in § 649(3) of this title. This subsection does not prohibit a subsidiary of the insurer or any other affiliate, which are not insurers in turn, to become a partner with unlimited liability in a partnership.
(5) Invest in or loan its funds secured by its own shares, but an insurer may acquire its own shares (although they shall not be admitted assets of the insurer) with the prior authorization of the Commissioner for the following purposes:
(a) Convert a stock underwriter into a mutual or reciprocal underwriter, or convert a mutual or reciprocal underwriter into a stockbroker;
(b) transfer shares to the directors, officers, employees and agents of the insurer according to a plan approved by the Commissioner to convert a public underwriter to a private underwriter or with regard to an employee benefit plan, or
(c) as allowed in a plan approved by the Commissioner.
(6) An insurer may not make short sales of securities.
(7) No insurer may, at any time, or in any way, own more than five percent (5%) of the outstanding stock with voting rights of a corporation, except with the prior authorization of the Commissioner.
History —Ins. Code, added as § 6.050 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/652/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 652 - Valuation of investments
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 652 - Valuation of investments
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(1) For purposes of §§ 648–662 of this title, the worth of an investment acquired or maintained under §§ 648–662 of this title, unless otherwise indicated in this Code, shall be the informed worth of the asset for statutory accounting purposes, as determined according to the procedures indicated in the valuation and accounting standards published by NAIC, including the Purposes and Procedures Manual, the Accounting Practices and Procedures Manual, the Annual Statement Instructions Manual of the SVO, or any valuation procedure officially adopted by NAIC.
(2) In those cases in which the NAIC does not provide for a valuation procedure or a valuation, the investment shall be appraised according to the price determined by the Commissioner as its fair market value.
History —Ins. Code, added as § 6.060 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/653/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 653 - General requirements of diversification
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 653 - General requirements of diversification
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(1) Unless otherwise indicated in §§ 648–662 of this title, an insurer shall not acquire any investment under §§ 648–662 of this title if, as a result of, and after making the investment, the insurer has more than five percent (5%) of its allowed assets or more than ten percent (10%) of its capital and surplus, whichever is less, in any type of investments issued, assumed or guaranteed by one single person or business entity, including shares guaranteed by assets or loans guaranteed by a single set of assets. For the purposes of §§ 648–662 of this title, the securities issued by AFICA shall be deemed as issued by the business entity to which AFICA is lending the money resulting from the issue.
(2) Unless otherwise indicated in this Code, an insurer may only acquire investments allowed under §§ 648–662 of this title (excluding investments allowed under §§ 654(1), 657(3), 661 and 662 of this title and the investment practices allowed under §§ 658 and 660 of this title if, as a result of and after making the investment, they do not exceed forty percent (40%) of the allowed assets of the insurer.
(3) The investments of an insurer shall be limited according to their rating, as follows:
(a) Top rated investments.— An insurer may not acquire, directly or indirectly, an investment under §§ 654(2) and (3), 655 or 659 of this title, if as a result of and after making the investment, the sum total of the top rated investments owned at that moment would exceed forty percent (40%) of its allowed assets.
(b) Middle rated investments.— An insurer may not acquire, directly or indirectly, an investment under §§ 654(2) and (3) or 659 of this title, if as a result of and after making the investment, the sum total of the middle rated investments owned at that moment would exceed twenty percent (20%) of its allowed assets.
(c) Low rated and unrated investments.— An insurer may not acquire a low rated investment. An insurer may acquire unrated investments as provided in §§ 655 and 662 of this title.
(4) General limitations of Canadian investments.—
(a) An insurer may not acquire, directly or indirectly, those Canadian investments authorized by §§ 648–662 of this title if, as a result of and after making the investment, the total sum of such investments exceeds twenty percent (20%) of its allowed assets; the investments acquired under sections other than § 654(2) of this title, shall not exceed ten percent (10%) of its allowed assets.
(b) However, regarding an insurer authorized to do business in Canada or who has life and risk insurance, annuity or reinsurance contracts based or located in Canada that are denominated in Canadian currency, the limitations shall be whichever is greater between A and B, in which A is the limitations in the foregoing clause (a) of this subsection, and B shall be whichever amount is greater between:
(i) The amount required by Canadian law to be invested by an insurer in the jurisdiction of Canada or in Canadian currency, or
(ii) one hundred and fifteen percent (115%) of the amount of its reserves and other obligations under life or risk insurance contracts based or located in Canada.
History —Ins. Code, added as § 6.070 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/654/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 654 - Credit instruments or obligations
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 654 - Credit instruments or obligations
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(1) Credit instruments or preferential debt.— An insurer may invest up to one hundred percent (100%) of its allowed assets in credit instruments issued, assumed, secured or insured by the United States or Puerto Rico; or a public agency, dependency, instrumentality or corporation of Puerto Rico or the United States; or a political subdivision or municipality of Puerto Rico; a State or enterprise sponsored by the governments of the United States, or any State, or Puerto Rico, if such instruments are assumed, secured or insured by the full faith and credit of said governments; or an enterprise that has been sponsored by the government of the United States, if such instruments maintain a triple AAA rating by a nationally recognized statistics rating entity; in obligations that are one hundred percent (100%) collateralized by the previously described credit instruments; or in stock and obligations issued by a Class One Bond Mutual Fund.
(2) Canadian credit instruments.— Subject to the limitations indicated in § 653(4) of this title, an insurer may invest up to twenty percent (20%) of its allowed assets in rated credit or debt instruments that have been issued, assumed, secured or insured by:
(a) Canada, or
(b) an enterprise sponsored by the government of Canada, if such instruments are assumed, guaranteed or secured by Canada or backed or secured by the full faith and credit of Canada.
(3) Other rated credit instruments and obligations.— Subject to the limitations indicated in § 653 of this title, an insurer may invest in the following rated credit instruments:
(a) Issued by a money market mutual fund of the government of the United States, or a Class One Money Market Mutual Fund;
(b) issued, assumed, guaranteed or secured by an enterprise sponsored by the government of the United States or Puerto Rico, other than those that qualify under subsection (1) of this section;
(c) issued, assumed, guaranteed or secured by a State of the United States, if the instruments are general obligations of the State;
(d) issued by a multilateral development bank, or
(e) issued, assumed, guaranteed or secured by an existing corporation under the laws of Puerto Rico or the United States, including, without being limited to obligations collateralized by mortgage loans and other obligations.
History —Ins. Code, added as § 6.080 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/655/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 655 - Interests in equity
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 655 - Interests in equity
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(1) Subject to the limitations indicated in subsections (1) and (2) of § 653 of this title, an insurer may invest in securities of a registered investment company.
(2) Subject to the limitations indicated subsections (1) and (2) of § 653 of this title, an insurer may acquire interests in equity of any business entities organized under the laws of Puerto Rico or any state of the United States or province of Canada.
(3) An insurer may acquire interests in equity that are not registered with a registered exchange brokerage firm and that are not investments prohibited under § 651 of this title, if the aggregate amount of the interests in equity acquired under subsection (3) of this section do not exceed five percent (5%) of the allowed assets of the insurer.
(4) Unless otherwise indicated in §§ 648–662 of this title, an insurer may not acquire common stock as described in subsections (1), (2), and (3) of this section if, as a result of and after making the investment, the aggregate in common stock investments would exceed thirty percent (30%) of the allowed assets of the insurer.
(5) Tangible chattels subject to leasing.—
(a) An insurer may acquire interests in equity in chattels, located or used in whole or in part within the United States, or Puerto Rico through:
(i) Interests in partnerships, or interests in limited liability partnerships not prohibited under § 651(4) of this title;
(ii) joint ventures;
(iii) interests in equity from limited liability corporations or companies;
(iv) trust certificates, or
(v) other similar instruments.
(b) Investments according to subsection (1)(a) of this section shall be eligible only if chattels are subject to a lease contract or other agreement with a business entity whose obligations (totaling the purchase price of the chattel) may be acquired by the insurer independently, pursuant to § 654 of this title.
(c) An insurer may not acquire investments under this section if, as a result of and after making the investment, the worth of all the investments held by the insurer at that time under this section exceeds two percent (2%) of its allowed assets.
(d) For purposes of determining compliance with the limitations indicated in § 653(1) of this title, the investments acquired by an insurer under this section shall be added to all the investments assumed, issued or secured by the same leaseholder under other sections of §§ 648–662 of this title.
(e) This section shall not apply to chattel lease contracts between the insurer and its subsidiaries or affiliates.
History —Ins. Code, added as § 6.090 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/656/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 656 - Investment in subsidiaries
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 656 - Investment in subsidiaries
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The limitations and restrictions to investment set forth in §§ 648–662 of this title shall not apply to investments made by an insurer in a subsidiary that was acquired or established by the insurer with prior authorization from the Commissioner. All entities that are directly or indirectly under the control of the insurer shall be deemed to be subsidiaries. However, the investment in all subsidiaries of the insurer shall not exceed twenty percent (20%) of its admitted assets or thirty percent (30%) of its capital and surplus, whichever is less.
History —Ins. Code, added as § 6.100 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/657/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 657 - Mortgage loans and real estate
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 657 - Mortgage loans and real estate
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(1) Mortgage loans.—
(a) Subject to the limitations indicated in § 653 of this title, an insurer may acquire, whether directly, or indirectly through interests in limited liability partnerships, interests in partnerships not prohibited under § 651(4) of this title, limited liability companies, joint ventures, or shares in investment trusts evidenced by a participation certificate or other instrument, obligations secured by mortgage loans on real estate located within Puerto Rico, or the United States. Mortgage loans that are not first liens, may only be acquired when the insurer is the holder of the first lien. Said obligations, together with all the obligations secured by mortgages or other real estate liens of equal priority, may not exceed the following at the time of acquisition exceed:
(i) Ninety percent (90%) of the fair market value of real property at the time of acquisition, if the obligation is secured by a deferred payment mortgage loan or similar guaranty;
(ii) eighty percent (80%) of the fair market value of the real estate property, if the mortgage loan requires immediate periodic and preestablished payments of principal and interest, if it has an amortization period that does not exceed thirty (30) years and requires periodic payments at least once a year. Each periodic payment shall be sufficient to ensure that the balance of the principal owed in the mortgage loan at all times shall not exceed the outstanding balance in a mortgage loan for the same amount, the same rate of interest and requires equal payments of principal and interest, with the same frequency and amortization terms. Mortgage loans subject to this paragraph shall be allowed notwithstanding that said loans provide for the payment of the principal balance before the amortization term. In the case of home mortgage loans, the eighty percent (80%) limit may be increased to ninety-seven percent (97%) if a mortgage loan insurance policy has been obtained, or
(iii) seventy-five percent (75%) of the fair market value if the real property in all other cases in which the requirements of paragraphs (i) and (ii) of this clause are not met.
(b) For purposes of clause (a) of this subsection, the amount of an obligation required to be included in computing the debt-value ratio may be reduced if said obligation is secured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, or their respective successors.
(c) An insurer shall not acquire under this subsection any security guaranteed with assets that said insurer could otherwise acquire under § 654 of this title.
(d) A mortgage loan rated under § 649(6) of this title or under this clause, and which is restructured in such way that it complies with the requirements of a restructured mortgage loan pursuant to the NAIC Accounting Practices Procedures Manual or a successor publication, shall continue being a rated mortgage under §§ 648–662 of this title.
[e] [In order to determine compliance with the limits established in clause (a) of this subsection, the obligations issued, assumed, insured or guaranteed by an agency, dependency, instrumentality or public corporation of the United States that are collaterized with mortgages will not be considered investments in mortgage loans and real estate.]
(2) Income generating real property.— An insurer may invest in real property located within the United States or Puerto Rico through interests in special partnerships, limited liability partnerships, joint ventures, corporate stock, certified shares in an investment trust, or other similar instruments. Real property acquired under this subsection shall be acquired or managed for income generating purposes or to be improved or developed for investment purposes according to an existing program (in which case the property shall be deemed as income generating).
(3) Real property for business location.— An insurer may acquire, manage and dispose of real property for the convenient location of its business operations, including its main office, branches and field operations (and of those of its affiliated companies) subject to the following:
(a) Real property may be subject to mortgages, liens or other encumbrances, the amount of which shall be deductible from the invested amount to the extent that the obligations secured by said mortgages, liens or other encumbrances are of no recourse against the insurer, shall be reduced from the amount invested by the insurer in the real property for the purpose of determining compliance with subsection (4)(d) of this section.
(b) For purposes of this subsection, the business operations of an insurer shall not include the portion of the real property used directly to provide medical health services to the insured of a health and accident insurer. Real property used for such purposes may be acquired under subsection (2) of this section.
(4) Quantitative limitation.—
(a) An insurer may not acquire an investment under subsection (1) of this section if as a result of and after making the investment, the amount of all the investments owned by the insurer under subsection (1) of this section would exceed one percent (1%) of its allowed assets in mortgage loans securing a real property in particular.
(b) An insurer may not acquire an investment under subsection (2) of this section if, as a result of and after making the investment, the amount of the investment in a single property or contiguous properties including the guaranties granted at that moment by the insurer under subsection (2) of this ection would exceed one percent (1%) of its allowed assets.
(c) An insurer may not acquire an investment under subsection (1) or (2) of this section if as a result of, and after making said investment, and considering any guaranty granted by the insurer regarding said investment, the amount of all the investments owned by the insurer under subsections (1) and (2) of this section and the guaranties that have been granted and are in effect, would exceed ten percent (10%) of its allowed assets.
(d) The acquisition of real property by an insurer under subsection (3) of this section shall not be included in the calculations to determine compliance with the limitations established by § 653 of this title. An insurer may not acquire real properties under subsection (3) of this section if, as result of and after making the acquisition, the amount of the real property owned at that moment by the insurer under subsection (3) of this section would exceed ten percent (10%) of its allowed assets. Additional real property may be acquired under subsection (3) of this section with the authorization of the Commissioner.
History —Ins. Code, added as § 6.110 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/658/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 658 - Securities loans, repurchase, inverse repurchase, and dollar roll transactions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 658 - Securities loans, repurchase, inverse repurchase, and dollar roll transactions
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An insurer may effect securities loans, repurchase transactions, reverse repurchase transactions, and dollar roll transactions with registered business entities, if:
(1) The Board of Directors of the insurer adopts a written plan consistent with the requirements of the plan described in § 650(1) of this title specifying the guidelines and goals to be followed, including:
(a) A description of how the cash received shall be invested or used for the general corporate purposes of the insurer;
(b) operating procedures to manage the risks associated to interest fluctuations in the market and default by the other party, the conditions under which the product of the inverse repurchase transaction may be used in the regular course of business, and the use of acceptable collateral which reflects the liquidity need of the transaction, and
(c) quantitative limits associated to the percentage of allowed assets of the insurer that may be invested in these transactions.
(2) The insurer shall grant a written agreement for each authorized transaction in this section or a master agreement for a series of transactions, excluding dollar roll type transactions. The written agreement shall require that each transaction is concluded no later than one year from the starting date or before, at the request of the insurer. The agreement must be made with the counterpart business entity in the transaction, but in the case of security loans, the agreement must be made with an agent authorized by the insurer, if the agent is a registered business entity and if the agreement:
(a) Requires the agent to enter into separate agreements with each counterpart consistent with the requirements of this section, and
(b) prohibits securities loans subject to the agreement with the agent or its affiliates.
(3) Any cash received in a transaction under this section shall be invested according to §§ 648–662 of this title, and in a manner in which the liquidity need of the transaction is recognized, or shall be used by the insurer for general corporate purposes. During the period that the transaction remains pending, the insurer, its agent or custodian must maintain the following as acceptable collateral received in a transaction under this section, whether physically or through a book entry in the books of the Federal Reserve, the Depository Trust Company, the Participants Trust Company or other securities depository approved by the Commissioner:
(a) The possession of the acceptable collateral; or
(b) a full lien on the acceptable collateral, or
(c) in the case of jurisdictions outside the United States and Puerto Rico, the title of the acceptable collateral, or the rights as creditor secured by the acceptable collateral.
(4) The limitations of §§ 653 and 659 of this title shall not apply to the risk created by transactions under this section to a counterpart business entity. For purposes of the calculations made to determine compliance with this subsection, no effect shall be given to the obligation of the insurer of reselling futures in the case of a repurchase transaction or repurchasing securities in the case of an inverse repurchase transaction. An insurer may not effect a transaction under this section if, as a result of, and after effecting the transaction:
(a) The sum total of the securities lent, sold or purchased under this section, to the same registered business entity exceeds five percent (5%) of its allowed assets or ten percent (10%) of the capital and surplus, whichever is less. When calculating the amount sold or purchased from the same business entity under a repurchase or inverse repurchase transaction, the net effect may be deemed as provided in the master agreement, or
(b) the total aggregate sum of all the securities loaned, sold, or purchased under this section would exceed forty percent (40%) of its allowed assets, setting forth hereby that for purposes of this calculation, the amount the insurer has invested in mutual funds registered under the Investment Companies Act of Puerto Rico, §§ 661 et seq. of Title 10, shall be subtracted from the total of said admitted assets, in the measure in which said amount is deemed as an investment in Class One Bond Mutual Funds, pursuant to § 648(25) of this title.
(5) When an insurer effects a securities loan transaction, the insurer shall receive acceptable collateral with a market value as of the date of the transaction, at least equivalent to one hundred and two percent (102%) of the market value of the securities lent by the insurer on that date. If at any moment the market value of the acceptable collateral owned by the insurer is less than the market value of the securities lent, the business entity to which the securities were lent shall provide the insurer additional acceptable collateral, the market value of which, together with the market value of every other collateral of the same nature held by the insurer with respect to the transaction is at least equal to one hundred and two percent (102%) of the market value of the securities lent.
(6) When an insurer effects an inverse repurchase transaction (other than a dollar roll type transaction), the insurer shall receive in cash not less than ninety-five percent (95%) of the market value of the securities transferred as acceptable collateral. If at any moment the market value of the collateral transferred by the insurer exceeds ninety-five percent (95%), the counterpart business entity which received the collateral shall be bound to reimburse to the insurer the excess of the collateral originally transferred, in order to maintain the collateral market value-to-cash received margin ratio of ninety-five percent (95%).
(7) In dollar roll type transactions, the insurer shall receive cash in an amount at least equal to the market value of the securities transferred by the insurer as of the date of the transaction.
(8) In repurchase transactions, an insurer shall receive securities as collateral with a market value as of the date of the transaction at least equal to one hundred two percent (102%) of the price paid by the insurer for the securities. If at any moment the market value of the acceptable collateral received by the insurer is less than the value paid by the insurer, the business entity to which the securities were lent must provide the insurer additional acceptable collateral, the market value of which, together with the market value of every other collateral of the same nature received by the insurer with respect to the transaction, is at least equal to one hundred and two percent (102%) of the value paid by the insurer. No securities acquired by an insurer in a reverse repurchase transaction may be sold in a reverse repurchase transaction, or lent in securities loans transactions, or otherwise encumbered.
History —Ins. Code, added as § 6.120 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/659/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 659 - Foreign investments and foreign currency
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 659 - Foreign investments and foreign currency
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(1) Subject to the limitations stated in § 653 of this title, an insurer may acquire foreign investments of substantially the same nature as those allowed to be acquired by an insurer under §§ 648–662 of this title, if as a result of such acquisition:
(a) The sum total of the foreign investments held at a given moment by the insurer does not exceed twenty percent (20%) of its allowed assets, and
(b) the sum total of the foreign investments held at a given moment by the insurer in one single foreign jurisdiction does not exceed five percent (5%) of its allowed assets or ten percent (10%) of its capital and surplus, whichever is less, in jurisdictions with a debt rating of 1 by the SVO, or does not exceed three percent (3%) of its allowed assets or five percent (5%) of its capital and surplus, whichever is less, in any other foreign jurisdiction.
(2) Subject to the limitation indicated in § 653 of this title, an insurer may acquire investments or be involved in investment practices denominated in foreign currency, whether or not they are foreign investments acquired under subsection (1) of this section, or have additional exposure to foreign currency as a result of the conclusion or expiration of a hedge transaction with regard to investments in foreign currency denomination, if:
(a) The sum total of the investments held at a given moment by the insurer denominated in foreign currency under this subsection does not exceed five percent (5%) of its allowed assets or ten percent (10%) of its capital and surplus, whichever is less, and
(b) the sum total of the investments held by the insurer at a given moment in foreign currency denominations of a single foreign jurisdiction does not exceed five percent (5%) of its allowed assets or ten percent (10%) of its capital and surplus, whichever is less, in jurisdictions with a debt rating of one (1) by the SVO, or does not exceed three percent (3%) of its allowed assets or five percent (5%) of its capital and surplus, whichever is less, in all other jurisdictions.
(c) However, an investment shall not be deemed to be in foreign currency if the insurer acquiring the same enters into one or more contracts which include transactions allowed under § 660 of this title and the counterpart business entity agrees under such contracts or contracts to change all payments made in foreign currency investments into United States currency at a rate that effectively protects the cash flow of the insurer from fluctuations in the currency exchange rates during the life of the contract.
(3) In addition to the investments allowed under subsections (1) and (2) of this section, an insurer who is not authorized to do business in a foreign jurisdiction, but has pending life or risk insurance policies, annuities or reinsurance contracts located in a foreign jurisdiction and denominated in foreign currency, may acquire investments denominated in the foreign currency of the jurisdiction, subject to the limitations described in § 653 of this title. However, no investments made under this subsection in obligations of foreign governments, their political subdivisions and enterprises sponsored by said governments shall be subject to the limitations described in § 653 of this title if said investments are rated 1 or 2 by the SVO. The sum total of foreign investments acquired by the insurer under this subsection shall not exceed whichever is greater of:
(a) The amount that the law of such foreign jurisdiction requires the insurer invests in said jurisdiction, or
(b) one hundred fifteen percent (115%) of the amount of its reserves, reinsurance net and other obligations, under life or risk contracts located in the foreign jurisdiction.
(4) In addition to the investments allowed under subsections (1) and (2) of this section, an insurer not authorized to do business in a foreign jurisdiction, but who has pending life or risk insurance, annuities or reinsurance contracts located or placed in a foreign jurisdiction and denominated in foreign currency may acquire investments denominated in the foreign currency of such jurisdiction, subject to the limitations described in § 653 of this title. However, investments made under this subsection in obligations of foreign governments, their political subdivisions and enterprises sponsored by said government shall not be subject to the limitations described in § 653 of this title if said investments are rated 1 or 2 by the SVO. The sum total of the investments acquired by the insurer under this subsection shall not exceed one hundred five percent (105%) of the amount of its reserves, net reinsurance and other obligations, under life and risk contracts located in the foreign jurisdiction.
(5) The investments acquired under this section shall be added to investments of the same nature effected under all the other sections of §§ 648–662 of this title for purposes of determining compliance with the limits contained in other sections of §§ 648–662 of this title. All investments in obligations of foreign governments, their political subdivisions and enterprises sponsored by said governments, except those exempted under subsections (3) and (4) of this section shall be subject to the limitations indicated in § 653 of this title.
History —Ins. Code, added as § 6.130 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/660/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 660 - Hedge transactions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 660 - Hedge transactions
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(1) An insurer may use hedging instruments such as options, futures and other transactions, to protect interest rates solely for the following purposes: (a) to reduce the risk of its other investments, and (b) to improve the income of its other investments. The use of options, futures and other hedging instruments for said purposes shall be known as hedging strategies.
(2) The use of hedges options, futures or instruments for the purpose of speculating in financial markets is hereby prohibited. At the request of the Commissioner, an insurer must be able to explain, at any time, the nature of the hedging being used and the continued effectiveness of said hedge strategies using cash flow analysis or other appropriate analysis.
(3) The sum of the declared book value and the potential aggregate exposure of the financial instruments used by the insurer in its hedging strategies shall not exceed three percent (3%) of the allowed assets of the insurer.
(4) For purposes of this section, the term “option” means an agreement that grants to the buyer a call option (the right to purchase or receive) or a put option (the right to sell, execute, conclude or carry out a cash transaction) based on real or expected price, level, behavior or value of one or more underlying interests.
History —Ins. Code, added as § 6.140 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/661/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 661 - Loans on policies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 661 - Loans on policies
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A life insurer may make loans to policy holders with the collateral of their respective policies in amounts that shall not exceed the redeemable cash value according to the terms of the policy.
History —Ins. Code, added as § 6.150 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-6b/662/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 6B - Investments (§§ 648 — 662)›§ 662 - Authority for additional investment
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 662 - Authority for additional investment
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(1) An insurer may acquire investments of any type that are not expressly prohibited by § 651 of this title without considering the categories, conditions, requirements or other limitations established by §§ 653–659 of this title, including exceeding the quantitative limits established in §§ 648–662 of this title, if as a result of, and after effecting the transaction, the total sum of the investments acquired under this section does not exceed whichever is less of the following:
(a) 5% of its allowed assets, or
(b) 25% of its capital and surplus.
(2) An insurer may not acquire an investment or engage in an investment practice under this section if, as a result of and after effecting the transaction, the total of all the investments in only one person or business entity held by the insurer under this section would exceed three percent (3%) of its allowed assets.
History —Ins. Code, added as § 6.160 on May 16, 2003, No. 130, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/701/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 701 - Presentation rights, license and others
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 701 - Presentation rights, license and others
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(1) As a condition to remain or continue being authorized to procure or process any type of insurance in Puerto Rico, the following persons or entities shall pay to the Commissioner, not later than the date of expiration of their licenses or authorization certificates, the fees specified below:
Entity Annual Fee (a) Local insurers or health services organizations that subscribed a premium volume of less than five million dollars ($5,000,000) during the preceding calendar year, as well as those whose volume of premiums subscribed derives solely and exclusively from healthcare services rendered under the Health Reform Plan of the Government of Puerto Rico $ 5,000.00 (b) Local insurers or health services organizations that subscribed a premium volume of five million dollars ($5,000,000) or more, but less than twenty million dollars ($20,000,000) during the preceding calendar year 27,000.00 (c) Local insurers or health services organizations that subscribed a premium volume of twenty million dollars ($20,000,000) or more, but less than fifty-five million dollars ($55,000,000) during the preceding calendar year 43,500.00 (d) Local insurers or health services organizations that subscribed a premium volume of fifty-five million dollars ($55,000,000) or more, but less than eighty-five million dollars ($85,000,000) during the preceding calendar year 92,000.00 (e) Local insurers or health services organizations that subscribed a premium volume of eighty-five million dollars ($85,000,000) or more, but less than one hundred fifty million dollars ($150,000,000) during the preceding calendar year 130,000.00 (f) Local insurers or health services organizations that subscribed a premium volume of one hundred fifty million dollars ($150,000,000) or more, but less than two hundred thirty million dollars ($230,000,000) during the preceding calendar year 149,500.00 (g) Local insurers or health services organizations that subscribed a premium volume of two hundred thirty million dollars ($230,000,000) or more, but less than six hundred million dollars ($600,000,000) during the preceding calendar year 172,000.00 (h) Local insurers or health services organizations that subscribed a premium volume of more than six hundred million dollars ($600,000,000) during the preceding calendar year 200,000.00 (i) Foreign insurers 6,309.00 (j) Nonprofit shareholders organized under §§ 41 et seq. of Title 6. (i) With a subscribed premium volume of fifty million dollars ($50,000,000) or more during the preceding calendar year 31,545.00 (ii) With a subscribed premium volume of less than fifty million ($50,000,000) during the preceding calendar year 5,257.00 (k) Charitable fraternity organizations 2,103.00 (l) Rate-setting bodies, for each kind of authorized insurance 2,103.00 (m) Advisory bodies 525.00 (n) Foreign insurers exclusively engaged in reinsuring 2,103.00 (o) Surplus line insurers 1,051.00 (p) Automobile clubs or associations 525.00 (q) Authorized representatives (i) Individuals [157.00] (ii) Corporations or partnerships [315.00] [(r) Solicitors 52.00] [(s) Brokers (i) Individuals 525.00 (ii) Partnerships or corporations with a premium production volume of less than one million dollars ($1,000,000) 1,051.00] (iii) Partnerships or corporations with a premium production volume of one million dollars ($1,000,000) or more 2,103.00] (t) Settlements (i) Viatical settlement investment agents 1,051.00 (ii) Viatical settlement brokers 1,051.00 (iii) Viatical settlement intermediaries 2,103.00 (iv) Viatical settlement providers 2,103.00 (u) Adjusters 210.00 (v) Non-residents intermediaries 841.00 (w) Attorneys-in-fact 105.00 (x) Consultants 420.00 (y) Surplus line brokers 525.00 (z) Managers (i) Who represent two (2) or less insurers 1,051.00 (ii) Who represent more than two (2) insurers 5,257.00 (aa) General agents (i) Who represent two (2) or less insurers 1,051.00 (ii) Who represent more than two (2) insurers 5,257.00 (bb) Charitable organizations as defined in § 4201 of this title 1,051.00
(2) The Commissioner shall charge in advance, and the persons and entities so served shall also pay in advance, the following fees and rates:
(a) Original filing of articles of incorporation, or other corporate charter documents of an insurer: (i) In the case of a stock insurer, one dollar ($1) for each thousand dollars ($1,000) or fraction of authorized capital. (ii) In the case of a mutual, reciprocal insurer, one dollar ($1) for each thousand dollars ($1,000) or fraction of the surplus. Such fee shall never be less than five hundred dollars ($500), nor more than five thousand dollars ($5,000). (b) Certificate of deposit 25.00 (c) Filing application for permit to solicit 250.00 (i) If the application is for public issue 500.00 (d) Sales representative’s license, each year 50.00 (e) Modifying solicitation permit 200.00 (f) Examinations and provisional licenses (i) Licensing examination for intermediaries, authorized representatives, solicitors, adjusters, consultants, and attorneys-in-fact 150.00 (ii) Provisional license 150.00 (g) Copies of documents on file, if in the Commissioner’s judgment such copies can be issued or if their issue is ordered by a competent court, each page, one dollar ($1), and for certified copies, two dollars ($2) per page. (h) Miscellaneous certificates under the Commissioner’s seal; each certificate 25.00 (i) For information concerning insurance contracts, upon request of interested parties, deemed by the Commissioner to be entitled thereto, such reasonable sum as the Commissioner may fix. (j) Filing of an application for authorization of foreign and domestic insurer, and automobile associations or clubs, and analysis and filing of the annual report 350.00 (k) Filing of an application for authorization of health services organizations, application for surplus line insurer eligibility certification and the corresponding filing and analysis of the annual report 300.00
History —Ins. Code, added as § 7.010 on June 29, 1996, No. 62, § 8; Aug. 12, 1999, No. 230, § 1; Mar. 27, 2003, No. 96, § 3; June 30, 2008, No. 104, § 1, eff. June 1, 2009.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/702/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 702 - Taxes on premiums
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 702 - Taxes on premiums
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(1) Except as otherwise provided in this section, every insurer shall pay to the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the Office of the Commissioner, a six percent (6%) tax on premiums and of three percent (3%) on annuity remunerations, as provided in clause (b) of this subsection received by the insurer during each semester of the calendar year on insurance transacted in Puerto Rico or covering risks resident, located or to be executed in Puerto Rico, wherever transacted. Said tax shall be payable on or before March 31 of the following calendar year. The insurer shall determine his/her tax on premiums as follows:
(a) With respect to life and disability insurance, the tax shall be determined after deducting dividends, returned premiums, amount refunded, or the amount of reductions in premiums allowed to holders of industrial life policies for payment of premiums directly to an office of the insurer.
(b) With respect to annuity contracts, such tax shall be in the amount of three percent (3%) of such considerations received on direct business after deduction of dividends and returned annuity considerations.
(c) With respect to any other kinds of insurance or contracts, the tax shall be determined after deducting the returned premiums, except as provided in clause (d) of this subsection.
(d) As to insurers other than life insurers, who on issuing their policies require from their insured the payment of uniform premium deposits, based upon the class of risks, but independent of the term of such policies, such tax shall be determined taking into consideration the premium deposits appertaining to such policies as were in force after deducting from said deposits the unused or unabsorbed portion. Said unused or unabsorbed portion shall be computed on the basis of the average reimbursement actually paid or credited to the insured or applied as partial payment to renewals of premium deposits on one-year policies expiring during the semester ending immediately preceding the date the tax is payable.
(2) An insurer shall continue to pay such tax for so long as any such insurance remains in force and the insurer receives premiums, has such premium deposits, or receives annuity considerations therefor, notwithstanding that the insurer may have withdrawn from Puerto Rico, ceased issuing new coverages, or has had its certificate of authority suspended or revoked by the Commissioner.
(3) No insurer shall pass on to its insured the payment of the premium tax hereinabove levied in addition to the premium rates filed with the Commissioner.
(4) This section does not apply to surplus line insurance underwritten pursuant to §§ 1001–1020 of this title, nor to authorized premium surcharges pursuant to §§ 3801–3819 of this title, nor to nonprofit insurers engaged in underwriting life insurance contracts and annuities for educational institutions personnel, nor to reinsurance, nor to premiums with a medical-hospital professional liability coverage underwritten by authorized insurers.
(5) [Repealed. Act July 23, 1974, No. 136, Part 1, p. 641, § 1.]
History —Ins. Code § 7.020; June 28, 1961, No. 129, p. 277, § 2; May 31, 1973, No. 73, p. 328, § 9; July 23, 1974, No. 136, Part 1, p. 641, § 1; July 20, 1979, No. 139, p. 328, § 1; June 29, 1996, No. 62, § 9; Dec. 19, 2002, No. 284, § 1; Aug. 1, 2005, No. 38, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/702a/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 702a - Tax exemption for domestic insurers maintaining a home office in Puerto Rico
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 702a - Tax exemption for domestic insurers maintaining a home office in Puerto Rico
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(1) Every domestic insurer who maintains a home office in Puerto Rico as defined hereinafter, and the Insurers’ Syndicate as defined in § 4102 of this title, shall be exempted from the payment of taxes on premiums and annuity considerations established in § 702 of this title. The insurers thus exempted shall not be bound to comply with the provisions of §§ 703 and 704 of this title. Furthermore, all capital stock, obligations and securities issued by foreign corporations, companies or other entities owned by a domestic insurer who maintains a home office in Puerto Rico, shall also be exempted from the payment of personal property taxes levied under §§ 5001 et seq. of Title 21.
(2) By a home office, in the case of domestic insurers, it shall be understood an office performing the sale, underwriting, issuing and rendering of services related to insurance, including the following: actuarial functions, accounting functions, both in the operation of insurance and investment, medical functions (when required), legal services, approval or refusal of applications for insurance and the issuance of insurance policies, approval and advertisements and publications, public relations, supervision and training of insurance producers and service representatives, payment of any kind of claim and the keeping of all documents and records related to the functions hereinbelow listed. The collections made shall be kept at all times deposited in local banking institutions.
(3) Every insurer eligible for tax exemption under this section shall furnish the Commissioner of Insurance, on or before January 31 of each year, in the forms provided by him, proof that it qualifies for the exemption provided by this section.
(4) The Commissioner of Insurance shall be empowered to regulate the tax exemption provided by this section.
(5) The tax exemption provided by this section shall be effective beginning with calendar year 1962.
History —Ins. Code, added as § 7.021 on June 28, 1961, No. 129, p. 277, § 1; July 23, 1974, No. 212, Part 2, p. 120; Dec. 30, 1986, No. 4, p. 869, § 4; July 14, 1998, No. 126, § 3, eff. 30 days after July 14, 1998.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/702c/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 702c - Special tax on premiums
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 702c - Special tax on premiums
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(a) For taxable years beginning after December 31, 2012, there shall be imposed, collected, and paid a special one percent (1%)-tax on the premiums of every insurer, in addition to the tax on premiums imposed under § 702 of this title, and to any other tax imposed under this Code or under §§ 30011 et seq. of Title 13, known as the “Internal Revenue Code for a New Puerto Rico”. This provision shall only apply to premiums earned after June 30, 2013. The rules set forth in § 702 of this title shall apply to this special tax on premiums; however, the exception provided in § 702a of this title.
(b) The special tax described in subsection (a) shall not apply to premiums earned on Medicare Advantage, Medicaid, and premiums earned on the Mi Salud Program or on annuities.
(c) The special tax on premiums shall be paid to the Secretary of the Treasury of the Commonwealth of Puerto Rico through the Office of the Commissioner. Such tax shall be payable on or before March 31 of the following calendar year.
(d) For purposes of computing the authorized control level of health insurance issuers or health service organizations, the Office of the Commissioner shall consider the provisions of this section as a credit.
History —Ins. Code, added as § 7.022 on June 30, 2013, No. 40, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/703/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 703 - Tax statement; deposit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 703 - Tax statement; deposit
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(1) The insurer shall file with the Commissioner as part of its annual statement, a statement of premiums for insurance and considerations for annuities received and on which tax is payable pursuant to § 702 of this title. Such tax statement shall be according to such form as shall be prescribed and furnished by the Commissioner. In every such statement the reporting of premiums for tax purposes shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement.
(2) Taxes as collected by the Commissioner shall be deposited and handled in the same manner as other public funds.
(3) The tax statement required under subsection (1) of this section shall become effective commencing as to premiums and considerations received during the first full calendar year which immediately follows the effective date of this Code. As to all premiums and considerations prior to such calendar year, report and payment thereof shall be as provided by laws in force immediately prior to the effective date of this Code.
History —Ins. Code § 7.030.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/704/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 704 - Failure to pay tax
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 704 - Failure to pay tax
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(1) Any insurer that fails to file its tax statement and pay the specified tax on premiums after it is due shall be subject to an administrative fine of twenty-five dollars ($25) for each day of delinquency, subject to the Commissioner’s right to grant a reasonable extension of time for the filing and payment thereof. Provided, That said extension shall not exceed thirty (30) days counting from the date the insurer should have paid the taxes on premiums.
(2) At his discretion the Commissioner may revoke the certificate of authority of any such delinquent insurer, such certificate of authority not to be reissued until all taxes and penalties incurred by the insurer have been fully paid and the insurer has otherwise qualified therefor.
History —Ins. Code § 7.040; Apr. 15, 1987, No. 13, p. 29, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/705/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 705 - Refunds
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 705 - Refunds
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If any person has paid to the Commissioner any tax, license fee, or other charge in error or in excess of that which he is lawfully bound to pay, the Commissioner may, upon proof thereof satisfactory to the Commissioner, make or cause to be made a refund thereof as the Secretary of the Treasury may prescribe. However, no such refund shall be made on account of tax paid on premiums written because the insurance was cancelled retroactive to the date of issuance unless such cancellation was within forty-five days from and after date of issuance.
History —Ins. Code § 7.050.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-7/706/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 7 - Fees and Taxes (§§ 701 — 706)›§ 706 - Commonwealth preempts insurance tax field
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 706 - Commonwealth preempts insurance tax field
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The Commonwealth of Puerto Rico hereby preempts the field of imposing excise, privilege, franchise, income, license and similar taxes on insurers, health services organizations, general agents, producers, consultants, adjusters and solicitors, as such, and taxes on the intangible property of said insurers, health services organizations, general agents, producers, consultants, adjusters and solicitors; and no municipality, district, political subdivision, agency or body in Puerto Rico shall levy upon insurers, health services organizations, general agents, producers, consultants, adjusters and solicitors as such any such tax or duty in addition to those levied by the Legislature of Puerto Rico.
History —Ins. Code § 7.060; Apr. 15, 1987, No. 13, p. 29, § 3; Jan. 19, 2006, No. 10, § 9, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/801/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 801 - Insurers’ deposits
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 801 - Insurers’ deposits
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(1) The Secretary shall accept and hold in trust, when made through the Commissioner, deposits of securities or funds physically or electronically made by insurers; as follows:
(a) Deposits required for authority to transact insurance in Puerto Rico.
(b) Deposits of domestic or foreign insurers when made pursuant to the laws of other states, provinces, or countries as prerequisite for authority to transact insurance in such states, provinces or countries.
(c) Deposits in such additional amounts as are permitted to be made by § 806 of this title.
(2) All such deposits shall be held for the purposes specified in the law pursuant to which the deposit is made, or as specified in the Commissioner’s order if the deposit is made pursuant to the provisions of reciprocity contained in § 335 of this title.
(3) In order to make electronic deposits, a written agreement by the bank, the Secretary, the Commissioner, and the insurer shall be executed.
History —Ins. Code § 8.010; Aug. 4, 2008, No. 155, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/802/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 802 - Assets elegible for deposit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 802 - Assets elegible for deposit
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Assets eligible for deposit shall consist of any combination of the following: public obligations of Puerto Rico or the United States, state obligations, municipal obligations, public improvement bonds, certificates of deposit, whether physical or electronic, issued by commercial banks authorized to do business in Puerto Rico, and securities approved by the Governor, as specified in §§ 601 et seq. of this title.
History —Ins. Code § 8.020; June 28, 1966, No. 131, p. 409; Aug. 4, 2008, No. 155, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/803/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 803 - Registration of securities
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 803 - Registration of securities
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Securities, titles or certificates of deposit shall be registered in trust in the name of the Secretary for the purpose required pursuant to the law, and any securities payable to the bearer shall be accompanied by assignment to such Secretary in trust for such purpose. In the case of certificates of deposit, in addition to the assignment in trust, a requirement shall be submitted to the bank duly signed before a notary.
History —Ins. Code § 8.030; Aug. 4, 2008, No. 155, § 3.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/804/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 804 - Commonwealth responsible
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 804 - Commonwealth responsible
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The Commonwealth of Puerto Rico shall be responsible for the safekeeping and return of all assets deposited pursuant to this title with the Secretary of the Treasury.
History —Ins. Code § 8.040.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/805/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 805 - Dividends and substitutions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 805 - Dividends and substitutions
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So long as the insurer remains solvent and complies with this title it shall be entitled:
(1) To demand, receive, sue for, and recover the income from the securities deposited.
(2) To exchange and substitute for the securities on deposit or any part thereof, eligible securities of equivalent or greater value.
(3) To inspect, at reasonable times, any such deposit.
History —Ins. Code § 8.050.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/806/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 806 - Excess deposits
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 806 - Excess deposits
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An insurer may so deposit eligible securities in an amount exceeding its required deposit under this title by not more than one hundred thousand dollars ($100,000), for the purpose of absorbing fluctuations in the value of securities held in its required deposit, and to facilitate the exchange and substitution of securities deposited. During the solvency of the insurer any such excess deposit or part thereof shall be released to the insurer upon its request. During the insolvency of the insurer such excess deposit shall be released only as provided in § 808 of this title.
History —Ins. Code § 8.060.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/807/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 807 - Depletion of deposit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 807 - Depletion of deposit
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If at any time the Commissioner finds that the value of assets on deposit by an insurer is less than the amount required pursuant to this Code, he/she shall notify the insurer of such deficiency by registered mail addressed to the insurer at its home office, or at its main office in Puerto Rico, and require that the deficiency be resolved within sixty (60) days from the date of such notice. If said deficiency is not resolved within the term provided herein, it shall be understood that the insurer has failed to comply with an order of the Commissioner and shall be sanctioned as provided by the Commissioner.
History —Ins. Code § 8.070; Aug. 4, 2008, No. 155, § 4.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/808/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 808 - Release of deposit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 808 - Release of deposit
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(1) Any deposit made in Puerto Rico under this title shall be released and returned:
(a) To the insurer upon extinguishment by reinsurance or otherwise of substantially all liability of the insurer for the security of which the deposit is held; or
(b) to the insurer to the extent such deposit is in excess of the amount required, or
(c) upon proper order of a court of competent jurisdiction, to the receiver, conservator, rehabilitator, liquidator of the insurer, or to any other properly designated official or officials who succeed to the management and control of the insurer’s assets.
(2) No such release shall be made except upon application to the Commissioner, and upon order of the Commissioner made upon proof satisfactory to him of the existence of one of such grounds therefor. The Commissioner shall have no personal liability for any such release of any such deposit or part thereof so made by him in good faith.
History —Ins. Code § 8.080.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-8/809/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 8 - Administration of Deposits (§§ 801 — 809)›§ 809 - Deposit not subject to levy
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 809 - Deposit not subject to levy
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No judgment creditor or other claimant of an insurer shall levy upon any deposit held pursuant to this chapter, or upon any part thereof.
History —Ins. Code § 8.090.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-9a/949/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i)›§ 949 - Statement of purpose
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i) › § 949 - Statement of purpose
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This chapter establishes the requirements that must be met by all persons who aspire to obtain a license issued by the Commissioner to engage in the insurance business in Puerto Rico. It also establishes the procedure to issue licenses to said persons, as well as for the renewal, denial, suspension and revocation of said licenses. This section also includes certain general standards pertinent to the transaction of insurance policies and the payment of commissions.
History —Ins. Code, added as § 9.010 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-9a/949a/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i)›§ 949a - Producer, definition
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i) › § 949a - Producer, definition
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The person that pursuant to this Code holds a license duly issued by the Commissioner to negotiate insurance in Puerto Rico. In negotiating insurance the producer shall not act as authorized representative of the insurer, except in those cases in which an appointment made according to the provisions of § 949 l of this title is involved.
Provided, That the term negotiate includes the following acts:
(1) Solicitation and persuasion.
(2) Offer and negotiation.
(3) Sale.
History —Ins. Code, added as § 9.020 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-9a/949b/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i)›§ 949b - Authorized representative, definition
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i) › § 949b - Authorized representative, definition
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Authorized representative is a producer that subscribes a contract with an insurer to negotiate insurance on his behalf, be it as employee or as independent contractor.
History —Ins. Code, added as § 9.021 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-9a/949c/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i)›§ 949c - Responsibility of the producer towards the insured
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i) › § 949c - Responsibility of the producer towards the insured
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The producer shall fulfill the following duties, among others:
(1) Provide the consumer with a clear and concise orientation about the coverage, benefits, limitations and exclusions of the insurance policy negotiated by him/her, as well as about the duties and obligations of the former as insured under the same.
(2) Negotiate the insurance product so it adjusts to the coverage needs the consumer seeks.
(3) Identify and measure the possibility of loss.
(4) Fulfill the duties imposed according to other provisions of this Code and with the principles of conduct the Commissioner may establish through rules or regulations.
When the producer acts as authorized representative of the insurer, he/she must also fulfill all those other duties imposed by the insurer by virtue of the contract subscribed between the parties.
History —Ins. Code, added as § 9.022 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-9a/949d/
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PR
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Justia›US Law›US Codes and Statutes›Laws of Puerto Rico›2023 Laws of Puerto Rico›TITLE TWENTY-SIX - Insurance (§§ 101 — 10377)›Subtitle 1 - Insurance Generally (§§ 101 — 4513)›Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i)›§ 949d - Solicitor, definition
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 9A - Producer, Authorized Representative, Solicitor, General Agent, Adjuster and Insurance Consultant (§§ 949 — 953i) › § 949d - Solicitor, definition
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A solicitor is a natural person appointed and authorized by a producer to solicit insurance as representative of said producer. An individual employed on salary only who devotes all his/her time to office work, incidentally soliciting insurance at the office of the producer shall not be deemed to be a solicitor if his/her employment or compensation is not contingent upon or related to the volume of said insurance, applications or premiums.
History —Ins. Code, added as § 9.030 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.
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