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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-27/2735/
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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 27 - Unfair Practices and Frauds (§§ 2701 — 2740)›§ 2735 - 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 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2735 - Penalty for violations
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In addition to any penalty provided in this Code, any person who violates a provision of this chapter may be punished by an administrative fine which shall not exceed ten thousand dollars ($10,000) for each violation.
History —Ins. Code, added as § 27.300 on July 23, 1974, No. 150, Part 1, p. 685, § 10; renumbered as § 27.350 on Jan. 8, 2004, No. 18, § 9; renumbered as § 27.260 and amended on Aug. 9, 2008, No. 230, § 26, eff. 90 days after Aug. 9, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-27/2736/
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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 27 - Unfair Practices and Frauds (§§ 2701 — 2740)›§ 2736 - Penalty for fraud
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2736 - Penalty for fraud
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Any person who has committed fraud, as defined in §§ 2706, 2719, 2720, 2720a, 2730 of this title, shall incur a felony and upon conviction shall be punished for each violation by a fine of not less than five thousand dollars ($5,000), nor more than ten thousand dollars ($10,000), or a fixed term of imprisonment of three (3) years, or both penalties. Should aggravating circumstances are present, the fixed penalty thus established may be increased to a maximum of five (5) years, if extenuating circumstances are present, it may be reduced to a minimum of two (2) years. In addition to the penalties provided for in this chapter, any person who benefits in any way from obtaining insurance, or the payment for a loss under an insurance contract, as a result of the fraud committed, shall be imposed a penalty of restitution corresponding to the amount of money resulting from the fraud.
Any violation to the provisions of §§ 2706, 2719, 2720, 2720a, 2730 of this title shall have a period of prescription of five (5) years.
History —Ins. Code, added as § 27.270 on Aug. 9, 2008, No. 230, § 27, eff. 90 days after Aug. 9, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2801/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2801 - Scope of chapter
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2801 - Scope of chapter
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(1) This chapter shall apply only with respect to domestic insurers, except as provided by §§ 2819 (financing by foreign insurer) and 2820 (provisions exclusive) of this title.
(2) Any domestic insurer in process of organization on the effective date of this title shall be governed by such provisions of this chapter as the Commissioner deems to be practicably applicable, and otherwise according to laws in force immediately prior to such effective date.
History —Ins. Code § 28.010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2802/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2802 - Types of insurers permitted
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2802 - Types of insurers permitted
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An insurer formed in Puerto Rico shall be either:
(1) An incorporated stock insurer; or
(2) an incorporated mutual insurer; or
(3) a reciprocal insurer; or
(4) a Lloyd’s insurer,
with respective powers, duties, and restrictions as provided in this title.
History —Ins. Code § 28.020.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2803/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2803 - Assessment insurers prohibited, exception
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2803 - Assessment insurers prohibited, exception
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No insurer shall be formed or be authorized in Puerto Rico to issue contracts of insurance the performance of which is contingent upon the payment of assessments, assessment premiums, or calls made upon its policyholders or members. This provision shall not be applicable to domestic mutual insurers formed for the purpose and transacting only agricultural insurance as defined in § 406 of this title.
History —Ins. Code § 28.030.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2804/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2804 - Incorporation of insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2804 - Incorporation of insurer
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(1) This section applies to insurers hereafter incorporated in Puerto Rico.
(2) Five or more individuals of age of twenty-one years or more may incorporate a stock insurer; ten or more such individuals may incorporate a mutual insurer. A majority of the incorporators shall be citizens of the United States residing in Puerto Rico.
(3) The incorporators shall subscribe and acknowledge articles of incorporation in triplicate before a notary public.
(4) If the articles comply with law as to form, the Commissioner shall endorse his approval thereon to that effect, and one copy shall be filed in the office of the Secretary of State, one copy shall be filed in the office of the Commissioner, and the third copy returned to the insurer. Upon completion of such filings incorporation shall be deemed effectuated.
(5) Fees for such filings shall be as provided in § 701 of this title, and no additional fee shall be charged by the Secretary of State therefor.
History —Ins. Code § 28.040.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2805/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2805 - Articles of incorporation, contents
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2805 - Articles of incorporation, contents
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The articles of incorporation of an insurer shall state:
(1) The name of the corporation: if a mutual the [word] “mutual” or its derivatives, in Spanish or English, shall be a part of the name.
(2) The name of the city or town in which will be located the corporation’s principal place of business, which place must be in Puerto Rico.
(3) The duration of its existence, which may be perpetual.
(4) The kinds of insurance the corporation is formed to transact, according to the definitions thereof in this title, and without regard to the fact that the corporation may initially be authorized to transact but one of such kinds.
(5) If a stock corporation, its authorized capital, the classes and number of shares into which divided, the par value of each such share, which par value shall not be less than five dollars ($5), and the respective rights of each such class.
(6) If a mutual insurer, the maximum contingent liability of its policyholders for payment of losses and expenses incurred under its policies.
(7) The manner in which the powers of the corporation shall be exercised, the number of directors, which shall not be less than five, and designating from among the incorporators the members of the initial board of directors for a stated term of office of not less than two months or more than one year.
(8) Other provisions not inconsistent with law as may be deemed proper by the incorporators.
(9) The names and addresses of the incorporators.
History —Ins. Code § 28.050; June 13, 1966, No. 28, p. 149, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2806/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2806 - Solicitation permit required for financing an insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2806 - Solicitation permit required for financing an insurer
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(1) No corporation formed for the purpose of becoming an insurer, and no person forming or proposing to form an insurer, or insurance holding corporation, or corporation to finance an insurer, or corporation to manage an insurer, or corporation to be attorney-in-fact for a reciprocal insurer or Lloyd’s insurer, or a syndicate for any of such purposes, shall advertise or solicit or receive any funds, agreement, stock subscription, or membership on account thereof unless a solicitation permit therefor, following application, has been issued by the Commissioner. This provision shall not apply with respect to funds, subscriptions, and agreements involving exclusively the incorporators, and of an amount and character reasonably necessary to cover the actual costs, expenses, and minimum arrangements for incorporation.
(2) Any person violating this section shall be subject to a fine of not more than ten thousand dollars ($10,000) or imprisonment for not more than five (5) years, or both penalties.
History —Ins. Code § 28.060.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2807/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2807 - Application for solicitation permit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2807 - Application for solicitation permit
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(1) Application for a solicitation permit shall be in writing filed with the Commissioner, executed by or on behalf of the applicant, and if the applicant is a newly formed corporation, the application shall likewise be signed by the incorporators. The application shall be verified under oath by the applicant, or, if the applicant is a corporation, under oath of the applicant’s president and secretary.
(2) The application shall show:
(a) Name, type, and purpose of insurer, corporation, or syndicate as to which solicitations are to be made;
(b) names, addresses, and business records of each individual associated or to be associated in the formation of the proposed insurer, corporation, or syndicate;
(c) full disclosure of the terms of all understandings and agreements existing or proposed among persons so associated relative to the proposed insurer, corporation, or syndicate, or the formation thereof;
(d) the plan according to which solicitations are to be made;
(e) proposed budget setting forth principal uses to be made of funds secured through such solicitation;
(f) proposed managing personnel of proposed insurer, and insurance experience of each, and
(g) any additional information reasonably required by the Commissioner.
(3) With the application the applicant shall file with the Commissioner such of the following documents as may not already be so on file:
(a) Copy of articles of incorporation and bylaws, or syndicate agreement, or if the proposed insurer is to be a reciprocal, copy of proposed subscribers’ agreement and power of attorney; or if the proposed insurer is to be a Lloyd’s, copy of underwriter’s agreement and power of attorney;
(b) copy of any security proposed to be issued, and copy of application or subscription agreement therefor;
(c) if to be a mutual or reciprocal insurer, copy of any insurance policy proposed to be offered, copy of application therefor, and schedule of rates; and
(d) copy of any prospectus, advertising, or literature proposed to be used.
(e) At time of filing the application, the applicant shall pay to the Commissioner the fee therefor as specified in § 701 of this title.
History —Ins. Code § 28.070.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2808/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2808 - Issuance or denial of solicitation permit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2808 - Issuance or denial of solicitation permit
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The Commissioner shall expeditiously examine the application for a solicitation permit and make any investigation relative thereto deemed necessary. If the Commissioner finds that the application is complete, that the documents filed therewith are equitable in terms and proper in form, that the agreements made or proposed are equitable to present and future shareholders, subscribers, members, or policyholders, and that the proposed use of funds is fair and reasonable, he shall give notice to the applicant that he will issue a solicitation permit, stating the terms to be contained therein, upon the filing of the bond required by § 2810 of this title and upon completion of any arrangements to be required in the permit for the impounding of funds.
If the Commissioner does not so find, or if he finds that any of the individuals named in the application or known to him as being associated or to be associated in the proposed insurer, corporation or syndicate are untrustworthy, he shall deny the application for a solicitation permit and so notify the applicant, stating the grounds for the denial.
History —Ins. Code § 28.080.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2809/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2809 - Terms of solicitation permit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2809 - Terms of solicitation permit
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Every solicitation permit issued by the Commissioner shall:
(1) Be for a period of not over two years, subject to the right of the Commissioner to grant a reasonable extension for good cause.
(2) State the securities for which subscriptions are to be solicited, the number, classes, par value, and selling price thereof, or identify the insurance policy or policies for which applications and advance premiums or deposits are to be solicited.
(3) Limit the portion of funds received on account of stock or syndicate subscriptions, if any are proposed to be taken, which may be used for promotion and organization expenses to such amount as he deems adequate, but in no event to exceed fifteen percent (15%) of such funds as and when actually received.
(4) If to be a mutual or reciprocal insurer, limit the portion of funds received on account of applications for insurance which may be used for promotion or organization expenses to a reasonable commission upon such funds, giving consideration to the kind of insurance and policy involved and to the costs incurred by insurers generally in the production of similar business, and provide that no such commission shall be deemed to be earned nor be paid until the insurer has received its certificate of authority and the policies applied for and upon which such commission is to be based, have been actually issued and delivered to, and accepted by, the policyholders.
(5) Express such arrangements for impounding in an established bank or trust company of funds received pursuant to the solicitation permit as the Commissioner may deem to be necessary and reasonable for protection of investors and proposed policyholders pending completion of such financing or organization and appropriation of such funds to the purpose stated in the permit. Such arrangements may provide for the refund to persons entitled thereto of funds so impounded, after deduction therefrom (in the case of stock corporations or syndicates) of reasonable organization and sales expense as provided for in the solicitation permit, in event the financing or organization is not completed within the time allowed pursuant to subsection (1), above.
(6) State, and require, that the granting of the permit is permissive only and shall not constitute an endorsement by the Commissioner of any person or thing related to the proposed insurer, corporation, or syndicate, and that the existence of the permit shall not be advertised or be used as an inducement in any solicitation.
(7) Contain such other reasonable requirements as the Commissioner may deem necessary.
History —Ins. Code § 28.090.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2810/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2810 - Organization bond or deposit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2810 - Organization bond or deposit
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(1) The Commissioner shall not issue a solicitation permit until the applicant files with him a corporate surety bond in the penalty of five thousand dollars ($5,000), in favor of the Commonwealth of Puerto Rico and for the use and benefit of subscribers or applicants of the proposed organization. The bond shall be conditioned upon a full accounting for funds received in accordance with the terms of the solicitation permit.
(2) In lieu of such surety bond, the applicant may deposit with the Commissioner five thousand dollars ($5,000) in cash or in bonds of the People or Commonwealth of Puerto Rico or of the United States, at par value, to be held in trust upon the same conditions as required for the bond.
(3) The Commissioner may waive the requirement for a bond or deposit if any of the following circumstances exist and if the solicitation permit so provides:
(a) If the proposed securities are to be distributed solely and finally to those few persons who are the active promoter intimate to the formation of the insurer, or other corporation or syndicate.
(b) If the securities are to be issued by a corporation possessed of such assets as to make such bond or deposit reasonably unnecessary for the protection of the public.
(4) Any bond filed, or deposit or remaining portion thereof held under this section, shall be released and discharged upon settlement or termination of all liabilities against it.
History —Ins. Code § 28.100.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2811/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2811 - Modification or revocation of permit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2811 - Modification or revocation of permit
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The Commissioner may, for good cause, modify a solicitation permit, and may, after a hearing, revoke any such permit for violation of any provision of this title, or of the terms of the permit, or of any proper order of the Commissioner, or for failure to account properly for funds, or for misrepresentation.
History —Ins. Code § 28.110.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2812/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2812 - Expense pending completion
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2812 - Expense pending completion
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(1) The incorporators of any insurer or other corporation, or the persons proposing to form a reciprocal insurer or Lloyd’s insurer, or a syndicate, shall be jointly and severally liable for its debts and liabilities until it has secured a certificate of authority, if an insurer, or has completed its proposed organization if a corporation other than an insurer, or a syndicate.
(2) Any portion of funds received on account of stock or syndicate subscriptions which is allowed therefor under the solicitation permit, may be applied concurrently toward payment of promotion and organization expense incurred.
History —Ins. Code § 28.120.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2813/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2813 - Sales representative’s license
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2813 - Sales representative’s license
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(1) Actual solicitations under a solicitation permit shall be made only by individuals expressly licensed therefor by the Commissioner.
(2) Application for such license shall be made in writing by the applicant setting forth such information concerning the applicant and on such form as the Commissioner shall prescribe and furnish. The application shall be accompanied by record of the appointment of the applicant as a representative of the holder of the solicitation permit for the purpose of making solicitations thereunder, subject to issuance of the license.
(3) The Commissioner shall not so license any individual found by him to be untrustworthy, or to be a person of poor credit standing or of ill repute.
(4) The license shall expire as of midnight on the June 30 next following date of issue, and may be renewed for another year upon application therefor and payment of license fee.
(5) Fee for the license shall be as provided in § 701 of this title.
(6) Such license shall be in lieu of any insurance agent’s license as to a mutual or reciprocal insurer being formed, and in lieu of any similar license required under laws applicable to corporations in general.
(7) The Commissioner may revoke any such license for any cause for which granting of the license could have been denied if then existing and known to the Commissioner, or for misrepresentation. The Commissioner shall revoke any such license upon request of the holder of the solicitation permit, or upon expiration or revocation of the solicitation permit.
History —Ins. Code § 28.130.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2814/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2814 - Stock and syndicate subscriptions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2814 - Stock and syndicate subscriptions
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(1) Upon issuance of the solicitation permit and licensing of one or more sales representatives to solicit thereunder, the directors and officers of a stock corporation may open its books for registration of subscriptions to its capital and commence solicitations therefor.
(2) All subscriptions shall be payable and shall be paid only in lawful money. No subscription not accompanied by cash amounting to at least ten percent (10%) of the total amount of the subscription shall be accepted.
(3) The subscription contract shall specify the allocation of funds payable thereon as between capital, contributed surplus, and expenses of promotion and organization. Such specification may be expressed in percentages, or in sums of money, as applicable to each unit of stock subscribed.
(4) Shares of stock of a proposed new insurer shall not be sold on original subscription at a premium in excess of one hundred percent (100%) of the par value of such shares.
(5) Stock subscription contracts shall provide that no certificate for shares subscribed and paid for thereunder shall be issued until after the corporation has qualified for and has secured a certificate of authority as an insurer from the Commissioner, if to be an insurer, or has completed its organization and proposed financing if it is to be another corporation.
(6) A stock subscription contract may provide for cancellation thereof and forfeiture of funds paid in thereon, if installment payments provided therein to be made by the subscriber remain in default after notice in writing thereof to the subscriber and expiration of a reasonable specified period thereafter.
(7) Syndicate subscriptions shall contain such additional reasonable terms and conditions as may be approved by the Commissioner.
History —Ins. Code § 28.140.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2815/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2815 - Applications for insurance in formation of mutual or reciprocal insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2815 - Applications for insurance in formation of mutual or reciprocal insurer
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(1) Upon issuance of the solicitation permit and licensing of one or more representatives to solicit thereunder as provided in § 2813 of this title, the directors and officers of the proposed mutual or reciprocal insurer may open books for the registration of such requisite applications for insurance policies as they may accept, and may receive deposits of premiums thereon.
(2) All such applications for insurance shall be in writing, on such forms and according to such reasonable terms as may be approved by the Commissioner consistent with this title.
(3) All such applications shall provide that:
(a) Issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a proper certificate of authority; and
(b) no insurance is provided until the policy has been so issued, and
(c) the prepaid premium or deposit will be refunded in full to the applicant if the organization is not completed and certificate of authority issued prior to termination of the solicitation permit.
History —Ins. Code § 28.150.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2817/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2817 - Subsequent financing
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2817 - Subsequent financing
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(1) No insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact of a reciprocal or Lloyd’s insurer, or syndicate, after it has received a certificate of authority, if an insurer, or it has completed its initial organization and financing if a corporation other than an insurer or a syndicate, shall solicit or receive funds in exchange for any new issue of its securities, other than through a stock dividend, until it has applied to the Commissioner for, and has been granted, a solicitation permit.
(2) The Commissioner shall issue such a permit unless he finds that:
(a) The funds proposed to be secured are excessive in amount for the purpose intended; or
(b) the proposed securities or the manner of their proposed distribution are inequitable; or
(c) the issuance of the securities would jeopardize the interests of policyholders or the holders of other securities of the insurer, corporation, or syndicate.
(3) Any such solicitation permit granted by the Commissioner shall be upon such application, for such duration, and upon such conditions and terms as the Commissioner may reasonably specify or require.
(4) This section shall not apply as to funds borrowed by an insurer or corporation from a bank or other financial institution in regular course of business.
History —Ins. Code § 28.170.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2818/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2818 - False exhibits
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2818 - False exhibits
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Every person who, with intent to deceive, knowingly files or exhibits any false account, statement, document, or advertisement, relative to the affairs of any insurer, or of any corporation or syndicate of the kind enumerated in § 2806 of this title, formed or proposed to be formed, shall be guilty of a felony and be subject to a fine of not more than five thousand dollars ($5,000) or imprisonment for not more than five (5) years, or both penalties.
History —Ins. Code § 28.180.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2819/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2819 - Financing foreign insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2819 - Financing foreign insurers
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(1) No foreign insurer or corporation of the kind enumerated in § 2806 of this title shall offer its securities or solicit capital funds in Puerto Rico without first obtaining permit therefor from the Commissioner.
(2) Application for such permit shall be executed by the applicant’s president and secretary, be authenticated by its corporate seal, and shall state:
(a) Applicant’s domicile, and date of organization.
(b) Full description of securities proposed to be sold, and price thereof.
(c) Reasonable detail as to uses to be made of proceeds.
(d) Compensation to selling agents in Puerto Rico.
(e) Such other information as the Commissioner may require.
(3) If, in the opinion of the Commissioner, the purposes of such proposed financing are proper, the financial condition of the issuer of the proposed securities is or will be satisfactory, and other aspects of the offering are fair and reasonable, he may, in his discretion, issue the permit upon such conditions and terms as he deems necessary for the reasonable protection of investors resident in Puerto Rico.
(4) All sales and solicitations under any such permit shall be by individuals licensed therefor pursuant to § 2813 of this title.
(5) Fees for such permit and licenses shall be as provided in § 701 of this title.
(6) Violation of this section shall be punished as provided in § 2806(2) of this title.
History —Ins. Code § 28.190.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-28/2820/
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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 28 - Organization of Insurers (§§ 2801 — 2820)›§ 2820 - Provisions exclusive
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2820 - Provisions exclusive
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Insurers, corporations and syndicates which are subject to the provisions of this chapter, together with their sales representatives pursuant to this chapter, shall not be subject, with respect to the sale of their securities, to other laws of Puerto Rico governing sale of securities of corporations and syndicates in general. This provision shall not be deemed to relieve any such insurer, corporation, syndicate or sales representative, of any liability or penalty otherwise provided by law for misrepresentation, fraud, breach of contract, and other similar offenses or injuries to rights.
History —Ins. Code § 28.200.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2901/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2901 - Scope; provisions exclusive
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2901 - Scope; provisions exclusive
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(1) This chapter applies only to domestic stock and mutual insurers.
(2) Domestic incorporated insurers subject to this chapter are not subject to the provisions of the general corporation statutes.
History —Ins. Code § 29.010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2902/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2902 - Existing corporations
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2902 - Existing corporations
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Existing domestic incorporated insurers are governed by the applicable provisions of this chapter.
History —Ins. Code § 29.020.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2903/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2903 - Stock insurer, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2903 - Stock insurer, defined
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Stock insurer.— Is an incorporated insurer with capital divided into shares and owned by its shareholders.
History —Ins. Code § 29.030.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2904/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2904 - Mutual insurer, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2904 - Mutual insurer, defined
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Mutual insurer.— Is an incorporated insurer without capital stock or shares, and is owned by its policyholders.
History —Ins. Code § 29.040.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2905/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2905 - General corporate powers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2905 - General corporate powers
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Subject to other applicable provisions of this title and of the Constitution of the Commonwealth of Puerto Rico, an incorporated insurer has artificial personality, and has power:
(1) To have succession in its name as an artificial person for the duration of its existence.
(2) To sue and be sued in its own name.
(3) To have and use a seal as an [juridical] person. The insurer shall register its seal in the Commissioner’s office.
(4) To acquire, hold, hypothecate, convey, and otherwise manage, use, and dispose of real and personal property.
(5) To transact insurance.
(6) To conduct its affairs through its directors, officers, employees, and representatives duly thereunto authorized.
(7) To make, modify, and rescind bylaws governing its corporate procedures and the conduct of its affairs.
(8) To exercise, subject to law and the express provisions of the articles of incorporation, all such incidental and subsidiary powers as may be necessary or convenient to the attainment of the objectives set forth in such articles.
History —Ins. Code § 29.050.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2906/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2906 - Reservation of right by Legislature
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2906 - Reservation of right by Legislature
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Every such corporation shall comply with all such applicable laws as the Legislature may constitutionally enact. The Legislature reserves the right to make, amend, and repeal laws governing the existence, affairs, and operations of such corporations.
History —Ins. Code § 29.060.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2907/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2907 - Amendment of articles of incorporation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2907 - Amendment of articles of incorporation
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(1) Amendment of articles of incorporation of a domestic insurer changing place of business, changing name, modifying its powers and objectives, and for any other lawful purpose may be made by resolution adopted by a majority vote of its board of directors and by the affirmative vote or written assent of two-thirds of its outstanding voting capital stock, or two-thirds of the members (if a mutual insurer) voting at a valid meeting of members; except that no amendment changing the authorized capital of a stock insurer shall be made unless with unanimous written consent of its stockholders, or upon resolution adopted at a valid meeting of stockholders by a vote of not less than three-fourths of all outstanding shares then having voting rights. Provided, That upon the previous authorization of the Commissioner, articles of incorporation may be amended to reduce the parity of shares to an amount less than the par value stipulated in subsection (5) of § 2805 of this title, but no reduction may be authorized if same reduces the par value to an amount less than one dollar ($1).
(2) If the amendment is to change the insurer’s name after the transaction of insurance in Puerto Rico thereunder, the proposed amendment shall not be submitted to the insurer’s stockholders or members until after the insurer has applied for and received the consent of the Commissioner to the proposed change. The Commissioner shall promptly give such consent unless the proposed name would be in violation of § 325 of this title (name not similar to that of other authorized insurer, or deceptive as to type of organization).
(3) After adoption of the amendment by the insurer’s stockholders or members, the insurer’s president and secretary shall, under the corporate seal, certify the amendment in triplicate and file one copy with the Commissioner, one copy with the Secretary of State, and retain the other copy in the corporate records. Upon completion of such filings the amendment shall be deemed effectuated.
History —Ins. Code § 29.070; June 13, 1966, No. 28, p. 149, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2908/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2908 - Bylaws
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2908 - Bylaws
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(1) The stockholders or members shall have power by majority vote at a valid meeting of stockholders or members to make, adopt, amend, and rescind bylaws regulating corporate procedure and governing conduct of its affairs. Such bylaws, if consistent with law, shall govern:
(a) Number, qualifications, term of office and manner of election of directors.
(b) As provided in § 2914 of this title, the place, date, notice, quorum, and conduct of annual regular and special meetings of stockholders or members, and voting thereat.
(c) Time, notice, quorums, and conduct of annual regular meeting and special meetings of the board of directors.
(d) Number, designation, election, terms, and powers and duties of the respective corporate officers.
(e) Deposit, custody, disbursement and accounting of corporate funds.
(f) If a stock insurer, issuance and transfer of its shares.
(g) Other matters customary, necessary, or convenient to its corporate transactions.
(2) The insurer’s first board of directors as designated in its articles of incorporation may adopt bylaws. Such bylaws shall be submitted to the insurer’s shareholders or members at the first annual meeting thereof held after the insurer has received its certificate of authority as an insurer, and no part of such bylaws shall be effective after such meeting which is not approved by vote of such stockholders or members.
(3) The insurer shall promptly file with the Commissioner a copy, certified by the insurer’s secretary, of every modification of or addition to its bylaws. The Commissioner shall disapprove any bylaws provision deemed by him to be unlawful, unfair, or detrimental to the proper interest and protection of the insurer’s stockholders, members, or policyholders, or any class thereof. The insurer shall not, after receiving notice of such disapproval and during the existence thereof, effectuate any bylaw provision so disapproved.
History —Ins. Code § 29.080; Feb. 16, 1995, No. 26, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2909/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2909 - Membership in mutuals
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2909 - Membership in mutuals
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(1) Each policy holder of a mutual insurer, other than as to reinsurance, is a member of such insurer with the rights and obligations of such membership, and each policy issued by such an insurer shall so specify.
(2) Any agency, instrumentality, or public corporation of the People or Commonwealth of Puerto Rico, or any political subdivision thereof, and any person, firm, corporation, board, association, entity, estate, assignee, fiduciary, or trustee is authorized to be a member of and to contract insurance with any mutual insurer authorized to transact insurance in Puerto Rico or by way of surplus line coverage pursuant to §§ 1001–1020 of this title.
History —Ins. Code § 29.090.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2910/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2910 - Rights of stockholders and members in general
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2910 - Rights of stockholders and members in general
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(1) The stockholders are the owners of a stock insurer, and are entitled to participate in the profits thereof, subject to the contract rights of the insurer’s policyholders.
(2) The policyholders are the owners of a mutual insurer, and are entitled to participate in the savings or profits thereof, subject to contract and to such reasonable classifications as may from time to time be made by the insurer’s board of directors. A mutual insurer shall be operated in the interest of its members.
History —Ins. Code § 29.100.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2911/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2911 - Voting rights, stockholders
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2911 - Voting rights, stockholders
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(1) Unless otherwise provided in the insurer’s articles of incorporation, each stockholder shall have as many votes at meetings of stockholders as there are shares registered in his name on the insurer’s books.
(2) Such a vote may be either in person, or, if absent, by mail, or by proxy. No mailed vote shall be valid unless made over the signature of the stockholder and received by the insurer at its home office prior to the convening of the meeting for which intended. No proxy shall be valid unless in writing signed by the stockholder and filed with the insurer at its home office not later than the time of convening of the meeting for which intended. No proxy shall be valid beyond the expiration date stated therein, and, unless coupled with a substantial ownership interest in the shares to be voted, shall be subject to revocation at any time and shall not be valid beyond three years from the date it was given.
History —Ins. Code § 29.110.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2912/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2912 - Voting rights, members
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2912 - Voting rights, members
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(1) Unless otherwise provided in the insurer’s bylaws, each member of a mutual insurer shall have one vote on each matter coming before meetings of members and regardless of the number of policies held by such member.
(2) Such vote may be either in person, or, if absent, by mail or proxy. No mailed vote shall be valid:
(a) Except as to matters of which full information in writing was received by the member before such vote was required to be sent.
(b) Unless signed by the member, and received by the insurer at its home office before convening of the meeting for which intended. No proxy shall be valid unless in writing signed by the member and filed with the insurer at its home office prior to the convening of the meeting for which intended. Every proxy shall be subject to revocation by the member, and shall not be valid after three years from the date it was given.
(3) Such an insurer may, by provision in its bylaws, establish reasonable qualifications for the right of a member to vote based solely upon any one or more of the following:
(a) Amount of insurance in the aggregate held by the member in the insurer.
(b) Type of policy or coverage.
(c) Length of time the member has been a policyholder.
(4) For the purposes of this section, the policyholder named in a group or blanket insurance contract shall be deemed to be the member of the insurer to the exclusion of the individuals insured thereunder.
(5) Every policy issued by a mutual insurer shall contain a concise statement of the voting rights of members.
History —Ins. Code § 29.120.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2913/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2913 - First annual meeting of stockholders or members
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2913 - First annual meeting of stockholders or members
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(1) As soon as stock to the amount of three-fourths (¾) of the funds required as qualification for its original certificate of authority has been paid for in a stock insurer being formed, or as soon as three-fourths of the total number of qualified applications required as qualification for its original certificate of authority have been secured as to a mutual insurer being formed, the directors of the proposed insurer shall call the first annual meeting of its stockholders or members. The meeting shall be held in the city or town of the corporation’s principal place of business as stated in its articles of incorporation, and written notice of the date, time, place, and purposes of the meeting shall be sent by registered mail to each such stockholder or member, addressed to the stockholder or member at his last address of record with the corporation, or delivered to him personally, not less than thirty days prior to the date of the meeting.
(2) The meeting shall consider and adopt corporate bylaws, elect directors, and transact such other business as may properly come before it.
History —Ins. Code § 29.130.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2914/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2914 - Regular and special meetings of stockholders or members
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2914 - Regular and special meetings of stockholders or members
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(1) The regular annual meeting of the stockholders or members of an insurer shall be held in any city or town of Puerto Rico, as stated in the bylaws of the insurer. Notice thereof shall be given at least twenty (20) days before, in the manner provided in the bylaws. The annual meeting shall fill the vacancies existing or occurring on the board of directors, shall receive and consider the reports of the insurer’s officials regarding their affairs, and shall resolve such other matters properly brought to its consideration.
(2) No meeting of stockholders or members shall amend the insurer’s articles of incorporation unless the proposal so to amend has been included in the notice of the meeting.
(3) If the insurer’s directors and officers fail to call and hold the regular annual meeting when due, any five (5) stockholders or members may call and hold the meeting and shall give notice thereof as required by the bylaws. In event any necessary officer fails to attend such meeting, the meeting may elect one of the stockholders or members present to act for such officer temporarily. Actions taken by any such meeting shall be fully as valid as if taken by the regular annual meeting, and shall be duly recorded in the insurer’s records.
(4) Special meetings of stockholders or members may be called upon not less than ten (10) days’ notice, as provided in the bylaws. The notice shall state the purposes of the meeting, and no business shall be transacted at the meeting of which notice was not so given.
History —Ins. Code § 29.140; Feb. 16, 1995, No. 26, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2915/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2915 - Qualifications of directors
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2915 - Qualifications of directors
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(1) Each Director of an insurer shall meet the following requirements:
(a) Must be a stockholder of the insurer, if a stock insurer, or a member of the insurer, if a mutual insurer.
(b) Must have never been adjudicated a bankrupt or made a general assignment for the benefit of creditors.
(c) Must have never been convicted of an offense involving moral turpitude.
(d) Not to be a director or official of any of the institutions described in § 304-1 of this title. None of the provisions herein shall prevent a person from serving as a director of an insurer if he/she holds office as director or official of the financial holding company or the depository institution with which said insurer has a direct or indirect relationship as owner, subsidiary or affiliate, provided said requirements of the Gramm-Leach-Bliley Act.
(2) Not less than the majority of directors of an insurer shall be residents of and actually reside in Puerto Rico. At least three-fourths of the directors shall be citizens of the United States.
(3) An insurer may provide reasonable additional qualifications in its bylaws including, in the case of a mutual, requirements as to amount of insurance held and duration of membership.
History —Ins. Code § 29.150; July 23, 1974, No. 151, Part 1, p. 695, § 11; July 20, 1979, No. 165, p. 420, § 8; Sept. 6, 2000, No. 382, § 10.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2916/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2916 - Election of directors—Supervision, terms
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2916 - Election of directors—Supervision, terms
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(1) Election of directors shall be held annually at the annual meeting of stockholders or members, and shall be subject to the supervision of the Commissioner.
(2) The regular term of office of a director shall be not less than one year nor more than three years as provided in the bylaws. The annual election shall be of all directors, or of one-half of all directors, or of one-third thereof.
(3) Vacancies occurring among the directors between annual meetings shall be filled for the unexpired term by the remaining directors or otherwise as provided in the bylaws.
History —Ins. Code § 29.160.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2917/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2917 - Election of directors—Inspectors
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2917 - Election of directors—Inspectors
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(1) For every election of directors there shall be appointed in the manner provided by the bylaws, three inspectors of the election from among individuals present at such election.
(2) Such inspectors shall fairly and honestly discharge the following duties and responsibilities:
(a) Receipt and custody of votes sent by mail.
(b) Examination of proxies and determining validity thereof.
(c) Determining right to vote.
(d) Directing the vote.
(e) Examination and count of votes cast.
(f) After the election has been held, the inspectors shall enclose all ballots, letters, and other election documents coming into their possession, in a sealed package and leave such package with the insurer’s president.
History —Ins. Code § 29.170.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2918/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2918 - Election of directors—Lists of stockholders or members for inspection
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2918 - Election of directors—Lists of stockholders or members for inspection
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(1) Commencing at least ten days prior to any election of directors, the insurer shall maintain at its principal place of business a complete and true alphabetical record of all its stockholders or members entitled to vote, showing the address and number of votes held by each. Such record shall be in such form as is convenient for inspection.
(2) During the customary business hours in such ten-day period such record shall be readily available and open to inspection by any stockholder or member of the insurer or his representative.
(3) Any director, officer, employee, or other person in charge of such record who refuses to allow or obstructs such examination thereof, is guilty of a misdemeanor punishable by a fine of not more than five hundred dollars ($500), or by imprisonment for not more than three months, or by both penalties.
History —Ins. Code § 29.180.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2919/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2919 - Election of directors—Determining right of stockholder to vote
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2919 - Election of directors—Determining right of stockholder to vote
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(1) No person shall be deemed to be a stockholder of a stock insurer for the purposes of election of directors, right to inspect records, or voting at any meeting of stockholders, unless shown to be a stockholder by the insurer’s register of stock subscribed, or issued, or transferred.
(2) The board of directors shall cause such registers to be present throughout all meetings at which election of directors is to be held. No member of a board of directors may be re-elected at any meeting of stockholders in the absence of such registers.
(3) Any stockholder entitled to vote at any such meeting, or to inspect records, but not shown to be such by the register, may, upon due notification to the insurer, apply to the Court of First Instance in whose jurisdiction is located the insurer’s principal place of business, for a summary order directing correction of the register.
History —Ins. Code § 29.190.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2920/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2920 - Control of stock insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2920 - Control of stock insurer
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(1) No person shall make any offer to acquire or to sell voting stock of a stock insurer issued or outstanding which constitutes ten percent (10%) or more of the total of said stock insurer’s stock issued and outstanding or of the total stock issued or outstanding of a corporation which has control of an insured, without having the prior approval of the Commissioner.
(2) It will be the duty of the proposed buyer or seller to fully disclose any plans he has regarding changes in the insurer’s administration to the Commissioner.
(3) The Commissioner may require all the information he deems necessary from the proposed buyer or seller to determine if the purchase or sale complies with the provisions of this title.
(4) The Commissioner shall make his determination regarding the approval or disapproval of the transaction within a term of thirty (30) days from the date on which the petition is received in his office, unless during said term the Commissioner should request any additional information from the proposed buyer or seller, in which case the latter shall have a term of thirty (30) days to make his determination after receiving the papers.
The Commissioner shall adopt the rules and regulations which shall contain the criteria to be used to approve or disapprove the transactions referred to in this section.
(5) When the Commissioner makes his determination as to whether said transaction may affect the public interest adversely, he shall evaluate the following among other things:
(a) The buyer’s experience and his moral and financial responsibility;
(b) whether said experience and moral and financial responsibility guarantee or affect the effective functioning of the insurer, and
(c) whether the transfer of the insurer’s control may jeopardize the interests of the insured, claimants, or of the other insurer’s stockholders.
(6) The Commissioner, through regulations to that effect, shall oversee the relationship between an insurer, producer or general agent and its holding company, pursuant to the model legislation for insurance holding companies recommended by the National Association of Insurance Commissioners.
History —Ins. Code, added as § 29.200 on Feb. 16, 1979, No. 15, p. 28, § 14; Sept. 6, 2000, No. 382, § 11; 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-29/2921/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2921 - Officers, in general
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2921 - Officers, in general
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(1) The insurer’s officers shall consist of a president, vice president, treasurer, secretary, and such other officers as may be necessary and provided for in the bylaws. All officers shall be elected by the board of directors, and shall have such qualifications, such powers and duties, and serve for such terms as may be prescribed in the bylaws.
(2) Unless otherwise required by the bylaws, no officer other than the president need be a stockholder, director, or member of the insurer.
(3) One of such officers shall be corporate secretary, who shall, among his other duties, keep the corporate records on which he shall enter or cause to be entered actions of the board of directors and meetings of members and the voting thereon. The secretary shall take an oath faithfully to perform the duties of his office.
(4) The officials of the insurer cannot be officials or directors of any of the institutions described in § 304-1 of this title. None of the provisions herein shall prevent a person from serving as an official of an insurer if he/she holds office as director of the financial holding company or the depository institution with which said insurer has a direct or indirect relationship as owner, subsidiary or affiliate, provided said relationship complies with the applicable provisions and requirements of the Gramm-Leach-Bliley Act.
[Provided, That every insurer who fails to comply with this subsection on the date it takes effect shall have three years from its effectiveness to comply therewith.]
History —Ins. Code, § 29.210; July 23, 1974, No. 151, Part 1, p. 695, § 12; July 20, 1979, No. 165, p. 420, § 9; Sept. 6, 2000, No. 382, § 12.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2922/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2922 - Salaries and compensation, authorization
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2922 - Salaries and compensation, authorization
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(1) Unless the board of directors had in advance authorized said salary, compensation or emolument, or the contract by virtue of which it has been earned, an insurer shall not pay any salary, compensation or emoluments to any director, officer or employee which in the aggregate exceeds twelve thousand dollars ($12,000) in any one year, and no such salary, compensation, or emolument shall be considered earned.
(2) This section shall not apply as to contracts providing for compensation on a commission basis with respect to insurance business produced and in force, entered into in good faith in regular course of business with bona fide insurance general agents, or producers.
History —Ins. Code § 29.220; May 10, 1976, No. 32, p. 84, § 19; 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-29/2923/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2923 - Prohibited interest of officers and directors in certain transactions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2923 - Prohibited interest of officers and directors in certain transactions
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(1) No director or officer of an insurer shall accept, except for the insurer, or be the beneficiary of any fee, brokerage, gift, or other emolument because of any investment, loan, deposit, purchase, sale, exchange, reinsurance, or other similar transaction made by or for the insurer, or be pecuniarily interested therein in any capacity except on behalf of the insurer.
(2) This section does not prohibit such a director or officer from becoming a policyholder of the insurer and enjoying thereunder all the rights and privileges usually and customarily provided therein for holders of such policies in general. This section shall not apply with respect to bona fide insurance agency contracts to which any such director or officer is a party on his own account or on account of parties other than the insurer.
History —Ins. Code § 29.230.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2924/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2924 - Management and exclusive agency contracts
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2924 - Management and exclusive agency contracts
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(1) No cooperative or mutual cooperative stock insurer shall make any contract whereby any person is granted or is to enjoy in fact the management of the insurer or the controlling or preemptive right to produce substantially all insurance business for the insurer, unless such contract is filed with the Commissioner and be subject to his disapproval. The contract shall be deemed effective unless disapproved by the Commissioner within thirty days after date of filing, subject to such reasonable extension of time as the Commissioner may require by notice given within such thirty days. Each disapproval shall be delivered to the insurer in writing, stating the grounds therefor.
(2) The Commissioner shall disapprove any such contract if he finds that it:
(a) Subjects the insurer to excessive charges; or
(b) is to extend for any unreasonable length of time; or
(c) does not contain fair and adequate standards of performance, or
(d) contains other inequitable provisions or provisions which jeopardize the proper interests of stockholders, partners, or members of the insurer.
History —Ins. Code § 29.240; June 25, 1965, No. 86, p. 200, § 16.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2925/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2925 - Limitation of expenses, mutuals
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2925 - Limitation of expenses, mutuals
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(1) For any calendar year after its first two full calendar years of operation, no domestic mutual insurer on the cash premium plan, other than an insurer issuing nonassessable policies, shall incur any costs or expense in the writing or administration of disability, property, and casualty insurance (other than boiler and machinery or elevator) transacted by it which, exclusive of losses paid, loss adjustment expenses, investment expenses, dividends, and taxes, exceed the sum of:
(a) Forty percent (40%) of the net premium income during that year after deducting therefrom net earned reinsurance premiums for such year, plus
(b) all of the reinsurance commissions received on reinsurance ceded by it.
(2) The bylaws of a domestic mutual agricultural insurer on the assessment premium plan shall impose a reasonable limitation upon its expenses.
(3) The officers and directors of an insurer violating this section shall be jointly and severally liable to the insurer for any excess of expenses incurred. If the insurer fails to exercise reasonable diligence or refuses to enforce such liability, the Commissioner may prosecute action thereon for the benefit of the insurer. Such failure or refusal constitutes grounds for revocation of the insurer’s certificate of authority.
History —Ins. Code § 29.250.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2926/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2926 - Accounts, vouchers for expenditures
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2926 - Accounts, vouchers for expenditures
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(1) An insurer shall keep its records and books of account in its principal place of business in Puerto Rico.
(2) An insurer shall not make any disbursement of twenty-five dollars ($25) or more unless evidenced by a voucher correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or on behalf of the person receiving the money. If the disbursement is for services and reimbursement, the voucher shall describe the services and itemize the expenditures by principal classifications.
History —Ins. Code § 29.260.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2927/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2927 - Stock certificates; transfers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2927 - Stock certificates; transfers
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(1) Subject to § 2814(5) of this title as to stock in insurers being formed, each stockholder who has paid in full for the shares to which he has subscribed, shall be entitled to have issued to him by the corporation a stock certificate or certificates representing such shares. The certificate shall be signed by the president or vice president and the secretary or treasurer of the insurer, and be authenticated by its corporate seal.
(2) Stock shall be transferable upon the books of the corporation in the manner provided in the bylaws. But no such transfer shall be made while the subscriber or stockholder is in default as to any payments then due thereon to the corporation, and an unrecorded transfer shall not relieve the subscriber of any such liability. If a stockholder is otherwise indebted to the corporation, the insurer may refuse transfer of his stock until the indebtedness is paid.
History —Ins. Code § 29.270.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2928/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2928 - Stock registers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2928 - Stock registers
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(1) A stock insurer shall keep a stock register showing ownership of its shares, and a transfer register showing all transfers of its shares recorded by it. No transfer shall be valid as to the insurer, its other stockholders, and creditors, unless entered upon the transfer register following delivery to the insurer for the purpose of the certificate representing the stock to be transferred. The transfer register shall show names and addresses of transferor and transferee, and shares transferred.
(2) During the insurer’s usual office hours the stock registers and stock transfer registers shall be kept in its principal place of business and there be available and open to the inspection of any stockholder of the insurer, with the right to make notes of entries appearing therein.
History —Ins. Code § 29.280.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2929/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2929 - Lien for debt of shareholder or member
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2929 - Lien for debt of shareholder or member
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(1) If so provided in the insurer’s articles of incorporation, a stock insurer shall have a lien upon the shares of a stockholder and dividends accruing thereon, as security for payment of obligations owing to the insurer by such stockholder.
(2) If so provided in the policy issued by a mutual insurer, such an insurer shall have a lien upon dividends and benefits payable under the policy, as security for payment of obligations owing to the insurer by the policyholder member.
History —Ins. Code § 29.290.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2930/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2930 - Borrowed funds
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2930 - Borrowed funds
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(1) A domestic insurer, with the Commissioner’s advance approval and without the pledge of any of its assets, may borrow money to defray the expenses of his organization, provide it with surplus funds or for any purpose required by his business, upon agreement that such money and the interest thereon shall only be paid out of the insurer’s surplus in excess of that stipulated in such agreement.
(2) Money so borrowed shall not form a part of the insurer’s legal liabilities except as to its surplus in excess of the amount thereof stipulated in the loan agreement, or be the basis of any set-off; but until repaid, financial statements filed or published by the insurer shall show by a footnote thereto the amount thereof then unpaid together with any interest thereon accrued but unpaid.
(3) The loan agreement may contain other terms and conditions not inconsistent with the foregoing. It may provide for payment at the option of the insurer out of any available funds, and for payment, in event of liquidation of the insurer, out of assets remaining after payment of policy obligations but before distribution of assets to stockholders or members. The form and terms of the loan agreement shall be subject to the Commissioner’s approval.
(4) If the money is to be borrowed upon multiple agreements, the agreements shall be serially numbered. No loan agreement or series thereof shall have or be given any preferential rights over any other such loan agreement or series.
(5) This section shall not apply to loans obtained by the insurer in ordinary course of business from banks and other financial institutions, or to loans secured by pledge of assets.
History —Ins. Code § 29.300; Feb. 16, 1979, No. 15, p. 28, § 13.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2931/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2931 - Repayment of borrowed funds
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2931 - Repayment of borrowed funds
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(1) The insurer may repay any loan received pursuant to § 2930 of this title, or any part thereof as approved by the Commissioner, only as provided in the loan agreement. Unless on liquidation of the insurer, no repayment shall be made which reduces the insurer’s assets below the amount reasonably required for continuance of its operations.
(2) The insurer shall repay any such loan or the largest possible part thereof when the purposes for which the funds were borrowed have been fulfilled, and when the insurer’s surplus is adequate to so repay without unreasonable impairment of its operations.
(3) No repayment of such loan shall be made unless approved by the Commissioner. The insurer shall notify the Commissioner in writing not less than sixty days in advance of its intention to repay such loan or part thereof, and the Commissioner shall forthwith ascertain whether the insurer’s financial condition is such that repayment can properly be made.
History —Ins. Code § 29.310.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2932/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2932 - Transactions in other countries
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2932 - Transactions in other countries
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(1) A domestic insurer may transact in another state or country such insurance as it may be authorized to transact in Puerto Rico; and for the purpose thereof may issue policies containing such provisions as may be required or permitted by the laws of such state or country, subject, however, to approval of the Commissioner if required pursuant to § 1111(6) of this title.
(2) If the Commissioner finds, after a hearing thereon, that continued operation of such insurer in any such state or country constitutes a threat to or impairment of the solvency of the insurer or the protection of its policyholders in Puerto Rico and elsewhere, the Commissioner shall order the insurer to discontinue assumption of new risks in such state or country within such reasonable time as shall be specified in the order, and the insurer shall not assume any new risks in such state or country after such date and while such order remains in effect.
(3) If such insurer is transacting insurance in any state or country wherein it has not fully qualified as an authorized insurer, the Commissioner may order the discontinuance of such transactions if a similar restraint with respect to transactions in Puerto Rico is imposed by public authority upon insurers domiciled in such state or country.
History —Ins. Code § 29.320.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2933/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2933 - Participating policies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2933 - Participating policies
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(1) If so provided in its articles of incorporation, a domestic stock or mutual insurer may issue any or all of its policies with or without participation in profits, savings, or unabsorbed portions of premiums, may classify policies issued on a participating or nonparticipating basis, and may determine the right to participate and the extent of participation of any class or classes of policies. Any such classification or determination shall be reasonable, and shall not unfairly discriminate as between such classes or as between policyholders within the same such classification.
(2) No dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy.
History —Ins. Code § 29.330.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2934/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2934 - Dividends to stockholders
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2934 - Dividends to stockholders
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(1) A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available surplus funds which is derived from any realized net profits on its business.
(2) A stock dividend may be paid out of any available surplus funds except funds representing loans to the insurer pursuant to § 2930 of this title.
(3) A dividend otherwise proper, may be payable out of the insurer’s earned surplus even though its total surplus may then be less than the aggregate of its past contributed surplus.
History —Ins. Code § 29.340.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2935/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2935 - Dividends to mutual policyholders
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2935 - Dividends to mutual policyholders
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(1) The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members as entitled thereto under its policies, dividends only out of that part of its surplus funds which represent net realized savings and net realized earnings from its business.
(2) No dividend shall be paid which reduces the insurer’s surplus below an amount equal to five percent (5%) of all its liabilities.
(3) A dividend otherwise proper, may be payable out of such savings and earnings even though its total surplus may then be less than the aggregate of its contributed surplus.
History —Ins. Code § 29.350.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2936/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2936 - Illegal dividends, penalty
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2936 - Illegal dividends, penalty
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(1) Any director of a cooperative or mutual stock insurer who votes for or concurs in declaration or payment of dividend prohibited by this title shall be guilty of a misdemeanor, punishable by a fine of up to five hundred dollars ($500) or imprisonment for not more than three (3) months, or by both penalties.
(2) The stockholders, partners, or members receiving such an illegal dividend shall be liable in the amount thereof to the insurer.
(3) The Commissioner may revoke or suspend the certificate of authority of an insurer which has declared or paid such an illegal dividend.
History —Ins. Code § 29.360; June 25, 1965, No. 86, p. 200, § 17.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2937/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2937 - Stockholder’s liability for debts of insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2937 - Stockholder’s liability for debts of insurer
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A stockholder of a stock insurer shall be liable for the insurer’s debts and obligations only to the extent of the amount, if any, remaining unpaid on his stock subscription, but subject to the provisions of § 2812 of this title as to expenses and obligations incurred during organization. A stockholder shall not be relieved of any such liability by transfer or assignment of his stock or by merger or consolidation of the insurer with another.
History —Ins. Code § 29.370.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2938/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2938 - Member’s liability for debts of mutual insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2938 - Member’s liability for debts of mutual insurer
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(1) Each member of a domestic mutual insurer, except as otherwise provided in § 2942 of this title, shall have a contingent liability, pro rata and not one for another, for the discharge of its obligations incurred for the period during which the member was a policyholder. The contingent liability shall be in such maximum amount as is stated in the insurer’s articles of incorporation, but shall be not less than one, nor more than five, additional premiums for the member’s policy at the annual premium rate and for a term of one year.
(2) Every policy issued by the insurer shall contain a concise statement of the contingent liability.
(3) Termination of the policy of any such member shall not relieve the member of liability for his proportion of the obligations of the insurer incurred while the policy was in force.
(4) Such contingent liability shall be in addition to any liability of the member for unpaid premium or his other obligations.
(5) Any such contingent liability of members to assessment which has not been reduced to funds in hand does not constitute an asset of the insurer in any determination of its financial condition.
History —Ins. Code § 29.380.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2939/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2939 - Impairment of capital or assets
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2939 - Impairment of capital or assets
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(1) If the capital stock of a stock insurer, or the assets of a mutual insurer, become impaired, the Commissioner shall at once determine the amount of the deficiency and serve notice upon the insurer to make good the deficiency, either by requiring its stockholders (if a stock insurer) or its members (if a mutual insurer) to make good the deficiency or otherwise, within ninety days after service of such notice.
(2) The deficiency shall be made good in cash, or in assets eligible under this title for the investment of the insurer’s funds, or by reduction of the insurer’s capital stock (if a stock insurer) to an amount not below the minimum required for the kinds of insurance to be thereafter transacted.
(3) If the deficiency is not made good and proof thereof filed with the Commissioner within such ninety-day period, the insurer shall be deemed insolvent and shall be proceeded against as authorized by this title.
(4) If the deficiency is not made good, the insurer shall not issue or deliver any policy after the expiration of such ninety-day period. Any officer or director who violates or knowingly permits the violation of this provision shall be subject to fine of not over one thousand dollars ($1,000) for each violation.
(5) For the purposes of this section, a mutual insurer shall be deemed to have an impairment of assets to the extent that its liabilities exceed its assets, both determined as provided in Chapter V, but including as a liability any surplus required to be maintained for authority to transact the kinds of insurance being transacted.
History —Ins. Code § 29.390.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2940/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2940 - Assessment of stockholders to cure impairment
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2940 - Assessment of stockholders to cure impairment
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(1) If authorized by a vote of not less than two-thirds of all outstanding shares (whether nominally voting or non-voting shares) of a stock insurer at a special meeting of all such stockholders called for the purpose, the board of directors may levy a special assessment pro rata upon all outstanding shares of the corporation to secure all or part of funds for the curing of an impairment of capital pursuant to notice and requisition of the Commissioner as provided in § 2939 of this title.
(2) Immediate written notice of such levy shall be transmitted by registered mail to each such stockholder at his address last of record with the insurer, requiring payment of such assessment prior to expiration of all except five days of the ninety-day period specified in § 2939 of this title. With the consent of the Commissioner, such notice may provide that if the stockholder fails to pay the assessment when due, his shares, or so much thereof as may be necessary for the purpose, shall be subject to sale at public sale to the highest bidder for cash on a date within such five-day period specified in the notice. Any proceeds of any such sale which are in excess of the amount of the stockholder’s share of the assessment shall be the property of the stockholder. The sale and purchase of any shares at such sale shall be entered on the corporate records and shall be fully binding and effective as to all parties.
The Commissioner may, in his discretion, require publication of advance notice of such sale in such publications and manner as he deems advisable for the protection of the interests of stockholders. The insurer or its creditors shall not have any additional remedy against a stockholder who fails to pay an assessment so levied.
History —Ins. Code § 29.400.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2941/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2941 - Assessment to mutual policyholders to cure impairment
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2941 - Assessment to mutual policyholders to cure impairment
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(1) If an impairment of assets of a mutual insurer is not cured or to be cured from other sources, the insurer’s board of directors may, with the prior written consent of the Commissioner, make an assessment only on its members who, within the two years immediately preceding the date such assessment was authorized by its directors, held policies providing for contingent liability. The Commissioner shall not give such consent unless he deems the assessment and the continued operation of the insurer to be in the best interests of its policyholders.
(2) The assessment shall be for such an amount as is required, in the opinion of the Commissioner, to render the insurer fully solvent, but not to result in surplus in excess of five percent (5%) of the insurer’s liabilities as of the date of the assessment.
(3) A member’s proportionate part of any such assessment shall be computed by applying to the premium earned, during such two-year period, on his contingently liable policy or policies the ratio of the total assessment to the total premium earned during the same period on all contingently liable policies which are subject to the assessment.
(4) No member shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or loss payable.
(5) The member so assessed shall be liable to the insurer for payment of the assessment. In the case of a mutual life insurer, this liability may, with the consent of the Commissioner, be secured by a lien on behalf of the insurer upon any reserves held by the insurer which are available to the policyholder.
History —Ins. Code § 29.410.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2942/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2942 - Nonassessable policies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2942 - Nonassessable policies
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(1) While it maintains surplus funds in amount not less than the capital required of a domestic stock insurer transacting the same kinds of insurance, a domestic mutual insurer, by resolution of its board of directors approved by the Commissioner, may extinguish the contingent liability of each and all of its policyholders and issue policies without such contingent liability.
(2) If the insurer ceases to have such required amount of surplus, or if the board of directors adopts a resolution for the reinstatement of contingent liability, the Commissioner shall withdraw his approval previously given and the insurer shall not thereafter issue any policy without contingent liability, or renew or accept further premium on policies then in force without written endorsement thereon providing for contingent liability.
(3) A foreign mutual insurer may issue nonassessable policies in Puerto Rico if it satisfies the Commissioner that such policies are in fact nonassessable under the laws of the insurer’s domicile.
History —Ins. Code § 29.420.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2943/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2943 - Mutualization of stock insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2943 - Mutualization of stock insurer
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(1) A domestic stock insurer may become a domestic mutual insurer pursuant to such plan and procedure as are approved by the Commissioner in advance of such mutualization.
(2) The Commissioner shall not approve any such plan, procedure, or mutualization unless:
(a) It is equitable to both shareholders and policyholders.
(b) It is approved by a vote of the holders of not less than three-fourths of the insurer’s outstanding capital stock (whether or not nominally having voting rights), and by a vote of not less than two-thirds of the insurer’s policyholders who vote on such plan, pursuant to such notice and procedure as may be approved by the Commissioner. Such vote may be in person, by mail, or by proxy.
(c) If a life insurer, the right to vote thereon is limited to those whose policies have face amounts of not less than five hundred dollars ($500) and have been in force one (1) year or more.
(d) Mutualization will result in retirement of shares of the insurer’s capital stock at a price not in excess of its fair market value as determined by competent disinterested appraisers.
(e) The plan requires that non-consenting shareholders deposit their shares by a date specified therein for redemption at the same price as is set for shares in general. All rights of any such stockholder shall terminate upon expiration of such date, save only the right to receive in cash the said price for his shares when surrendered for the purpose.
(f) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization shall be deemed effective.
(g) The mutualization leaves the insurer with surplus funds reasonably adequate to preserve the security of its policyholders and its ability to continue successfully in business in the jurisdictions in which it is to be authorized, and in the kinds of insurance it is then authorized to transact.
(3) This section shall not apply to a mutualization under orders of court pursuant to rehabilitation or reorganization of an insurer under §§ 4001–4024 of this title.
History —Ins. Code § 29.430.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2944/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2944 - Converting mutual insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2944 - Converting mutual insurer
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(1) A domestic mutual insurer may be converted into a domestic stock insurer pursuant to such plan and procedure as are approved by the Commissioner in advance of such conversion.
(2) The Commissioner shall not approve any such plan, procedure, or conversion unless:
(a) It is approved by the vote of not less than three-fourths of the insurer’s policyholders who vote on such plan, pursuant to such notice and procedure as may be approved by the Commissioner. Such vote may be in person, by mail, or by proxy.
(b) The equity of each policyholder in the insurer is determinable under a fair formula approved by the Commissioner, which such equity shall be based upon not less than the insurer’s entire surplus plus a reasonable present equity in its reserves and in all nonadmitted assets.
(c) The plan gives to each policyholder a preemptive right to acquire his proportionate part of all of the proposed capital stock of the insurer within a designated reasonable period, and to apply upon the purchase thereof the amount of his equity in the insurer as determined under clause (b) above.
(d) Shares are so offered to policyholders at a price not greater than to be thereafter offered to others. Such price may be at such premium as is reasonably necessary to provide adequate contributed surplus.
(e) The plan provides for payment in cash to each policyholder of his equity in the insurer as determined pursuant to clause (b) above, to the extent that the policyholder has not used the same toward purchase of shares.
(f) The plan applies as to all policyholders who would be entitled to share in the assets of the insurer on liquidation under § 2954 of this title.
(g) The plan is otherwise fair and equitable to policyholders.
History —Ins. Code § 29.440.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2945/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2945 - Reinsurance of mutual insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2945 - Reinsurance of mutual insurer
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(1) A domestic mutual insurer may be wholly reinsured in and its assets transferred to and its liabilities assumed by another mutual or stock insurer under such terms and conditions as are approved by the Commissioner in advance of such reinsurance.
(2) The Commissioner shall not approve any such reinsurance agreement which does not determine the amount of and make adequate provision for paying to the insurer’s policyholders reasonable compensation for their equities as owners of such insurer, such compensation to be apportioned to policyholders as identified and in the manner prescribed in § 2954 of this title. The formula for determination of such equity shall be as provided in § 2944(2)(b) of this title.
History —Ins. Code § 29.450.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2946/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2946 - Merger or consolidation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2946 - Merger or consolidation
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(a) Two or more mutual insurers, or two or more cooperative insurers, or two or more stock insurers, may merge or consolidate subject to the following conditions:
(1) The plan of merger or consolidation and the proposed agreement between the insurers with respect thereto, must be submitted to and approved by the Commissioner in advance of the merger or consolidation.
(2) If mutual insurers, the merger or consolidation must have been authorized by resolution of the boards of directors of the insurers involved and by the vote of not less than three-fourths of their respective policyholders who vote thereon pursuant to such notice and procedure as the Commissioner may approve.
(3) If stock insurers, the merger or consolidation must have been authorized by resolution adopted by each of the respective boards of directors, and by the vote of not less than two-thirds of all shares having voting rights at special meetings of stockholders of each of the respective insurers called for the purpose.
(A) If cooperative insurers, the merger or consolidation must have been authorized by resolution approved by each of the respective boards of directors and by the vote of not less than two-thirds of all the members at special assemblies of the members of each of the respective insurers, called for the purpose.
(4) The Commissioner shall not approve any such plan unless, after a hearing, he finds that it is fair, equitable, consistent with law, and that no reasonable objection exists. If the Commissioner fails to approve the plan he shall state his reason for such failure in his order made on such hearing.
(5) Except as is expressly provided for in the plan, no person shall receive any fee, commission, other compensation or valuable consideration whatsoever for in any manner aiding, promoting, or assisting in the merger or consolidation. This provision shall not prohibit payment of regular salaries or allowances to directors, officers, and employees of the insurers.
(6) The merger or consolidation shall be deemed effectuated, and the nonsurviving domestic corporation or corporations shall cease to exist upon completion of matters preliminary thereto as provided herein and in the agreement of merger or consolidation, and upon the filing with the Secretary of State and with the Commissioner of the following:
(A) Certified copy of the merger or consolidation agreement signed on behalf of all corporations involved by their respective officers and attested by the respective corporate seals.
(B) Certificates by the respective corporate secretaries under oath, certifying to the adoption of resolutions authorizing the merger or consolidation by the insurer’s stockholders, partners, or members, and by the respective boards of directors and setting forth a copy of each such resolution and the votes thereon.
(C) Certificates by the presidents of the respective corporations, under oath, showing that all matters required by the plan and agreement of merger or consolidation to be accomplished before merger or consolidation is to become effectual, have in fact been accomplished, and containing a reasonably complete summary of such matters.
(b) Reinsurance of all or substantially all of the insurance in force of a domestic insurer by another insurer shall be deemed a merger or consolidation for the purposes of this section.
History —Ins. Code § 29.460; June 25, 1965, No. 86, p. 200, § 18.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2947/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2947 - Effect of merger or consolidation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2947 - Effect of merger or consolidation
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(1) Upon a merger or consolidation becoming effectuated as provided in § 2946 of this title, all rights and properties of the nonsurviving corporation shall be considered as transferred to the surviving or new corporation without need of further proceedings or conveyance, and the surviving or new corporation is bound to the obligations and liabilities of the merged or consolidated corporations as if contracted directly by such surviving or new corporation itself.
(2) No judicial action or proceeding pending at the time of the merger or consolidation shall be suspended on account thereof.
History —Ins. Code § 29.470.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2948/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2948 - Voluntary liquidation and dissolution—Preliminary steps
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2948 - Voluntary liquidation and dissolution—Preliminary steps
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(1) A cooperative or mutual domestic stock insurer, while fully solvent and if not subject to action by the Commissioner pursuant to §§ 4001–4024 of this title, may accomplish its own voluntary liquidation and dissolution by proceeding as provided in §§ 2948–2953 of this title, inclusive.
(2) The insurer shall first notify the Commissioner of its intent to so liquidate and dissolve. The Commissioner shall thereupon make such examination of the insurer as he deems necessary to determine whether the insurer is solvent or whether it is subject to his action pursuant to §§ 4001–4024 of this title. The Commissioner shall promptly notify the insurer of the findings of the examination, and if such findings are to the effect that the insurer is solvent and is not then subject to action by the Commissioner under §§ 4001–4024 of this title, the insurer may proceed by complying with the following further preliminary requirements:
(a) Adoption of a resolution authorizing liquidation and dissolution by a vote of not less than three-fourths of all of the members of the insurer’s board of directors at a special meeting of the board called for the purpose, and directing the calling of a special assembly of the insurer’s stockholders, partners, or members for the purpose of considering and taking action upon a similar resolution.
(b) Adoption of the resolution authorizing liquidation and dissolution by the insurer’s stockholders, partners or members, at a special meeting thereof called for the purpose. If a stock insurer, the resolution must have been adopted by the affirmative vote of not less than two-thirds of all voting stock outstanding. If a mutual insurer, the resolution must have been adopted by the affirmative vote of not less than two-thirds of all members voting thereon pursuant to such reasonable notice, presentation of facts, and procedure as may have been approved by the Commissioner. If a cooperative insurer, the resolution must have been adopted by the affirmative vote of not less than two-thirds of all members.
History —Ins. Code § 29.480; June 25, 1965, No. 86, p. 200, § 19.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2949/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2949 - Voluntary liquidation—Administration and further procedure
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2949 - Voluntary liquidation—Administration and further procedure
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(1) Upon adoption of the resolution provided for in § 2948 of this title, the insurer’s board of directors and officers shall continue to direct and administer its affairs to the end that the liquidation of the insurer’s assets and discharge of all its obligations shall be accomplished without unreasonable delay.
(2) The insurer shall forthwith reinsure all its insurance business remaining in force, in another authorized insurer and under terms approved by the Commissioner.
(3) The insurer shall liquidate its assets and pay and discharge all its other obligations as soon as is reasonably possible.
(4) After payment and discharge of all its obligations to its creditors, and with respect to its policyholders as such, the insurer shall distribute its assets remaining, after setting aside such funds as may reasonably be required to cover the costs of further necessary administration and procedures, to its stockholders as entitled thereto pursuant to its articles of incorporation, if a stock insurer, or to its members as determined and in amounts as required pursuant to § 2954 of this title, if a mutual insurer. If a cooperative insurer, such remaining assets shall be distributed among its partners entitled thereto, in the proportion that the amount of the fund contribution certificates of each partner bears to the total value of all fund contribution certificates. The total amount distributed shall in no case exceed the total par value of all fund contribution certificates acquired by the partners of the cooperative. Prior to or at the time or receiving such distribution, each such shareholder or member shall surrender each one of his stock certificates or fund contribution certificates to the insurer for cancellation. Any remaining funds of a cooperative insurer shall be distributed among members and policyholders on the basis of sponsorship, pursuant to the provisions of § 3402(8) of this title.
(5) No sale of any asset of the insurer shall be at a price less than its fair market value, and the Commissioner shall have power to establish or approve reasonable requirements for the conduct of such sales.
(6) Any funds remaining in the insurer’s possession at the end of ninety days after the distribution thereof to shareholders, partners or policyholders, or members in general, on account of inability to delivery such funds to particular shareholders or members, partners or policyholders, entitled thereto, shall be deposited in trust for such unpaid shareholders or members, partners or policyholders in such institution and under such reasonable terms as may be approved by the Commissioner, and shall be subject to diminution pro rata for payment of current costs, if any, of such trusteeship. Any funds so remaining in trust at the expiration of five years from date first deposited therein shall escheat to the Commonwealth of Puerto Rico and become part of its general funds, and without further right therein by or on behalf of any other person.
History —Ins. Code § 29.490; June 25, 1965, No. 86, p. 200, § 20.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2950/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2950 - Voluntary liquidation—Further powers of Commissioner
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2950 - Voluntary liquidation—Further powers of Commissioner
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(1) The insurer shall continue to be subject to the supervision of the Commissioner throughout the process of voluntary liquidation and dissolution.
(2) If, after a hearing thereon, the Commissioner at any time finds that such process is being conducted unfairly, or dishonestly, or without reasonable diligence, or contrary to law, he may make such order as may be necessary for the correction of such defect, or he may apply to the Court of First Instance for a receivership of the insurer in accordance with the procedure in §§ 4001–4024 of this title.
History —Ins. Code § 29.500.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2951/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2951 - Voluntary liquidation—Termination of certificate of authority
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2951 - Voluntary liquidation—Termination of certificate of authority
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After adoption of the resolutions required in § 2948 of this title, the Commissioner may suspend or revoke the insurer’s certificate of authority at such time as he deems advisable for the protection of the public and convenient to the orderly disposition of the insurer’s affairs. No such suspension or revocation shall be deemed to prevent the insurer from doing such things as may reasonably thereafter be necessary or convenient to the orderly and effective liquidation of its assets and disposition of its affairs.
History —Ins. Code § 29.510.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2952/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2952 - Voluntary liquidation—Certificate of dissolution
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2952 - Voluntary liquidation—Certificate of dissolution
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(1) After the liquidation of the insurer has been completed, its obligations discharged, its remaining assets have been distributed to its stockholders, partners, or policyholders, and deposit in trust of undelivered funds, if any, has been made as provided in § 2949(6) of this title, the Commissioner shall make such examination of the insurer’s affairs as he may then deem necessary. When the report of such examination shows that such things have been properly accomplished, the insurer shall be so notified.
(2) Upon receiving such notice as to such examination, a majority of the insurer’s directors and its president and secretary shall execute in triplicate a certificate under oath setting:
(a) That the insurer has been fully liquidated.
(b) That all its obligations have been paid and discharged.
(c) That all its assets remaining after discharge of its other obligations have been distributed to its shareholders, members, partners or policyholders as entitled thereto.
(d) That as to any such shareholders, members, partners or policyholders to whom delivery of their respective portions of such assets could not be made within the ninety-day period provided therefor by law, the funds representing such undelivered assets have been deposited in trust for the benefit of, and to be delivered upon demand of and to, such shareholders, members, partners or policyholders, in a named financial institution, subject to escheat to the Commonwealth of Puerto Rico if not so demanded by the date, stated therein, as required by law.
(e) That such insurer corporation is thereby forever dissolved, such dissolution to be effective as of a date stated, which date shall be not less than ten, or more than thirty, days after date of filing of the certificate as provided in § 2953 of this title.
History —Ins. Code § 29.520; June 25, 1965, No. 86, p. 200, § 21.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2953/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2953 - Filing certificate—Effective date of dissolution
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2953 - Filing certificate—Effective date of dissolution
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(1) A copy of the certificate of dissolution provided for in § 2952 of this title, together with a copy of the examination report provided for in § 2952(1) of this title, certified to by the Commissioner, shall forthwith be filed with the Secretary of State, another copy of each thereof shall be filed in the office of the Commissioner, and a third copy thereof shall remain as part of the corporate records of the insurer.
(2) Following such filings and upon the effective date of dissolution as provided in the certificate of dissolution, the insurer corporation shall cease to exist.
History —Ins. Code § 29.530.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-29/2954/
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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 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954)›§ 2954 - Mutual member’s share of assets on liquidation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2954 - Mutual member’s share of assets on liquidation
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(1) Upon any liquidation of a mutual insurer, its assets remaining after discharge of its indebtedness, policy obligations, and expenses of administration, shall be distributed to its members who were such at any time within the three years last preceding the date of the meeting of members at which was adopted the resolution authorizing such liquidation as provided in § 2948(2)(b) of this title, or, if liquidation is pursuant to §§ 4001–4024 of this title, to those members who were such within the three years last preceding the date of commencement of delinquency proceedings against the insurer, whichever date is the earlier; except, that if the Commissioner finds, after a hearing thereon, that the affairs of the insurer have been conducted in such manner as unfairly to reduce the number of policyholders who may be entitled to participate in any such distribution, he shall have the power to require and he shall order that such additional number of months be added to the qualifying period as he deems to be equitable and practical.
(2) The distributive share of each such member shall be in the proportion that the aggregate premiums earned by the insurer on the policies of the member during the combined periods of his membership, bears to the aggregate of all premiums so earned on the policies of all such members. The insurer may make a reasonable classification of its policies so held by such members and a formula based upon such classification for determining the equitable distributive share of each such member. Such classification and formula shall be subject to the Commissioner’s approval.
History —Ins. Code § 29.540.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3001/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3001 - Definitions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3001 - Definitions
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For the purposes of this chapter, the following terms and phrases shall have the meaning indicated hereinbelow:
(a) Insurer.— Means an entity engaged in the business of granting health contracts, as defined in this Code.
(b) Actionable claim for payment.— Means a claim for services rendered, submitted manually or electronically by a provider to an insurer or health services organization that contains the information and documents needed for the disposition thereof in compliance with the Health Insurance Portability and Accountability Act of 1996 (P. L. 104-191 of August 21, 1996) and Article 30.050 of this act, and whose data do not require a specific finding that prevents the payment thereof within the established terms.
(c) Health care plan.— Means the one defined as a “health are plan” in § 1902 of this title; any insurance for disability or expenses for illness or any health plan operating in Puerto Rico, even though it operates as an association that includes medical benefits, regardless of the law of the Commonwealth of Puerto Rico under which it is organized or authorized to do business.
(d) Commissioner.— Means the Commissioner of Insurance of Puerto Rico.
(e) Participating provider.— Means any physician, hospital, primary services center, diagnostic and treatment center, dentist, laboratory, pharmacy, emergency or prehospitalization medical services or any other person authorized to provide health care services in Puerto Rico, that under contract with an insurer or health services organization renders health services to subscribers or beneficiaries of a health care or health insurance plan.
(f) Subscriber.— Means any person who receives the benefits of a health care or health insurance plan.
(g) Health services organization.— Means any person who renders or makes a commitment to provide a health care plan to one or more subscribers, pursuant to this Code.
(h) Health insurance.— Insurance for expenses incurred for bodily injury, disability or illness, or according to the definition of “disability insurance” provided in § 403 of this title.
History —Ins. Code, added as § 30.020 on July 7, 2002, No. 104, § 1, eff. 180 days after July 7, 2002.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3002/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3002 - Term for the payment of claims
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3002 - Term for the payment of claims
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The participating provider shall submit its claims for payment for services rendered within ninety (90) days after having rendered the same, and the insurer or health services organization is bound to pay in full any claim actionable for payment within a term of thirty (30) calendar days, counting from the date that the insurer or health services organization receives the same.
In the event that the insurer or health services organization is the secondary payer, the ninety (90) day-term shall begin to count on the date that the participating provider receives the determination of the primary payer.
After the terms indicated above have elapsed, the provisions of this chapter shall not apply to said claims. Provided, That the uniform term established herein shall not be construed to render ineffective those minor terms that may apply to the payment of claims for services rendered, if other alternate payment terms have been agreed on by free contracting.
History —Ins. Code, added as § 30.030 on July 7, 2002, No. 104, § 1; July 27, 2011, No. 150, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3003/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3003 - Payments for actionable claims
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3003 - Payments for actionable claims
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The participating providers shall submit their claims on the uniform payment form provided by the insurer or health services organization, which shall indicate the information that must be enclosed, pursuant to the provisions of the Health Insurance Portability and Accountability Act of 1996, and in the regulations of the Office of the Commissioner of Insurance. The claim shall be processed if it also complies with the following requirements:
(a) It corresponds to a health service rendered by a provider to an insured person whose service is covered by a health insurance or health care plan of the insurer or health service organization, to which the claim is addressed;
(b) it includes the complete and correct information required by the Insurer or Health Service Organization provided the insurer or health service organization have notified the required information to the participating provider, and
(c) there is no controversy regarding the amount claimed.
If the insurer or health services organization does not notify any objection to a claim for payment within a term of thirty (30) days, pursuant to § 3004 of this title, it shall be understood that said claim is actionable for payment.
The insurer or health service organization may request the reimbursement of an unprocessable claim paid to the provider, within a term of six (6) years counting from the moment that the insurer or health service organization made the payment, pursuant to the procedure established by the Commissioner through regulations, and subsequently resort to the corresponding court for judicial review, if it so desires.
History —Ins. Code, added as § 30.040 on July 7, 2002, No. 104, § 1; July 27, 2011, No. 150, § 2.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3004/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3004 - Claims non-actionable for payment
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3004 - Claims non-actionable for payment
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The insurer or health services organization shall notify the participating providers, in writing or electronically, of those claims that are not actionable for payment within a term of thirty (30) calendar days after receiving the claim. The notice shall clearly indicate the reasons for which the insurer or health services organization deems that the claim is not actionable for payment, indicating the documents or additional information that must be submitted so that it may be processed.
Within the following twenty (20) days of having received the notice of the insurer or health services organization, the participating provider must answer the same. The failure to do so shall be deemed to be an admission of the deficiencies notified. Once the participating provider submits the required information or documents, the insurer or health services organization shall proceed to pay the claim within the thirty (30) days following the receipt of the information or documents.
From the date that the insurer or health services organization receives a claim submitted by the participating provider, two (2) terms elapse concurrently, one thirty (30)-day term for the payment of clean claims as established in § 3002 of this title, and one thirty (30)-day term for the insurer or health services organization to remit the notice of claim payment denial to the participating provider. Any claim or part of the claim undisputed by the insurer or health services organization within the aforementioned thirty (30)-day term shall be deemed to be a clean claim. Said action entails the no interruption of the preceding thirty (30)-day term for the payment of claims. The erroneous notification of a non-actionable claim shall not interrupt the thirty (30)-day term for payment, thus, the insurer or health services organization shall proceed to pay the amount claimed, plus interest, as provided in §§ 3005 and 3006 of this title.
No insurer or health services organization shall refuse to pay a claim for services rendered because of unilateral alterations or amendments to the terms of the contract between the insurer or health services organization and the subscriber or between the insurer or health services organization and the provider, including amendments to the rates.
History —Ins. Code, added as § 30.050 on July 7, 2002, No. 104, § 1; July 27, 2011, No. 150, § 3; Sept. 25, 2012, No. 265, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3005/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3005 - Excluded claims
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3005 - Excluded claims
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Claims for services rendered that correspond to providers outside of Puerto Rico or to persons who do not reside in Puerto Rico shall not be subject to the provisions of this chapter, unless there is no prior authorization for the rendering of the service; the claims that require coordination of benefits, subrogation and investigation of preexisting conditions, or that involve liability of a third party, and the claims that are submitted by the provider sixty (60) days after the date of the service, unless the parties have agreed on to a longer term.
History —Ins. Code, added as § 30.060 on July 7, 2002, No. 104, § 1, eff. 180 days after July 7, 2002.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3006/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3006 - Interest
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3006 - Interest
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Any actionable claim that is not paid within the term provided, shall accrue interest [on] behalf of the participating provider on the total unpaid amount of said claim or the part thereof that is actionable for payment up to the date of its full payment, according to the prevailing legal interest fixed by the Commissioner of Financial Institutions. Said interest shall be accrued from the day following the expiration of the term for payment and shall be payable to the participating provider along with the actionable claim for payment.
The interest shall be computed up to the time the payment is issued, provided said payment is remitted to the participating provider within the three (3) days following the issuing thereof. If it is not remitted within said term, the interest shall be computed up to the date that the provider receives the corresponding payment.
History —Ins. Code, added as § 30.070 on July 7, 2002, No. 104, § 1, eff. 180 days after July 7, 2002.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3007/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3007 - Powers and duties 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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3007 - Powers and duties of the Commissioner
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In order to ensure compliance with the provisions of this chapter, the Commissioner shall have the following powers and duties:
(a) Impose administrative fines or sanctions for violations of the provisions of this chapter, pursuant to the provisions of this Code, upon the initiative of the Commissioner or after a complaint has been filed by a participating provider due to said noncompliance. Provided, That the provider shall have a term of one (1) year to file the [complaint] counting from the date the term for the payment of an actionable claim expires.
(b) Adopt, within one hundred and eighty (180) days from the approval of this act, the regulations needed to implement the same, pursuant to §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act.”
(c) The Commissioner shall have original jurisdiction regarding the controversies that arise between participating providers and insures or health services organizations, pursuant to this chapter. The party of adversely affected by the determination of the Commissioner may resort for review before the Commonwealth of Puerto Rico Circuit Court of Appeals pursuant to the provisions of §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedure Act.”
History —Ins. Code, added as § 30.080 on July 7, 2002, No. 104, § 1, eff. 180 days after July 7, 2002.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-30/3008/
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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 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008)›§ 3008 - Payment of claims in process
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 30 - Prompt Payment of Claims to Health Services Providers (§§ 3001 — 3008) › § 3008 - Payment of claims in process
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Every claim actionable for payment that has been submitted at the time this act becomes effective by participating providers and is pending processing, shall be paid by the insurer or health services organization within a term of fifty (50) calendar days from the effectiveness of this act. The claims that at the effectiveness date of this act are in dispute shall be subject to the provisions of this chapter.
History —Ins. Code, added as § 30.090 on July 7, 2002, No. 104, § 1, eff. 180 days after July 7, 2002.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3101/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3101 - Public policy
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3101 - Public policy
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The Government of Puerto Rico hereby states as a public policy, that, in contracts by and between providers and health services organizations, they shall be authorized to engage in collective bargaining. This public policy seeks to establish a balance in competitiveness when contracting for health services, for the benefit of consumers, providers, third-party administrators, and the health services organizations themselves.
The Government of Puerto Rico recognizes that there are health plans which dominate the market to such an extent that fair negotiations between providers or third-party administrators and health services organizations are virtually nonexistent and unattainable. In these cases, third-party administrators and health services organizations have, in essence, the power to unilaterally establish the terms on the adhesion contracts they offer to providers. Therefore, the Government of Puerto Rico finds it appropriate and necessary to authorize collective bargaining as to fees and other matters in which an unbalance as to contracting is found.
History —Ins. Code, added as § 31.010 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3102/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3102 - Definitions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3102 - Definitions
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For purposes of this chapter, the following terms or phrases shall have the meaning stated below, unless other meaning is clearly inferred from their context:
(1) Health care plan.— Means that which is defined as “health care plan” in § 1902 of this title.
(2) Person.— Means a natural person, association, insurer, group, union, trust, company, partnership, organization, corporation or any other juridical entity.
(3) Provider.— Means all physicians, hospitals, primary services centers, diagnosis and treatment centers, dentists, laboratories, pharmacies, emergency medical services, pre-hospital services, medical equipment providers, or any other persons authorized in Puerto Rico to provide health care services, whether on a group or an individual basis, and which by virtue of a contract with a health services organization and third-party administrators, render health care services to subscribers or beneficiaries of a health care plan.
(4) Health services organization.— Means that which is defined as “health services organization” in § 1902 of this title. For purposes of this chapter, this definition shall include disability insurers authorized to underwrite health insurance, pursuant to §§ 301–335 of this title.
(5) Health care services providing entity.— Means any person who offers or commits to provide health services to one or more health care plans, pursuant to the Insurance Code.
(6) Provider representative.— Means a third party authorized by the provider to negotiate on its behalf with health services organizations, the terms and conditions of the contract by and between the parties and the provider, which shall have:
(a) The authority and the powers conferred thereupon.
(b) A term to discharge such a function.
(c) A valid method to attest to the delegation of such a power or authority.
(d) A person with the authority to confer powers thereupon.
(e) Validity of the contract.
(f) Enforceable civil liability, and the person upon which it is binding.
(7) Third-party administrators.— It is a public or private organization that processes claims from providers without assuming any risk. These are usually contracted by health services organizations or other self-insuring companies, so that these administer services such as: claims processing, collection of premiums, contracting of providers, payments to providers, and administrative activities.
For the purposes of this chapter, the terms shall have the meaning stated above, but in case of controversy concerning the scope thereof, the definitions stated in §§ 103, 105 and 1902 of this title shall be used in a suppletory manner.
History —Ins. Code, added as § 31.020 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3103/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3103 - Authorized collective bargaining
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3103 - Authorized collective bargaining
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Providers, within the area of service of a health care plan, or provider representatives, may voluntarily assemble into groups according to specialty or geographical area. Groups or corporations authorized to engage in collective bargaining are not to exceed twenty percent (20%) of providers for such a specialty or service in said geographical area, which areas shall be defined by the Department of Health, with the advice of the Antitrust Affairs Office of the Department of Justice. Provided, however, That hospitals may only negotiate as individual corporations. These groups or corporations shall be authorized to engage in collective bargaining for the following terms and conditions in their contracts with third-party administrators and health services organizations:
(1) Fees and rates for health care services;
(2) guidelines on clinical practice and coverage criteria;
(3) administrative procedures, including methods and time of service for the payment of providers’ fees;
(4) proceedings for the resolution of controversies relative to disputes between health services organizations and providers concerning health care plans;
(5) subscriber referral procedures;
(6) establishment and application of methods to reimburse providers;
(7) quality assurance programs;
(8) reviewing procedures for the use of health care services;
(9) selection of providers in terms of health care plans and the criteria for terminating a contract, and
(10) the inclusion or alteration of the terms and conditions, to the extent these are subject to the regulations of the Government of Puerto Rico, prohibiting or requiring the particular term or condition in question; provided, however, that the aforementioned condition does not abridge the rights of providers to jointly petition that the Government of Puerto Rico modify regulations.
History —Ins. Code, added as § 31.030 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3104/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3104 - Supervision of the negotiation process
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3104 - Supervision of the negotiation process
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The Office of the Insurance Commissioner shall oversee and supervise negotiations between providers or provider representatives, third-party administrators, and health services organizations, in connection with health care plans, pursuant to the powers and authorities conferred by law. The Office of the Insurance Commissioner shall be responsible for ensuring that the results of the negotiation process conform to the remaining provisions of the Insurance Code. For this purpose, the Commissioner shall establish the necessary regulatory mechanisms. Provided, further, That before entering into any negotiation process, the Antitrust Affairs Office of the Department of Justice shall be notified. The minimum term of effectiveness of the agreements shall be two (2) years.
History —Ins. Code, added as § 31.040 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3105/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3105 - Method to resolve controversies and impasses in the negotiation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3105 - Method to resolve controversies and impasses in the negotiation
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Providers, provider representatives, third-party administrators and health services organizations shall submit to arbitration any controversy that has reached an impasse in the collective bargaining process authorized by this chapter.
By request of any of the aforementioned parties, the Department of Health, after having notified the other party, shall appoint an Arbitration Commission, whose entire proceedings shall be governed by the regulations to be prepared by the Department of Health and the Office of the Insurance Commissioner, and shall be covered under §§ 3201 et seq. of Title 32, known as the “Puerto Rico Arbitration Act”. Each Arbitration Commission, which shall be constituted in fifteen (15) days as of the date of notice by the parties designated, shall be composed of the following three (3) arbitrators, who shall be appointed as follows:
(1) An economist, preferably with experience in the field of health or insurance, designated by the President of the Economists’ Association.
(2) An independent and neutral intervener, certified by the Alternative Dispute Resolution Bureau, attached to the Office of the Chief Justice of the Supreme Court of Puerto Rico.
(3) An expert in the area of health services, designated by the Secretary of the Department of Health, who has no conflicts of interest.
The decision issued by the panel of arbitrators may be reviewed by the Court of First Instance of Puerto Rico located, within the territorial bounds where the parties reside, and the same shall be seen summarily, after the subpoena provided for by law is served.
Payment of the arbitrators shall be the responsibility of the parties, and the Department of Health shall be responsible for the disbursement, which matter, as well as all matters pertaining to the operations of the Arbitration Commissions, shall be subject to the regulations prepared by the aforementioned three (3) agencies.
History —Ins. Code, added as § 31.050 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3106/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3106 - Health Plan and Insurance Rates Reviewing Board
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3106 - Health Plan and Insurance Rates Reviewing Board
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A Health Plan and Insurance Rates Reviewing Board is hereby created, which shall have the power to regulate, supervise and approve the rates on account of premiums charged by persons, providers, health services organizations and health plans. If the negotiation between the parties involved should lead to an increase in deductibles or co-payments, premiums or rates, the parties shall notify the Insurance Commissioner, the Advocate for Patients, the Ombudsman, and the Department of Health, and obtain authorization for such an increase before the same is rendered effective. This panel shall also have the authority to address any unilateral act which entails an increase in premiums or a reduction in coverage and/or services, which shall be reviewable in its entirety by the Board created in this chapter. All of these entities are to approve such an increase.
History —Ins. Code, added as § 31.060 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3107/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3107 - Prohibition on certain joint actions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3107 - Prohibition on certain joint actions
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Any action by any of the parties which limits the services to be rendered, be it in the form of threats to boycott, go on strike or other coordinated action by the providers shall be subject to oversight by the Antitrust Affairs Office of the Department of Justice, in order to determine whether the same is in violation of the provisions of this chapter or the Antitrust Act. If the Antitrust Affairs Office should find that any of the parties has violated the provisions of §§ 257 et seq. of Title 10, civil and/or criminal liability shall be imposed pursuant to the penalties provided in said Act. Provided, further, That health services organizations may not take actions in retaliation against or which coerce providers during the negotiation process, such as withholding payments, conducting audits, and other similar actions.
Under this chapter, it is hereby prohibited for any entity that compulsorily assembles health professionals into groups to become a provider representative in the negotiation process.
History —Ins. Code, added as § 31.070 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3107a/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3107a - Existing general powers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3107a - Existing general powers
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None of the provisions of this chapter shall undermine the general powers delegated unto the Secretary of the Department of Consumer Affairs or those granted under subsection (d) of § 512c of Title 1, known as the “Bill of Rights of Persons with Disabilities”.
History —Ins. Code, added as § 31.071 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-31/3108/
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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 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108)›§ 3108 - Approval of regulations
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 31 - Collective Bargaining of Providers and Health Services Organizations (§§ 3101 — 3108) › § 3108 - Approval of regulations
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The Antitrust Affairs Office, attached to the Department of Justice, the Secretary of Health and the Insurance Commissioner shall adopt regulations as convenient and necessary for the implementation of the provisions of this chapter. Such regulations shall be approved within a term of sixty (60) days as of the date of effectiveness of this act. If these agencies should fail to comply with this mandate, the Court of First Instance may be resorted to by means of a mandamus. Likewise, they may be prosecuted for a misdemeanor, and upon conviction, a fine of up to ten thousand dollars ($10,000) may be imposed on the head of the agency in his/her personal capacity. Once these regulations have been prepared, these shall be remitted to the Legislature.
History —Ins. Code, added as § 31.080 on Aug. 8, 2008, No. 203, § 1, eff. 90 days after Aug. 8, 2008.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3301/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3301 - Reciprocal insurance, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3301 - Reciprocal insurance, defined
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Reciprocal insurance.— Is that resulting from an inter-exchange among persons, known as “subscribers”, of reciprocal agreements of indemnity, the interexchange being effectuated through an “attorney-in-fact” common to all such persons.
History —Ins. Code § 33.010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3302/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3302 - Reciprocal insurer, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3302 - Reciprocal insurer, defined
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A reciprocal insurer.— Means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact to provide reciprocal insurance among themselves.
History —Ins. Code § 33.020.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3303/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3303 - Scope of chapter
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3303 - Scope of chapter
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(1) All foreign reciprocal insurers shall be governed by those provisions of this chapter not expressly made applicable to domestic reciprocal insurers.
(2) Section 2932 of this title shall apply to domestic reciprocal insurers.
History —Ins. Code § 33.030.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3304/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3304 - Insuring powers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3304 - Insuring powers
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[(1)] A reciprocal insurer may, upon qualifying therefor as provided by this title, transact any kind or kinds of insurance defined by this title, other than life or title insurance.
(2) A reciprocal insurer may cede or accept reinsurance of any kind of risk which it is authorized to insure direct.
History —Ins. Code § 33.040.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3305/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3305 - Name, suit
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3305 - Name, suit
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A reciprocal insurer shall:
(1) Have and use a business name. The name shall include the word “reciprocal”, or “inter-insurer”, or “inter-insurance”, or “exchange”, or “underwriters,” or “underwriting.”
(2) Sue and be sued in its own name.
History —Ins. Code § 33.050.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3306/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3306 - Attorney, defined
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3306 - Attorney, defined
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Attorney.— As used in this chapter refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation.
History —Ins. Code § 33.060.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3307/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3307 - Organization
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3307 - Organization
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(1) Twenty-five or more persons domiciled in Puerto Rico may organize a domestic reciprocal insurer and in compliance with this title make application to the Commissioner for a certificate of authority to transact insurance.
(2) When applying for a certificate of authority, the original subscribers and the proposed attorney shall fulfill the requirements of and shall execute and file with the Commissioner a declaration setting forth:
(a) The name of the insurer.
(b) The location of the insurer’s principal office, which shall be the same as that of the attorney and shall be maintained within Puerto Rico.
(c) The kinds of insurance proposed to be transacted.
(d) The names and addresses of the original subscribers.
(e) The designation and appointment of the proposed attorney and a copy of the power of attorney.
(f) The name and addresses of the officers and directors of the attorney, if a corporation, or of its members, if a firm.
(g) The powers of the subscribers’ advisory committee and the names and terms of office of the members thereof.
(h) A copy of the subscribers’ agreement.
(i) A statement that each of the original subscribers has in good faith applied for insurance of the kind proposed to be transacted, and that the insurer has received from each subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than six months at the rate theretofore filed with and approved by the Commissioner.
(j) A statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by § 3308 of this title is on hand.
(k) A copy of each policy, endorsement, and application form it then proposes to issue or use.
(3) The declaration required by subsection (2) shall be acknowledged by each such subscriber and by the attorney before a notary public.
History —Ins. Code § 33.070.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3308/
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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 33 - Reciprocal Insurers (§§ 3301 — 3328)›§ 3308 - Surplus required
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3308 - Surplus required
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A domestic reciprocal insurer shall have and hold surplus funds in the amount equal to the amount of paid-in capital required of a domestic stock insurer transacting the same kind or kinds of insurance.
History —Ins. Code § 33.080; July 20, 1979, No. 154, p. 395, § 11.
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