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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3309/
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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)›§ 3309 - 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 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3309 - Certificate of authority
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(1) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
(2) The Commissioner may refuse, discontinue or revoke the certificate of authority, in addition to other grounds therefor, for failure of its attorney to comply with any provision of this title.
History —Ins. Code § 33.090.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3310/
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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)›§ 3310 - Power of attorney
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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) › § 3310 - Power of attorney
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(1) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.
(2) The power of attorney must set forth:
(a) The powers, duties and compensation of the attorney.
(b) That the attorney is empowered to obligate subscribers severally, within limits lawfully specified in the power of attorney, on contracts of insurance made with any subscriber as a policyholder through such attorney acting on behalf of all other subscribers.
(c) That the attorney is empowered to accept service of process on behalf of the insurer and to authorize the Commissioner to receive service of process in actions against the insurer upon contracts exchanged.
(d) Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount which amount shall be not less than one nor more than ten times the premium or premium deposit stated in the policy.
(3) The power of attorney may:
(a) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder.
(b) Contain other lawful provisions deemed advisable.
(4) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no such power or agreement or any amendment thereof, shall be used or be effective in Puerto Rico until approved by the Commissioner.
History —Ins. Code § 33.100.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3311/
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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)›§ 3311 - Modification of subscribers’ agreement or of power of attorney
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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) › § 3311 - Modification of subscribers’ agreement or of power of attorney
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Modification of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No such modification shall be effective retroactively, or as to any insurance contract issued prior thereto.
History —Ins. Code § 33.110.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3312/
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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)›§ 3312 - Bond of attorney-in-fact
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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) › § 3312 - Bond of attorney-in-fact
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(1) Concurrently with the filing of the declaration provided for in § 3307 of this title, the attorney of a domestic reciprocal insurer shall file with the Commissioner a bond running to the Commonwealth of Puerto Rico. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the Commissioner’s approval.
(2) The bond shall be in the penal sum of twenty-five thousand dollars ($25,000), conditioned upon the attorney’s faithfully accounting for all monies and other property of the insurer coming into his hands, and his not withdrawing or appropriating for his own use from the funds of the insurer any monies or property to which he is not entitled under the power of attorney.
(3) The bond shall provide that it is not subject to cancellation unless thirty days’ advance notice in writing of intent to cancel is given to both the attorney and the Commissioner.
History —Ins. Code § 33.120.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3313/
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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)›§ 3313 - Deposit in lieu of bond
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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) › § 3313 - Deposit in lieu of bond
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In lieu of such bond, the attorney may maintain on deposit with the Commissioner a like amount in cash or in value of securities qualified under this title as insurers’ investments, and subject to the same conditions as the bond.
History —Ins. Code § 33.130.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3314/
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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)›§ 3314 - Legal process, service; judgment
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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) › § 3314 - Legal process, service; judgment
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(1) Legal process shall be served upon a domestic reciprocal insurer by serving the insurer’s attorney at his principal offices or by serving the Commissioner as the insurer’s attorney-in-fact.
(2) Any judgment against the insurer based upon legal process so served shall be binding upon each of the insurer’s subscribers as their respective interests may appear and in an amount not exceeding their respective contingent liabilities.
History —Ins. Code § 33.140.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3315/
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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)›§ 3315 - Contributions to insurer
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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) › § 3315 - Contributions to insurer
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The provisions of §§ 2930 and 2931 of this title shall be applicable with respect to funds borrowed by or advanced to a domestic reciprocal insurer.
History —Ins. Code § 33.150.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3316/
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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)›§ 3316 - Determining financial condition
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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) › § 3316 - Determining financial condition
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In determining the financial condition of a reciprocal insurer the Commissioner shall apply the following rules:
(1) He shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis.
(2) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposit delinquent for ninety days shall first be charged against such surplus deposit.
(3) The surplus deposits of subscribers shall not be charged as a liability.
(4) All premium deposits delinquent less than ninety days shall be allowed as assets.
(5) An assessment levied upon subscribers, and not collected, shall not be allowed as assets.
(6) The contingent liability of subscribers shall not be allowed as an asset.
(7) The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for the compensation of the attorney.
History —Ins. Code § 33.160.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3317/
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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)›§ 3317 - Subscribers
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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) › § 3317 - Subscribers
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Any person, public or private corporation, firm, board, association, estate, trustee or fiduciary, in Puerto Rico or elsewhere, may make application, enter into agreement for and hold policies or contracts in or with and be a subscriber of any domestic or foreign reciprocal insurer. Any officer, representative, or trustee, receiver or legal representative of any such subscriber or policyholder, shall be recognized as acting for or on its behalf for the purpose of such contracts or subscribership but shall not be personally liable upon such contract by reason of acting in such representative capacity.
History —Ins. Code § 33.170.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3318/
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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)›§ 3318 - Subscribers’ advisory committee
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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) › § 3318 - Subscribers’ advisory committee
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(1) The advisory committee exercising the subscribers’ rights of supervision in a domestic reciprocal insurer shall be selected under such rules as the subscribers adopt.
(2) Not less than three-fourths (¾) of such committee shall be composed of subscribers other than the attorney, or any person employed by, representing, or having a financial interest in the attorney.
(3) The committee shall:
(a) Supervise the finance[s] of the insurer.
(b) Supervise the insurer’s operations to such extent as to assure their conformity with the subscribers’ agreement and power of attorney.
(c) Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer.
(d) Have such additional powers and functions as may be conferred by the subscribers’ agreement.
History —Ins. Code § 33.180.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3319/
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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)›§ 3319 - Subscriber’s liability
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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) › § 3319 - Subscriber’s liability
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(1) The liability of each subscriber subject to assessment for the obligation of the reciprocal insurer shall not be joint, but shall be individual and separate.
(2) Each subscriber who is subject to assessment shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers’ agreement, for payment of actual losses and expenses incurred while his policy was in force. Such contingent liability may be at the rate of not less than one or more than ten times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in § 3323 of this title.
(3) Each assessable policy issued by the insurer shall plainly set forth a statement of the contingent liability.
History —Ins. Code § 33.190.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3320/
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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)›§ 3320 - Subscriber’s liability on judgments
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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) › § 3320 - Subscriber’s liability on judgments
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(1) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days.
(2) Any such judgment shall be binding upon each subscriber only in such proportion as his interest may appear and in amount not exceeding his contingent liability, if any.
History —Ins. Code § 33.200.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3321/
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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)›§ 3321 - Assessments
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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) › § 3321 - Assessments
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(1) Assessments may be levied from time to time upon the subscribers of a domestic reciprocal insurer, other than as to nonassessable policies, by the attorney upon approval in advance by the subscribers’ advisory committee and the Commissioner; or by the Commissioner in liquidation of the insurer.
(2) Each such subscriber’s share of a deficiency for which an assessment is made, not exceeding in any event his aggregate contingent liability as computed in accordance with § 3323 of this title, shall be computed by applying to the premium earned on the subscriber’s policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.
(3) In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.
(4) No subscriber shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or losses payable.
History —Ins. Code § 33.210.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3322/
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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)›§ 3322 - Time limit for assessment
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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) › § 3322 - Time limit for assessment
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Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his share of any assessment, as computed and limited in accordance with this chapter, if:
(1) While his policy is in force or within one year after its termination, he is notified by either the attorney or the Commissioner of his intentions to levy such assessment, or
(2) if an order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insured should not be appointed is issued pursuant to §§ 4001–4024 of this title while his policy is in force or within one (1) year after its termination.
History —Ins. Code § 33.220.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3323/
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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)›§ 3323 - Aggregate liability
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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) › § 3323 - Aggregate liability
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No one policy or subscriber as to such policy, shall be assessed or be charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year, in excess of the number of times the premium as stated in the policy as computed solely upon premium earned on such policy during that year.
History —Ins. Code § 33.230.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3324/
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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)›§ 3324 - Extinguishment of contingent liabilities
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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) › § 3324 - Extinguishment of contingent liabilities
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(1) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum paid-in capital stock required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers’ advisory committee the Commissioner may authorize the insurer to extinguish the contingent liability of subscribers under its policies then in force, and to omit provisions imposing contingent liability in all policies thereafter issued for so long as all such surplus remains unimpaired.
(2) Upon impairment of such surplus, the Commissioner shall forthwith revoke the authority to issue nonassessable policies, and no policy shall thereafter be issued or renewed without providing for the contingent assessment liability of subscribers.
History —Ins. Code § 33.240.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3325/
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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)›§ 3325 - Share in savings
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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) › § 3325 - Share in savings
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A reciprocal insurer may from time to time return to its subscribers any savings or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks, or policies, or between subscribers, but such distribution may vary as to classes of subscribers, based upon the experience of such subscribers.
History —Ins. Code § 33.250.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3326/
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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)›§ 3326 - Subscriber’s share of assets
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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) › § 3326 - Subscriber’s share of assets
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Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions to its surplus, and the return of any unused deposits, savings, or credits, shall be distributed to its subscribers who were such within the three full calendar years prior to the last termination of its certificate of authority according to such reasonable formula as is approved by the Commissioner; subject, however, to the right of the Commissioner to require extension of such eligibility period beyond such three years, if deemed by him to be necessary and practicable for an equitable distribution of assets.
History —Ins. Code § 33.260.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3327/
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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)›§ 3327 - Merger or conversion
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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) › § 3327 - Merger or conversion
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(1) A domestic reciprocal insurer, upon affirmative vote of not less than two-thirds of the subscribers who vote upon such merger pursuant to such notice as may be approved by the Commissioner and with the approval of the Commissioner of the terms therefor, may merge with another reciprocal insurer to be converted to a stock or mutual insurer.
(2) Such a stock or mutual insurer shall be subject to the same capital or surplus requirements and shall have the same rights as a like domestic insurer transacting like kinds of insurance.
(3) The Commissioner shall not approve any plan for such merger or conversion which is inequitable to subscribers, or which, if for conversion to a stock insurer, does not give each subscriber preferential right to acquire stock of the proposed insurer proportionate to his interest in the reciprocal insurer as determined in accordance with § 3326 of this title and a reasonable length of time within which to exercise such right.
History —Ins. Code § 33.270.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-33/3328/
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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)›§ 3328 - Impaired reciprocals, procedure thereon
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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) › § 3328 - Impaired reciprocals, procedure thereon
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(1) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or other parties, and to maintain the surplus required for the kinds of insurance it is authorized to transact, and if the deficiency is not cured from other sources, its attorney shall forthwith levy an assessment upon subscribers made subject to assessment by the terms of the policies for the amount needed to make up the deficiency.
(2) If the attorney fails to make the assessment within thirty days after the Commissioner orders him to do so, or if the deficiency is not fully made up within sixty days after the date the assessment was made, the insurer shall be deemed insolvent and shall be proceeded against as authorized by this title.
(3) If liquidation of such an insurer is ordered, an assessment shall be levied upon the subscribers for such an amount subject to limits as provided in this chapter, as the Commissioner determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds contributed by the attorney or other parties, but including the reasonable cost of the liquidation.
History —Ins. Code § 33.280.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3401/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3401 - Scope, objectives and purposes, special provisions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3401 - Scope, objectives and purposes, special provisions
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This chapter applies only to domestic insurance cooperatives.
The purpose of insurance cooperatives is to promote the general wellbeing of the community through the development of insurance contracts that satisfy the need for protection against risks of its members, sponsors and the general public, in harmony with the cooperativism philosophy. With this purpose, [they] shall educate and disclose information on the need for and benefits of insurance and shall allocate funds for the purposes of cooperative education.
History —Ins. Code, added as § 34.010 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 1, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3401a/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3401a - General definitions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3401a - General definitions
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For the purposes of this chapter, unless otherwise expressly provided, the following definitions shall prevail:
(1) Cooperative Bank.— Refers to the Cooperative Bank of Puerto Rico.
(2) Cooperative affiliate.— Refers to a cooperative that has been admitted as a partner by the Board of Directors of the insurance cooperative.
(3) Fund contribution certificate.— Refers to the document that accredits the contribution or shares of a member in the capital of the insurance cooperative.
(4) Second-grade cooperative.— Refers to those cooperatives whose members are cooperative entities.
(5) Proxy.— Refers to the natural person designated by a member to represent him/her in the assemblies held by the insurance cooperative, provided that said member, whether an affiliate cooperative or the Cooperative Bank, has met the requirements established for such designation by the insurance cooperative in its bylaws.
(6) Officer.— Refers to persons who are in charge of the daily administration of the insurance cooperative, such as the president, vice-president, secretary, treasurer and any others necessary for such purpose.
(7) Board officers.— Refers to the directors elected by the Board to hold positions, such as the president, vice-president, secretary, treasurer of the Board of Directors of the insurance cooperative and other positions for which it is provided in the bylaws of the insurance cooperative.
(8) Board.— Refers to the Board of Directors of the insurance cooperative.
(9) Members.— Refers to those natural persons or affiliate cooperatives to which the insurance cooperative has issued a fund or share contribution certificate.
(10) Sponsorship.— Refers to the [ratio] that exists between the volume of business carried out between a cooperative and its members and the total volume of the same business carried out between said cooperative and its members and policyholders during a certain period of time.
(11) Term.— Refers to the period of time during which the person elected as such by the assembly of members or designated as such by the Board of Directors of the insurance cooperative shall perform as director of the insurance cooperative, in accordance with the provisions of this chapter.
(12) Duration of the term.— The duration of the term shall be three years, except in those cases in which:
(a) The director is designated by the Board of Directors of the insurance cooperative, in which case the duration of the term shall not exceed one (1) year; or
(b) by the initial staggered system established in the bylaws, or
(c) in the cases in which the assembly of the members elects a person for one or two years to complete the term of a director that has ceased to fill his/her position.
History —Ins. Code, added as § 34.011 on Nov. 12, 2007, No. 174, § 2, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3402/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3402 - Insurance cooperatives—General requirements
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3402 - Insurance cooperatives—General requirements
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The general requirements that the insurance cooperatives shall meet are the following:
(1) To operate in the interest of their members and policyholders.
(2) To operate on the basis of the principle of equality of rights and obligations with respect to their members.
(3) To have available a minimum surplus fund accumulated through member contributions at the time of organization. Said members shall receive a fund contribution certificate as evidence of their contribution.
(4) To grant to each member one single vote which shall be exercised at member assemblies personally and not by proxy. In the case that the member is a cooperative affiliate, or is the Cooperative Bank, it shall exercise its vote through its proxy.
(5) To further the social and economic improvement of their members and policyholders through their joint action in a collective work.
(6) To pay or accredit interest on fund contribution certificates issued and outstanding, according to the insurance cooperative’s surplus. The maximum interest to be paid shall be determined at least every two years, by the Insurance Commissioner, according to the prevailing rates in the private commercial banking institutions.
(7) Not to refuse admission as member to any person by reason of race, color, social standing, religious belief, or political affiliation; that is, to admit every one who, being eligible in accordance with the nature and scope of the operations and activities of the insurance cooperative, applies for admission therein, in accordance with the provisions in this chapter and in the bylaws of the insurance cooperative. These provisions, however, shall not be construed as a waiver of the right of the Board to refuse admission to any person or cooperative that, in its judgment, may prejudice the interests or obstruct or otherwise hinder the accomplishment of the ends and purposes of the insurance cooperative.
(8) Not to be for pecuniary profit, inasmuch as their returns and savings shall be distributed on the basis of sponsorship among the policyholders, after establishing such voluntary reserves as may be deemed necessary for the sound operation of the organization. It being understood by “distribution on the basis of sponsorship”, that which may result from applying an actuarial formula for the distribution of surpluses. Provided, That the directors of an insurance cooperative may from time to time pay or accredit to the policyholders entitled thereto, the sponsorship owing to them after accrediting the members with the corresponding interest. Provided, also, that such payments shall be made from such portions of the surplus funds that represent net savings made and net profits earned from their businesses, if the same do not reduce the surplus of the insurance cooperative to a sum lower than five percent (5%) of all its liabilities.
History —Ins. Code, added as § 34.020 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 1; June 14, 1980, No. 135, p. 506; Nov. 12, 2007, No. 174, § 3, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3403/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3403 - Insurance cooperatives—Powers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3403 - Insurance cooperatives—Powers
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The insurance cooperative shall have the same general powers as set forth in this Code for other insurers.
History —Ins. Code, added as § 34.030 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 4, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3404/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3404 - Insurance cooperatives—Incorporation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3404 - Insurance cooperatives—Incorporation
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An insurance cooperative may organize under this chapter to underwrite insurance with its members and other sponsors:
(1) Eleven or more persons of legal age who are residents of Puerto Rico and who join in their capacity as consumers may incorporate an insurance cooperative. It being understood by “consumers” those persons who are to obtain the insurance services rendered by the cooperative.
(2) The incorporators must sign and certify in triplicate before a notary public the articles of incorporation.
(3) If the articles of incorporation comply with the provisions of this Code, the Commissioner shall endorse his/her approval thereon to that effect. One copy of said articles shall be filed in the Office of the Secretary of State, another in the Office of the Commissioner and the third copy shall be returned to the insurance cooperative. Once these copies are so filed the incorporation shall be deemed made.
(4) The fees for such filing shall be as provided in §§ 701–706 of this title and no additional fee shall be charged therefor by the Secretary of State.
History —Ins. Code, added as § 34.040 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 5, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3405/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3405 - 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 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3405 - Articles of incorporation, contents
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The articles of incorporation of an insurance cooperative shall state:
(1) The name of the insurance cooperative, which shall contain as a distinctive part thereof, the word “Cooperative”. Provided, That no insurance cooperative may select a name already adopted by another insurer or which is so similar thereto as to be likely to create confusion.
(2) The name of the city or town in which will be located the insurance cooperative’s main 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 insurance cooperative is formed to transact, according to the definitions thereof in this Code. The insurance cooperative may initially be authorized to transact one or several kinds of insurance.
(5) There shall be indicated the authorized total number of fund contribution certificates and the amount of the contribution represented by each certificate. If the insurance cooperative authorizes more than one kind of contribution certificates, it shall indicate the description of each kind; the number of certificates making up each kind; and the rights, preferences and restrictions granted to or imposed on each kind.
(6) The names and mailing addresses of the incorporators and the number of fund contribution certificates underwritten.
(7) The names and mailing addresses of the provisional directors, who shall not be less than five.
The articles of incorporation of an insurance cooperative may include any other provision that is not contrary to the law, morality or the public order.
History —Ins. Code, added as § 34.050 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 2; Nov. 12, 2007, No. 174, § 6, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3406/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3406 - Amendments to 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 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3406 - Amendments to articles of incorporation
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(1) The articles of incorporation of an insurance cooperative may be amended by resolution adopted by ⅔ of the members present at a vote taken in a regular or a special assembly called for such purpose.
(2) If the amendment is to change the insurance cooperative’s name after the transaction of insurance in Puerto Rico thereunder, the proposed amendment shall not be submitted to the members [until] after the Board has applied for, and received the consent of the Commissioner to the proposed change. The amendment shall be deemed approved, unless it is denied by the Commissioner within thirty (30) days of it having been submitted to his/her consideration.
(3) After adoption of the amendment by the members of the insurance cooperative, its 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 insurance cooperative records. Upon completion of such filings the amendment shall be deemed effectuated.
History —Ins. Code, added as § 34.060 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 7, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3407/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3407 - Bylaws, contents
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3407 - Bylaws, contents
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(1) The members shall have the power, by a majority vote of the assembly legally constituted for that purpose, to approve and amend the bylaws to regulate the procedures of the insurance cooperative and govern the administration of its affairs. Such bylaws, if consistent with the law and the articles of incorporation, shall [govern]:
(a) The number, qualifications, powers and duration of term of office and manner of election of directors in the assemblies of members.
(b) The notice, quorum and holding of regular and special assemblies of members and voting thereat. No assembly shall be lawfully constituted unless at least 20% of the total number of the members of the insurance cooperative is present. Provided further, That not more than thirteen (13) months shall elapse between assemblies.
(c) The notice, quorum and holding of regular and special meetings of the Board of Directors.
(d) The manner of voting and the conditions under which the members shall vote at a regular or special assembly of the insurance cooperative.
(e) Issuance and transfer of fund contribution certificates of the insurance cooperative.
(f) The execution of contracts, and of the rights and interests of its members.
(g) All matters related to the election, removal, resignation or substitution of directors or officers of the Board. In case the bylaws grant to the Board of Directors the power to remove a director, it shall provide that the director shall be entitled to request a reconsideration of the determination of the Board within fifteen (15) workdays following the date on which the removal is notified to him/her. The removed director shall have the right to appeal the determination in reconsideration before the next regular assembly of members, provided he/she notifies to the Board his/her decision to appeal, duly grounded, within fifteen (15) workdays as of the notice of the determination in reconsideration.
(h) All matters related to the admission and denial of member applications and separation through a procedure that complies with due process of law.
(i) The obligation to create and adopt a code of ethics to govern the personal and professional behavior of the directors.
(j) All other usual, necessary and convenient matters.
(2) The insurance cooperative shall promptly file with the Commissioner a copy of the bylaws, certified by the Secretary of the insurance cooperative, as well as of every modification or addition to its bylaws. The Commissioner shall deny any clause of the bylaws that he/she deems to be illegal, unfair or injurious to the legitimate interests and due protection of the members or policyholders of the insurance cooperative. The bylaws, as well as its amendments, shall be deemed approved, unless denied by the Commissioner within thirty (30) days of having been submitted for his/her consideration.
History —Ins. Code, added as § 34.070 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 3; Dec. 13, 1990, No. 36, p. 1545, § 1; Nov. 12, 2007, No. 174, § 8, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3408/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3408 - Members, admission, resignation and involuntary separation, contribution certificates, liab...
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3408 - Members, admission, resignation and involuntary separation, contribution certificates, liability, voting right, duties, obligations and liquidation of obligations
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(a) Admission.—
(1) The Board of an insurance cooperative shall have the power to admit members according to the admission rules established by the articles of incorporation or the bylaws, or by resolution of the board, which rules shall be in harmony with the ends and purposes of the insurance cooperative, its faculties, and the provisions of this Code that allow admission as a member only to natural persons, only to cooperatives, or both. Provided, That if an application for admission is denied by the Board, the candidate shall have the right to appeal said decision before the next assembly that may be held, within fifteen (15) workdays [following] the notice of the decision of the Board. The candidate shall have the right to appeal the determination in reconsideration before the next regular assembly of members, as long as he/she notifies to the Board his/her decision to appeal, duly grounded, within fifteen (15) workdays [following] the notice thereof. In case the said assembly revokes by a majority vote, prior to the corresponding hearing, the decision of the Board, as long as said action is consistent with the Insurance Code, the articles of incorporation, or the bylaws of the insurance cooperative nor with the rules governing the eligibility of members established in the bylaws, the applicant shall be considered as a member of the cooperative from the date of the resolution revoking said decision.
(2) The Cooperative Bank of Puerto Rico may become a member of the insurance cooperatives.
(A) Does not comply with his/her duties and obligations as a member, as established in this Code or any other provided by the bylaws.
(b) Resignation and separation.—
(1) Resignation.— When a member wishes to terminate his/her relations with an insurance cooperative, he/she shall tender his/her resignation in writing to the Board, which shall act according to the provisions of this Code, the articles of incorporation and the bylaws or rules applicable to the case.
(2) Causes for the separation of a member.— The Board of Directors of the insurance cooperative may separate or expel a member when it deems that he/she:
(B) Has acted against the interests or ends and purposes of the insurance cooperative.
(C) Has violated the provisions of this chapter applicable to the members or has incurred any of the violations established in the bylaws as cause for separation.
(3) Procedure for involuntary separation.— When the Board considers that a member is acting against the interests of the insurance cooperative or of the obligations contracted with the cooperative, said Board may separate the member and deprive him/her of his/her rights and benefits in the insurance cooperative, counting from the date of his/her removal, after written notice of charges is served on the member affected, who shall be given a reasonable opportunity to defend himself/herself at a hearing before the Board. The member so separated may, within the fifteen (15) workdays following the date on which notice of his/her separation was served on him/her, appeal from the decision of the Board.
The member shall have the right to appeal the decision in reconsideration before the next regular assembly of members, provided he/she notifies the Board of his/her decision to appeal, duly grounded, within fifteen (15) workdays [following] the date of the notice of the decision in reconsideration.
The assembly may, by a majority of the members present, after the proper hearing, provided it is acting in accordance with the Insurance Code, the articles of incorporation or the bylaws of the insurance cooperative, ratify the decision of the Board or order the reinstatement of the member, including restoration of his/her rights and privileges.
(4) In the case that the insurance cooperative has natural persons among its members, upon the death of a member, his/her heirs or successors in interest may select the person who will be entitled to be part of the insurance cooperative, if such person meets the requirements established by the cooperative association for the admission of new members, and the fund contribution certificates and other assets the deceased may have had in the cooperative shall be registered to the name of said person. In case of opting for the liquidation of assets, the interests of the member in the property of the insurance cooperative shall be delivered to the person or persons entitled thereto.
(c) Fund contribution certificate.—
(1) Every member shall be under [the] obligation to pay the admission quota provided in the bylaws of the insurance cooperative, which shall never be less than a fund contribution certificate.
(2) The fund contribution certificates of an insurance cooperative may be transferred only with the consent of the Board and to persons eligible as members according to the articles of incorporation and the bylaws of the insurance cooperative. This restriction shall be printed on every fund contribution certificate.
(d) Voting right.— Every member shall have the right to cast only one vote in the regular and special assemblies of the insurance cooperative, notwithstanding the fund contribution certificates he/she owns. Provided, That this right is personal and unassignable, and may only be exercised at the assemblies of the insurance cooperative, in person if he/she is a natural person and by proxy if it is a cooperative or the Cooperative Bank.
(e) Duties and obligations of the member.— Every member shall comply with the obligations established by this chapter, with the articles of incorporation and with the bylaws, and with:
(1) Any social or financial obligation toward the insurance cooperative.
(2) The agreements of the assembly and of the Board of Directors.
(3) Shall be liable for the debts and obligations of the insurance cooperative only up to the unpaid amount, if any, on the fund contribution certificates underwritten by him/her.
(4) Sponsoring and watching over the interests of the insurance cooperative, which includes, among other things, periodic contributions to its social capital to contribute toward its strengthening and solidity and place with the insurance cooperative not less than 50% of the total premiums paid for the same kinds or lines of insurance marketed by the insurance cooperative.
(f) Liquidation of obligations.— When a member ceases to be so, the Board shall pay to the member or to his/her authorized representatives, or the persons entitled therefor, within one year as of the date of his/her resignation, separation or liquidation, the sum of money indicated in the documents that accredit his/her participation in the assets of the insurance cooperative. When, in the judgment of the Board, the total payment of said participation is damaging to the operations or financial stability of the insurance cooperative, and provided that the decision of the Board is based on objective criteria, the Board may pay in the following manner:
(1) Within one (1) year of the death, resignation, separation or liquidation of the member, he/she or his/her authorized representatives or the person or persons entitled therefor shall be paid all interest initially contributed directly by the member in the form of capital.
(2) The remaining interest of the member shall be paid annually in proportion and according to the date in which he/she accrued said assets throughout the years. The assets so accrued shall be paid starting not later than one year after the death, resignation, separation or liquidation of the member and they shall be paid within not more than five (5) years. They shall continue to be paid in the manner described above during a period in addition to the one previously expressed, with the prior approval of the Insurance Commissioner of Puerto Rico. On any date of the aforementioned periods the Board may order the payment of the balance owed up to that date. If the total assets of the member cannot be paid in a revolving manner within the aforementioned period, the Board shall be bound to liquidate the excess of said accrual in a prorated manner or in a lump sum on any date within the indicated period. Certificates with a redemption date held by members who are retiring shall be liquidated on or before said date.
History —Ins. Code, added as § 34.080 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 4; Dec. 13, 1990, No. 36, p. 1545, § 2; Nov. 12, 2007, No. 174, § 9, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3409/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3409 - First assembly of members
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3409 - First assembly of members
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(a) As soon as contribution certificates in the amount of three fourths of the minimum surplus funds required have been paid, and as soon as three fourths of the total number of applications of members required to qualify for the original certificate of authority have been accepted, the directors of the cooperative insurer being formed shall call the first assembly of members. The assembly shall be held in any city or town of Puerto Rico as stated in the cooperative’s articles of incorporation, and written notice of the date, time, place, and purposes of the assembly shall be sent to each such member, addressed to the member at his/her last address in record with the cooperative, or delivered to him/her personally, not less than thirty (30) days prior to the date of the assembly.
(b) The assembly shall consider and adopt cooperative bylaws of the insurance cooperative, elect directors with different terms of one, two or three years, according to the initial staggered system established in the bylaws and shall transact such other business as may properly come before it for its consideration.
History —Ins. Code, added as § 34.090 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 5; Dec. 13, 1990, No. 36, § 3; Aug. 5, 1993, No. 47, § 1; June 28, 1994, No. 32, § 1; Nov. 12, 2007, No. 174, § 10, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3410/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3410 - Regular and special member assemblies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3410 - Regular and special member assemblies
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The general assembly of members of insurance cooperatives shall be held in any city or town of the Island of Puerto Rico in which there are members.
Notice of said assembly shall be given not less than twenty (20) days in advance. The annual regular assembly shall fill the existing vacancies or those that occur on the Board of Directors, receive or consider reports of the officers of the Board of the insurance cooperative with regard to its business and shall resolve all other matters that are duly submitted by the members. Provided, That not more than thirteen (13) months shall elapse between one (1) regular assembly of members and the next.
No assembly of members may amend the articles of incorporation and the regulations of the insurance cooperative unless the proposal for its amendment has been included in the notice of the assembly.
The contents of resolutions presented in the assemblies shall be consistent with the ends and purposes of the insurance cooperative, the laws and bylaws. Furthermore, it is provided that such resolutions shall be submitted duly approved by the Board of Directors of the members to the Board of the insurance cooperative within the term established in the bylaws, and in the absence thereof, as provided by the Board for its evaluation and recommendation to the assembly.
It shall be the duty of the board of directors to call a special general meeting of members when 10% of the members file with the secretary a petition, in writing, to hold such assembly and specifying the matters to be discussed thereat.
History —Ins. Code, added as § 34.100 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 6; Apr. 4, 1992, No. 6, § 1; Nov. 12, 2007, No. 174, § 11; Sept. 29, 2010, No. 146, § 1.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3411/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3411 - Requirements and impediments for becoming a director
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3411 - Requirements and impediments for becoming a director
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When the members of the insurance cooperative are cooperatives, these shall have the right to nominate one of their members as candidate for director, provided that the affiliate cooperative complies with the duties and obligations of the members established in this chapter.
(1) Every director or candidate for director of an insurance cooperative shall comply, as of his/her nomination and during all of his/her incumbency, with the following requirements:
(a) Must have taken seminars on cooperativism. The candidate who aspires to be a director of the insurance cooperative for the first time, shall also take and approve during the first year of his/her incumbency an insurance course prepared by the insurance cooperative that has been submitted for the consideration of the Insurance Commissioner. The course shall include, at least, general principles of insurance, kinds of insurance marketed by the insurance cooperative and matters concerning the operations of the insurance cooperative. Every director shall participate in the continuing education program to be implemented by the insurance cooperative to ensure his/her permanent training.
(b) Must comply with all the requirements established in the bylaws of the insurance cooperative.
(c) Must be eligible for fidelity bond coverage.
(d) Shall be a resident of and actually reside in Puerto Rico.
(e) At least three fourths (¾) must be American citizens.
(2) The following shall be impediments for becoming the director of an insurance cooperative:
(a) Failure to comply with any of the requirements established in subsection (1) of this section.
(b) Having declared bankruptcy at some time, whether voluntarily, involuntarily or fraudulently, or to have fraudulently executed a general assignment in the benefit of collectors.
(c) Having been convicted of a felony, a misdemeanor, or found liable in a civil action lawsuit, in both cases at the state or federal level, abroad or in his/her country of origin, for actions that imply illegal appropriation, fraud, moral depravity or any other serious criminal conduct.
(d) Being director or officer of any of the financial institutions described in §§ 301–335 of this title or of the Cooperative Bank of Puerto Rico. For purposes of this provision, an officer is any person who, by virtue of any designation or contract and by means of the payment of a salary, compensation or remuneration, fills a position that entails his/her participation in decision-making or in the design and implementation of the policies of the aforementioned financial institutions. This prohibition, however, shall not prevent a director of a cooperative credit union from also being the director of an insurance cooperative.
(e) Having direct or indirect economic interest in any non-cooperative insurance company or any company whose business competes with that of the insurance cooperative.
(f) Failure to comply with the bylaws adopted by the insurance cooperative and its Board of Directors to preserve integrity and avoid conflicts of interest in the performance of his/her duties as director of the insurance cooperative.
(g) Having been separated as a member from the Board or committee, or as officer of the administration of a cooperative or any other corporation, association or entity, for the causes established by the laws of the Commonwealth of Puerto Rico or by the laws of the United States, in any other international jurisdiction or in his/her country of origin. Provided, That the removal as a group due to syndication contemplated by the law shall not be considered to be an impediment with respect to the director concerned if he/she presents attesting proof of having been redressed or held harmless with respect to the reasons that caused the termination by the competent authority that executed said removal as a group.
(h) Any person who is a member of the Board of Directors of two (2) or more central entities of the Cooperative Movement of Puerto Rico, as defined in the bylaws of the insurance cooperative, shall be hindered from becoming a member of the Board of Directors of the insurance cooperative at the same time.
(i) Having litigations or legally representing, in any venue, the moving party of a case against the insurance cooperative.
Should any of the aforementioned impediments arise while the director is performing his/her functions, it would disqualify him/her from continuing to be a director, in which case the Board of Directors shall continue the procedure established for the involuntary separation of members.
History —Ins. Code, added as § 34.110 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 7; July 20, 1979, No. 165, p. 420, § 10; Dec. 13, 1990, No. 36, p. 1545, § 4; Nov. 12, 2007, No. 174, § 12, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3412/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3412 - Election of directors
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3412 - Election of directors
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(1) The affairs of an insurance cooperative shall be administered by a Board of not less than five (5) nor more than thirteen (13) directors elected by the members from among them.
(2) Each director shall be elected for a minimum term of one (1) year and a maximum of three (3) years, and until his/her successor is elected and takes office. The directors shall have the right to be re-elected to serve for three (3) terms of three (3) consecutive years. A minimum period of twenty-four (24) months must elapse from the expiration of the term, before a person who has been elected for three (3) consecutive terms can once again aspire to be a director of the insurance cooperative.
(3) The names of the first provisional directors shall be listed in the articles of incorporation. Their successors shall be elected by the members at their first general assembly.
(4) The number, qualifications, terms, and powers and faculties of the directors shall be those prescribed in the articles of incorporation and the bylaws of the insurance cooperative subject to the provisions of this chapter.
(5) The election shall be held by secret ballot, except for when only one candidate is nominated.
(6) Vacancies that occur on the Board of Directors for any cause other than the expiration of the term of a director shall be filled by the remaining Board directors. The person thus selected to fill a vacancy on the Board shall hold office until his/her successor has been elected by the members at the next general regular or special assembly. Provided, That the time of incumbency of the director selected by the Board to fill the vacancy shall be considered to be a term as defined in this chapter.
(7) No director during his/her term of office shall be party to any lucrative contract with the insurance cooperative that differs in any way from the relation as insured.
(8) Any member may request the removal of a director by the proffering of charges that shall be filed in writing, with the secretary or the president of the Board of the insurance cooperative accompanied by a petition signed by five percent (5%) of all the members, requesting the removal of the director in question. Said request shall be submitted to the consideration of the next assembly of members, which may be a special session called for such purpose, which may remove the director by a majority vote of the members present. Provided, That such an assembly shall be held within a term of thirty (30) days from the filing of the request. The director against whom charges are proffered shall be notified of such charges in writing not less than fifteen (15) workdays prior to the assembly, and shall be given an opportunity to be heard at the assembly, in person or through counsel, and produce evidence; and the person or persons who have filed the charges against him/her shall have the same right.
History —Ins. Code, added as § 34.120 on June 26, 1959, No. 84, p. 220, § 1; Dec. 13, 1990, No. 36, p. 1545, § 5; Apr. 17, 2003, No. 113, § 1; Nov. 12, 2007, No. 174, § 13, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3412a/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3412a - Duties of the directors in the performance of their functions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3412a - Duties of the directors in the performance of their functions
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The directors of the insurance cooperative shall discharge their duties with the degree of care appropriate to the fiduciary relations they have toward the insurance cooperative. This fiduciary duty includes the duty of diligence and loyalty toward the insurance cooperative, as well as the duty to supervise and to give care as a good father of a family for the assets and the operations of the insurance cooperative.
No director or officer of an insurance cooperative shall accept, except for the insurer, nor shall he/she be the beneficiary of any fees, brokerage, donation or any other emolument by reason of any investment, loan, deposit, purchase, sale, exchange, reinsurance or any other transaction made by the insurance cooperative, or for himself/herself, nor shall he/she have any financial interest in said transactions in any capacity, except in representing the insurance cooperative.
This section does not prohibit said director or officer from becoming a policyholder of the insurance cooperative and enjoying, in accordance with the policy, all the rights and privileges commonly and usually provided therein for the policyholders in general.
When the directors and officers of the Board have personal or representation interests in matters that somehow affect the insurance cooperative, they shall be subject to the duty of loyalty that compels them to act ethically and in harmony with the bylaws and norms of the insurance cooperative with respect to matters concerning the latter.
History —Ins. Code, added as § 34.121 on Nov. 12, 2007, No. 174, § 14, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3413/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3413 - Board and administration officers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3413 - Board and administration officers
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(1) The Board shall elect its officers. Provided, That any director who is elected for the first time and who has no experience or studies in the field of insurance shall not be an officer of the Board.
(2) The chief executive officer of the administration of the insurance cooperative does not have to be a member of an affiliate cooperative, but if he/she is, he/she may not be a proxy thereof at the same time. Provided, That such person shall not at the same time be a director of the Board of Directors of the insurance cooperative.
(3) No director may receive any compensation or bonus as such director, beyond the assigned travel expenses and per diems during the days in which he/she may attend Board meetings or activities related to the insurance cooperative by direction of the Board itself, be it in the insurance area, or because of its nature as a cooperative. The directors shall be entitled to be reimbursed of the necessary expenses incurred by them in the performance of their officer duties. They shall also receive per diems for each meeting they attend or for each day they engage in activities thereof. The per diem to be received by the directors shall be established in the bylaws established by the Board for such purposes. The directors may be granted such life insurance or other insurance that shall protect the cooperative as well as the officer in his/her functions, without it being understood to a compensation or bonus.
(4) No person may act as a director, an administration officer and an employee of the insurance cooperative at the same time.
(5) Every administration officer or employee who in the performance of his/her duty intervenes with or handles cash shall furnish a bond. The amount of the bond shall be determined by the Board of Directors. The premium or cost of the bond shall be defrayed by the insurance cooperative.
History —Ins. Code, added as § 34.130 on June 26, 1959, No. 84, p. 220, § 1; July 20, 1979, No. 165, p. 420, § 11; Dec. 13, 1990, No. 36, p. 1545, § 5; Nov. 12, 2007, No. 174, § 15, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3414/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3414 - Education
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3414 - Education
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All the insurance cooperatives organized under this Code, shall be under obligation to set aside annually not less than one tenth (1/10) of one percent (1%) of the total volume of premiums paid for purposes of cooperative education. Provided, That the insurance cooperatives may contribute voluntarily to the League of Cooperatives of Puerto Rico a part of all their funds for educational purposes, in order that the latter may intensify the work on cooperative education.
History —Ins. Code, added as § 34.140 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 16, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3415/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3415 - Social reserve
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3415 - Social reserve
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The insurance cooperatives shall devote part of their net surplus available in an equitable manner to social programs such as hospitals, shelters or assistance programs for abused women and children, the terminally ill, elderly homes or centers, educational institutions and cooperative development programs that are directed to the development and growth of marginalized communities and groups. This reserve shall be established for a fixed annual amount, which means it shall not be a cumulative amount.
The use and administration of the social reserve shall be regulated by the Board of Directors of the insurance cooperative.
History —Ins. Code, added as § 34.150 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 17, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3416/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3416 - Use of the term “cooperative”
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3416 - Use of the term “cooperative”
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No person, firm, corporation, or association in Puerto Rico other than a cooperative association organized under the laws in force shall have the right to use the terms “cooperative”, “cooperation”, “cooperators” or words of similar meaning as a part of its name.
History —Ins. Code, added as § 34.160 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 18, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3417/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3417 - Insurance cooperatives are not in restraint of trade
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3417 - Insurance cooperatives are not in restraint of trade
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No insurance cooperative organized this Code shall, for the sole reason of being and acting in accordance with its cooperative nature, be deemed to be a conspiracy or a combination in restraint of trade or an illegal monopoly; neither shall it be considered organized for the purpose of lessening competition or fixing premiums arbitrarily; nor shall contracts executed between them and their members and other policyholders, or other contracts authorized or executed by virtue of the provisions of this Code, be construed as an unlawful restraint of trade or as part of a conspiracy or combination to carry out an improper or illegal purpose or act.
History —Ins. Code, added as § 34.170 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 19, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3418/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3418 - Tax exemption
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3418 - Tax exemption
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(1) Every cooperative insurer duly organized under this Code shall be exempted from all real and personal property taxes belonging to said cooperative insurer; Provided, That said exemption shall in no case exceed the appraised value of one million dollars ($100,000.000); Provided, further, That for fiscal years 2009-10, 2010-11, and 2011-12, the exemption that shall apply to such cooperative insurers shall be ten million dollars ($10,000,000).
(2) The tax exemption hereby authorized shall also include the stock issued by said cooperatives within the powers and faculties granted to them by this Code and the exemptions granted by the law to other types of cooperatives in Puerto Rico.
(3) Such cooperative insurers that wish to avail themselves of the tax exemption may request from the Director of the Municipal Revenues Collection Center exemption from the payment of taxes, accompanying with the application a statement of their assets and stock and the valuation thereof, the articles of incorporation, and all such data as the Director of the Municipal Revenues Collection Center may require of the cooperative in order to issue the exemption resolution. Once the resolution is issued, the insurers shall proceed to publish the same in a newspaper of general circulation in Puerto Rico.
(4) General rule.—
(a) Except as provided in clause (b) of this subsection, cooperative insurers organized pursuant to this Code, being non-profit associations, shall not be subject to the payment of income tax.
(b) Taxable years beginning after December 31, 2008, and before January 1, 2012.— Notwithstanding the provisions of §§ 8401–8697 of Title 13, and this Code, during each of the taxable years beginning after December 31, 2008, and before January 1, 2012, cooperative insurers organized pursuant to this Code shall be subject to a special five percent (5%) tax on the amount of their net income for the taxable year, to be computed in accordance with the provisions of §§ 8591–8602 of Title 13, regardless of the provisions of § 8501 of Title 13 or this Code, but only to the extent that said net income exceeds two hundred fifty thousand dollars ($250,000). Unless otherwise provided by the Secretary of the Treasury by regulation, circular letter or other administrative determination or communication of a general nature, such tax shall be reported, paid, and collected in such form and manner as established in §§ 8401–8697 of Title 13, for corporations to pay general income taxes.
History —Ins. Code, added as § 34.180 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 20; Mar. 9, 2009, No. 7, § 27; July 10, 2009, No. 37, § 18.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3419a/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3419a - Acquisition of stock
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3419a - Acquisition of stock
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Insurance cooperatives may organize and acquire other insurers and any other type of business, as provided in §§ 648–662 of this title or any other provision of this Code, by themselves or jointly with other cooperative institutions, for which they shall have the same powers and the same duties as the other insurers.
History —Ins. Code, added as § 34.191 on June 27, 1964, No. 110, p. 330; Nov. 12, 2007, No. 174, § 21, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3419b/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3419b - Impaired assets
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3419b - Impaired assets
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(1) If the assets of an insurance cooperative suffer impairment, the Commissioner shall immediately determine the amount of the deficiency and so notify the insurance cooperative to cover it, whether by requiring its members to make an additional contribution or in any other way, within ninety (90) days after being notified.
(2) The deficiency shall be made up with cash or eligible assets pursuant to this Code for the investment of the funds of the insurance cooperative.
(3) For the purposes of this section, an insurance cooperative shall be considered as having impaired assets to the extent that its liabilities exceed its assets, both to be determined as provided in Chapter 5 of this Code, but including as liability any minimum surplus fund required to be maintained as authorization to transact the kinds of insurance underwritten.
(4) If the deficiency is not covered, offering proof thereof to the Commissioner, within such ninety (90)-day term, the insurance cooperative shall be considered insolvent and proceeded against pursuant to the provisions of this Code.
(5) If the deficiency is not made up, the insurer may not issue or deliver any policy after the expiration of such ninety (90)-day term. Any officer or director of the Board violating this provision or knowingly permitting the same to be violated shall incur a fine of not more than one thousand dollars ($1,000) for each violation.
History —Ins. Code, added as § 34.192 on June 25, 1965, No. 86, p. 200, § 9; Nov. 12, 2007, No. 174, § 22, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3419c/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3419c - Assigning quotas to members to cover impairment of assets
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3419c - Assigning quotas to members to cover impairment of assets
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(1) If authorized by the vote of not less than two-thirds of the members of an insurance cooperative present at a special assembly called to said effect, the Board of Directors may impose a special prorated assessment on all contribution certificates issued by the insurance cooperative, to guarantee totally or partially the necessary funds to cover the impairment of assets, in accordance with the notification and requirement of the Commissioner, as provided in § 3419b of this title.
(2) Written notice of such assessment shall be transmitted by registered mail to each one of such members to the last address registered in the insurance cooperative, requiring payment of such assessment before the expiration of the term of eighty-five (85) days.
Upon prior agreement of the Board of Directors and with the consent of the Commissioner, such notice may provide that if the member fails to pay the assessment when due his/her fund contribution certificates, or such part thereof as may be necessary to said effect, shall, on a date within the period of five (5) days after expiration of the term specified in the preceding paragraph, become property of the insurance cooperative. In no case may the insurance cooperative appropriate for itself contribution certificates of members whose contribution exceeds the assessment corresponding to said members. The appropriation of fund contribution certificates by the insurance cooperative in the prescribed manner shall be recorded upon the books of the insurance cooperative and shall be fully binding and operative upon all parties. Provided, That as soon as the financial condition of the insurance cooperative so permits, the Board of Directors may proceed to accredit to members fund contribution certificates whose value shall in no case exceed the sums appropriated in the aforesaid manner. The insurance cooperative or its creditors shall have no further remedy against the member failing to pay the assessment thus imposed.
History —Ins. Code, added as § 34.193 on June 25, 1965, No. 86, p. 200, § 10; Nov. 12, 2007, No. 174, § 23, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3420/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3420 - Persons related with other insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3420 - Persons related with other insurers
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No agent, solicitor, broker, adjuster, consultant or insurer related to insurers not organized under the provisions of this chapter may belong as a member, nor acquire fund contribution certificates, nor organize an insurance cooperative as it is defined in this chapter.
History —Ins. Code, added as § 34.200 on June 26, 1959, No. 84, p. 220, § 1; Dec. 13, 1990, No. 36, p. 1545, § 5; Jan. 19, 2006, No. 10, § 9; Nov. 12, 2007, No. 174, § 24, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3421/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3421 - Persons barred from membership
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3421 - Persons barred from membership
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No natural or juridical person may be a member of an insurance cooperative under the provisions of this chapter, if said person has had his/her license cancelled in accordance with the provisions of §§ 949–953i of this title, or is under investigation toward that end by the Insurance Commissioner of the Commonwealth of Puerto Rico.
History —Ins. Code, added as § 34.210 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 25, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3422/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3422 - Applicability of other provisions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3422 - Applicability of other provisions
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The provisions in §§ 2801–2820 of this title, which regulate the organization of insurers, shall not apply to insurance cooperatives, with the exception of the section that establishes a prohibition on constituting an insurer that depends on the payment of assessments, premiums for assessments or contributions made among its policyholders or members. Neither shall the provisions of §§ 2901–2954 of this title which regulate on [sic]the corporate powers and procedures of domestic stock and mutual insurers apply, with the exception of the sections on general corporate powers, on regular and special assemblies, on management and exclusive agency; contracts, on limitation of expenses, mutuals, on accounts, vouchers for expenditures, on borrowed funds, on repayment of borrowed funds, on transactions in other countries, on illegal dividends, penalties, on merger or consolidation, on effect of merger or consolidation, on voluntary liquidation and dissolution, on voluntary liquidation; administration, on voluntary liquidation; powers of the Commissioner, on voluntary liquidation; certificate of authority, on voluntary liquidation, certificate of dissolution, and on filing of certificate; effective date of dissolution, inclusive.
Insurance cooperatives shall not be subject to the provisions of the General Corporation Law, §§ 2601 et seq. of Title 14.
History —Ins. Code, added as § 34.220 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 11; Nov. 12, 2007, No. 174, § 26, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-34/3423/
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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 34 - Insurance Cooperatives (§§ 3401 — 3423)›§ 3423 - Applicability of provisions not excepted
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3423 - Applicability of provisions not excepted
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All the provisions of this Code not expressly excepted shall apply to insurance cooperatives to the extent they are applicable. In aspects of a cooperative nature not covered by this chapter, the first resort shall be the General Cooperative Associations Act, then the Savings and Credit Cooperatives Partnership Act, Cooperative Law, and last of all the Civil Code of Puerto Rico.
History —Ins. Code, added as § 34.230 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 27, eff. 30 days after Nov. 12, 2007.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3501/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3501 - Scope
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3501 - Scope
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This chapter applies only to domestic Lloyd’s plan insurers.
History —Ins. Code § 35.010.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3502/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3502 - Definition
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3502 - Definition
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For the purpose of this title, a domestic Lloyd’s plan insurer is a partnership of unincorporated individual insurers, having joint and several unlimited liability, acting through an attorney-in-fact, and transacting as insurer such kinds of insurance (or classes thereof) as may be authorized by the compact between such individuals and as may be authorized by law.
History —Ins. Code § 35.020.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3503/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3503 - General requirements as to Lloyd’s insurers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3503 - General requirements as to Lloyd’s insurers
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(1) Except as otherwise expressly provided, Lloyd’s insurers are subject to the same requirements and have the same privileges as apply under this title to insurers in general.
(2) Section 2932 of this title (as to operations in foreign countries) shall be applicable to Lloyd’s insurers.
History —Ins. Code § 35.030.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3504/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3504 - Attorney-in-fact
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3504 - Attorney-in-fact
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(1) The respective underwriters or insurers in a Lloyd’s (by power of attorney) shall vest in an attorney-in-fact full power to represent and bind them with respect to compliance by the insurer with the requirements of this title, and with respect to all insurance transactions under the certificate of authority.
(2) The attorney-in-fact may be either an individual or a corporation.
(3) The principal place of business of the attorney-in-fact shall be maintained in Puerto Rico.
(4) All reports, statements, and documents of or by the insurer shall be executed in its name by the attorney-in-fact.
History —Ins. Code § 35.040.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3505/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3505 - Qualification of Lloyd’s insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3505 - Qualification of Lloyd’s insurer
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(1) A domestic Lloyd’s may be authorized to transact insurance while it maintains on deposit in trust for the benefit of its policyholders and creditors, with the Secretary of the Treasury through the office of the Commissioner, surplus funds in amount equal to the paid-in capital required of a domestic stock insurer transacting like kinds of insurance.
(2) The insurer must be comprised of not less than twenty-five individual underwriters or insurers, each of whom must be worth in his own right not less than twenty-five thousand dollars ($25,000) over and above all his liabilities.
(3) In addition to the requirements of § 317 of this title, when applying for a certificate of authority for a domestic Lloyd’s insurer the attorney-in-fact shall file with the Commissioner a financial statement of recent date as to each component underwriter or insurer.
History —Ins. Code § 35.050.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3506/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3506 - Emergency authorization
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3506 - Emergency authorization
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(1) Notwithstanding the provisions of § 3505 of this title, when for any reason hurricane insurance on crops and plantations in Puerto Rico cannot be secured through other authorized insurers, or as surplus line coverage under §§ 1001–1020 of this title, or cannot be so secured at reasonable rates or on reasonable terms and conditions of coverage, the Commissioner is empowered to facilitate the obtaining of such insurance by agriculturists, through a special temporary authorization which he may grant at the request of any group of individual insurers under the Lloyd’s plan, made through the Secretary of Agriculture, and approved by the Governor.
(2) The Commissioner shall issue such authority for such period and upon compliance with such terms and conditions as he deems reasonable in view of the circumstances then existing. Such insurer shall not transact any insurance except against windstorm, hurricane, and related risks.
(3) The provisions of §§ 2801–2820 of this title (organization of domestic insurers) shall not apply with respect to an insurer formed pursuant to this section. The Commissioner may waive such other provisions of this title as are, in his opinion, not reasonably or practically applicable to such an insurer.
History —Ins. Code § 35.060.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3507/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3507 - Substituted or additional underwriters
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3507 - Substituted or additional underwriters
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All underwriters substituted or added to a Lloyd’s insurer subsequent to issuance of its certificate of authority, shall be subject to the same obligations and liabilities as the organizing or original underwriters, as if they had signed the original power of attorney and other original documents of the insurer on file with the Commissioner.
History —Ins. Code § 35.070.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3508/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3508 - Other changes
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3508 - Other changes
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(1) After issuance of a certificate of authority to a domestic Lloyd’s insurer, the compact among the individual insurers or underwriters, the power of attorney, and the name of the insurer shall not be changed except with the approval of the Commissioner.
(2) The insurer shall promptly notify the Commissioner in writing of any change:
(a) Of location of principal office or place of business.
(b) Substitution of attorney-in-fact.
(c) Substitutions or additions among individual insurers or underwriters.
The Commissioner may, in his discretion, require the execution and filing of new documents as originally required of the insurer, on account of any changes.
History —Ins. Code § 35.080.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3509/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3509 - Actions against Lloyd’s insurer
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3509 - Actions against Lloyd’s insurer
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(1) Any cause of action against a Lloyd’s insurer may be instituted against any one or more of: The attorney-in-fact; the individual insurers or underwriters jointly or any number of them; any individual insurer or underwriter.
(2) Any judgment rendered against any one or more of the parties defendant as specified in subsection (1), in an action arising out of the insurance transactions of the Lloyd’s insurer, shall be equally binding on each and all of the individual insurers or underwriters, whether or not named as parties to the action. Any such individual insurers or underwriters having to make a payment over and above his proportional participation, shall be fully entitled to reimbursement therefor by the other insurers or underwriters.
(3) Service of process upon a Lloyd’s insurer, or upon any individual underwriter or underwriters as such, shall be upon the attorney-in-fact or upon the Commissioner, as provided in § 327 of this title.
History —Ins. Code § 35.090.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-35/3510/
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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 35 - Lloyd’s Insurers (Domestic)›§ 3510 - Impairment of surplus
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3510 - Impairment of surplus
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(1) The surplus of a Lloyd’s insurer shall be deemed to be impaired when the amount of its assets is less than the amount of its liabilities, including as a liability, for the purposes of this provision, the amount of its surplus required under this title for authority to transact the kinds of insurance it is authorized to transact.
(2) If the Commissioner at any time finds that sich an impairment of surplus exists, he shall give the attorney-in-fact written notice thereof and demand that the deficiency be cured within ninety days after the date of the notice. If the deficiency is not so cured, the Commissioner shall, upon expiration of such ninety-day period, revoke the insurer’s certificate of authority and proceed against it as an insolvent insurer pursuant to the provisions of §§ 4001–4024 of this title.
History —Ins. Code § 35.100.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3601/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3601 - Definitions—Fraternal benefit societies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3601 - Definitions—Fraternal benefit societies
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Any incorporated society, order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which makes provision for the payment of benefits in accordance with this chapter, is hereby declared to be a fraternal benefit society. When used in this chapter the word “society”, unless otherwise indicated, shall mean fraternal benefit society.
History —Ins. Code, added as § 36.010 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3602/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3602 - Definitions—Lodge system
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3602 - Definitions—Lodge system
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A society having a supreme legislative or governing body and subordinate lodges or branches by whatever name known, into which members are elected, initiated or admitted in accordance with its constitution, laws, ritual and rules, which subordinate lodges or branches shall be required by the laws of the society to hold regular meetings at least once in each month, shall be deemed to be operating on the lodge system.
History —Ins. Code, added as § 36.020 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3603/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3603 - Definitions—Representative form of government
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3603 - Definitions—Representative form of government
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A society shall be deemed to have a representative form of government when:
(a) It provides in its constitution or laws for a supreme legislative or governing body, composed of representatives elected either by the members or by delegates elected directly or indirectly by the members, together with such other members of such body as may be prescribed by the society’s constitution and laws;
(b) the representatives elected constitute a majority in number and have not less than two-thirds of the votes nor less than the votes required to amend its constitution and laws;
(c) the meetings of the supreme legislative or governing body and the election of officers, representatives or delegates are held as often as once in four calendar years;
(d) each insured member shall be eligible for election to act or serve as a delegate to such meeting;
(e) the society has a board of directors charged with the responsibility for managing its affairs in the interim between meetings of its supreme legislative or governing body, subject to control by such body and having powers and duties delegated to it in the constitution or laws of the society;
(f) such board of directors is elected by the supreme legislative or governing body, except in case of filling a vacancy in the interim between meetings of such body;
(g) the officers are elected either by the supreme legislative or governing body or by the board of directors, and
(h) the members, officers, representatives or delegates shall not vote by proxy.
History —Ins. Code, added as § 36.030 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3604/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3604 - Organization
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3604 - Organization
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(a) The organization of a society shall be governed as follows:
(1) Seven or more persons, the majority of which shall be citizens of the United States and residents of Puerto Rico, who desire to form a fraternal benefit society, may make, sign and acknowledge before some officer competent to take acknowledgments.
(2) Articles of incorporation, in which shall be stated:
(A) The proposed corporate name of the society, which shall not so closely resemble the name of any society or insurance company as to be misleading or confusing;
(B) the purposes for which it is being formed and the mode in which its corporate powers are to be exercised. Such purposes shall not include more liberal powers than are granted by this chapter, provided that any lawful, social, intellectual, educational, charitable, benevolent, moral, fraternal or religious advantages may be set forth among the purposes of the society, and
(C) the names and residences of the incorporators and the names, residences and official titles of all the officers, trustees, directors, or other persons who are to have and exercise the general control of the management of the affairs and funds of the society for the first year or until the ensuing election at which all such officers shall be elected by the supreme legislative or governing body, which election shall be held not later than one year from the date of the issuance of the permanent certificate of authority.
(b) Such articles of incorporation, duly certified copies of the constitution, laws and rules, copies of all proposed forms of certificates, applications therefor, and circulars to be issued by the society, and a bond conditioned upon the return to applicants of the advanced payments if the organization is not completed within one year, shall be filed with the Commissioner of Insurance, who may require such further information as he deems necessary. The bond with sureties approved by the Commissioner of Insurance shall be in such amount, not less than five thousand dollars ($5,000) nor more than twenty-five thousand dollars ($25,000), as required by the Commissioner of Insurance. All documents filed are to be in either the English or Spanish language. If the purposes of the society conform to the requirements of this chapter and all provisions of the law have been complied with, the Commissioner of Insurance shall so certify, retain and file the articles of incorporation and furnish the incorporators a preliminary certificate authorizing the society to solicit members as hereinafter provided.
(c) No preliminary certificate granted under the provisions of this section shall be valid after one year from its date or after such further period, not exceeding one year, as may be authorized by the Commissioner of Insurance upon cause shown, unless the five hundred applicants hereinafter required have been secured and the organization has been completed as herein provided. The articles of incorporation and all other proceedings thereunder shall become null and void in one year from the date of the preliminary certificate, or at the expiration of the extended period, unless the society shall have completed its organization and received a certificate of authority to do business as hereinafter provided.
(d) Upon receipt of a preliminary certificate from the Commissioner of Insurance, the society may solicit members for the purpose of completing its organization, shall collect from each applicant the amount of not less than one regular monthly premium in accordance with its table of rates as provided by its constitution and laws, and shall issue to each such applicant a receipt for the amount so collected. No society shall incur any liability other than for the return of such advance premium, nor issue any certificate, nor pay, allow, or offer or promise to pay or allow, any death or disability benefit to any person until:
(1) Actual bona fide applications for death benefits have been secured aggregating at least five hundred thousand dollars on not less than five hundred lives, none of which shall be insured for more than one thousand dollars, for the purposes of complying with the requirement of five hundred thousand dollars herein established; Provided, That for the purpose of complying with the requirement of insurance on five hundred lives, the applications of members from various subordinate lodges or branches of such society may be counted;
(2) all such applicants for death benefits shall have furnished evidence of insurability satisfactory to the society;
(3) certificates of examinations or acceptable declarations of insurability have been duly filed and approved by the chief medical examiner of the society;
(4) there has been submitted to the Commissioner of Insurance, under oath of the president or secretary, or corresponding officer of the society, a list of such applicants, giving their names, addresses, date each was admitted, name and number of the subordinate branch of which each applicant is a member, amount of benefits to be granted and premiums therefor, and
(5) it shall have been shown to the Commissioner of Insurance, by sworn statement of the treasurer, or corresponding officer of such society, that at least five hundred applicants have each paid in cash at least one regular monthly premium as herein provided, which premiums in the aggregate shall amount to at least twenty-five hundred dollars, all of which shall be credited to the fund or funds from which benefits are to be paid and no part of which may be used for expenses. Said advance premiums shall be held in trust during the period of organization and if the society has not qualified for a certificate of authority within one year, such premiums shall be returned to said applicants.
(e) The Commissioner of Insurance may make such examination and require such further information as he deems advisable. Upon presentation of satisfactory evidence that the society has complied with all the provisions of law, he shall issue to the society a certificate to that effect and that the society is authorized to transact business pursuant to the provisions of this chapter. The certificate shall be prima facie evidence of the existence of the society at the date of such certificate. The Commissioner of Insurance shall cause a record of such certificate to be made. A certified copy of such record may be given in evidence with like effect as the original certificate.
(f) Every society shall have the power to adopt a constitution and laws for the government of the society, the admission of its members, the management of its affairs and the fixing and readjusting of the rates of its members from time to time. It shall have the power to change, alter, or amend such constitution and laws and shall have such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.
History —Ins. Code, added as § 36.040 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3605/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3605 - Corporate powers retained
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3605 - Corporate powers retained
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Any incorporated society authorized to transact business in Puerto Rico at the time this act becomes effective may thereafter exercise all the rights, powers and privileges prescribed in this chapter and in its charter or articles of incorporation so far as consistent with this chapter. A domestic society shall not be required to reincorporate.
History —Ins. Code, added as § 36.050 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3606/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3606 - Existing voluntary associations—Incorporation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3606 - Existing voluntary associations—Incorporation
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After one year from the effective date of this act, no unincorporated association shall be permitted to transact business in Puerto Rico as a fraternal benefit society.
Any domestic voluntary association now authorized to transact business in Puerto Rico may incorporate and shall receive from the Commissioner of Insurance a permanent certificate of incorporation as a fraternal benefit society when:
(1) It shall have completed its conversion to an incorporated society not later than one year from the effective date of this act.
(2) it has filed its articles of incorporation and has satisfied the other requirements described in § 3604 of this title, and
(3) the Commissioner of Insurance shall have made such examination and procured whatever additional information he shall deem advisable.
Every voluntary association so incorporated shall incur the obligations and enjoy the benefits thereof the same as though originally incorporated, and such corporation shall be deemed a continuation of the original voluntary association. The officers thereof shall serve through their respective terms as provided in its original articles of association, but their successors shall be elected and shall serve as provided in its articles of incorporation. Incorporation of a voluntary association shall not affect existing suits, claims or contracts existing at the moment of the incorporation.
History —Ins. Code, added as § 36.060 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3607/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3607 - Principal office—Place of meeting
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3607 - Principal office—Place of meeting
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The principal office of any domestic society shall be located in Puerto Rico. The meetings of its supreme legislative or governing body may be held in any state, district, province or territory wherein such society has at least five subordinate branches and all business transacted at such meetings shall be as valid in all respects as if such meetings were held in Puerto Rico.
History —Ins. Code, added as § 36.070 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3608/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3608 - Consolidations and mergers
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3608 - Consolidations and mergers
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A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the Commissioner of Insurance:
(1) a certified copy of the written contract containing in full the terms and conditions of the consolidation or merger;
(2) a sworn statement by the president and secretary or corresponding officers of each society showing the financial condition thereof on a date fixed by the Commissioner of Insurance but not earlier than December thirty-first, next preceding the date of the contract;
(3) a certificate of such officers, duly verified by their respective oaths, that the consolidation or merger has been approved by a two-thirds vote of the supreme legislative or governing body of each society, and
(4) evidence that at least sixty days prior to the action of the supreme legislative or governing body of each society, the text of the contract has been furnished to all members of each society either by mail or by publication in full in the official organ of each society.
If the Commissioner of Insurance finds that the contract is in conformity with the provisions of this section, that the financial statements are correct and that the consolidation or merger is just and equitable to the members of each society, he shall approve the contract and issue his certificate to such effect. Upon such approval, the contract shall be in full force and effect unless any society which is a party to the contract is incorporated under the laws of any other state or territory. In such event the consolidation or merger shall not become effective unless and until it has been approved as provided by the laws of such state or territory and a certificate of such approval filed with the Commissioner of Insurance of Puerto Rico or, if the laws of such state or territory contain no such provision, then the consolidation or merger shall not become effective unless and until it has been approved by the Commissioner of Insurance of such state or territory and a certificate of such approval filed with the Commissioner of Insurance of Puerto Rico.
Upon the consolidation or merger becoming effective as herein provided, all the rights, franchises and interests of the consolidated or merged societies in and to every species of property, real, personal or mixed, and things in action thereunto belonging shall be vested in the society resulting from or remaining after the consolidation or merger without any other instrument, except that conveyances of real property may be evidenced by proper deeds, and the title to any real estate or interest therein, vested under the laws of this state in any of the societies consolidated or merged, shall not revert or in any way be impaired by reason of the consolidation or merger, but shall vest absolutely in the society resulting from or remaining after such consolidation or merger.
The affidavit of any officer of the society or of anyone authorized by it to mail any notice or document, stating that such notice or document has been duly addressed and mailed, shall be prima facie evidence that such notice or document has been furnished the addressees.
History —Ins. Code, added as § 36.080 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3609/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3609 - Conversion of fraternal benefit society into mutual life insurance company
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3609 - Conversion of fraternal benefit society into mutual life insurance company
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Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of Section 28.160 of this Code, if such plan of conversion has been approved by the Commissioner of Insurance. Such plan shall be prepared in writing setting forth in full the terms and conditions thereof. The board of directors shall submit such plan to the supreme legislative or governing body of such society at any regular or special meeting thereof, by giving a full, true and complete copy of such plan with the notice of such meeting. Such notice shall be given as provided in the laws of the society for the convocation of a regular or special meeting of such body, as the case may be. The affirmative vote of two-thirds of all members of such body shall be necessary for the approval of such agreement. No such conversion shall take effect unless and until approved by the Commissioner of Insurance who may give such approval if he finds that the proposed change is in conformity with the requirements of law and not prejudicial to the certificate holders of the society.
History —Ins. Code, added as § 36.090 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3610/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3610 - Qualifications for membership
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3610 - Qualifications for membership
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A society may admit to benefit membership any person not less than fifteen years of age, nearest birthday, who has furnished evidence of insurability acceptable to the society. Any such member who shall apply for additional benefits more than six months after becoming a benefit member shall furnish additional evidence of insurability acceptable to the society unless such additional benefits are issued pursuant to an existing contract under the terms of which such member is entitled to purchase such additional benefits without furnishing evidence of insurability.
Any person admitted prior to attaining the full age of twenty-one years shall be bound by the terms of the application and certificate and by all the laws and rules of the society and shall be entitled to all the rights and privileges of membership therein to the same extent as though the age of majority had been attained at the time of application. A society may also admit general or social members who shall have no voice or vote in the management of its insurance affairs.
History —Ins. Code, added as § 36.100 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3611/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3611 - Articles of incorporation, constitution and laws—Amendments
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3611 - Articles of incorporation, constitution and laws—Amendments
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A domestic society may amend its articles of incorporation, constitution or laws in accordance with the provisions thereof by action of its supreme legislative or governing body at any regular or special meeting thereof or, if its articles of incorporation, constitution or laws so provide, by referendum. Such referendum may be held in accordance with the provisions of its articles of incorporation, constitution or laws by the vote of the voting members of the society, by the vote of delegates or representatives of voting members or by the vote of local lodges or branches. No amendment submitted for adoption by referendum shall be adopted unless, within six months from the date of submission thereof, a majority of all of the voting members of the society shall have signified their consent to such amendment by one of the methods herein specified.
No amendment to the articles of incorporation, constitution or laws of any domestic society shall take effect unless approved by the Commissioner of Insurance who shall approve such amendment if he finds that it has been duly adopted and is not inconsistent with any requirement of the laws of Puerto Rico or with the character, objects and purposes of the society. Unless the Commissioner of Insurance shall disapprove any such amendment within sixty days after the filing of same, such amendment shall be considered approved. The approval or disapproval of the Commissioner of Insurance shall be in writing and mailed to the secretary or corresponding officer of the society at its principal office. In case he disapproves such amendment, the reasons therefor shall be stated in such written notice.
Within ninety days from the approval thereof by the Commissioner of Insurance, all such amendments, or a synopsis thereof, shall be furnished to all members of the society either by mail or by publication in full in the official organ of the society. The affidavit of any officer of the society or of anyone authorized by it to mail any amendments or synopsis thereof, stating facts which show that same have been duly addressed and mailed, shall be prima facie evidence that such amendments or synopsis thereof, have been furnished the addressee.
Every foreign or alien society authorized to do business in Puerto Rico shall file with the Commissioner of Insurance a duly certified copy of all amendments of, or additions to, its articles of incorporation, constitution or laws within ninety days after the enactment of same.
Printed copies of the constitution or laws as amended, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.
History —Ins. Code, added as § 36.110 June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3612/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3612 - Institutions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3612 - Institutions
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It shall be lawful for a society to create, maintain and operate charitable, benevolent or educational institutions for the benefit of its members and their families and dependents and for the benefit of children insured by the society. For such purpose it may acquire, own, hold or lease, and dispose of personal property or real property located within or without Puerto Rico, with necessary buildings thereon. Such property shall be reported in every annual statement but shall not be allowed as an admitted asset of such society, except as permitted under this title.
Maintenance, treatment and proper attendance in any such institution may be furnished free or a reasonable charge may be made therefor, but no such institution shall be operated for profit. The society shall maintain a separate accounting of any income and disbursements under this section and report them in its annual statement. No society shall own or operate funeral homes or undertaking establishments.
History —Ins. Code, added as § 36.120 June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3613/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3613 - Personal liability
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3613 - Personal liability
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The officers and members of the supreme, grand or any subordinate body of a society shall not be personally liable for payment of any benefits provided by a society.
History —Ins. Code, added as § 36.130 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3614/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3614 - Benefits
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3614 - Benefits
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(1) A society authorized to do business in Puerto Rico may provide for the payment of:
(a) Death benefits in any form;
(b) endowment benefits;
(c) annuity benefits;
(d) temporary or permanent disability benefits as a result of a disease or accident;
(e) hospital, medical or nursing benefits due to sickness or bodily infirmity or accident, and
(2) Such benefits may be provided on the lives of members or, upon application of a member, on the lives of the member’s family, including the member, the member’s spouse and minor children, in the same or separate certificates.
History —Ins. Code, added as § 36.140 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3615/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3615 - Benefits on lives of children
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3615 - Benefits on lives of children
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A society may provide for benefits on the lives of children under the minimum age for adult membership but not greater than twenty-one years of age at time of application therefor, upon the application of some adult person, as its laws or rules may provide, which benefits shall be in accordance with the provisions of § 3614(1) of this title. A society may, at its option, organize and operate branches for such children. Membership and initiation in local lodges shall not be required of such children, nor shall they have a voice in the management of the society.
A society shall have power to provide for the designation and changing of designation of beneficiaries in the certificate providing for such benefits and to provide in all other respects for the regulation, government and control of such certificates and all rights, obligations and liabilities incident thereto and connected therewith.
History —Ins. Code, added as § 36.150 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3616/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3616 - Nonforfeiture benefits, cash surrender values, certificate loans and other options
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3616 - Nonforfeiture benefits, cash surrender values, certificate loans and other options
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A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans and such other options as its laws may permit. As to certificates issued on and after the effective date of this act, a society shall grant at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity contracts, reducing term insurance contracts, or contracts of term insurance of uniform amount of fifteen years or less expiring before age sixty-six.
In the case of certificates other than those for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Table or the Commissioners 1958 Standard Ordinary Mortality Table, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the excess, if any of (a) or (b) as follows:
(a) The reserve under the certificate determined on the basis specified in the certificate, and
(b) the sum of any indebtedness to the society on the certificate, including interest due and accrued, and a surrender charge equal to two and one-half percent (2 1 / 2 %) of the face amount of the certificate, which, in the case of insurance on the lives of children, shall be the ultimate face amount of the certificate, if death benefits provided therein are graded.
However, in the case of certificates issued on a substandard basis or in the case of certificates, the reserves for which are computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit including pure endowment, if any, may be computed upon the rates of mortality not greater than one hundred thirty percent (30%) of those shown by the mortality table specified in the certificate for the computation of the reserve.
In the case of certificates for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Table or the Commissioners 1958 Standard Ordinary Mortality Table, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of Puerto Rico applicable to life insurance companies issuing policies containing like insurance benefits based upon such tables.
History —Ins. Code, added as § 36.160 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3617/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3617 - Beneficiaries
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3617 - Beneficiaries
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The member shall have the right at all times to change the beneficiary or beneficiaries in accordance with the constitution, laws or rules of the society. Every society by its constitution, laws or rules may limit the scope of beneficiaries and shall provide that no beneficiary shall have or obtain any vested interest in the proceeds of any certificate until the certificate has become due and payable in conformity with the provisions of the insurance contract.
A society may make provision for the payment of funeral benefits to the extent of such portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled thereto by reason of having incurred expenses occasioned by the burial of the member, provided the portion so paid shall not exceed the sum of five hundred dollars ($500).
If, at the death of any member, there is no lawful beneficiary to whom the insurance benefits shall be payable, the amount of such benefits, except to the extent that funeral benefits may be paid as hereinbefore provided, shall be payable to the lawful heirs of the deceased member.
History —Ins. Code, added as § 36.170 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3618/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3618 - Benefits not attachable
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3618 - Benefits not attachable
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No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society.
History —Ins. Code, added as § 36.180 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3619/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3619 - The contract
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3619 - The contract
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Every society authorized to do business in Puerto Rico shall issue to each benefit member a certificate specifying the amount of benefits provided thereby. The certificate, together with any endorsements attached thereto, the charter or articles of incorporation, the constitution and laws of the society, the application for membership, and declaration of insurability, if any, signed by the applicant, and all amendments to each thereof, shall constitute the agreement, as of the date of issuance, between the society and the member, and the certificate shall so state. A copy of the application for membership and of the declaration of insurability, if any, shall be endorsed upon or attached to the certificate.
All statements made by the member shall be representations and not warranties. Any waiver of this provision shall be void.
Any changes, additions or amendments to the charter or articles of incorporation, constitution or laws duly made or enacted subsequent to the issuance of the certificate, shall bind the member and the beneficiaries, and shall govern and control the agreement in all respects the same as though such changes, additions or amendments had been made prior to and were in force at the time of the application for membership, except that no change, addition or amendment shall destroy or diminish benefits which the society contracted to give the member as of the date of issuance.
Copies of any of the documents mentioned in this section, certified by the secretary or corresponding officer of the society, shall be received in evidence of the terms and conditions thereof.
A society shall provide in its constitution or laws that if its reserves as to all or any class of certificates become impaired its board of directors or corresponding body may require that there shall be paid by the member to the society the amount of the member’s equitable proportion of such deficiency as ascertained by its board, and that if the payment be not made it shall stand as an indebtedness against the certificate and draw interest not to exceed five percent (5%) per annum compounded annually.
History —Ins. Code, added as § 36.190 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3620/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3620 - Life benefit certificate provisions, standard and prohibited
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3620 - Life benefit certificate provisions, standard and prohibited
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After one year from the effective date of this act, no life benefit certificate shall be delivered or issued for delivery in Puerto Rico unless a copy of the form shall have been filed with the Commissioner of Insurance and approved by him as conforming to the requirements of this section and not inconsistent with any other provisions of law applicable thereto. A certificate shall be deemed approved unless disapproved by the Commissioner of Insurance within sixty days from the date of such filing.
(1) The certificate shall contain in substance the following standard provisions or, in lieu thereof, provisions which are more favorable to the member:
(a) Title on the face and filing page of the certificate clearly and correctly describing its form.
(b) A provision stating the amount of rates, premiums or other required contributions, by whatever name known, which are payable by the insured under the certificate.
(c) A provision that the member is entitled to a grace period of not less than a full month (or thirty days at the option of the society) in which the payment of any premium after the first, may be made. During such grace period the certificate shall continue in full force, but in case the certificate becomes a claim during the grace period before the overdue payment is made, the amount of such overdue payment or payments may be deducted in any settlement under the certificate.
(d) A provision that the member shall be entitled to have the certificate reinstated at any time within three years from the due date of the premium in default, unless the certificate has been completely terminated through the application of a nonforfeiture benefit, cash surrender value or certificate loan, upon the production of evidence of insurability satisfactory to the society and the payment of all overdue premiums and any other indebtedness to the society upon the certificate, together with interest on such premiums and such indebtedness, if any, at a rate not exceeding six percent (6%) per annum compounded annually.
(e) Except in the case of pure endowment, annuity or reversionary annuity contracts, reducing term insurance contracts, or contracts of term insurance of uniform amount of fifteen years or less expiring before age sixty-six, a provision that, in the event of default in payment of any premium after three full years’ premiums have been paid or after premiums for a lesser period have been paid if the contract so provides, the society will grant, upon proper request not later than sixty days after the due date of the premium in default, a paid-up nonforfeiture benefit on the plan stipulated in the certificate, effective as of such due date, of such value as specified in this chapter. The certificate may provide, if the society’s laws so specify or if the member shall so elect prior to the expiration of the grace period of any overdue premium, that default shall not occur so long as premiums can be paid under the provisions of an arrangement for automatic premium loan as may be set forth in the certificate.
(f) A provision that one paid-up nonforfeiture benefit as specified in the certificate shall become effective automatically unless the member elects another available paid-up nonforfeiture benefit, not later than sixty days after the due date of the premium in default.
(g) A statement of the mortality table and rate of interest used in determining all paid-up nonforfeiture benefits and cash surrender options available under the certificate, and a brief general statement of the method used in calculating such benefits.
(h) A table showing in figures the value of every paid-up nonforfeiture benefit and cash surrender option available under the certificate for each certificate anniversary either during the first twenty certificate years or during the term of the certificate, whichever is shorter.
(i) A provision that the certificate shall be incontestable after it has been in force during the lifetime of the member for a period of two years from its date of issue except for nonpayment of premiums, violation of the provisions of the certificate relating to military, aviation, or naval service and violation of the provisions relating to suspension or expulsion as substantially set forth in the certificate. At the option of the society, supplemental provisions relating to benefits in the event of temporary or permanent disability or hospitalization and provisions which grant additional insurance specifically against death by accident or accidental means, may also be excepted. The certificate shall be incontestable on the ground of suicide after it has been in force during the lifetime of the member for a period of two years from date of issue. The certificate may provide, as to statements made to procure reinstatement, that the society shall have the right to contest a reinstated certificate within a period of two years from date of reinstatement with the same exceptions as herein provided.
(j) A provision that in case the age or sex of the member or of any other person is considered in determining the premium and it is found at any time before final settlement under the certificate that the age or sex has been misstated, and the discrepancy and premium involved have not been adjusted, the amount payable shall be such as the premium would have purchased at the correct age and sex; but if the correct age or sex was not an insurable age or sex under the society’s charter or laws, only the premiums paid to the society, less any payments previously made to the member, shall be returned, or at the option of the society, the amount payable under the certificate shall be such as the premium would have purchased at the correct age and sex according to the society’s promulgated rates and any extension thereof based on actuarial principles.
(k) A provision or provisions which recite fully, or which set forth the substance of, all sections of the charter, constitution, laws, rules or regulations of the society, in force at the time of issuance of the certificate, the violation of which will result in the termination of, or in the reduction of, the benefit or benefits payable under the certificate.
(l) If the constitution or laws of the society provide for expulsion or suspension of a member, any member so expelled or suspended, except for nonpayment of a premium or within the contestable period for material misrepresentations in such member’s application for membership shall have the privilege of maintaining his insurance in force by continuing payment of the required premium.
Any of the foregoing provisions or portions thereof not applicable by reason of the plan of insurance or because the certificate is an annuity certificate may, to the extent inapplicable, be omitted from the certificate.
(2) After one year from the effective date of this act, no life benefit certificate shall be delivered or issued for delivery in Puerto Rico containing in substance any of the following provisions:
(a) Any provision limiting the time within which any action at law may be commenced to less than two years after the cause of action shall accrue;
(b) any provision by which the certificate shall purport to be issued or to take effect more than six months before the original application for the certificate was made, except in case of transfer from one form of certificate to another in connection with which the member is to receive credit for any reserve accumulation under the form of certificate from which the transfer is made, or
(c) any provision for forfeiture of the certificate for failure to repay any loan thereon or to pay interest on such loan while the total indebtedness, including interest, is less than the loan value of the certificate.
(3) The word “premiums” as used in this chapter means premiums, rates, or other required contributions by whatever name known.
History —Ins. Code, added as § 36.200 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3621/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3621 - Accident and health insurance and total and permanent disability insurance certificates
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3621 - Accident and health insurance and total and permanent disability insurance certificates
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No domestic, foreign or alien society authorized to do business in Puerto Rico shall issue or deliver in Puerto Rico any certificate or other evidence of any contract of accident insurance or health insurance or of any total and permanent disability insurance contract unless and until the form thereof, together with the form of application and all riders or endorsements for use in connection therewith, shall have been filed with the Commissioner of Insurance and approved by him as conforming to reasonable rules and regulations from time to time made by him and as not inconsistent with any other provisions of law applicable thereto. The Commissioner of Insurance shall, within a reasonable time after the filing of any such form, notify the society filing the same either of his approval or of his disapproval of such form. The Commissioner of Insurance may approve any such form which in his opinion contains provisions on any one or more of the several requirements made by him which are more favorable to the members than the one or ones so required. The Commissioner of Insurance shall have power, from time to time, to make, alter and supersede reasonable regulations prescribing the required, optional and prohibited provisions in such contracts, and such regulations shall conform, as far as practicable, to the provisions of §§ 1601–1636 and 1701–1708 of this title. Where the Commissioner of Insurance deems inapplicable, either in part or in their entirety, the provisions of the foregoing sections, he may prescribe the portions or summary thereof of the contract to be printed on the certificate issued to the member. Any filing made hereunder shall be deemed approved unless disapproved within sixty days from the date of such filing.
History —Ins. Code, added as § 36.210 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3622/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3622 - Waiver
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3622 - Waiver
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The constitution and laws of the society may provide that no subordinate body, nor any of its subordinate officers or members shall have the power or authority to waive any of the provisions of the laws and constitution of the society. Such provision shall be binding on the society and every member and beneficiary of a member.
History —Ins. Code, added as § 36.220 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3623/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3623 - Reinsurance
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3623 - Reinsurance
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A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in Puerto Rico, or if not so authorized, as established under § 412(c) of this title, one which is approved by the Commissioner of Insurance, but no such society may reinsure substantially all of its insurance in force without the written permission of the Commissioner of Insurance. It may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after the effective date of this act, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.
History —Ins. Code, added as § 36.230 on June 13, 1964, No. 55, p. 122; May 31, 1973, No. 73, p. 328, § 10.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3624/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3624 - Annual license
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3624 - Annual license
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Societies which are now authorized to transact business in Puerto Rico may continue such business with no license required within the period of twelve months next succeeding the effective date of this act. The certificates of authority of such societies and all societies hereafter licensed, may thereafter be renewed annually, but in all cases to terminate on June 30 of each year. However, a license so issued shall continue in full force and effect until the new license be issued or specifically refused. For each such license of renewal the society shall pay the Commissioner of Insurance one hundred dollars. A duly certified copy or duplicate of such license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this chapter.
History —Ins. Code, added as § 36.240 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3625/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3625 - Foreign or alien society—Admission
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3625 - Foreign or alien society—Admission
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No foreign or alien society shall transact business in Puerto Rico without a license issued by the Commissioner of Insurance. Any such society may be licensed to transact business in Puerto Rico upon filing with the Commissioner of Insurance:
(a) a duly certified copy of its charter or articles of incorporation;
(b) a copy of its constitution and laws, certified by its secretary or corresponding officer;
(c) the certificate and other documents as required by clauses (i) and (j) of § 317(1) of this title;
(d) a statement of its business under oath of its president and secretary or corresponding officers in a form prescribed by the Commissioner of Insurance, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province or country, satisfactory to the Commissioner of Insurance of Puerto Rico;
(e) a certificate from the proper official of its home state, territory, province or country that the society is legally incorporated and licensed to transact business therein;
(f) copies of its certificate forms, and
(g) such other information as he may deem necessary, and upon a showing that its assets are invested in accordance with the provisions of this chapter.
Any foreign or alien society desiring to be authorized in Puerto Rico shall have the qualifications required of domestic societies organized under this chapter.
History —Ins. Code, added as § 36.250 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3626/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3626 - Liquidation—Receivership of domestic society
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3626 - Liquidation—Receivership of domestic society
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(a) When the Commissioner of Insurance upon investigation finds that a domestic society:
(1) Has exceeded its powers.
(2) Has failed to comply with any provision of this chapter.
(3) Is not fulfilling its contracts in good faith.
(4) Has a membership of less than four hundred after an existence of one year or more.
(5) Is conducting business fraudulently or in a manner hazardous to its members, creditors, the public or the business, he shall notify the society of such deficiency or deficiencies and state his reasons in writing. He shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist are corrected. After such notice the society shall have a thirty-day period in which to comply with the Commissioner’s request, and if the society fails to comply the Commissioner shall notify the society of his findings of noncompliance and require the society to show cause on a date named why it should not be enjoined from carrying on any business until the violation complained of shall have been corrected, or why the liquidation of the society should not be ordered.
(b) If on such date the society does not present good and sufficient reasons why it should not be so enjoined or liquidated, the Commissioner of Insurance may request of the Court of First Instance an order to liquidate the society.
(c) The court shall thereupon notify the officers of the society of a hearing. If after a full hearing it appears that the society should be liquidated, the court shall enter the necessary order.
(d) No society so enjoined shall have the authority to do business until:
(1) The Commissioner of Insurance finds that the violation complained of has been corrected;
(2) the costs of such action shall have been paid by the society if the court finds that the society was in default as charged;
(3) the Commissioner of Insurance has reinstated the certificate of authority.
(e) If the court orders the society liquidated, it shall be enjoined from carrying on any further business, whereupon the receiver of the society shall proceed at once to take possession of the books, papers, money and other assets of the society and, under the direction of the court, proceed forthwith to close the affairs of the society and to distribute its funds to those entitled thereto.
(f) Whenever a receiver is to be appointed for a domestic society, the court shall appoint the Commissioner of Insurance as such receiver.
(g) The provisions of this section relating to hearing by the Commissioner of Insurance, hearing by the court, and receivership shall be applicable to a society which shall voluntarily determine to discontinue business.
History —Ins. Code, added as § 36.260 on June 13, 1964, p. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3627/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3627 - Suspension, revocation or refusal of license to foreign or alien society
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3627 - Suspension, revocation or refusal of license to foreign or alien society
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When the Commissioner of Insurance upon investigation finds that a foreign or alien society transacting or applying to transact business in Puerto Rico:
(a) Has exceeded its powers;
(b) has failed to comply with any of the provisions of this chapter;
(c) is not fulfilling its contracts in good faith, or
(d) is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, he shall notify the society of such deficiency or deficiencies and state in writing the reasons for his dissatisfaction. He shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist are corrected. After such notice the society shall have a thirty-day period in which to comply with the Commissioner’s request, and if the society fails to comply the Commissioner shall notify the society of his findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked or refused. If on such date the society does not present good and sufficient reason why its certificate of authority to do business in Puerto Rico should not be suspended, revoked or refused, he may suspend or refuse the license of the society to do business in Puerto Rico until satisfactory evidence is furnished to him that such suspension or refusal should be withdrawn, or he may revoke the authority of the society to do business in Puerto Rico.
Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in Puerto Rico during the time such society was legally authorized to transact business herein.
History —Ins. Code, added as § 36.270 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3628/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3628 - Producer’s license
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3628 - Producer’s license
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A license shall be issued to the producers of societies pursuant to the provisions of this section:
(a) Insurance producer.— As used in this section means any authorized or acknowledged agent of a society who acts as such in the solicitation, negotiation or procurement or making of a life insurance, accident and health insurance or annuity contract, except that the term “insurance producer” shall not include:
(1) Any regular salaried officer or employee of a licensed society who devotes substantially all of his services to activities other than the solicitation of fraternal insurance contracts, and who receives for the solicitation of such contracts no commission or other compensation directly dependent upon the amount of business obtained, or
(2) any agent or representative of a society who devotes, or intends to devote, less than fifty percent (50%) of his time to the solicitation of insurance contracts for such society. Any person who in the preceding calendar year has solicited or procured life insurance contracts on behalf of any society in an amount of insurance in excess of fifty thousand dollars ($50,000), or, in the case of any other kind or kinds of insurance which the society might write, on the persons of more than twenty-five (25) individuals and who has received or will receive a commission or other compensation therefor, shall be presumed to be devoting, or intending to devote, fifty percent (50%) of his time to the solicitation or procurement of insurance contracts for such society.
(b) License required.— Any person who in Puerto Rico acts as insurance producer for a society without having authority so to do by virtue of a license issued and in force pursuant to the provisions of this section shall, except as provided in subsection (a) of this section, be guilty of a misdemeanor.
(c) Payment of commissions forbidden.— No society doing business in Puerto Rico shall pay any commission or other compensation to any person for any services in obtaining any new contract of life, accident or health insurance, or any new annuity contract in Puerto Rico, except to a licensed insurance producer of such society and except to an agent exempted under subsection (a)(2) of this section.
(d) Qualifications, issuance and renewal of insurance producers’ licenses.—
(1) The Commissioner of Insurance shall issue a license to any person who has paid the corresponding fees and has met the requirements of this section authorizing said licenseholder to act as an insurance producer in behalf of any society designated in said license, licensed to do business in Puerto Rico.
(2) Before any insurance producer’s license shall be issued there shall be on file in the office of the Commissioner of Insurance the following documents:
(A) A written application by the prospective licensee in such form or forms, and containing such information, as the Commissioner of Insurance may prescribe, and
(B) a certificate by the society which is to be named in such license, stating that such society has satisfied itself that the named applicant is trustworthy and competent to act as such insurance producer and that the society will appoint such applicant to act as its agent if the license applied for is issued by the Commissioner of Insurance. Such certificates shall be executed and acknowledged by an officer or managing agent of such society.
(3) No written or other examination shall be required of any individual seeking to be named a fraternal benefit society agent.
(4) The Commissioner of Insurance may refuse to issue or renew any insurance producer’s license if in his judgment the proposed licensee is not trustworthy and competent to act as such agent, or has given cause for revocation or suspension of such license, or has failed to comply with any prerequisite for the issuance or renewal, as the case may be, of such license.
(5) Every license issued pursuant to this section, and every renewal thereof, shall expire on June 30 of each year.
(6) If the application for a renewal of license shall have been filed with the Commissioner of Insurance on or before June 30 of the year in which the existing license is to expire, such applicant named in such existing license may continue to act as insurance producer under such existing license, unless same shall be revoked or suspended, until the issuance by the Commissioner of Insurance of the renewal license or until the expiration of five days after he shall have refused to renew such license and shall have served written notice of such refusal on the applicant. If the applicant shall, within thirty days (30) after such notice is given, notify the Commissioner of Insurance in writing of his request for a hearing on such refusal, the Commissioner of Insurance shall, within a reasonable time after receipt of such notice, grant such hearing and he may, in his discretion, reinstate such license.
(7) Any such renewal license of an insurance producer may be issued upon the application of the society named in the existing license. Such application shall be in the form or forms prescribed by the Commissioner of Insurance and shall contain such information as he may require. Such application shall contain a certificate executed by the president, or by a vice president, a secretary, an assistant secretary, or corresponding officer, or by an employee expressly designated and authorized to execute such certificate of a domestic or foreign society or by the manager of an alien society in Puerto Rico, stating that the addresses therein given of the agents of such society for whom renewal licenses are requested therein have been verified in each instance immediately preceding the preparation of the application. Notwithstanding the filing of such application, the Commissioner of Insurance may, after reasonable notice to any such society, require that any or all agents of such society to be named as licensees in renewal licenses shall execute and file separate applications for the renewal of such licenses, as hereinbefore specified, and he may also require that each such application shall be accompanied by the certificate specified in clause (2)(B) of this subsection.
(e) Notice of termination of appointment of insurance producer.— Every society soliciting insurance in Puerto Rico shall, upon the termination of the appointment of any insurance producer licensed to represent it in Puerto Rico, forthwith file with the Commissioner of Insurance a statement, in such form as he may prescribe, of the facts relative to such termination and the cause thereof. Every statement made pursuant to this section shall be deemed a privileged communication.
(f) Revocation or suspension of insurance producer’s license.—
(1) The Commissioner of Insurance may revoke, or may suspend for such period as he may determine, any insurance producer’s license if, after notice and hearing as specified in this section, he determines that the licensee has:
(A) Violated any provision of, or failed to comply with any obligation imposed by, this section or has violated any law in the course of his dealings as agent;
(B) made a material misstatement in the application for such license;
(C) been guilty of fraudulent or dishonest practices;
(D) demonstrated his incompetency or untrustworthiness to act as an insurance producer, or
(E) been guilty of rebating as defined by the laws of Puerto Rico applicable to life insurance companies.
(2) The revocation or suspension of any insurance producer’s license shall terminate forthwith the license of such producer. No individual whose license has been revoked shall be entitled to obtain any insurance proudcer’s license under the provisions of this section for a period of one (1) year after such revocation or, if such revocation be judicially reviewed, for one (1) year after the final determination thereof affirming the action of the Commissioner of Insurance in revoking such license.
History —Ins. Code, added as § 36.280 on June 13, 1964, No. 55, p. 122; July 31, 1992, No. 44, § 9; 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-36/3629/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3629 - Service of process
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3629 - Service of process
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Every society authorized to do business in Puerto Rico shall appoint in writing the Commissioner of Insurance and any successor in office to be its proxy, to whom all lawful process in any action or proceeding against it shall be served, and shall agree in such writing that any lawful process against it which is served on said proxy shall be of the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability of the society remains outstanding in Puerto Rico. Copies of such appointment, certified by the Commissioner of Insurance, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted.
Service shall only be made upon the Commissioner of Insurance, or, if absent, upon the person in charge of his office. It shall be made in duplicate and shall constitute sufficient service upon the society. When legal process against a society is served upon the Commissioner of Insurance, he shall forthwith forward one of the duplicate copies by registered mail, prepaid, directed to the secretary or corresponding officer. No such service shall require a society to file its answer, pleading or defense in less than thirty days from the date of mailing the copy of the service to a society. Legal process shall not be served upon a society except in the manner herein provided. At the time of serving any process upon the Commissioner of Insurance, the plaintiff or complainant in the action shall pay to the Commissioner of Insurance a fee of two dollars ($2).
History —Ins. Code, added as § 36.290 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3630/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3630 - Review
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3630 - Review
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All decisions and findings of the Commissioner of Insurance made under the provisions of this chapter shall be reviewable by the pertinent part of the Court of First Instance of Puerto Rico.
History —Ins. Code, added as § 36.300 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3631/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3631 - Funds
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3631 - Funds
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All assets shall be held, invested and disbursed for the use and benefit of the society and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment or the surrender of any part thereof, except as provided in the contract.
A society may create, maintain, invest, disburse and apply any special fund or funds necessary to carry out any purpose permitted by the laws of such society.
Every society whose admitted assets are less than the sum of its accrued liabilities and reserves under all of its certificates when valued according to standards required for certificates issued after one year from the effective date of this act shall, in every provision of the laws of the society for payments by members of such society, in whatever form made, distinctly state the purpose of the same and the proportion thereof which may be used for expenses, and no part of the money collected for mortuary or disability purposes or the net accretions thereto shall be used for expenses.
History —Ins. Code, added as § 36.310 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3632/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3632 - Investments
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3632 - Investments
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A society shall invest its funds only in such investments as are authorized by the laws of Puerto Rico for the investment of assets of life insurance companies and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in Puerto Rico which invests its funds in accordance with the laws of the state, district, territory, country or province in which it is incorporated, shall be held to meet the requirements of this section for the investment of funds.
History —Ins. Code, added as § 36.320 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3633/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3633 - Reports and valuations
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3633 - Reports and valuations
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Reports shall be filed and synopses of annual statements shall be published in accordance with the provisions of this section.
(1) Every society transacting business in Puerto Rico shall annually, on or before the 31st day of March, unless such time has been extended by the Commissioner, file with the Commissioner of Insurance a true statement of its financial condition, transactions and affairs for the preceding calendar year. The statement shall be in general form and context as approved by the Commissioner of Insurance of Puerto Rico.
(2) A synopsis of its annual statement providing an explanation of the facts concerning the financial condition of the society shall be printed and mailed to each benefit member of the society not later than June 1 of each year; Provided, That if such synopsis is published in the society’s official publication, the latter shall be mailed to each member.
(3) As a part of the annual statement herein required, each society shall, on or before the 31st of March, file with the Commissioner a valuation of its certificates in force on December thirty-first (31st) last preceding; Provided, [That] the Commissioner of Insurance may, in his discretion for cause shown, extend the time for filing such valuation for not more than two (2) calendar months. Such report of valuation shall be performed in accordance with the method of valuation approved by the Commissioner of Insurance.
(4) The present value of deferred payments due under incurred claims or matured certificates shall be deemed a liability of the society and shall be computed upon mortality and interest standards prescribed in subsection (5) of this section.
(5) Such valuation and underlying data shall be certified by a competent actuary or, at the expense of the society, by the actuary of the Department of Insurance of the state of domicile of the society.
The minimum standards of valuation for certificates issued prior to one (1) year from the effective date of this act shall be those provided by the laws applicable immediately prior to the effective date of this act, but not lower than the standards used in the calculating of rates for such certificates.
The minimum standard of valuation for certificates issued after one (1) year from the effective date of this act shall be three and one-half percent (3 1 / 2 %) interest and the following tables:
(a) For certificates of life insurance, American Men Ultimate Table of Mortality, with Bowerman’s or Davis’ Extension thereof or with the consent of the Commissioner of Insurance, the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table or the Commissioners 1958 Standard Ordinary Mortality Table, using actual age of the insured for male risks and an age not more than three (3) years younger than the actual age of the insured for female risks;
(b) for annuity and pure endowment certificates, excluding any disability and accidental death benefits in such certificates, the 1937 Standard Annuity Mortality Table or the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the Commissioner of Insurance;
(c) for total and permanent disability benefits in or supplementary to life insurance certificates, Hunter’s Disability Table, or the Class III Disability Table (1926) modified to conform to the contractual waiting period, or the tables of Period II disablement rates and the 1930 to 1950 termination rates of the 1952 Diability Study of the Society of Actuaries with due regard to the type of benefit. Any such table shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance certificates;
(d) for accidental death benefits in or supplementary to life insurance certificates, the Inter-Company Double Indemnity Mortality Table or the 1959 Accidental Death Benefits Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance certificates, and
(e) for noncancellable accident and health benefits, the Class III Disability Table (1926) with the Commissioners’ modifications thereto, or, with the consent of the Commissioner of Insurance, tables based upon the society’s own experience.
The Commissioner of Insurance may, in his discretion, accept other standards for valuation if he finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The Commissioner of Insurance may, in his discretion, vary the standards of mortality applicable to all certificates of insurance on substandard lives or other extra hazardous lives by any society authorized to do business in Puerto Rico. Whenever the mortality experience under all certificates valued on the same mortality table is in excess of the expected mortality according to such table for a period of three (3) consecutive years, the Commissioner of Insurance may require additional reserves when deemed necessary in his judgment on account of such certificates.
Any society, with the consent of the Commissioner of Insurance of the state of domicile of the society and under such conditions, if any, which he may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any insured member shall not be affected thereby.
(6) The Commissioner of Insurance may suspend the authority to transact business to any society failing to file its annual report on the date and in the manner herein established.
History —Ins. Code, added as § 36.330 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3634/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3634 - Examination of domestic societies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3634 - Examination of domestic societies
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The Commissioner of Insurance, or any person he may appoint, shall have the power of visitation and examination into the affairs of any domestic society and he shall make such examination at least once in every three years. He may employ assistants for the purpose of such examination, and he, or any person he may appoint, shall have free access to all books, papers and documents that relate to the business of the society. The minutes of the proceedings of the supreme legislative or governing body and of the board of directors or corresponding body of a society shall be either in the English or Spanish language. In making any such examination the Commissioner of Insurance may summon as witnesses under oath and examine its officers, agents and employees, and other persons in relation to the affairs, transactions and condition of the society. A summary of the report of the Commissioner of Insurance and such recommendations or statements of the Commissioner of Insurance as may accompany such report, shall be read at the first meeting of the board of directors or corresponding body of the society following the receipt thereof, and if directed so to do by the Commissioner of Insurance, shall also be read at the first meeting of the supreme legislative or governing body of the society following the receipt thereof. A copy of the report, recommendations and statements of the Commissioner of Insurance shall be furnished by the society to each member of such board of directors or other governing bodies. The expense of each examination and of each valuation, including compensation and actual expense of examiners, shall be paid by the society examined or whose certificates are valued, upon pertinent statements of accounts furnished by the Commissioner of Insurance.
History —Ins. Code, added as § 36.340 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3635/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3635 - Examination of foreign and alien societies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3635 - Examination of foreign and alien societies
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The Commissioner of Insurance, or any person whom he may appoint, may examine any foreign or alien society transacting or applying for authorization to transact business in Puerto Rico. He may employ assistants and he, or any person he may appoint, shall have free access to all books, papers and documents that relate to the business of the society. He may in his discretion accept, in lieu of such examination, the examination of the Insurance Department of the state, territory, district, province or country where such society is organized.
The compensation and actual expenses of the examiners making any examination or general or special valuation shall be paid by the society examined or by the society whose certificate obligations have been valued, upon pertinent statements of accounts furnished by the Commissioner of Insurance.
History —Ins. Code, added as § 36.350 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3636/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3636 - Adverse publications
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3636 - Adverse publications
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Pending, during or after an examination or investigation of a society, either domestic, foreign or alien, the Commissioner of Insurance shall make public no financial statement, report or finding, nor shall he permit to become public any financial statement, report or finding affecting the status, standing or rights of any society, until a copy thereof shall have been served upon the society at its principal office and the society shall have been afforded a reasonable opportunity to answer any such financial statement, report or finding and to make such showing in connection therewith as it may desire.
History —Ins. Code, added as § 36.360 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3637/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3637 - Misrepresentation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3637 - Misrepresentation
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No person shall cause or permit to be made, issued or circulated in any form:
(a) Any misrepresentation or false or misleading statement concerning the terms, benefits or advantages of any fraternal insurance contract now issued or to be issued in Puerto Rico, or the financial condition of any society;
(b) any false or misleading estimate or statement concerning the dividends or shares of surplus paid or to be paid by any society on any insurance contract, or
(c) any incomplete comparison of an insurance contract of one society with an insurance contract of another society or insurer for the purpose of inducing the lapse or surrender of any insurance contract. A comparison of insurance contracts is incomplete if it does not compare in detail:
(1) The gross rates, and the gross rates less any dividend or other reduction allowed at the date of the comparison; and
(2) any increase in cash values, and all the benefits provided by each contract for the possible duration thereof as determined by the life expectancy of the insured; or if it omits from consideration:
(3) any benefit or value provided in the contract;
(4) any differences as to amount or period of rates; or
(5) any differences in limitations or conditions or provisions which directly or indirectly affect the benefits.
In any determination of the incompleteness or misleading character of any comparison or statement, it shall be presumed that the insured had no knowledge of any of the contents of the contract involved.
Any person who violates any provision of this section or knowingly receives any compensation or commission by or in consequence of such violation shall upon conviction be punished by a fine not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or by imprisonment in jail not less than thirty (30) days nor more than one (1) year, or by both fine and imprisonment, and shall in addition be liable for a civil penalty in the amount of three (3) times the sum received by such violator as compensation or commission, which penalty may be sued for and recovered by any person or society aggrieved for his or its own use and benefit in accordance with the provisions of civil practice.
History —Ins. Code, added as § 36.370 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3638/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3638 - Discrimination and rebates
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3638 - Discrimination and rebates
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No society doing business in Puerto Rico shall make or permit any unfair discrimination between insured members of the same class and equal expectation of life in the premiums charged for certificates of insurance, in the dividends or other benefits payable thereon or in any other of the terms and conditions of the contracts it makes.
No society, by itself, or by any other party, and no producer or solicitor, personally, or by any other party, shall offer, promise, allow, give, set off, or pay, directly or indirectly, any valuable consideration or inducement to, or for insurance, on any risk authorized to be taken by such society, which is not specified in the certificate. No member shall receive or accept, directly or indirectly, any rebate of premium, or part thereof, or producer’s or solicitor’s commission thereon, payable on any certificate or receive or accept any favor or advantage or share in the dividends or other benefits to accrue on, or any valuable consideration or inducement not specified in the contract of insurance.
History —Ins. Code, added as § 36.380 on June 13, 1964, No. 55, p. 122; 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-36/3639/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3639 - Taxation
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3639 - Taxation
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Every society organized or licensed under this chapter is hereby declared to be a charitable institution for all tax purposes, and is, therefore, hereby declared exempt from all kinds of taxes.
History —Ins. Code, added as § 36.390 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3640/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3640 - Exemptions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3640 - Exemptions
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Except as herein provided, societies shall be governed by this chapter and shall be exempt from all other provisions of the Insurance Code.
History —Ins. Code, added as § 36.400 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3641/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3641 - Exemption of certain societies
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3641 - Exemption of certain societies
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Nothing contained in this chapter shall be so construed as to affect or apply to:
(a) Domestic societies which limit their membership to employees of a particular city or town, designated firm, business house or corporation which provide for a death benefit of not more than four hundred dollars ($400) or disability benefits of not more than three hundred fifty dollars ($350) to any person in any one (1) year, or both, or
(b) domestic societies or associations of a purely religious, charitable or benevolent description, which provide for a death benefit of not more than four hundred dollars ($400) or for disability benefits of not more than three hundred fifty dollars ($350) to any one (1) person in any one (1) year, or both.
Any such society or association described in subsection (a) or (b) supra which provides for death or disability benefits for which benefit certificates are issued, and any such society or association included in subsection (b) which has more than one thousand members, shall not be exempted from the provisions of this chapter, but shall comply with all requirements thereof.
No society which, by the provisions of this section, is exempt from the requirements of this chapter, shall give or allow, or promise to give or allow to any person any compensation for procuring new members.
Every society which provides for benefits in case of death or disability resulting solely from accident, and which does not obligate itself to pay natural death or sick benefits shall have all of the privileges and be subject to all the applicable provisions and regulations of this chapter, except that the provisions thereof relating to medical examination, valuations of benefit certificates, and incontestability, shall not apply to such society.
The Commissioner of Insurance may require from any society or association, by examination or otherwise, such information as will enable him to determine whether such society or association is exempt from the provisions of this chapter.
Societies exempted under the provisions of this section shall also be exempt from all other provisions of the insurance laws of Puerto Rico.
History —Ins. Code, added as § 36.410 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-36/3642/
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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 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642)›§ 3642 - Penalties
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 36 - Insurance—Fraternal Benefit Societies (§§ 3601 — 3642) › § 3642 - Penalties
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Any person who willfully makes a false or fraudulent statement in or relating to an application for membership or for the purpose of obtaining money from or a benefit in any society shall upon conviction be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or imprisonment in jail not less than thirty (30) days nor more than one (1) year, or both.
Any person who willfully makes a false or fraudulent statement in any report or declaration under oath required or authorized by this chapter, or of any material fact or thing contained in a sworn statement concerning the death or disability of a member for the purpose of procuring payment of a benefit named in the certificate, shall be guilty of perjury and shall be subject to the penalties therefor prescribed by law.
Any person guilty of a willful violation of, or refusal to comply with, the provisions of this chapter for which a penalty is not otherwise prescribed shall, upon conviction, be subject to a fine not exceeding one hundred dollars ($100).
History —Ins. Code, added as § 36.420 on June 13, 1964, No. 55, p. 122.
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https://law.justia.com/codes/puerto-rico/title-twenty-six/subtitle-1/chapter-37/3701/
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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 37 - Joint Underwriting Association for Fire and Allied Lines Insurance (§§ 3701 — 3708)›§ 3701 - Definitions
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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 37 - Joint Underwriting Association for Fire and Allied Lines Insurance (§§ 3701 — 3708) › § 3701 - Definitions
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As used in this chapter:
(1) Fire and allied lines insurance.— Means the insurance on real or personal property of every kind and interest therein, against loss or damage by any or all hazard or cause, and against losses resulting from such losses or damage other than noncontractual legal liability for any such losses or damages, as defined in the first sentence of § 404 of this title.
It shall be understood that “fire and allied lines insurance” shall not include automobile insurance, or marine or transportation insurance.
(2) Association.— Means the Joint Underwriting Association for Fire and Allied Lines Insurance, established according to this chapter.
(3) Plan of operation.— Means the plan of operation approved in accordance with § 3702 of this title.
(4) Insurable property.— Means real property located anywhere in the Commonwealth of Puerto Rico, or personal property located therein, having an insurable value which shall not exceed the limits provided in the plan of operation of the Association, and in no event shall be more than two million dollars ($2,000,000) in the same location, and that such property, after being inspected and appraised, following the criterion stipulated in the plan of operation, shall be considered by the Association as a property in insurable conditions.
(5) Direct net premiums.— Means direct gross premiums written in Puerto Rico for fire and allied lines insurance on property in Puerto Rico, including the hazards of fire and allied lines covered by multi-hazards policies (package policies) on residential and commercial buildings, as determined by the Commissioner, subtracting the return premiums or those portions not used or not absorbed from the deposited premiums.
History —Ins. Code, added as § 37.010 on June 14, 1968, No. 85, p. 152.
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