2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 43 - International Insurers and Reinsurers (§§ 4301 — 4327) › § 4302 - Definitions

(1) Assets.— Shall include:
(a) Cash and deposits;
(b) investments, such as credit instruments or preferential debts, capital securities and of other types, tangible personal property subject to lease, mortgage loans and real property loans, securities loans, repurchase transactions, reverse repurchase transactions, dollar roll transactions and hedging strategy;
(c) declared and unpaid dividends;
(d) interest due or accrued;
(e) accounts and reinsurance receivable on paid losses and related expenses, and
(f) any other asset the Commissioner may allow by regulations.
(2) Affiliate.— Shall mean, with regard to any person, another person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the person.
(3) Fiscal year.— Means the period between January 1st and December 31st of each year.
(4) International insurer.— Means an insurer:
(a) That is organized:
(i) Under this chapter, or
(ii) under the laws of a jurisdiction other than Puerto Rico and that operates a branch in Puerto Rico in compliance with the additional requirements for the authorization of a branch established in this chapter;
(b) that, under this chapter, holds Class 1 Authority, Class 2 Authority, Class 3 Authority, Class 4 Authority or Class 5 Authority, and
(c) does not provide direct insurance on resident risks, located or to be executed in Puerto Rico, unless the international insurer has the authorization to transact surplus line insurance, pursuant to the provisions of §§ 1001–1020 of this title. Provided, That the provisions herein do not limit the authority of the international insurer to assume or accept reinsurance on resident risks, located or to be executed in Puerto Rico.
(5) Class 1 Authority.— Means the authority to transact insurance or reinsurance of all types, whether or not defined in §§ 401–405 of this title, except for disability insurance, life insurance, high limit accident insurance and property catastrophe insurance, with respect to the sole owner of the international insurer, any affiliated owner or other affiliate of the international insurer.
(6) Class 2 Authority.— Means the authority to transact all types of insurance or reinsurance, whether or not defined in §§ 401–405 of this title, except for disability insurance, life insurance, high limit accident insurance and property catastrophe reinsurance, with respect to:
(a) The risks of owners, whether affiliated or not, of the international insurer or of any of their respective affiliates;
(b) risks arising from the businesses or commercial operations of such owners or affiliates, as established by the Commissioner, or
(c) any other risk that does not exceed twenty percent (20%) of the net written premiums by the international insurer.
(7) Class 3 Authority.— Means the authority to transact all types of insurance or reinsurance, whether or not defined in §§ 401–405 of this title, with the exception of disability insurance, life insurance, high limit accident insurance or property catastrophe reinsurance.
(8) Class 4 Authority.— Means the authority to transact all types of insurance or reinsurance, whether or not defined in §§ 401–405 of this title, including high limit accident insurance and property catastrophe reinsurance, with the exception of disability reinsurance and life reinsurance.
(9) Class 5 Authority.— Means the authority to transact disability insurance, life insurance and reinsurance thereof.
(10) Control or controlled.— Means, solely and exclusively for purposes of this chapter, direct or indirect participation, as owner of more than fifty percent (50%) of the voting power with respect to the person controlled.
(11) International insurer holding company.— Shall have the meaning set forth in § 4304 of this title.
(12) Liquidity ratio.— Means the allowable ratio of liquid assets with respect to the liabilities, excluding the capital, as established in the regulations promulgated by the Commissioner.
(13) Premium ratio.— Means the allowable ratio of net written premiums to capital and surplus, as may be established in the regulations promulgated by the Commissioner.
(14) Business incidental to the insurance business.— Means activities that are incidental to the insurance business as described in § 307 of this title, with the exception of the last sentence of said section.
(15) Liabilities.— Shall include:
(a) Outstanding social capital, if any;
(b) the amount necessary to pay all its obligations and claims, whether reported or not, including loss adjustment expenses;
(c) taxes, expenses and other obligations, and
(d) reserves, including unearned premium reserves, for life insurance policy benefits and any other additional reserve that the Commissioner may require.
(16) Person.— Shall have the meaning provided in § 104 of this title.
(17) Segregated assets plan.— Means a group of assets that are identified and managed separately in an integrated manner by an international insurer with Class 2, Class 3, Class 4 and Class 5 Authority for the purpose of paying a group of obligations that are identified and managed pursuant to an operational plan previously approved by the Commissioner.
(18) Property catastrophe reinsurance.— Means the reinsurance assumed by an insurer to cover losses or damages resulting from a catastrophic event or series of events.
(19) Principal representative.— Means a person who is a resident of Puerto Rico, appointed by the international insurer and authorized by the Commissioner as such to supervise the insurance businesses and oversee that they are conducted pursuant to the provisions of this chapter and of this Code, as may apply.
(20) High limit accident insurance.— Means accident insurance, as defined in § 408 of this title, provided that the insurance policy limit exceeds ten (10) million dollars.
(21) Disability insurance.— Shall have the meaning provided in § 403 of this title.
(22) Life insurance.— Shall have the meaning provided in § 402 of this title.
(23) Branch.— Shall mean, as may apply, the business unit through which a foreign insurer not organized under this chapter carries out business transactions, or the assets and liabilities of such insurer corresponding to such business transactions, or the administrative powers corresponding to such business transactions and such assets and liabilities, or any combination thereof.
(24) Code.— Means the Insurance Code of Puerto Rico.
(25) Risk assessment.— Means an international insurer’s securities issue plan, which funds are earmarked to settle or liquidate a segregated assets plan.
History —Ins. Code, added as § 61.020 on Sept. 22, 2004, No. 399, § 1, eff. 180 days after Sept. 22, 2004.