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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 304 - Qualification for authority

To qualify and hold authority to transact insurance in Puerto Rico as insurer, an insurer must:
(1) Be a stock, mutual, reciprocal, cooperative or Lloyd’s insurer of the same general type as may be formed as a domestic insurer under this title, except, that no foreign insurer formed or transacting insurance upon the assessment plan shall be authorized to transact insurance in Puerto Rico. An insurer organized under special charter provisions shall indicate in its application for certificate of authority and in its policies that manner of operating in Puerto Rico.
(2) Have paid-in capital or surplus as specified and required under this title, based upon the type and domicile of the insurer and the kinds of insurance proposed to be transacted; except, that the amount of such capital or surplus shall not be less than would be required if the insurer proposed to transact in Puerto Rico all those kinds of insurance which it is then transacting elsewhere.
(3) Transact or propose to transact in Puerto Rico only those insurances which are among those authorized by its charter and among those it is authorized to transact in the state where is held its deposit hereinafter required, and only such insurance as meets the standards and requirements of this title.
(4) Be not ineligible for such authority by reason of any provision of its charter or law of the state or country of its domicile.
(5) In the case of a foreign insurer, be organized and continuously active for a term not less than five years immediately preceding the date of the application; Provided, That compliance with such requirement shall not be binding to subsidiaries wholly owned by authorized insured operating in Puerto Rico during the five years prior to the date on which the subsidiary applied for admission.
(6) Fully comply with, and qualify according to, the other provisions of this title. The Commissioner may refuse the authorization to do business in Puerto Rico to a stock insurer if the majority of stocks in circulation of said insurer are owned or controlled directly or indirectly by a single individual; or if one single individual has faculty to dispose freely of the assets of the insurer.
(7) [Repealed. Act Mar. 6, 1995, No. 28, § 1, eff. Mar. 6, 1995].
History —Ins. Code § 3.040; June 26, 1959, No. 84, p. 220, § 2; July 21, 1960, No. 147, p. 571, § 1; June 19, 1969, No. 48, p. 88, § 1; June 5, 1973, No. 98, p. 419, § 1; July 23, 1974, No. 151, Part 1, p. 695, § 1; March 6, 1995, No. 28, § 1; renumbered as § 3.030 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 304a - Foreign insurers formed under inadequate laws

The Commissioner may deny, suspend or revoke the authority to transact insurance in Puerto Rico to any foreign insurer organized in any country or jurisdiction, whose laws or enforcement thereof he may consider inadequate with respect to capital requirements and public intervention or supervision applicable to its domestic insurers for the protection of the policyholders and creditors of said insurers.
History —Ins. Code § 3.041, renumbered as § 3.042 on Mar. 6, 1995, No. 28, § 3; renumbered as § 3.032 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 305 - Charter, defined

Charter.— Means articles of incorporation, of agreement, of association or other basic constituent document of a corporation, or subscribers’ agreement and power of attorney of a reciprocal insurer, or underwriters’ agreement and power of attorney of a Lloyd’s plan insurer.
History —Ins. Code § 3.050; renumbered as § 3.040 on Dec. 21, 2010, No. 210, § 2, eff. 90 days after Dec. 21, 2010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 307 - Insurer not to engage in other business

No person shall be authorized as an insurer in Puerto Rico if engaged in any business other than the insurance business, and in the operations and transactions incidental thereto. Without limiting the general meaning of the foregoing clause, banking, securities, industrial, agricultural, mercantile, transportation, real estate and similar businesses and enterprises, are deemed not to be incidental to the insurance business. This section does not prohibit activities incidental to the management of legal investments of insurers, or the proper management and liquidation of certain assets of insurers, if said assets are lawfully acquired and held by them pursuant to salvage and subrogation rights under their policies, or have been acquired under the investment provisions of this Code. Neither does this section prohibit those activities incidental to the issuance of annuities or life insurance payable in variable amounts or in a combination of fixed and variable amounts, by life insurance companies in accordance with the provisions of §§ 1329–1335 of this title. This section does not prohibit insurers from being financial holding companies, provided they comply with the applicable provisions and requirements of the Gramm-Leach-Bliley Act.
History —Ins. Code § 3.070; June 13, 1974, No. 67, Part 1, p. 266, § 1; May 29, 1984, No. 28, p. 60, § 1; Sept. 6, 2000, No. 382, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 308 - Kinds of insurance—An insurer

An insurer who otherwise qualifies therefor may be authorized to transact any one kind or combination of kinds of insurance as defined in §§ 401–414 of this title, except that:
(1) A life insurer may not be authorized to contract any other kind of insurance except for disability. Provided, That this limitation shall not apply to insurers who deal exclusively with reinsurance.
(2) A reciprocal or Lloyd’s insurer shall not transact life insurance.
(3) A title insurer shall be a stock or cooperative insurer.
(4) A domestic mutual insurer doing business on the assessment premium plan shall transact agricultural insurance only.
History —Ins. Code § 3.080; June 25, 1965, No. 86, p. 200, § 13; Feb. 16, 1979, No. 15, p. 28, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 309 - Funds required from insurers

(1) To qualify to receive the authority to transact any kind of insurance, an insurer must have and hold paid-in capital or surplus stock in an amount which shall not be less than what appears in the applicable portion of the following schedule:
Stock, mutual, or cooperative insurers Reciprocals Capital or surplus or Lloyd’s Kind of Insurance required Surplus required Life $1,500,000 Not applicable Life and disability $2,500,000 Not applicable Disability $1,000,000 $1,000,000 Property $2.000,000 $2,000,000 Agricultural only Must qualify for property insurance Marine and Transport $1,500,000 $1,500,000 Casualty $2,000,000 $2,000,000 Vehicle only $1,500,000 $1,500,000 Surety and fidelity $1,500,000 $1,500,000 Title $1,500,000 Not applicable Mortgage loans $3,000,000 Not applicable All insurance except life and mortgage loans $3,000,000 $3,000,000
(2) The Commissioner may increase the aforementioned requirements as may be determined by the economic condition of the country up to the amount he deems necessary for the adequate protection of the interests of the insured and the creditors of the insurer.
(3) [Repealed. Act July 20, 1979, No. 154, p. 395, § 1, eff. July 20, 1979.]
History —Ins. Code § 3.090; June 5, 1973, No. 98, p. 419, § 2; July 20, 1979, No. 154, p. 395, § 1; Dec. 16, 2003, No. 303, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 310 - Additional kinds of insurance, funds required of insurers

An insurer who is otherwise qualified therefore may be authorized to transact combinations of kinds of insurance other than the combinations stipulated in § 309 of this title, while possessing and maintaining additional paid-in capital, if a stock insurer, or additional surplus funds, if a mutual, cooperative, reciprocal or Lloyd’s insurer, in an amount not less than that which is determined as follows:
For any lawful combination, add two hundred thousand dollars ($200,000) for each additional kind included in the combination to: the amount required under § 309 of this title for that one kind in the combination for which the largest amount is required under § 309 of this title, except that:
(1) Vehicle and disability insurance may be combined with casualty and in any combination including casualty, without need of funds in addition to those required for casualty alone.
(2) With such paid-in capital or such surplus in the amount of not less than three million dollars ($3,000,000), an insurer, if otherwise qualified therefore, may be authorized to transact all kinds of insurance except life insurance.
(3) This section shall not be applicable to mortgage loan insurers.
History —Ins. Code § 3.100; June 5, 1973, No. 98, p. 419, § 3; July 20, 1979, No. 154, p. 395, § 2; Dec. 16, 2003, No. 303, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 312 - New insurer, additional surplus required

(1) In addition to the minimum paid-in capital with regard to stock insurers, or minimum surplus with regard to mutual, cooperative, reciprocal and Lloyd’s insurers, as required under §§ 309 and 310 of this title, every insurer shall hold at the time of the original authorization in Puerto Rico surplus funds in an amount not less than one-half of the amount of such minimum paid-in capital or minimum surplus, and each addition of a kind of insurance to said certificate of authority shall be deemed as if it were the original authorization.
(2) This section shall not apply to insurers of mortgage loans.
(3) [Repealed. Act July 20, 1979, No. 154, p. 395, § 4, eff. July 20, 1979.]
History —Ins. Code § 3.120; June 26, 1959, No. 84, p. 220, § 2; June 25, 1965, No. 86, p. 200, § 14; June 5, 1973, No. 98, p. 419, § 5; July 20, 1979, No. 154, p. 395, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 313 - Deposit requirements—Insurers organized in the United States

(1) No insurer organized under the laws of a state of the United States may be authorized to transact insurance in Puerto Rico, unless it deposits and maintains on deposit assets worth not less than fifty percent (50%) of the amount of the paid-in capital if a stock insurer, or surplus if a mutual, cooperative, reciprocal or Lloyd’s plan insurer, as required to be maintained for the kind or kinds of insurance to be offered in Puerto Rico notwithstanding the provision contained in § 304(2) of this title. Provided, That in no case shall said deposit be greater than one million dollars ($1,000,000).
(2) The deposit, among other reasonable purposes of protection of policyholders and/or creditors, shall be for the protection of all the insurer’s policyholders, or for all its policyholders and creditors, in Puerto Rico.
(3) The deposit shall be made in trust with the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the Office of the Commissioner; except that the Commissioner, provided that by the laws of the state where the insurer is domiciled is extended a similar privilege to insurers domiciled in Puerto Rico, may accept, in lieu of a deposit, or any part thereof, in Puerto Rico, the certificate of the public official having the supervision over insurance in a state, showing that a deposit by such insurer, or like part thereof, is being maintained in trust in such state for the purpose stated in subsection (2) of this section, if the total deposit in Puerto Rico and that evidenced by such certificate or certificates is an amount not less than that required under subsection (1) of this section.
(4) Assets so deposited in Puerto Rico shall be administered as provided in §§ 801–809 of this title.
History —Ins. Code § 3.130; June 5, 1973, No. 98, p. 419, § 6; July 23, 1974, No. 151, Part 1, p. 695, § 2; July 20, 1979, No. 154, p. 395, § 5; Dec. 16, 2003, No. 303, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 314 - Deposit requirements—Insurers not organized in United States

(1) A foreign insurer not organized under the laws of a state of the United States, but which is authorized to transact insurance in one or more such states, shall be subject to the provisions of § 313 of this title.
(2) An insurer not organized under the laws of a state of the United States nor authorized to transact insurance in any of such states may not be authorized to transact insurance in Puerto Rico, unless it deposits and maintains on deposit in Puerto Rico assets worth not less than fifty percent (50%) of the required capital if a stock insurer, or surplus if a mutual, cooperative, reciprocal or Lloyd’s plan insurer, as shown under § 309 of this title for the kind or kinds of insurance to be so offered in Puerto Rico. Provided, That in no case shall said deposit be greater than one million dollars ($1,000,000). In addition to such deposit, the Commissioner may, in his discretion, require such an insurer to maintain in Puerto Rico such of its assets representing reserves, or part thereof, of its insurance business operating in Puerto Rico as the Commissioner deems advisable for the protection of policyholders in Puerto Rico.
(3) The deposit and assets referred to in subsection (2) shall be for the exclusive protection of the insurer’s policyholders and creditors in Puerto Rico; except, that if the insurer subsequently becomes authorized to transact insurance in one or more of the states of the United States, such deposit shall, upon written request of the insurer, be only for the protection of all the insurer’s policyholders, or all its policyholders and creditors, in the United States and Puerto Rico.
(4) The deposit shall be made in trust with the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the office of the Commissioner.
(5) Assets so deposited shall be administered as provided in §§ 801–809 of this title.
History —Ins. Code § 3.140; June 5, 1973, No. 98, p. 419, § 7; July 23, 1974, No. 150, Part 1, p. 685, § 3; July 20, 1979, No. 154, p. 395, § 6; Dec. 16, 2003, No. 303, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 315 - Requirements of capital or surplus, deposits and/or investment in Puerto Rican securities; authorized insurers; escalator provisions

Every insurer authorized to transact insurance in Puerto Rico with capital or surplus funds or with a deposit and/or investment in Puerto Rican securities, smaller than that otherwise required under this Code, may continue to be so authorized without immediately increasing its capital or surplus funds or its deposit and/or investment in Puerto Rican securities, if within each one (1) of the five (5) years immediately following the effective date of any increase in said requirement, the insurer increases its capital or surplus funds, deposit and/or investment in Puerto Rican securities, in such amounts as may be proportionally needed, within such five (5)-year period, up to the amounts otherwise required.
If the authorized insurer is not doing business in Puerto Rico at the date of any increase in such requirement, it shall not be necessary for it to immediately increase its capital or surplus funds, deposit and/or investment in Puerto Rican securities, if within said five (5)-year period, or at that date if later, on which it commences or resumes its insurance business activity in Puerto Rico, it increases its capital or surplus funds, deposit and/or investment in Puerto Rican securities in the amounts as may be proportionally needed within such five (5)-year period, up to the amounts otherwise required.
History —Ins. Code § 3.150; June 5, 1973, No. 98, p. 419, § 8; July 20, 1979, No. 154, p. 395, § 7; Dec. 16, 2003, No. 303, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 315a - Requirement of deposit, domestic insurers

(1) No domestic insurer shall be authorized to transact insurance in Puerto Rico unless it deposits and maintains on deposit assets of a value not less than fifty percent (50%) of the amount of the paid-in capital if a stock insurer or a cooperative insurer, or of the surplus funds if a mutual, reciprocal, or Lloyd’s plan insurer, as required to be maintained for such kind or kinds of insurance to be transacted in Puerto Rico, notwithstanding the provisions contained in § 304(2) of this title.
(2) The deposit, among other reasonable purposes for the protection of the insurers and creditors, shall be for the protection of the insurer’s policyholders or for all the policyholders and creditors in Puerto Rico.
(3) The deposit shall be made in trust with the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the Office of the Commissioner.
(4) The deposit shall be administered as provided in §§ 801–809 of this title.
History —Ins. Code, added as § 3.151 on June 21, 1965, No. 66, p. 136; Dec. 16, 2003, No. 303, § 6.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 316 - Required investment in Puerto Rican securities

(1) An insurer shall not be authorized to transact insurance in Puerto Rico unless it has and maintains invested in the securities as designated in subsection (2) hereof an amount not less than one-half of the required capital, if a stock insurer, or surplus, if a mutual, reciprocal or Lloyd’s plan insurer, shown in § 309 of this title for the kind or kinds of insurance to be transacted in Puerto Rico. Provided, That in the case of foreign insurers, this amount shall not be greater than one million dollars ($1,000,000).
From the investment required in this subsection, the insurer shall invest fifty percent (50%) in the securities designated in clauses (a) and (b) of subsection (2) of this section, and may invest the remaining fifty percent (50%) in the securities designated in subsection (2)(c) of this section.
(2) The following securities only shall be eligible investments for the purposes of this section:
(a) Bonds of the People of Puerto Rico, or of the Commonwealth of Puerto Rico, or the municipalities thereof, for which the good faith and the credit of the People of Puerto Rico or the Commonwealth of Puerto Rico have been pledged.
(b) Bonds or other securities of Puerto Rico entities, public or private, which the Governor of Puerto Rico in his regulations may declare eligible as collateral security for public funds.
(c) First mortgages on real property located in Puerto Rico.
Upon request of the insurer, however, the Commissioner may waive the requirement of this section as to such investment or part thereof for such period as the Commissioner deems it reasonably impracticable for the insurer to make such investment, owing to the non-availability of securities of the kind herein required.
(3) The Commissioner shall provide insurers with the forms required for making proof as to such investment.
(4) [Repealed. Act July 20, 1979, No. 154, p. 395, § 8, eff. July 20, 1979.]
History —Ins. Code § 3.160; May 31, 1973, No. 73, p. 328, § 4; June 5, 1973, No. 98, p. 419, § 9; July 23, 1974, No. 151, Part 1, p. 695, § 3; May 10, 1976, No. 32, p. 84, § 3; July 20, 1979, No. 154, p. 395, § 8; Dec. 16, 2003, No. 303, § 7.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 318 - Issuance or refusal of authority

If upon application by an insurer the Commissioner finds that the insurer has met the requirements for and is entitled thereto under this title, he shall issue to the insurer a proper certificate of authority showing the kind or kinds of insurance the insurer is authorized to transact in Puerto Rico. If the Commissioner finds otherwise, he shall deny the authority within a reasonable period following completion by the insurer of the application therefor.
History —Ins. Code § 3.180.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 319 - Expirations, renewals, amendments to authorization certificates

(1) All authorization certificates issued to an insurer shall continue to be in effect until its expiration, but subject to the payment to the Commissioner of the corresponding annual fee set forth in § 701 of this title before midnight on the date of expiration.
(2) The Commissioner may amend a certificate of authority at any time to conform it to changes in the insurer’s charter or insuring power.
History —Ins. Code § 3.190; June 29, 1996, No. 62, § 6; Mar. 27, 2003, No. 96, § 1, retroactive to Jan. 1, 2003.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 320 - Refusal to renew, revoke or suspend authorization—Obligatory grounds

The Commissioner shall refuse to renew the authorization of an insurer to transact insurance, or may revoke or suspend said authorization when said insurer, in addition to other reasons prescribed in this Code:
(1) Is a foreign insurer and no longer qualifies or meets the requirements for the authority; or, is a domestic insurer and fails to make good a deficiency of assets as required by the Commissioner.
(2) Has knowingly exceeded its charter powers or its certificate of authority.
(3)
(a) Does not meet the requirements established in § 304-1 of this title.
(b) Said insurer has a relationship with a financial institution other than those defined in § 304-1(4) of this title, and said financial institution does not comply with the provisions of § 304-1(b)(2) of this title.
(c) Has a direct or indirect relationship with a depository institution or a financial holding company, pursuant to § 304-1(6) of this title and Article 9.070(3) of this Code, and said institution or company fails to comply with the applicable provisions and requirements of the Gramm-Leach-Bliley Act to maintain said relationship, in accordance with the final decision made by the federal regulatory agency with jurisdiction over said matter.
History —Ins. Code § 3.200; June 5, 1973, No. 98, p. 419, § 10; July 23, 1974, No. 151, Part 1, p. 695, § 4; Mar. 28, 1995, No. 28, § 4; Sept. 6, 2000, No. 382, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 321 - Refusal to renew, revocation or suspension of authority—Discretionary grounds

The Commissioner may after a hearing refuse, suspend, or revoke an insurer’s authority to transact insurance, in addition to other grounds therefor in this title, if the insurer:
(1) Fails to comply with or violates any provision of this title, other than those as to which refusal, suspension, or revocation is mandatory for noncompliance or violation.
(2) Fails to comply with lawful rules and regulations under this title, or with any proper order of the Commissioner within the time properly allowed in such order.
(3) Is found by the Commissioner upon examination, or other evidence, to be in unsound condition or in such condition as to render its further proceedings hazardous to the public or to its policyholders.
(4) Usually compels claimants under its policies either to accept less than the amount due them or to bring suit against it to secure full payment thereof.
(5) Is under the same general management or interlocking directorate or ownership as another insurer which transacts direct insurance in Puerto Rico without having a certificate of authority therefor, except as permitted under §§ 1001–1020 of this title (surplus lines).
(6) Refuses to be examined, or if its directors, officers, employees or representatives refuse to submit to examination or give testimony concerning its affairs or to produce its accounts, records, and files for examination by the Commissioner when required, or refuse to perform any legal obligation relative to the examination.
(7) Fails to pay or satisfy any final judgment rendered against it in Puerto Rico upon any policy, bond, contract, or undertaking issued or guaranteed by it, within sixty days after the judgment became final or within sixty days after time for taking an appeal has expired, or within sixty days after dismissal of an appeal before final determination, whichever date is the later.
(8) If a stock insurer and the majority of the stocks in circulation of said insurer are owned or controlled directly or indirectly by one single individual; or if a stock insurer where one single individual has faculty to dispose freely of the assets of said insurer.
(9) With a view to preventing the existence of relations leading or tending to lead to an unreasonable restriction or to a monopoly of the insurance business, the Commissioner may determine after an investigation that there exists a relationship of control directly or indirectly similar to that described in Article 9.080(3) between the insurer and any of the institutions described in § 320(3) of this title.
History —Ins. Code § 3.210; June 19, 1969, No. 48, p. 88, § 2; July 23, 1974, No. 151, Part 1, p. 695, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 321a - Additional penalty for violations

In addition to, or in lieu of refusal, revocation or suspension of the authorization of an insurer to make insurance, any insurer violating the provision of this title may be punished by an administrative fine which shall not exceed five thousand dollars ($5,000) for each offense; Provided, That the total amount of fines for the different violations does not exceed fifty thousand dollars ($50,000).
History —Ins. Code, added as § 3.211 on May 24, 1974, No. 46, Part 1, p. 200, § 9.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 322 - Notice of revocation or suspension; effect on agents’ licenses

(1) Upon determining to revoke or suspend an insurer’s certificate of authority, the Commissioner shall give notice thereof to the insurer not less than ten days in advance of the effective date of revocation or suspension.
(2) Within such ten-day period the Commissioner shall likewise revoke or suspend as of the same effective date the licenses of all general agents and agents licensed to represent the insurer in Puerto Rico, and give notice thereof to such general agents and agents.
(3) After the effective date of revocation of an insurer’s certificate of authority the Commissioner shall publish in a newspaper of general circulation throughout Puerto Rico, once a week for four consecutive weeks, notice of such revocation in Spanish and English. The cost of such publication shall be borne by the insurer.
History —Ins. Code § 3.220.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 323 - Duration of suspension or revocation

(1) Unless the Commissioner specifies the duration of the revocation in his order of revocation, the insurer may be granted another certificate of authority at any time upon application and qualification therefor as provided in this chapter.
(2) A certificate of authority may be suspended for not over twelve months, as specified in the order of suspension. Upon expiration of the suspension period, the insurer’s certificate of authority and the licenses of its general agents and agents which were suspended concurrently, shall be eligible for reinstatement or renewal.
History —Ins. Code § 3.230.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 324 - Ownership of certificate; surrender to Commissioner

Ownership of all certificates of authority is vested in the Commissioner. Upon suspension or revocation of an insurer’s certificate of authority the insurer shall surrender the certificate to the Commissioner, who shall retain the certificate during the period of revocation or suspension.
History —Ins. Code § 3.240.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 325 - Insurer’s name

(1) Every insurer shall conduct its business in its own proper or corporate name, except as provided in subsection (2) hereof or in § 1122(1) of this title (underwriter’s department).
(2) No insurer shall be authorized to transact insurance in Puerto Rico which has or uses a name so similar to that of any insurer already so authorized as to cause uncertainty or confusion, except that in case of conflict of names between two insurers the Commissioner may permit or require one of the insurers to use in Puerto Rico such supplementation of its name as may reasonably be necessary to avoid such conflict.
(3) No insurer shall be authorized to transact insurance in Puerto Rico which has or uses a name which tends to deceive or mislead as to the type of organization of the insurer.
History —Ins. Code § 3.250.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 326 - Disqualified supervisors of Puerto Rico business

(1) The Puerto Rico business of any authorized insurer shall not be under the direct or indirect supervision or control, from Puerto Rico or elsewhere, of any individual deemed by the Commissioner to be unreliable, untrustworthy, or incompetent by reason of:
(a) Acts of such individual resulting previously in suspension, revocation, or refusal as to such individual, or an insurer with which such individual was associated, of any insurance license or certificate of authority.
(b) Unlawful, unfair, or sharp practices on the part of such individual in insurance or other transactions.
(2) Upon believing that this section is being violated, the Commissioner shall give both the insurer and the individual notice thereof, naming the individual concerned and stating the general grounds for such belief. The insurer and the individual involved shall be entitled to a hearing upon the matter if the hearing is requested within thirty days after the issuance of the Commissioner’s notice. Upon expiration of such thirty-day period, if hearing is not requested, or upon completion of the hearing, if the Commissioner finds that such violation exists, the Commissioner may issue to the insurer his order requiring the insurer to cease in and desist of such violation within a reasonable time as specified therein. Failure of the insurer to comply with such order constitutes grounds for suspension or revocation of its certificate of authority.
History —Ins. Code § 3.260.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 327 - Suits against insurers, service of process on Commissioner

(1) Each authorized foreign insurer and each domestic reciprocal and Lloyd’s insurer shall appoint the Commissioner as its attorney-in-fact to receive service of legal process against it in Puerto Rico. The appointment shall be irrevocable, shall bind any successor in interest or successor to the assets or liabilities of the insurer, and shall remain in effect as long as there is in force in Puerto Rico any contract made by the insurer, or obligation arising therefrom.
(2) Service of such process upon such an insurer may be made either upon the agent of the insurer designated for the purpose pursuant to § 317(1)(i) of this title (if a foreign insurer), upon the insurer’s attorney-in-fact (if a domestic reciprocal or domestic Lloyd’s plan insurer), or upon the Commissioner. As to such insurers, service of process shall be had only as provided in this subsection.
As to insurers formerly authorized to transact insurance in Puerto Rico, such service of process may be made upon the Commissioner.
Process served as provided in this subsection shall be deemed effective service thereof upon the insurer.
History —Ins. Code § 3.270.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 328 - How service made; duties of Commissioner

(1) Manifold copies of legal process against an insurer for whom the Commissioner is attorney-in-fact shall be served upon him. At time of service the plaintiff shall pay to the Commissioner three dollars ($3), taxable as costs in the action.
(2) Within two business days after such service, the Commissioner shall inform the insurer thereof by registered letter, with return receipt requested, addressed to its principal office having supervision of its transactions in Puerto Rico, or to its home office, or to its attorney-in-fact if a domestic reciprocal or Lloyd’s insurer, enclosing with the letter a copy of the process so served.
(3) The Commissioner shall keep a record showing in alphabetical order the names of the plaintiffs and defendants, nature of the action, date and hour of service on the Commissioner, and the action taken by the Commissioner as to each service of process.
(4) No further proceedings shall be had against the insurer, and the insurer shall not be required to appear, answer, or plead until expiration of forty-five days after date of such service upon the Commissioner.
History —Ins. Code § 3.280.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 329 - Business must be transacted through resident agents or broker producers; countersignature

(1) No insurer may effectuate any direct insurance upon or relative to any person, property or other material object of insurance that resides, is located in or is to be carried out in Puerto Rico, nor any insurance related thereto, except through an authorized representative of said insurer residing in Puerto Rico.
If the insured is represented by a producer residing in Puerto Rico, said insurance shall be executed through the manager, general agent or authorized representative of the insurer residing in Puerto Rico.
(2) Such policies or contracts shall be countersigned by the manager, general agent or authorized representative of the insurer residing in Puerto Rico.
If an insurance policy transacted or issued outside of Puerto Rico also covers any person, property or other material object of insurance that resides, is located in or is to be carried out in Puerto Rico, the same must be countersigned by a manager, general agent or authorized representative of the insurer residing in Puerto Rico, and in addition it shall indicate the proportional part of the premium corresponding to the person, property or object of insurance that resides, is located in or is to be carried out in Puerto Rico.
(3) No countersignature shall be made in blank.
(4) This section shall not apply:
(a) To surplus lines coverages written in accordance with §§ 1001–1020 of this title.
(b) With respect to countersignature, to group life insurance or group disability insurance, or to policies sold through vending machines licensed by the Commissioner.
(c) To ocean marine insurance coverages, and coverages upon, and/or any liability or risk with respect to, property in course of transportation in trade by sea or air.
(d) To reinsurances.
History —Ins. Code § 3.290; May 31, 1973, No. 73, p. 328, § 6; July 23, 1974, No. 133, Part 1, p. 598, § 2; Sept. 25, 1983, No. 28, p. 429, § 1; Jan. 19, 2006, No. 10, § 6, eff. 120 days after Jan. 19, 2006.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 330 - Records of insurers

Every insurer shall keep full and accurate accounts and records of its assets, obligations, transactions, and affairs, with proper separation as to the different kinds of insurance transacted by it, in accordance with accounting methods and practices generally recognized in such business or approved by the Commissioner. All such records and accounts shall be kept in such manner as to facilitate preparation of the required reports of the insurer, and of examination of the insurer’s affairs by the Commissioner.
History —Ins. Code § 3.300.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 331 - Annual statement required

(1) Each authorized insurer shall annually, before the thirty-first day of March, file with the Commissioner a true statement of its financial condition, transactions, and affairs as of the December 31st preceding. The statement shall be on forms as prescribed by the Commissioner, shall contain information as required by this title and by the Commissioner, and shall be verified by the oath of at least two of the insurer’s principal officers. The annual statement of a reciprocal or Lloyd’s insurer shall be verified by his attorney-in-fact.
(2) The annual statement of a foreign insurer not formed in the United States but authorized to transact insurance in a state of the United States, may relate only to its assets, transactions, and affairs in the United States and Puerto Rico (and including, at the insurer’s option, the Virgin Islands and the Canal Zone) unless the Commissioner requires otherwise. The statement may be verified by the insurer’s United States manager or by its officers duly authorized.
(3) The Commissioner may suspend or revoke the authority of any insurer failing to file its annual statement when due, or failing to file it during any extension of time therefor which the Commissioner may, for good cause, grant.
History —Ins. Code § 3.310.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 332 - Report for statistical purposes

Each authorized insurer shall, at the request of the Commissioner, furnish or cause to be furnished to the Commissioner data for compilation and study of statistics relative to insurance of such insurer effected or in force in Puerto Rico. Such data may include information as to losses suffered on account of any risk or risks, cause of such losses, and other information deemed necessary by the Commissioner.
History —Ins. Code § 3.320.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 333 - Special reports

The Commissioner, by rule or regulations, may require an insurer to make such special reports with respect to particular losses or claims or particular classes of losses or claims in Puerto Rico as he deems advisable, and on any matter when he deems it necessary or convenient and they are pertinent and related to the Commissioner’s investigative powers for the best performance of the functions and duties imposed on him by this title.
History —Ins. Code § 3.330; June 27, 1987, No. 62, p. 206.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 334 - General agents and managers

(1) In order to comply with the provisions of § 317 of this title, an insurer shall appoint and contract a manager or general agent to represent the insurer in Puerto Rico to carry out those functions consistent with this Code that may be conferred upon said manager or general agent by the insurer.
(2) The insurer that appoints and contracts a person as general agent or manager to represent the former as such in Puerto Rico must comply with the provisions of § 951c of this title.
(3) Said general agent or manager must meet all requirements established in § 951b of this title in respect to a license.
History —Ins. Code § 3.340; July 23, 1974, No. 151, Part 1, p. 695, § 6; May 6, 1983, No. 36, p. 59, § 1; Mar. 27, 2003, No. 96, § 2; Jan. 19, 2006, No. 10, § 7, eff. 120 days after Jan. 19, 2006.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 3 - Authorization of Insurers and General Requirements (§§ 301 — 335) › § 335 - Reciprocal provisions

(1) If by or pursuant to laws of any state or country any premium tax or income tax or other taxes, or any fees, fines, penalties, licenses, deposit requirements or other obligations, prohibitions, or restrictions are imposed upon Puerto Rico domiciled insurers doing business in such state or country, or upon its agents therein, which are in excess of such taxes, fees, fines, penalties, licenses, deposit requirements, or other obligations, prohibitions, or restrictions directly imposed upon insurers of such other state or country doing business in Puerto Rico, so long as such laws continue in force or are so applied, the same obligations, prohibitions, and restrictions of whatever kind may be imposed, at the Commissioner’s discretion, upon insurers of any such state or country doing business in Puerto Rico.
Any tax or obligation imposed by any city, county, or other political subdivision of a state or country on Puerto Rico domiciled insurers shall be deemed to be imposed by such state or country, and the Commissioner may, for the purpose of this section, compute the burden of any such tax or obligation on an aggregate statewide or countrywide basis as an addition to the rate of tax payable by similar Puerto Rico domiciled insurers in such state or country.
This subsection shall not apply to ad valorem taxes on real or personal property or to personal income taxes.
(2) If a state or country refuses to recognize deposits maintained in Puerto Rico pursuant to §§ 313 and 314 of this title by an insurer authorized to transact insurance in Puerto Rico, and to allow credit for such deposit as, or upon, any similar deposit requirement under the laws of such state or country, the Commissioner may refuse or revoke the certificate of authority to transact insurance in Puerto Rico of any insurer domiciled in such state or country.
History —Ins. Code § 3.350.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 401 - Definitions not mutually exclusive

It is intended that certain coverages may come within the definitions of two or more kinds of insurance as set forth in this chapter, and the fact that such a coverage is included within one definition shall not exclude such coverage as to any other kind of insurance within the definition of which such coverage may likewise be reasonably includable.
History —Ins. Code § 4.010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 402 - Life insurance, defined

Life insurance.— Is insurance of human lives and insurance appertaining thereto or connected therewith. For the purposes of this title, the transacting of life insurance includes the granting of annuities and endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the total and permanent disability of the insured, and optional modes of settlement of proceeds.
History —Ins. Code § 4.020.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 403 - Disability insurance, defined

“Disability insurance” is insurance against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, against disablement or expense resulting from sickness, and every insurance appertaining thereto.
History —Ins. Code § 4.030.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 404 - Property insurance, defined

Property insurance.— Is insurance on real or personal property of every kind and interest therein, against loss or damage from any or all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for any such loss or damage. Property insurance shall also include miscellaneous insurance as defined in § 408(12) of this title except as to any liability coverage therein includable.
History —Ins. Code § 4.040.