2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1020 - Insurance transacted with unauthorized insurers

(1) Any insured, residing in Puerto Rico, who transacts or causes to transact an insurance relative to a subject of insurance, residing, located or to be performed in Puerto Rico with an unauthorized insurer, except unauthorized insurers eligible pursuant to § 1007a of this title, must, within 30 days after having transacted such insurance, file with the Commissioner a report containing the following:
(a) Name and address of the insured.
(b) Name and address of the insurer.
(c) Subject of the insurance.
(d) Description of the coverage.
(e) Total amount of the premium charged.
(f) Aliquot part of the premium corresponding to a subject of insurance resident, located or to be performed in Puerto Rico, if it also covers subjects of insurance residing, located or to be performed outside Puerto Rico.
(g) Any additional information required by the Commissioner.
(2) Any insurance obtained from an unauthorized insurer through negotiations or an application made in Puerto Rico, or for which the premium, in whole or in part, is sent directly or indirectly from Puerto Rico, shall be understood to be an insurance transacted with an unauthorized insurer for the purposes of subsection (1) of this section.
(3) A tax equal to fifteen percent (15%) of the total premium charged by the unauthorized insurer is levied on account of the insurance transacted through an unauthorized insurer. However, this tax does not apply to insurance covering the risk of medical-hospital professional malpractice. The insured shall withhold the amount of the tax from the premium charged for such insurance and shall send it together with the report required in subsection (1) of this section. The tax shall be paid within the period of thirty (30) days after the effective date of said insurance, through certified check payable to the Secretary of the Treasury, through the Office of the Commissioner. In addition to the tax levied, the insured that does not pay the same within the established term shall be in default and will be obliged to pay an additional surcharge, starting on the expiration date of said term, of five percent (5%) of the unpaid total, for a delay in the payment of the tax in excess of thirty (30) days and no greater than sixty (60) days from the effective date of the policy; and of ten percent (10%) of the unpaid total plus legal interest on said tax in the case of a delay in payment in excess of sixty (60) days in case of default, to be computed in the following manner:
(a) A rate of interest equivalent to five percent (5%) over the maximum premium rate of interest established by the Board for Regulating Rates of Interest and Financing Charges created by §§ 998–998k of Title 10.
(b) Any amendment approved by said Board for Regulating Rates of Interest and Financing Charges, that modifies the maximum rate of interest, shall be effective for the purposes of this chapter, on the first day of the month following the date of approval of the new rate.
(4) If the insured fails to withhold the tax on the premium, he shall be responsible for its payment within the period specified in subsection (1) of this section.
(5) The provisions of this section are not applicable to disability or life insurance.
History —Ins. Code, added as § 10.200 on May 23, 1977, No. 29, p. 54; Sept. 25, 1983, No. 28, p. 429, § 2; Dec. 19, 2002, No. 284, § 4.