2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 18 - Consumer Credit Insurance (§§ 1801-1812 — 1823) › § 1814 - Definitions

(1) Creditor.— Means the lender or the vendor or lessor of goods, or the person who renders services or grants rights or privileges, for which payment is agreed upon through a credit transaction or any successor of the rights, titles or interest of said lenders, vendors, or lessors or persons and any affiliate, associate or subsidiary thereof, or any director, official, or employee of any of them or any other person who is otherwise related to them.
(2) Insurer.— Means an insurer who is authorized to underwrite life insurance or physical disability insurance in Puerto Rico.
(3) Identifiable charge.— Means a consumer credit insurance charge which is only made to debtors who have such insurance and includes any insurance charge which is stated in the credit instrument provided to the debtor. Any difference in the financing, interest, service or other similar service provided to the debtors who are in the same circumstances except for the insured or uninsured condition of the debtor or the property used as security for the credit transaction, shall be considered as an “identifiable charge.”
(4) Compensation.— Means commissions, dividends, retrospective credit rates, service fees, concessions, or reimbursements for expenses, gifts, provision of equipment or fixtures, facilities, goods or services, or any other means of remuneration that is the direct result of the sale of consumer credit insurance.
(5) Gross debt.— Means the total remaining payments that a debtor owes a creditor.
(6) Net debt.— Means the amount required to liquidate the remaining debt on a specific date, from that date, through a single global payment, excluding all unearned interest and all unearned financing charges.
(7) Debtor.— Means a person who borrows money or who purchases or leases assets, or receives services, property, rights or privileges for which payment is agreed upon through a credit transaction.
(8) Rotating credit account and credit card.— Means the credit extended by a creditor under an agreement in which the creditor has a reasonable expectation that there will be repeated transactions; the creditor imposes a [finance] charge from time to time on an outstanding balance; and the amount of credit that can be extended to the debtor during the term of the agreement, up to the limit established by the creditor, is generally available in the measure that any outstanding balance is paid.
(9) Consumer credit insurance.— Is the generic name that refers to life credit insurance, disability credit insurance or unemployment credit insurance.
(10) Unemployment credit insurance.— Means insurance on a debtor to provide indemnity for payments pursuant to a loan or other credit transaction that falls due while the debtor is involuntarily unemployed as defined in the policy.
(11) Disability credit insurance.— Means insurance on a debtor to provide indemnity for payments pursuant to a loan or other credit transaction that falls due while the debtor is disabled as defined in the policy.
(12) Credit life insurance.— Means insurance on the life of a debtor pursuant to or in relation to a specific loan or other credit transaction which provides for the payment of the debt, wholly or partially, on the death of the insured debtor.
(13) Credit transaction.— Means any transaction under whose terms there is an agreement to pay borrowed money or to pay for goods or services sold or leased, on one or several future dates.
History —Ins. Code, added as § 18.030 on Jan. 9, 1999, No. 15, § 2, eff. 90 days after Jan. 9, 1999.