reglab/statecodes huggingface dataset:
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

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.
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

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.
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

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.
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) › § 3703 - Procedures

(1)
(a) Every person who has an insurable interest in an insurable property, who shall have diligently made an effort, in the regular insurance market to obtain fire and allied lines insurance from more than one authorized insurer, shall have the right, on or after the date the plan of operation becomes effective, to request such coverage from the Association. The application can be made directly by the applicant or through a producer authorized by him.
(b) If the Association may determine that:
(A) The property is insurable, and
(B) that no premiums are owed, except those that have been objected to in writing within thirty (30) days after the invoice has been presented for collection the Association, once it has received the payment of the premiums for the policy or that part which may be required by the plan of operations, shall issue an insurance policy for fire and allied lines for the term of one year.
(2) Each member of the Association may cede to the Association fire and allied lines insurance covering insurable properties, in accordance with the terms and conditions established in the plan of operations.
(3)
(a) The rates, rating plans and rating rules applicable to the insurance written by the Association, and the statistical records related with same, shall be subject to §§ 1201–1240 of this title, except when otherwise provided for in this chapter.
(b) The rates, rating plans and rating rules applicable to insurance written by the Association, shall be in accordance with the rates periodically filed with and approved by the Commissioner of Insurance, for the risks rated by the rating organization for the hazards of fire and allied lines in Puerto Rico and applicable to such insurance.
The filed rules and rating plans, in regard to the plan of operation, may provide rules for the application of surcharges for risks which have unsafe and dangerous conditions. Such rules and rating plans shall provide for the prompt elimination of the surcharges upon the elimination of the unsafe and dangerous conditions.
History —Ins. Code, added as § 37.030 on June 14, 1968, No. 85, p. 152; Jan. 19, 2006, No. 10, § 9, 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 37 - Joint Underwriting Association for Fire and Allied Lines Insurance (§§ 3701 — 3708) › § 3704 - Participation

(1) Every insurer, member of this Association, shall participate in its underwritings, expenses, profits, losses, and liabilities in the proportion that the net direct premium of each member (excluding the portion of premiums that shall correspond to the operations of the Association), written during the preceding year, bears to the total direct net premiums written in Puerto Rico by all the members of the Association in the said year, for the hazards of fire and allied lines.
(2) The Association shall be governed by a Board of seven (7) Directors, elected by cumulative voting by the members of the Association, whose votes in such election shall be valid, in accordance with the direct net premiums underwritten by each member during the preceding year. At least one (1) of the Directors shall be an individual who is not employed by nor affiliated to any insurer, producer, general agent, insurance consultant, or any other producer or authorized insurance entity in Puerto Rico. The Board shall be elected annually at a meeting of the members or their authorized representatives, on the date and place to be designated by the Commissioner. The first Board shall be elected within fifteen (15) days after the effective date of this act, on the date and place designated by the Commissioner.
(3) Neither the Board of Directors of the Association nor its directors shall personally or individually incur any economic liability whatsoever for any action taken in the discharge of their duties and powers under this chapter, which in the case of member insurers shall mean both the insurer and its representative before the Board of Directors, nor the officials of the association, provided they do not act in violation of their fiduciary duties towards the administration, nor act intentionally to cause harm or knowingly that they may cause some harm.
History —Ins. Code, added as § 37.040 on June 14, 1968, No. 85, p. 152; May 6, 1983, No. 35, p. 58; Dec. 29, 2000, No. 462, § 2; Jan. 19, 2006, No. 10, § 9, eff. 120 days after Jan. 19, 2006; Apr. 13, 2014, No. 38, § 1, eff. 30 days after Mar. 14, 2014.
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) › § 3705 - Appeals to the Commissioner

Any person who applies for insurance to the Association and any person insured in accordance with this chapter, or his representatives, or any insurer affected, may appeal to the Commissioner within thirty (30) days after being notified of any order, action or decision of or on behalf of the Association.
History —Ins. Code, added as § 37.050 on June 14, 1968, No. 85, p. 152.
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) › § 3706 - Privileged communications

(1) The reports from inspection made by or on behalf of the Association, shall be available to the members of the Association, the Commissioner and, with respect to their own applications, to the applicant for insurance.
(2) Neither the Association, nor its agents or employees, nor the insurers, nor the Commissioner or his authorized representatives shall be held responsible for statements made by them in good faith in any report or communication on risks insured or to be insured by the Association, or on administrative hearings in relation to same.
History —Ins. Code, added as § 37.060 on June 14, 1968, No. 85, p. 152.
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) › § 3707 - Reports

The Association shall present annually to the Office of the Commissioner of Insurance, on or before March 31 of each year, or at a later date set by the Commissioner, a report of the transactions, conditions and operations made during the year. This report shall contain the material and information as the Commissioner may prescribe, and shall be in the manner approved by him.
The Commissioner may at any time require from the Association, additional information on its transactions, conditions or any other matter connected therewith necessary for the evaluation of the scope, operation and experience of the Association.
History —Ins. Code, added as § 37.070 on June 14, 1968, No. 85, p. 152.
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) › § 3708 - Examinations

The Commissioner may examine the business of the Association whenever he deems it necessary. These investigations and inspections shall be made in accordance with the methods provided by this Code.
History —Ins. Code, added as § 37.080 on June 14, 1968, No. 85, p. 152.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3801 - Content

This chapter comprises the provisions concerning the Puerto Rico Miscellaneous Insurance Guaranty Association.
History —Ins. Code, added as § 38.010 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3802 - Purpose

The purpose of this chapter is to create a mechanism for the payment of covered claims under certain insurance policies in order to prevent excessive delays in payment, avoid financial losses to claimants or policyholders as a result of the insolvency of an insurer, help to detect and prevent the insolvency of insurers, and establish an association to access the cost of this protection among insurers.
History —Ins. Code, added as § 38.020 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3803 - Coverages

This chapter shall apply to all types of insurance, except reinsurance, but shall not apply to:
(1) Life or disability insurance.
(2) Mortgage guaranty, financial guaranty and other forms of insurance that offer protection against investment risks.
(3) Guaranty insurance, except fidelity bonds which secure the probity of public employees.
(4) Warranty or service contract insurance.
(5) Title insurance.
(6) Ocean maritime insurance.
(7) Any transaction or combination of transactions between a person (including the affiliates thereof) and an insurer (including the affiliates thereof) which involves the transfer of credit or investment risks, which is not accompanied by a transfer of insurance risk.
(8) Any insurance provided or guaranteed by the government.
History —Ins. Code, added as § 38.030 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3804 - Interpretation

This chapter shall be liberally construed to attain the purpose established in § 3802 of this title, which shall serve as an aid and guide in the interpretation of this chapter.
History —Ins. Code, added as § 38.040 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3806 - Association—Creation

A nonprofit legal entity is hereby created which shall be known as the Puerto Rico Miscellaneous Insurance Guaranty Association. All insurers defined as member insurers in § 3805(9) of this title, shall be and shall continue to be members of the Association as a condition to transact insurance in Puerto Rico. The Association shall carry out its functions under a plan of operations established and approved pursuant to § 3809 of this title, and shall exercise its powers through a Board of Directors established pursuant to § 3807 of this title. For administrative purposes and the imposition of assessments, the Association shall establish two (2) separate accounts:
(a) A vehicle insurance account, and
(b) an account for all other kinds of insurances to which this chapter applies.
History —Ins. Code, added as § 38.060 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3807 - Association—Board of Directors

(1) The Board of Directors of the Association shall consist of at least five (5) and not more than nine (9) member insurers, who shall serve for the terms established in the plan of operations. The Board members shall be selected by the member insurers, subject to the Commissioner’s approval. The President of the Board shall be elected from among the members thereof. Vacancies on the Board shall be filled for the remainder of the term, by majority vote of the remaining members of the Board, subject to the approval of the Commissioner.
(2) On the approval of the selections for the Board, the Commissioner shall take into consideration, among other things, whether all the member insurers are fairly represented.
(3) The assets of the Association can be used to reimburse the Board members for any reasonable and necessary expenses incurred as members thereof.
History —Ins. Code, added as § 38.070 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3810 - Association—Duties and powers of the Commissioner

(1) The Commissioner:
(a) Shall notify the Association of the existence of an insolvent insurer not later than three days after receiving notice of the determination of insolvency. The Association shall be entitled to a copy of any action seeking an order of liquidation due to insolvency against a member insurer, at the time such a complaint is filed before a court of competent jurisdiction.
(b) At the request of the Board of Directors, shall provide the Association with a statement of the net direct written premiums subscribed by each member insurer.
(2) The Commissioner may:
(a) Request the Association to notify the insured of the insolvent insurer and any other interested party on the determination of insolvency and their rights under this chapter. The notice shall be served by mail to their last known address, if available, but if there should not be sufficient information available to serve notice by mail, it shall be sufficient to publish a notice once a week, for three consecutive weeks, in two newspapers of general circulation in Puerto Rico.
(b) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in Puerto Rico of any member insurer who fails to pay an assessment when due, or fails to comply with the plan of operations. As an alternative, the Commissioner may levy a fine on any member insurer who fails to pay an assessment when due. Said fine shall not exceed five percent (5%) of the unpaid assessment per month, but no fine shall be less than one hundred dollars ($100) a month.
(c) Revoke the designation of a servicing facility if he/she finds that the claims are not being satisfactorily handled.
History —Ins. Code, added as § 38.100 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3811 - Association—Effect of paid claims

(1) Any person who recovers under the terms of this chapter is deemed to have ceded to the Association his/her rights under his/her policy to the extent of his recovery from the Association. Every insured or claimant who seeks the protection of this chapter shall cooperate with the Association to the extent to which such person would have been required to cooperate with the insolvent insurer. The Association shall have no cause of action against the insured of the insolvent insurer for any amount he/she might have paid, except for those causes of action as the insolvent insurer might have had if said amounts had been paid by the insolvent insurer and except as provided in subsection (2) of this section. In the case of an insolvent insurer operating under an assessment liability plan, the payments of the claims made by the Association shall not have the effect of reducing the liability of the insured with the receiver, liquidator or statutory successor for the unpaid assessments.
(2) The Association shall be entitled to recover the amount of any covered claim it would have paid on behalf of any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are totally or partially liquidated by payments made pursuant to this chapter.
(3) The receiver, liquidator or statutory successor of the insolvent insurer shall be bound by the covered claims transactions made by the Association or similar organization in another state. The court with competent jurisdiction shall give the same priority to said claims to which the claimants might have been entitled, in the absence of this chapter, against the assets of the insolvent insurer. The expenses of the Association or similar organization incurred in dealing with the claims shall have the same priority as the expenses of the liquidator.
(4) The Association shall periodically submit to the liquidator or receiver of the insolvent insurer reports of the covered claims paid by the Association and estimates of the anticipated claims before the Association in order to preserve the rights of the Association against the assets of the insolvent insurer.
History —Ins. Code, added as § 38.110 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3812 - Association—Duplication of recovery

(1) Any person having a claim against an insurer under any provision of a policy other than a policy of an insolvent insurer, and which is also a covered claim, shall be required to first exhaust his/her rights under said policy. Any amount payable in a covered claim under this chapter shall be reduced in the amount of any recovery under said insurance policy.
(2) Any person having a claim which may be recovered from more than one insurance guaranty association or its equivalent, shall first seek recovery from the association of the place of residence of the insured, except from [sic] if the claim is filed by an insured for damages to a property located permanently, he/she shall first seek recovery from the Association in which the property is located. Any recovery under this chapter shall be reduced by the amount of recovery obtained from any other insurance guaranty association or its equivalent.
History —Ins. Code, added as § 38.120 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3813 - Association—Prevention of insolvency

To help in the detection and prevention of insolvency of insurers:
(1) The Board of Directors shall:
(a) Make, from time to time, recommendations to the Commissioner for the detection and prevention of the insolvencies of insurers, and
(b) respond to requests from the Commissioner to discuss and make recommendations on the condition of any member insurer whose financial condition may be dangerous for its insured and for the public. Said recommendations shall not be deemed as public documents.
(2) The Board of Directors shall, at the conclusion of the insolvency of any domestic insurer in which the Association was bound to pay covered claims, and should it have sufficient and adequate information, prepare a report on the history and causes of said insolvency and submit such report to the Commissioner.
History —Ins. Code, added as § 38.130 on Aug. 17, 1991, No. 72, § 1; Aug. 13, 2008, No. 262, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3814 - Association—Examination

The Association shall be subject to examination and to regulation by the Commissioner. The Board of Directors shall submit, no later than March 30 of each year, a financial report for the preceding calendar year in the form approved by the Commissioner.
History —Ins. Code, added as § 38.140 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3815 - Association—Tax exemption

The Association shall be exempt from the payment of any fee, duty or tax levied by the Commonwealth or any of its instrumentalities, except for taxes levied on real and personal property.
History —Ins. Code, added as § 38.150 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3816 - Association—Acknowledgment of assessments in the tariffs

The rates and premiums charged on insurance policies to which this chapter applies shall include that portion which is sufficient to recover an amount equal to the sums which the member insurer pays the Association, less any amounts which the Association may return to the member insurer, and such rates shall not be deemed excessive because they contain an amount reasonably calculated to recoup the assessment paid by the member insurer.
History —Ins. Code, added as § 38.160 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3817 - Association—Immunity

No civil liability shall be attached to, and no cause of action of any nature shall be established against any member insurer, the Association or its agents or employees, the Board of Directors or its representatives or the Commissioner or his/her representatives, for any action taken by them, or omission, in the discharge of their powers or duties under this chapter or under §§ 4001–4054 of this title.
History —Ins. Code, added as § 38.170 on Aug. 17, 1991, No. 72, § 1; Dec. 29, 2000, No. 462, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3818 - Association—Temporary stay of procedures

All procedures in which the insolvent insurer is a party or is bound to defend a party before the courts of Puerto Rico, shall be stayed for a period of up to six (6) months, and for any additional time granted by the court, from the date the insolvency was determined, or an ancillary procedure was instituted in Puerto Rico, as described in § 4049 of this title, whichever is later, to permit the Association an adequate defense in all caused pending action. With respect to any covered claim arising from a judgment under any decision, verdict or ruling based on the default of the insolvent insurer, or for its failure to defend an insured, the Association, on its own behalf or on behalf of said insured, may request that the judgment, order, decision, verdict or ruling be set aside by the same court or administration that issued said judgment, order, decision, verdict or ruling, and it shall be permitted to defend the claim on its merits.
The liquidator, receiver or statutory successor of an insolvent insurer covered by this chapter shall allow access to the Board or its authorized representative to those records of the insolvent insurer which may be needed for the Board to execute its functions with respect to covered claims under this chapter. Furthermore, the liquidator, receiver or statutory successor shall provide the Board or its representative with copies of said records upon request by the Board and at the expense of the Board.
History —Ins. Code, added as § 38.180 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 38 - Miscellaneous Insurance Guaranty Association (§§ 3801 — 3819) › § 3819 - Association—Prohibited advertisements

No person, including an insurer, agent or affiliate of an insurer shall make, publish, disseminate, circulate or present to the public or shall cause directly or indirectly to be made, published, disseminated, circulated or present to the public, in any newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster or on a television or radio station, or in any other manner, any advertisement, announcement or statement, written or oral which uses the existence of the Puerto Rico Miscellaneous Insurance Guaranty Association for the purpose of selling, soliciting or inducing the purchase of any kind of insurance covered by said Association. This section, however, shall not be applicable to the Puerto Rico Miscellaneous Insurance Guaranty Association.
History —Ins. Code, added as § 38.190 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3901 - Content

This chapter includes the provisions regarding the Puerto Rico Life and Disability Insurance Guaranty Association.
History —Ins. Code, added as § 39.010 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3902 - Purpose

(1) The purpose of this chapter is to protect, subject to certain limitations, those persons specified in § 3903(a) against noncompliance of contractual obligations under life and disability insurance policies, specified in § 3903(b), due to implement or insolvency of the member insurer who issued them.
(2) To provide this protection, an association of insurers is hereby created for the payment of the benefits and the continuity of the coverages, within the limitations herein established. The members of the Association shall be subject to the imposition of assessments to provide the funds needed to carry out the purposes of this chapter.
History —Ins. Code, added as § 39.020 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3904 - Interpretation

This chapter shall be liberally construed to attain the purpose established in § 3902 of this title, which shall serve as an aid and guide for its interpretation. However, none of the provisions of this chapter shall be construed as interfering or impairing any of the powers, faculties and duties conferred upon the Commissioner pursuant to §§ 4001–4054 of this title.
History —Ins. Code, added as § 39.040 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3906 - Association—Creation

(1) A nonprofit legal entity is hereby created which shall be known as the Life and Disability Insurance Guaranty Association of Puerto Rico. All member insurers shall be and will continue to be members of the Association as a condition for retaining their authority to transact insurance in Puerto Rico. The Association shall carry out its functions according to a plan of operations established and approved pursuant to § 3910 of this title and shall exercise its powers through a Board of Directors established pursuant to § 3907 of this title. For administrative purposes of the imposition of assessments, the Association shall keep three accounts:
(a) Life insurance account.
(b) Disability insurance account.
(c) Annuity account, excluding unallocated annuity contracts.
(2) The Association shall be under the immediate supervision of the Commissioner and shall be subject to the applicable provisions of this title.
History —Ins. Code, added as § 39.060 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3907 - Association—Board of Directors

(1) The Board of Directors of the Association shall consist of not less than five (5) nor more than nine (9) member insurers, who shall serve for the terms established in the plan of operations. The Board members shall be selected by the member insurers subject to the approval of the Commissioner. The President of the Board shall be elected from among the members thereof. Vacancies on the Board shall be filled for the remaining period of the term, by majority vote of the remaining Board members, subject to the approval of the Commissioner.
(2) On approving the selection of the Board, the Commissioner shall take into consideration, among other things, whether all the member insurers are fairly represented.
(3) The members of the Board may be reimbursed from the assets of the Association, for any reasonable and necessary expenses incurred as members thereof, but the Association may not otherwise compensate said members for their services.
History —Ins. Code, added as § 39.070 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3910 - Association—Plan of operations

(1) The Association shall submit to the Commissioner a plan of operations and any amendments to [the] same which may be necessary and adequate to attain the fair, reasonable and equitable administration of the Association. The plan of operations and any amendments thereto, shall become effective when approved by the Commissioner in writing, or within thirty (30) days if the Commissioner has not rejected it before then.
(2) All member insurers shall comply with the plan of operations.
(3) The plan of operations, in addition to the other requirements listed elsewhere in this chapter, shall establish:
(a) Procedures for the administration of the assets of the Association.
(b) The amounts and methods of reimbursement for the members of the Board of Directors as provided in § 3907 of this title.
(c) Places and dates for the regular meetings of the Board, including telephone conference calls of the Directors.
(d) Procedures for keeping records of all the financial transactions of the Association, its agent and the Board of Directors.
(e) Procedures for the designation of members of the Board of Directors and notice thereof to the Commissioner.
(f) Any additional procedures for the imposition of assessments under § 3909 of this title.
(g) Those additional provisions which may be necessary and proper for the execution of the powers and duties of the Association.
(4) The plan of operations may establish that any of the powers and duties of the Association, or all of them, except those provided for in §§ 3908(m)(3) and 3909 of this title, be delegated to a corporation, association or other organization which performs, or may perform functions analogous to those of this Association, or their equivalent, in two or more states. Said corporation, association or organization shall be reimbursed for the payments made on behalf of the Association and it shall be compensated for performing any of the functions of the Association. A delegation under this section shall be made solely with the approval of the Board of Directors as well as of the Commissioner and shall only be made to a corporation, association or organization which does not extend a substantially less favorable and effective protection than the one this chapter provides.
History —Ins. Code, added as § 39.100 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3911 - Association—Duties and powers of the Commissioner

In addition to the powers and duties listed in other parts of this chapter:
(1) The Commissioner:
(a) Shall provide for the Association, by request of the Board of Directors, a list of the premiums of each member insurer in Puerto Rico and in any other corresponding state.
(b) Shall require the insurer to cover an impairment when declared and the amount thereof is determined, within the term specified in § 2939 of this title. Notice to the insurer shall be deemed as a notice to the stockholders, if any. Failure of the insurer to comply with said requirement shall not be an excuse for the Association to stop exercising its powers and duties established in this chapter.
(c) Shall be designated as liquidator or rehabilitator in any liquidation or rehabilitation proceeding of a domestic insurer.
(2) The Commissioner shall suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in Puerto Rico of any member insurer who fails to pay an assessment due, or fails to comply with the plan of operations. As an alternative, the Commissioner may impose a penality on any member insurer who fails to pay an assessment due. This penalty shall not exceed five percent (5%) per month of the assessment due, but no penalty shall be less than one hundred dollars ($100) a month.
(3) Any member insurer may appeal any action of the Board of Directors or of the Association before the Commissioner, if the appeal is made within thirty (30) days following the final action appealed. If a member insurer appeals an assessment, the amount of the assessment shall be paid to the Association and shall be available for the Association to cover its obligations while the appeal is pending. If the appeal on the assessment is sustained, the amount paid erroneously or in excess shall be reimbursed to the member insurer. Any final action or order of the Commissioner shall be subject to judicial review by a court of competent jurisdiction.
(4) The liquidator, rehabilitator or conservator of an impaired insurer may notify all interested persons as to the effects of this chapter.
History —Ins. Code, added as § 39.110 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3914 - Association—Examination; annual report

The Association shall be subject to examination and regulation by the Commissioner. Each year, the Board of Directors shall submit to the Commissioner no later than one hundred and twenty (120) days after the close of the fiscal year of the Association, a financial report in the form prescribed by the Commissioner, and a report of its activities during the preceding fiscal year.
History —Ins. Code, added as § 39.140 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3915 - Association—Tax exemption

The Association shall be exempt from payment of all fees and taxes levied in Puerto Rico or any of its subdivisions, with the exception of those on real property.
History —Ins. Code, added as § 39.150 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3916 - Association—Immunity

There shall be no liability on the part of, nor shall any cause of action of any nature be instituted against a member insurer or its producers or employees, the Association or its producers or employees, the members of the Board of Directors, or the Commissioner or his/her representatives for any of their actions or omissions in the exercise of their powers and duties under this chapter. Such immunity shall be extended to their participation in any organization of associations with similar purposes in one or more states and to said organization, its producers and employees.
History —Ins. Code, added as § 39.160 on Aug. 17, 1991, No. 72, § 1; Jan. 19, 2006, No. 10, § 9, 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 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3917 - Association—Temporary stay of proceedings; reopening of judgments by default

All proceedings in which the insolvent insurer is a party in any court of Puerto Rico, shall be stayed for a term of one hundred and eighty (180) days from the date an order for liquidation, rehabilitation or conservation is final in order to allow the Association to take the corresponding legal action with regard to matters germane to its powers and duties. With respect to judgments by default under any decision, order, verdict or finding, the Association may request the same court that rendered said judgment to set it aside, and that it be allowed to present a defense of the suit on its merits.
History —Ins. Code, added as § 39.170 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3918 - Prohibited advertisements—Notice to policy owners

(a) No person, including a insurer, agent or affiliate of an insurer shall make, publish, disseminate, circulate or place in public view or cause to be made, published, disseminated, circulated or placed in public view, directly or indirectly, in any newspaper, magazine or other publication or as a notice, circular, pamphlet, letter or poster, or over a radio or television station, or otherwise, any written or oral advertisement, notice or statement, using the existence of the Puerto Rico Life and Disability Insurance Guaranty Association for the purpose of selling, soliciting or as an inducement for the purchase of any type of life and disability insurance. However, this section shall not apply to the Puerto Rico Life and Disability Insurance Guaranty Association.
(b) Within one hundred eighty (180) days after the approval of this chapter, the association shall prepare a document describing the general purposes and coverage limitations offered by the Association under this chapter. Such document must be submitted to the Commissioner for approval. Upon the approval thereof, the Association shall distribute such document to all member insurers. The document shall also be available to any insured or policy and/or contract owner upon request. The distribution, delivery, contents, or interpretation of this document does not guarantee that either the policy or the contract or the owner of the policy or contract is covered and protected under the provisions of this chapter in the event of insolvency. The information contained in such document must be revised by the association once the amendments to this chapter are approved, and the revised document shall be submitted to the Commissioner for approval. Failure to receive this document does not give the policy or contract owner or the insured or beneficiary any greater rights than those stated in this chapter.
(c) The document prepared under subsection (b) above shall contain a clear and conspicuous disclaimer warning that not all policies or contracts are covered under the provisions of this chapter. Said disclaimer shall be approved by the Commissioner.
History —Ins. Code, added as § 39.180 on Aug. 17, 1991, No. 72, § 1; Aug. 20, 2009, No. 82, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4001 - Interpretation and purpose

(1) This chapter comprises the provisions regarding the rehabilitation and liquidation of insurers.
(2) This chapter does not limit the powers granted to the Commissioner by other provisions of this title or any special law.
(3) This chapter shall be liberally construed to attain the purpose established in subsection (4) of this section.
(4) The purpose of this chapter is to protect the interests of the insured, claimants, creditors and general public with minimum interference with the normal prerogatives of the owners and managers of the insurers, through:
(a) The early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures;
(b) the application of improved methods for rehabilitating insurers, using the cooperation and management expertise of the insurance industry;
(c) clarification of the law so as to minimize legal uncertainty and litigation and thus achieve enhanced efficiency and economy of liquidation;
(d) the equitable assessment of any unavoidable loss;
(e) a decrease in the problem of interstate rehabilitations and liquidations by promoting cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside of Puerto Rico, and
(f) The regulation of receivership proceedings and the establishment of substantive rules for said proceedings.
(g) Provide, as part of the oversight of the insurance business, a comprehensive scheme for the rehabilitation and liquidation of insurers pursuant to this chapter. The proceedings in cases of insolvency and of any noncompliance by an insurer shall constitute integral aspects of the insurance business and as such are vested with public interest.
(5) This chapter and the chapters covering the Insurance Guaranty Associations of Puerto Rico contain the provisions applicable to rehabilitation and liquidation proceedings for insurers and the same must be construed as a whole in order for them to be consistent. In the event that a conflict arises between the provisions of said chapters and the provisions of any other law, the provisions of these chapters shall prevail.
—Ins. Code, added as § 40.010 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 1.
History