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2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1010 - Surplus line insurance valid

Insurance contracts procured as surplus line coverage from unauthorized insurers in accordance with this chapter shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects and for all purposes to the same effect as like contracts issued by authorized insurers. As to any such contract the insurer shall be deemed to be an authorized insurer in Puerto Rico, but shall be subject to the provisions of this chapter only.
History —Ins. Code § 10.100.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1011 - Insurance broker surplus lines insurance license; bond

Any insurance broker, while licensed as such and while maintaining an office at a designated location in Puerto Rico, and who is deemed by the Commissioner to be trustworthy and competent for the purpose, may be licensed by the Commissioner as a surplus line broker, as follows:
(1) Application to the Commissioner for the license shall be on forms furnished by the Commissioner.
(2) The insurance broker surplus lines insurance license issued by the Commissioner shall continue to be in effect until same is suspended, revoked, or cancelled, but subject to the payment of the annual fee set forth in § 701 of this title prior to midnight of the date of expiration.
(3) Before issuance of license the applicant shall file with the Commissioner and thereafter for so long as the license is in effect he shall keep in force a bond in favor of the Commonwealth in such penal sum not exceeding twenty-five thousand dollars ($25,000) as the Commissioner shall specify, with authorized corporate sureties, conditioned as follows:
(a) That the broker will conduct business under the license in accordance with this chapter, will promptly remit the taxes provided for by § 1013 of this title, and will properly account to the person entitled thereto for funds received by him through transactions under the license.
(b) That the bond shall not be subject to termination unless at least thirty days’ prior written notice thereof is filed with the Commissioner.
History —Ins. Code § 10.110; May 24, 1974, No. 46, Part 1, p. 200, § 3; Mar. 27, 2003, No. 96, § 5; 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 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1012 - Broker may accept business

(1) A surplus line broker may accept and place surplus line business for any insurance broker licensed in Puerto Rico for the kind or kinds of insurance involved, and may compensate such insurance broker therefor.
(2) The surplus line broker shall have the right to receive from the insurer the customary commission.
History —Ins. Code § 10.120; 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 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1013 - Tax on surplus lines; payment

(1) There is hereby imposed upon each surplus line coverage granted in Puerto Rico, or which covers residents[’] risks, located or to be performed in Puerto Rico wherever it was negotiated, a tax equal to nine percent (9%) of the total premium collected on account thereof, excluding the tax, except for any insurance covering the risk of medical-hospital professional malpractice. The broker shall be responsible for the collection and payment of the tax.
(2) Within sixty (60) days after a surplus line coverage has been procured, the broker shall file with the Commissioner a report thereof for tax purposes, stating the names and addresses of the insurer and the insured, the policy number and date of issue, the amount of premium received, and the computation and amount of tax due. The report shall be accompanied by a certified check payable to the Secretary of the Treasury for the amount of tax payable on account of the coverage reported.
(3) The surplus line insurer and such premium shall not be subject to any tax under this title other than as provided in this section.
History —Ins. Code § 10.130; July 30, 1974, No. 274, Part 2, p. 322; Feb. 16, 1979, No. 15, p. 28, § 8; June 18, 1980, No. 151, p. 678, § 3; Dec. 19, 2002, No. 284, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1013a - Failure to pay tax

(1) Any surplus line broker who fails to file his report on the surplus line coverage and fails to pay the specified tax within the term established in § 1013 of this title shall be punished by an administrative fine of twenty-five dollars ($25) for each day in arrears, subject to the right of the Commissioner to grant a reasonable extension of time for such filing and payment.
History —Ins. Code, added as 10.131 on July 23, 1974, No. 151, Part 1, p. 695, § 13; June 18, 1980, No. 151, p. 678, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1014 - General duties of broker

In connection with the transaction of surplus line insurance, the broker shall:
(1) Ascertain the insuring powers and financial condition of the insurer, and place such coverage only in an insurer empowered to issue the kind of insurance applied for and having a surplus as to policyholders in amount of at least three hundred thousand dollars ($300,000).
(2) Keep in his office a full record of the circumstances and details of each surplus line contract procured by him and of subsequent matters related thereto, which record shall be retained for at least five years from date of the contract, and shall be subject to the Commissioner’s inspection at any time.
(3) Report to the Commissioner, on forms such as are used with respect to authorized insurers, any loss occurring under a surplus line coverage procured by him.
History —Ins. Code § 10.140.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1015 - Broker’s liability to the insured

If the insured under any surplus line policy suffers loss or damage on account of the broker’s failure to comply with any requirement of this chapter, then the broker shall be liable to the insured for such loss or damage.
History —Ins. Code § 10.150.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1016 - Revocation of broker’s license

(1) The Commissioner may revoke any surplus line broker’s license:
(a) If the broker fails to file report of coverage and to pay the tax as required by this chapter.
(b) If the broker fails to keep the records and allow inspection thereof by the Commissioner as required by this chapter.
(c) For any other violation of this chapter, and for any of the causes for which a broker’s license may be revoked as provided in § 946 of this title.
(2) The procedures provided by Chapter 9 of this Code for the suspension or revocation of broker’s licenses shall be applicable to suspension or revocation of a surplus line broker’s license.
History —Ins. Code § 10.160.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1017 - Records of insurers

Upon the Commissioner’s order, any person in Puerto Rico who is the insured under any policy issued by an unauthorized insurer upon a subject of insurance resident, located, or to be performed in Puerto Rico at the time the policy was issued, shall produce for examination all policies and other documents evidencing and relating to the insurance, and shall disclose the amount of the gross premiums paid or agreed to be paid for the insurance, through whom the insurance was procured, and such other information relative to the placing of such insurance as may reasonably be required.
For each refusal to obey such order, such person shall, upon conviction, be subject to the penalty prescribed in § 117 of this title.
History —Ins. Code § 10.170.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 10 - Unauthorized Insurers (§§ 1001 — 1020) › § 1018 - Legal process against surplus line insurer

(1) In any action brought in Puerto Rico under an insurance contract issued as a surplus line pursuant to this chapter, duplicate copies of legal process against the insurer shall be served upon the Commissioner. The Commissioner shall forthwith mail one copy of the process so served to the person designated by the insurer in the policy for the purpose as reported to the Commissioner pursuant to § 1008(1) of this title, by registered mail with return receipt requested. Upon service of process upon the Commissioner and such mailing of process, the court shall be deemed to have jurisdiction in personam of the insurer. The insurer shall have forty-five days after such date of mailing within which to plead, answer, or otherwise defend the action.
At time of such service of process the plaintiff shall pay to the Commissioner three dollars, taxable as costs in the action.
(2) An unauthorized insurer issuing such policy shall be deemed thereby to have authorized service of process against it in the manner and to the effect as provided in this chapter.
History —Ins. Code § 10.180.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1101 - Scope of chapter

(1) The applicable provisions of this chapter shall apply to insurances other than ocean marine and foreign trade insurances as defined in subsection (2), and other than insurance contracts not covering subjects of insurance resident, located, or to be performed in Puerto Rico, issued for delivery and delivered outside of Puerto Rico, except as provided in § 1111(6) of this title (approval of forms for delivery in jurisdictions where local approval not provided for). This chapter does not apply to reinsurance.
(2) For the purposes of subsection (1) of this section and this title, “ocean marine and foreign trade insurances” shall include only:
(a) Insurances upon vessels, crafts, hulls, and of interests therein or with relation thereto.
(b) Insurance of marine builders’ risks, marine war risks, and contracts of marine protection and indemnity insurance.
(c) Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition.
(d) Insurance of personal property and interests therein, in course of exportation from or importation into any country, or in course of transportation coastwise, including transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to, or in connection with, any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during any delays, storage, trans-shipment or reshipment incident thereto.
—Ins. Code § 11.010.
History
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1102 - Insurable subjects

Subject to the provisions of this title, a contract of insurance may be made with respect to any subject and the hazards therein stated, as to which the possibility of damnification or an insurable interest exists, except that:
(1) No person shall be insured against the penal consequences of an offense; but this provision shall not be deemed to prohibit contracts providing for bail and expenses of defense as to penal offenses resulting from traffic accidents on land, sea, or in the air.
(2) No person shall insure or offer to insure, with or without consideration, any lottery or any result thereof or any contingency related thereto, whether in Puerto Rico or elsewhere.
(3) An insurance contract executed by way of gaming or wagering is void.
History —Ins. Code § 11.020.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1103 - Power to contract; minors

(1) Any person of competent legal capacity may contract for insurance.
(2) A minor after reaching fifteen years of age shall have legal capacity to negotiate, contract, trade, receive, and exercise all contractual rights and privileges in relation to:
(a) Life or disability insurance on his own life or body.
(b) Life or disability insurance contracts on his own life or body made for him before he reached age fifteen.
(c) The interest he may have in a life or disability insurance contract on his life or body, made by another person either before or after he reached age fifteen.
(d) If married, life or disability insurance contracts with respect to the spouse and their children.
(e) If married or otherwise emancipated, insurance contracts with respect to his property and interests therein and his legal liabilities, subject to § 915 of Title 31.
Except, that such a minor, other than in the cases provided for in clauses (d) and (e) of this subsection, or unless otherwise emancipated, shall not be bound by any unperformed agreement to pay, by promissory note or otherwise, any premium on any such insurance contract.
History —Ins. Code § 11.030.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1104 - Insurable interest—Personal insurance

(1) An individual of competent legal capacity may procure or effect an insurance contract upon his own life or body for the benefit of another person. But no person shall procure or cause to be procured any insurance contract upon the life or body of another individual unless the benefits under such contract are payable to the individual insured or his personal representatives, or to a person having, at the time when such contract was made, an insurable interest in the individual insured.
(2) If a beneficiary, assignee or other individual claiming to have a right to collect the policy violates the provision of this section, the insured, or his executor or administrator or authorized representative may institute contractual action against the insurer. If the insurer has paid the policy to the beneficiary, assignee or to any other individual, the insured may maintain an action to recover such benefits from the person so receiving them.
A beneficiary, assignee or any other individual receiving payment from a policy in violation of this section, shall have no right on the contract nor the right to receive or to keep any part of the benefits of the policy as beneficiaries, assigned heir or representative of the insured, nor in any other capacity.
(3) Insurable interest.— As used in this section and in § 1107 of this title includes only interests as follows:
(a) In the case of individuals related closely by blood or by law, a substantial interest engendered by love and affection.
(b) Those of a person liable for the support of a minor.
(c) In the case of other persons, a lawful and substantial economic interest in having the life, health, or bodily safety of the individual insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement, or injury of the individual insured.
(d) An individual heretofore or hereafter party to a contract or option for the purchase or sale of an interest in a business or professional partnership or firm, or of shares of stock of a close corporation or of an interest in such shares, has an insurable interest in the life of each individual party to such contract and for the purposes of such contract only, in addition to any insurable interest which may otherwise exist as to the life of such individual.
History —Ins. Code § 11.040.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1105 - Insurable interest—Property and interests

(1) No insurance contract on property or of any interest therein or arising therefrom shall be legally enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured.
(2) Insurable interest.— As used in this section means any actual lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment.
(3) The measure of an insurable interest in property is the extent to which the insured might be damnified by loss, injury, or impairment thereof.
History —Ins. Code § 11.050.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1106 - Interest of the insured

When the name of a person intended to be insured is specified in the policy, such insurance can be applied only to the extent of his own proper interest. This section shall not apply to life, disability, and title insurances.
History —Ins. Code § 11.060.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1107 - Application required for insurance

(1) No life or disability insurance contract upon any person, except a policy of group life insurance or of group or blanket disability insurance, as defined in this title, shall be made or effectuated unless at the time of making the contract the insured, being of competent legal capacity to contract, applies therefor in writing or gives his written consent therefor, except in the following cases:
(a) Either spouse may effectuate such insurance on the other.
(b) Any person having insurable interest in the life of a minor may effectuate an insurance upon the life of or with relation to the minor.
(2) The Commissioner may through regulation require a written application at the time of making the contract on any kind of insurance not included in subsection (1).
History —Ins. Code § 11.070; May 10, 1976, No. 32, p. 84, § 8.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1108 - Alteration of application

(1) No person shall falsify or cause to be falsified, in any application for insurance, any answer to a question propounded to the applicant therein, or insert or cause to be inserted therein, except as provided in subsection (2) of this section, any statement to be made by such applicant other than the statement made by the applicant.
(2) An application for insurance in writing by the applicant shall be altered solely by the applicant or by his written consent, except that insertions or corrections may be made by the insurer in such manner as to indicate clearly that such insertions or corrections are not to be ascribed to the applicant.
(3) An insurer issuing a policy upon an application which has been unlawfully altered by its officer, employee, or agent shall not have available any defense based upon the fact of such alteration, or as to any item which was so altered, in any action arising out of such policy.
History —Ins. Code § 11.080.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1109 - Application as evidence

(1) Any application for insurance shall be made a part of the policy. No insurance policy application shall be admissible as evidence in any suit or procedure related to said policy, unless a true and exact copy of the application is attached to the policy or otherwise made a part thereof at the time it is issued and delivered; if a true and exact copy of the application is furnished to the insured party after thirty (30) days of the policy being delivered, provided it is any type of insurance other than life insurance. A photostatic, or any other copy or photographic reduction or by any other procedure, of the application, or of the medical examination, if any, may be used to such effect, if it is clearly legible.
(2) If any life or disability insurance policy is reinstated or renewed, and the insured or beneficiary or assignee of the policy makes written request to the insurer for a copy of the application, if any, for such reinstatement or renewal, the insurer shall, within thirty days after receipt of such request at its home office, or branch office in Puerto Rico, or office of its general agent in Puerto Rico, deliver or mail to the person making such request, a copy of such application. If such copy is not so delivered or mailed to at least one of such parties, the insurer shall be precluded from introducing such application as evidence in any action or proceeding based upon or involving the policy or its reinstatement or renewal.
History —Ins. Code § 11.090; Jan. 8, 2004, No. 18, § 1, eff. 90 days after Jan. 8, 2004.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1110 - Representations in applications

All statements and descriptions in any application for an insurance policy or in negotiations therefor, by or in behalf of the insured, shall be deemed to be representations and not warranties. Misrepresentations, omissions, concealment of acts, and incorrect statements shall not prevent a recovery under the policy unless:
(1) Fraudulent; or
(2) material either to the acceptance of the risk, or to the hazard assumed by the insurer, or
(3) the insurer in good faith would either not have issued the policy, or would not have issued a policy in as large an amount, or would not have provided coverage with respect to the hazard resulting in the loss, if the true facts had been made known to the insurer as required either by the application for the policy or otherwise.
When the applicant incurs in any of the actions enumerated in subsections (1), (2) and (3) of this section, the recovery shall only be prevented if such actions or omissions contributed to the loss that gave rise to the action.
History —Ins. Code § 11.100.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1112 - Ground for disapproval of forms

The Commissioner shall disapprove a form of policy, application, rider or endorsement, or shall withdraw his approval thereof, only:
(1) If it is in any respect in violation of or does not comply with this title.
(2) If it is inconsistent with any applicable filing theretofore made and approved.
(3) If it contains or incorporates by reference any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract.
(4) If it has any title, heading, or other indication of its provisions which is misleading.
(5) If any material part of the policy or form is printed or otherwise reproduced in a manner substantially illegible.
(6) If purchase of insurance thereunder is being solicited by deceptive advertising.
(7) If it is one concerning disability insurance and the benefits provided therein are unfair in relation to the premium charged.
(8) If it is one concerning disability as it appears defined in § 403 of this title, and same does not provide benefits for when an insured, through reasons of emergency or accident not covered by §§ 1–42 of Title 11, known as the “Workmen’s Accident Compensation Act”, receives hospital care in commonwealth or municipal hospitals.
(9) If the conditions or exclusions of the policy limit the insurance coverage, the sale thereof resulting in an unjust enrichment on the part of the insurer.
(10) If the grounds for the cancellation of the contract are arbitrary and unreasonable.
History —Ins. Code § 11.120; June 15, 1961, No. 69, p. 141, § 1; June 27, 1964, No. 109, p. 329, § 1; July 23, 1974, No. 133, Part 1, p. 598, § 4; May 10, 1976, No. 32, p. 84, § 9.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1113 - Standard provisions in general

(1) Policies shall contain such standard provisions as are required by the applicable provisions, if any, of this title pertaining to contracts of particular kinds of insurance. The Commissioner may waive the required use of a particular standard provision in a particular insurance policy form if:
(a) He finds such provision unnecessary for the protection of the insured or beneficiary, and inconsistent with the purposes of the policy, and
(b) the policy is otherwise approved by him.
(2) No policy shall contain any provision inconsistent with or contradictory to any such standard provision used or required to be used, but the Commissioner may approve less favorable to the which in his opinion is not in any particular less favorable to the insured or beneficiary than the standard provision otherwise required.
No endorsement, rider, or other documents attached to such policy shall in any respect conflict with any such standard provision, or such approved substitute provision, contained or required to be contained in the policy. Any waiver or attempted waiver by the insured of any such standard or substitute provisions shall be void.
(3) In lieu of the standard provisions required by this title for policies for particular kinds of insurance, substantially similar standard provisions required by the law of a foreign insurer’s domicile or port of entry state into the United States may be used when approved by the Commissioner.
History —Ins. Code § 11.130.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1114 - Content of policies in general

(1) The written instrument in which a contract of insurance is set forth is the policy.
(2) Every policy to be effective in Puerto Rico shall be offered in the Spanish language and shall be issued in the English language at the option of the proposed insured. In the interpretation of said policies, the text that is of most benefit to the insured shall prevail. The provisions of this subsection shall not apply to such insurance which the Commissioner, through regulations to that effect, may exclude because of its technical nature or volume.
(3) The policy shall specify:
(a) The names of the parties to the contract, and the status of any party where such status is material to the contract. The policy shall be headed by the insurer’s name.
(b) The subject of the insurance.
(c) The hazards insured against.
(d) The amount of the insurance and benefits.
(e) The time at which the insurance thereunder takes effect and the period during which the insurance is to continue.
(f) A statement of the premium, and the premium rate if other than life, disability, or title insurance. As to title insurance, a statement of the premium need not be contained in the policy if such statement is contained in the application for the policy.
(g) The conditions pertaining to the insurance.
(h) Except policies of the kinds of insurance defined in §§ 402 and 403 of this title, and subject to the provisions of § 1127, the grounds on which the policy is cancelled and the right of the insured to request them.
(i) Except policies of the kinds of insurance defined in § 402, a clause specifying the procedure for the renewal of the policy. The Commissioner shall determine through regulation the insurances to which this provision applies.
(4) If under the contract the exact amount of premium is determinable only at termination of the contract, or at periodic intervals of the contract, a statement of the basis and rates upon which the final premium is to be determined and paid shall be furnished any policy examining bureau having jurisdiction or to the insured upon request.
(5) This section shall not apply to surety insurance except as provided in § 1111(1) of this title, or to group and blanket insurance policies or contracts.
(6) [Repealed. Act June 16, 1978, No. 6, p. 379, § 1, eff. June 16, 1978.]
—Ins. Code § 11.140; June 5, 1973, No. 98, p. 419, § 14; July 23, 1974, No. 161, Part 1, p. 729; May 10, 1976, No. 32, p. 84, § 10, May 19, 1977, No. 24, p. 49, June 16, 1978, No. 6, p. 379, § 1.
History
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1115 - Additional contents

(1) A policy may contain additional provisions which are not inconsistent with this title and which are:
(a) Required by the laws of the insurer’s domicile, or
(b) appropriate, on account of the manner in which the insurer is constituted or operated, to state the rights and obligations of the parties to the contract.
(2) If the insurer is a mutual or reciprocal insurer, the policy shall contain a statement of the contingent liability, if any, of the policyholder or insured.
History —Ins. Code § 11.150.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1116 - Charter, bylaw provisions

No policy shall contain any provision purporting to make any portion of the charter, bylaws, or other constituent document or rules of the insurer a part of the contract unless such portion is set forth in full in the policy. Any policy provision in violation of this section shall be invalid.
History —Ins. Code § 11.160.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1117 - Stated premium to include all charges

(1) The premium stated in the policy shall be inclusive of all fees, charges, premiums, or other consideration charged for the insurance and for the procurement thereof, except that, in any subsequent modification of the policy, the insurer may require that evidence of insurability be furnished at the insurer’s expense.
(2) No insurer or its officer, employee, agent, solicitor, or other representative shall charge or collect any fee, compensation, or other consideration for insurance except that included in the premium stated in the policy.
(3) This section does not apply to warranty, property title and group insurance nor to authorized premium surcharges pursuant to §§ 3801–3819 of this title, except as provided in said sections.
History —Ins. Code § 11.170; July 20, 1979, No. 139, p. 328, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1118 - Policy must contain entire contract; exception

(1) No agreement in conflict with, or modifying or extending, any contract of insurance shall be valid unless in writing and made a part of the policy.
(2) No insurer or its representative shall make any insurance contract or agreement relative thereto other than as is expressed in the policy.
(3) The requirements of this section shall not apply to the granting of additional benefits to all policyholders of an insurer, or to a class or classes of them, which do not require increases in premium rates or reduction or restrictions of coverage.
—Ins. Code § 11.180.
History
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1119 - Limiting actions on policies; jurisdiction

(1) No policy delivered or issued for delivery in Puerto Rico and covering a subject of insurance resident, located, or to be performed in Puerto Rico, shall contain any condition, stipulation, or agreement:
(a) Depriving the insured of right of access to the courts for determination of his rights under the policy in event of dispute.
(b) Depriving the courts of Puerto Rico of jurisdiction of action against the insurer.
(c) Limiting right to institute action against the insurer to a period of less than one year from date cause of action accrues in connection with all insurances other than property and marine and transportation insurances; in property and marine and transportation policies such right shall not be limited to a period of less than one year from the date of occurrence of the event resulting in the loss.
(d) Requiring that the policy be governed by the laws of any other jurisdiction except as necessary to meet the requirements of motor vehicle financial responsibility laws or compulsory disability benefit laws of such other jurisdiction.
(2) Any condition, stipulation, or agreement in violation of this section shall be void, but such voidance shall not affect the validity of the other provisions of the policy.
—Ins. Code § 11.190.
History
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1120 - Execution of policies

(1) Every policy shall be executed in the name and on behalf of the insurer by its officer, attorney-in-fact, employee, or representative duly authorized by the insurer.
(2) A facsimile signature of any such individual may be used in lieu of an original signature.
(3) No policy heretofore or hereafter issued and which is otherwise valid shall be rendered invalid by reason of the apparent execution thereof on behalf of the insurer by the imprinted facsimile signature of an individual not authorized so to execute as of the date of the policy, if the policy is countersigned by the original signature or initial of an individual then so authorized.
History —Ins. Code § 11.200.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1121 - Binders; duration; agent’s liability

(1) A “binder” is used to bind insurance temporarily pending the issuance of the policy. It may be oral or in writing. No binder shall be valid after the agreed date on it beyond the issuance of the policy for which it was given, or beyond such reasonable period as shall be established by rules and regulations promulgated by the Commissioner.
(2) A binder shall include all the usual terms of the policy as to which the binder was given.
(3) The Commissioner may suspend or revoke the license of any producer issuing or purporting to issue any binder as to any insurer named in the binder as to which he is not then authorized so to bind.
History —Ins. Code § 11.210; July 23, 1974, No. 133, Part 1, p. 598, § 5; 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 11 - The Insurance Contract (§§ 1101 — 1137) › § 1122 - Underwriters’ and combination policies

(1) Two or more authorized insurers may jointly issue, and shall be jointly and severally liable on, an underwriters’ policy bearing their names. Any one insurer may issue policies in the name of an underwriter’s department and such policies shall plainly show the true name of the insurer.
(2) Two or more authorized insurers may, with the Commissioner’s approval, issue a combination policy which shall contain provisions substantially as follows:
(a) That the insurers executing the policy shall be jointly and severally liable for the full amount of any loss or damage, according to the terms of the policy, or for specified percentages or amounts thereof, aggregating the full amount of insurance under the policy.
(b) That service of process, or of any notice or proof of loss required by such policy, upon any of the insurers executing the policy, shall constitute service upon all such insurers.
(3) This section shall not apply to co-surety obligations.
History —Ins. Code § 11.220.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1123 - Delivery of policy

(1) Subject to the insurer’s requirements as to payment of premium, every policy shall be mailed or delivered to the insured or to the person entitled thereto within a reasonable period of time from the date in which the insured applied for its issuance.
When the insurer fails to take action for a reasonable period of time after payment of the first premium, such omission shall be considered as an issuance and delivery of the policy of the kind and in the amount applied for.
(2) If the original policy is delivered or is so required to be delivered to or for deposit with any vendor, mortgagee or pledgee of any personal or real property, and in which policy any interest of the vendee, mortgagor, or pledgor in or with reference to such personal or real property is insured, a duplicate of such policy or memorandum thereof, [setting forth the name and address of the insurer,] type of coverage, limit of liability, premiums for the respective coverages, and duration of the policy, shall be delivered by the vendor, mortgagee, or pledgee to each such vendee, mortgagor, or pledgor named in the policy or coming within the group of persons designated in the policy to be so included.
If the policy does not provide coverage of legal liability for injury to persons or damage to the property of third parties on behalf of the vendee, mortgagor, or pledgor, a statement of such fact shall be printed, written or stamped conspicuously on the face of such duplicate policy or memorandum.
History —Ins. Code § 11.230; July 23, 1974, No. 133, Part 1, p. 598, § 6.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1124 - Validity of noncomplying forms

(1) Any insurance policy, rider, or endorsement issued after the effective date of this Code and otherwise valid, which contains any condition or provision not in compliance with the requirements of this title, shall not be rendered invalid thereby, but shall be construed and applied in accordance with such conditions and provisions as would have applied had such policy, rider, or endorsement been in full compliance with this title.
(2) Failure to secure the Commissioner’s approval of a form before use as required by § 1111 of this title, shall subject the insurer to the penalties provided by this title, but shall not of itself render invalid any policy issued thereon.
History —Ins. Code § 11.240.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1125 - Construction of policies

Every insurance contract shall be construed according to the entirety of its terms and conditions as set forth in the policy, and as amplified, extended, or modified by any lawful rider, endorsement, or application attached to and made a part of the policy.
—Ins. Code § 11.250.
History
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1126 - Renewal of policy

Any insurance policy terminating by its terms at a specified expiration date and not otherwise renewable, may be renewed or extended at the option of the insurer, upon a currently authorized policy form and at the premium rate then required therefor, for a specific additional period or periods by a certificate or by endorsement of the policy, and without requiring the issuance of a new policy.
History —Ins. Code § 11.260.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1127 - Limitation of cancellation by insurer

(1) The insurer may not cancel an insurance contract after it has been in force for a period of sixty (60) days or more, except for default in premium payment and for the reasons specified in the policy. Provided, That the insured may request the cancellation of the insurance contract according to the terms specified in the policy.
Upon petition of the insured, the insurer shall specify to him the grounds for the cancellation. The Commissioner shall through regulation determine the insurances to which this subsection shall apply, and the procedure to be followed for their cancellation.
(2) In addition to such right and procedure for cancellation of an insurance contract by either the insurer or the insured as may be expressed in the policy, the Commissioner may order the immediate cancellation of any policy procured or effectuated through violation of this title, except if the policy is by its terms not cancellable by the insurer and the insured did not knowingly participate in any such violation.
History —Ins. Code § 11.270; May 10, 1976, No. 32, p. 84, § 11.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1128 - Assignment of policies

(1) A policy may be assignable or not assignable, as provided by its terms.
(2) Subject to the terms of the policy relating to its assignability, whether such policies were heretofore or are hereafter assigned, any policy issued by a life or disability insurer under the terms of which the beneficiary may be changed upon the sole request of the insured, may be assigned either by pledge or transfer of title, by an assignment executed by the insured alone and delivered to the assignee, whether or not the pledgee or assignee is the insurer. Any such assignment shall entitle the insurer to deal with the assignee as the owner or pledgee of the policy in accordance with the terms of the assignment, until the insurer has received at its home office written notice of termination of the assignment or pledge.
History —Ins. Code § 11.280.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1130 - Payment discharges insurer

(1) Whenever the proceeds of, or payments under, a policy or contract heretofore or hereafter issued by a life or disability insurer, become payable in accordance with the terms of such policy or contract, or through the exercise of any right or privilege thereunder, and the insurer makes payment thereof in accordance with the terms of the policy or contract or in accordance with written assignment thereof, to the person then designated in the policy or contract or in the insurer’s records or by such assignment as being entitled thereto, such payment shall fully discharge the insurer from all claims under the policy or contract, unless, before payment is made, the insurer has received at its home office, written notice by or on behalf of some other person that such other person claims to be entitled to such payment or some interest in the policy or contract.
History —Ins. Code § 11.300.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1130a - Simultaneous deaths

When the insured and the beneficiary or beneficiaries in a life insurance or disability policy die and there is no evidence as to who died before, the policy shall be paid according to its terms as if the beneficiary or beneficiaries had died before the insured. No rule of evidence regarding simultaneous deaths shall apply to cases under this section.
An agreement between the parties included in the policy by which the insured states that the benefits of the policy shall be paid to other beneficiaries instead of the heirs of the insured in cases of simultaneous deaths under this section, shall be valid.
History —Ins. Code § 11.301.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1131 - Minor may give acquittance

Any minor domiciled in Puerto Rico who has attained age eighteen, shall be deemed competent to receive and to give full acquittance and discharge for a payment or payments in aggregate amount not exceeding two thousand dollars ($2,000) in any one year, made by a life insurer as benefits payable to such minor in compliance with the provisions of an insurance policy or annuity contract or settlement agreement. No such minor shall be deemed competent to alienate the right to, or to advance, such payments. This section shall not be deemed to restrict the rights of minors insured pursuant to § 1103 of this title.
History —Ins. Code § 11.310.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 11 - The Insurance Contract (§§ 1101 — 1137) › § 1132 - Exemption of proceeds—Disability policies

(1) The proceeds and avails of disability insurance policies and of provisions providing benefits for disability which are supplemental to life insurance or annuity contracts, whether heretofore or hereafter effected, shall be exempt from all liability and legal process for any debt of the insured, and for any debt of the beneficiary existing at the time the proceeds are made available for his/her use, except as follows:
(a) The exemption shall not apply with respect to the excess of periodic benefits payable under all policies to the insured because of disability, over the sum of eight hundred dollars ($800) [per month].
(b) The exemption shall not apply to periodic payments payable to the insured, with respect to necessaries contracted for by the insured during the period of his disability, if the complaint contains a statement to that effect.
The exceptions stated in clauses (a) and (b) of this subsection shall not apply as to lump sum benefits for dismemberment, or to benefits payable, on account of the insured’s accidental death, to a beneficiary designated in the policy, other than the insured’s estate.
(2) This section shall not be deemed to prevent payment by the insurer of proceeds to a creditor of the insured pursuant to express provision in the policy or as authorized by a written assignment or consent of the insured as permitted by the terms of the policy and filed with the insurer.
History —Ins. Code § 11.320; June 20, 2007, No. 49, § 1.