reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 44 - Insurance Holding Company System Regulatory Act (§§ 4401 — 4414) › § 4412 - Receivership

Whenever it appears to the Commissioner that any person has committed a violation of this chapter which so impairs the financial condition of a domestic insurer or health service organization as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders or the public, then the Commissioner may proceed as provided in Chapter 40 of the Insurance Code.
History —Ins. Code, added as § 44.120 on Mar. 7, 2012, No. 51, § 1, eff. 30 days after Mar. 7, 2012.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 44 - Insurance Holding Company System Regulatory Act (§§ 4401 — 4414) › § 4413 - Recovery

(a) If an order for liquidation or rehabilitation of a domestic insurer or health service organization has been entered, the judicial administrator or receiver appointed under the order shall have a right to recover on behalf of the insurer:
(1) From any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the insurer on its capital; or
(2) Any payment in the form of a bonus, termination settlement or extraordinary lump sum salary adjustment made by the insurer or its subsidiary to a director, officer, or employee, where the distribution or payment pursuant to this subsection is made at any time during the one year preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsections (b), (c) and (d) of this section.
(b) No distribution shall be recoverable if the parent or affiliate shows that when paid the distribution was lawful and reasonable, and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
(c) Any person who was a parent corporation or a person who otherwise controlled the insurer or affiliate at the time the distributions were paid shall be liable up to the amount of distributions or payments under subsection (a) of this section which the person received. Any person who otherwise controlled the insurer at the time the distributions were declared shall be liable up to the amount of distributions that would have been received if they had been paid immediately. If two (2) or more persons are liable with respect to the same distributions, they shall be jointly liable.
(d) The maximum amount recoverable under this section shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.
(e) To the extent that any person liable under subsection (c) is insolvent or otherwise fails to pay claims due from it, its parent corporation or person who otherwise controlled it at the time the distribution was paid, shall be jointly liable for any resulting deficiency in the amount recovered from the parent corporation or holding company or person who otherwise controlled it.
History —Ins. Code, added as § 44.130 on Mar. 7, 2012, No. 51, § 1, eff. 30 days after Mar. 7, 2012.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 44 - Insurance Holding Company System Regulatory Act (§§ 4401 — 4414) › § 4414 - Revocation, suspension, or nonrenewal of an insurer or health service organization license

Whenever it appears to the Commissioner that any person has committed a violation of this chapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the Commissioner may, after giving notice and an opportunity to be heard, suspend, revoke, or refuse to renew the insurer’s license to do business in Puerto Rico for such period as the Commissioner finds is required for the protection of policyholders or the public. The parties shall be notified of any such determination through certified mail and it shall be accompanied by specific findings of fact and conclusions of law, and the petition for review available.
History —Ins. Code, added as § 44.140 on Mar. 7, 2012, No. 51, § 1, eff. 30 days after Mar. 7, 2012.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4501 - Purpose

The purpose of this chapter is to further the public welfare by regulating and overseeing the financial solvency of insurers and health maintenance organizations. To that end, this chapter provides the Commissioner, as a tool for oversight, with the standards, formulas and reports originated by the NAIC with the purpose of gauging and classifying the capital capacity of these entities to respond to the various levels of risk to which they are exposed in their respective lines of business, without the entities’ solvency becoming impaired. Furthermore, this chapter confers upon the Commissioner the authority to require that insurers take measures to protect their capital and/or reduce their risks, taking into consideration their asset and liability profile. This chapter also establishes the fundamental risk based capital requirements and provides for the levels and mechanisms for corrective action when an entity fails to maintain the necessary capital vis-à-vis its risks.
In the insurance business, it is necessary for there to be a capital surplus with respect to the capital required as risk based capital, computed as per the formulas, computation tables and instructions set forth in this chapter and in the NAIC model legislation entitled “Risk Based Capital”. Insurers shall therefore strive to maintain a capital level that surpasses the levels of risk based capital required under this chapter.
The provisions of this chapter shall be liberally interpreted in order to adequately meet its purpose.
History —Ins. Code, added as § 45.010 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4503 - Risk based capital reports

(1) By or before March 31 of every year, all local insurers shall prepare and submit before the Commissioner, a report on their risk based capital level at the close of the preceding calendar year, with such information and in such a manner as required in the risk based capital instructions. Furthermore, all local insurers shall submit their risk based capital report:
(a) Before the NAIC pursuant to the risk based capital instructions, and
(b) before the Insurance Commissioner in any state in which the insurer is authorized to underwrite insurance policies, if said Insurance Commissioner has given written notice of his/her request to the insurer, in which case the insurer shall submit its risk based capital report by or before the later date between:
(i) Fifteen (15) days as of the date of receipt of the notice of the requirement of submitting the risk based capital report before said state, or
(ii) on March 31.
(2) If the local insurer submits before the Commissioner, a risk based capital which, in the judgment of the Commissioner, is inaccurate, the Commissioner shall adjust said report to correct the deficiency and shall notify the insurer of the adjustment and the reason therefor. The report that has been so adjusted shall be denominated “revised risk based capital report” or “revised report”.
History —Ins. Code, added as § 45.030 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4506 - Authorized control level event

(1) Authorized control level event— Means any of the following events:
(a) Submission by the insurer of a risk based capital report indicating that the adjusted capital of the insurer is greater than or equal to the mandatory control level, but lesser than the authorized control level;
(b) notice by the Commissioner to the insurer concerning a revised risk based capital report indicating the event described in clause (a) of this subsection, provided the insurer has not lodged an objection to said report under § 4508 of this title;
(c) notice to the insurer by the Commissioner of his/her determination against the objection to the revised report that reflects the event described in clause (a) of this subsection, lodged by the insurer under § 4508 of this title;
(d) when the insurer fails to respond to a corrective order to the satisfaction of the Commissioner, provided the insurer has not lodged an objection to the corrective order under § 4508 of this title, or
(e) when, after the determination by the Commissioner made totally or partially against an objection to a corrective order lodged by the insurer under § 4508 of this title, the insurer, in the judgment of the Commissioner, fails to respond or to act pursuant to said corrective order.
(2) In case an authorized control level event takes place in respect of an insurer, the Commissioner may:
(a) Implement any of the measures provided for in § 4502(2) of this title, relative to regulatory action level events, or
(b) take measures as necessary in order for the insurer to be placed under regulatory control under the insurer rehabilitation and liquidation procedure provided for in §§ 4001–4054 of this title, if in the judgment of the Commissioner, this measure inures to the benefit of the policyholders, the insurer’s creditors and the general public. In case the Commissioner takes such measures, the authorized control level Event shall constitute sufficient grounds to invoke § 4009(1) of this title, which provides the grounds for practicing the rehabilitation procedure, as well as § 4014 of this title, which provides the grounds for practicing the liquidation procedure concerning an insurer. The Commissioner shall have those rights, powers and duties in respect of the insurer provided for in said §§ 4001–4054 of this title.
History —Ins. Code, added as § 45.060 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4507 - Mandatory control level event

(1) A “mandatory control level event” means any of the following events:
(a) Submission of a risk based capital report indicating that the adjusted capital of the insurer is lesser than the mandatory control level;
(b) notice to the insurer by the Commissioner concerning a revised risk based capital report that indicates the event described in clause (a) of this subsection, provided said report has not been objected to by the insurer under § 4508 of this title, or
(c) notice to the insurer by the Commissioner of his/her determination against the objection to the revised report that reflects the event described in clause (a) of this subsection, lodged by the insurer under § 4508 of this title.
(2) In case a mandatory control level event takes place, the Commissioner shall take measures as necessary to exercise regulatory control over the insurer under the rehabilitation and liquidation procedure provided for in §§ 4001–4054 of this title. In the case of an insurer that is not transacting new insurance businesses in Puerto Rico, even if the insurer continues to collect premiums on policies in force on risks located in Puerto Rico, the Commissioner may allow said insurer to continue the process of releasing such policies under the supervision of the Commissioner. In any case, it shall be deemed that the mandatory control level event constitutes sufficient grounds to invoke § 4009(1) of this title, which provides the grounds for practicing the rehabilitation procedure, as well as § 4014 of this title, which provides the grounds for practicing the liquidation procedure concerning an insurer. The Commissioner shall have, in respect of the insurer, all those rights, powers and duties provided for in said §§ 4001–4054 of this title.
History —Ins. Code, added as § 45.070 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4508 - Adjudicative procedure

Under any of the following circumstances, the insurer shall be entitled to object to any determination or action taken by the Commissioner through the adjudicative procedure pursuant to the “Uniform Administrative Procedures Act”, §§ 2101 et seq. of Title 3, and the Insurance Code.
(1) When the Commissioner notifies to an insurer concerning a revised risk based capital report.
(2) When the Commissioner notifies to an insurer that:
(a) The risk based capital plan of the insurer or the revised plan is not satisfactory, and
(b) said notice constitutes a regulatory action level event against said insurer.
(3) When the Commissioner notifies to any insurer that the insurer has failed to comply with the risk based capital plan or the revised plan, which has adversely and significantly impaired the ability of the insurer to eliminate the insurer action level event.
(4) When the Commissioner notifies to the insurer of a corrective order against the insurer.
History —Ins. Code, added as § 45.080 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4509 - Confidentiality

(1) All risk based capital plans and all corrective orders issued by the Commissioner pursuant to this chapter, or which is under the power or control of the Office of the Insurance Commissioner, shall not be open to public inspection.
(2) In order to be able to discharge his/her duties, the Commissioner:
(a) May share documents, materials or other information — including documents, materials or information not open to public inspection, as provided in subsection (1) of this section — with other Commonwealth, federal and international agencies, with the NAIC and its branches and subsidiaries, and with Commonwealth, federal and international law enforcement authorities, provided the latter do not render these open to public inspection.
(b) May receive documents, materials or information — including documents, materials or information treated by other agencies as confidential and privileged information — from the NAIC and its branches and subsidiaries and from regulatory or law enforcement officers from other foreign or local jurisdictions, and he/she shall maintain the confidentiality or the privilege of any document, material or information he/she has received whereby it is specified or construable that the same is confidential or privileged pursuant to the laws of the jurisdiction originating the document, material or information.
(3) It shall not be construed that exchanging information with or furnishing information to the Commissioner, as set forth in subsection (2) of this section, constitutes a waiver of any privilege whatsoever, or that such action alters the category of a document, material or information so as to render the same open to public inspection.
History —Ins. Code, added as § 45.090 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4510 - Rules; exemption

(1) The Commissioner may approve regulations as he/she deems necessary to adequately implement this chapter.
(2) The Commissioner shall have discretion, on a case-by-case basis, to exempt a local insurer from any of the provisions of this chapter, if the reason for which such insurer fails to comply with the risk based capital levels responds to compliance with other practices allowed under other provisions of the Code.
Property and casualty insurers may also be exempted if they meet the following criteria:
(a) They underwrite direct premiums only in Puerto Rico;
(b) they underwrite direct annual premiums for $2,000,000 or less, and
(c) they do not assume reinsurance greater than five percent (5%) of the annual direct premiums they have underwritten.
(3) Regulations shall establish a transition period whereby the Insurance Commissioner shall establish a staggered term, within a five (5)-year period and contingent upon the volume of premiums underwritten, for compliance with this act. Said term shall begin to transpire at the time this act is rendered effective.
History —Ins. Code, added as § 45.100 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4511 - Foreign insurers

(1) When the Commissioner so requests in writing, any foreign insurer shall submit before the Commissioner, a risk based capital report for the close of the preceding calendar year, by or before:
(a) The date on which, pursuant to § 4503 of this title, it is required that a local insurer submit a risk based capital report, or
(b) fifteen (15) days as of the date of notice by the Commissioner to the foreign insurer, requesting such a report.
Any foreign insurer shall, upon written request by the Commissioner, expeditiously submit before the Commissioner, a copy of any risk based capital plans submitted before the Insurance Commissioner of any other state.
(2) The Commissioner may require that the foreign insurer submit a risk based capital plan in the occurrence of an insurer action level event, a regulatory action level event, or an authorized control level event, as established in the legal provisions relative to risk based capital of the jurisdiction where the insurer is domiciled, or in its default, under the provisions of this chapter. In those cases in which the Commissioner of the jurisdiction of domicile does not so require from the foreign insurer, in contravention of the applicable legal provisions, the Commissioner may require that the foreign insurer submit a risk based capital plan. If in the judgment of the Commissioner, the foreign insurer fails to meet said requirement, such a failure shall be sufficient grounds to order the insurer to cease and desist from underwriting new policies in Puerto Rico.
(3) In the occurrence of a mandatory control level event in connection with a foreign insurer, if no liquidator has been appointed in the jurisdiction of domicile, in contravention of the legal provisions on liquidation and rehabilitation of insurers, the Commissioner may revoke the authorization of the foreign insurer.
History —Ins. Code, added as § 45.110 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4512 - Immunity

Neither the Office of the Insurance Commissioner of Puerto Rico, nor the Commissioner, his/her employees, agents, or authorized representatives shall be responsible, neither in their official capacity nor in their personal capacity, nor shall any action be taken against any of the aforementioned, for reason of an action any of the aforementioned had taken while in the exercise of their powers and discharge of their duties pursuant to this chapter.
History —Ins. Code, added as § 45.120 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 45 - Risk Based Capital (§§ 4501 — 4513) › § 4513 - Notices

All notices remitted by the Commissioner to an insurer which may lead to regulatory action, shall take effect on the date on which the same are sent through registered or certified mail, and in the case any other means is used, the same shall take effect as soon as the insurer receives such a notice.
History —Ins. Code, added as § 45.130 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 49 - Health; Insurance Underwriting (§§ 8001 — 8005) › § 8001 - Design and adoption of billing system

All insurers, health services organizations organized pursuant to §§ 1901–1927 of this title, and nonprofit organizations, organized under §§ 41 et seq. of Title 6, who underwrite health insurance services in Puerto Rico, are hereby directed to design and adopt a uniform billing system to be used by them in billing for the rendering of medical-hospital services and dispensing prescription medications.
History —Aug. 10, 1997, No. 61, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 49 - Health; Insurance Underwriting (§§ 8001 — 8005) › § 8002 - Presentation and evaluation of terms

All insurers, health services organizations and nonprofit associations underwriting health insurance services in Puerto Rico shall design said uniform billing system in coordination with the Insurance Commissioner within a term that shall not exceed six (6) months, starting from the effective date of this act. Said system shall be presented for evaluation and approval by the Insurance Commissioner of Puerto Rico no later than thirty (30) days after being designed or after said term of six (6) months has elapsed, whichever occurs first. The Commissioner shall take the measures deemed necessary to establish said system if the insurers, health services organizations and nonprofit associations do not reach an agreement regarding the structuring of the system and do not submit the same for approval. The uniform billing system shall be put to use one year after the effectiveness of this act.
History —Aug. 10, 1997, No. 61, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 49 - Health; Insurance Underwriting (§§ 8001 — 8005) › § 8003 - Prohibition

As of the date in which the billing system provided herein is put to use, it shall be illegal to use any other billing form other than that created under this chapter.
History —Aug. 10, 1997, No. 61, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 49 - Health; Insurance Underwriting (§§ 8001 — 8005) › § 8004 - Penalties

Any violation of the provisions of this chapter shall be punished with a fine of one hundred dollars ($100), and each billing form used in contravention of the provisions of this chapter shall constitute a separate violation.
History —Aug. 10, 1997, No. 61, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 49 - Health; Insurance Underwriting (§§ 8001 — 8005) › § 8005 - Implementation and enforcement

The Insurance Commissioner shall be the official responsible for the administration, implementation and enforcement of this chapter. To such effects, it shall be understood that the provisions of §§ 101 et seq. of this title, known as the “Insurance Code of Puerto Rico,” shall be complementary to the provisions of this chapter whenever they are not incompatible.
History —Aug. 10, 1997, No. 61, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8051 - Declaration of purposes

In view of the problem of financial loss as a result of uncompensated damages to motor vehicles in traffic accidents, the Government of Puerto Rico, through this chapter, adopts a compulsory liability insurance system which covers the damages caused to vehicles in accidents. To such ends, so that a motor vehicle can travel on public thoroughfares, its owner shall obtain and keep a liability insurance coverage in effect. This coverage responds for damages caused to motor vehicles of third parties as a result of a traffic accident, for which the owner of the vehicle covered by this insurance is legally liable and which, through its use, has caused said damages.
To enforce the compulsory nature of the insurance coverage, the cost thereof shall be paid on the date the vehicle’s license is acquired for the first time or upon renewal thereof. The compulsory coverage cannot be cancelled, except as provided in § 8053(c) of this title, nor is it refundable, and at the time of acquisition shall be paid in full, except as provided in § 8061(a) of this title.
History —Dec. 27, 1995, No. 253, § 2; Dec. 29, 2009, No. 201, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8053 - General provisions

(a) Any person who obtains a motor vehicle license for the first time, or who renews it, as required by §§ 5001 et seq. of Title 9, shall be bound to pay the corresponding premium for the compulsory liability insurance together with the payment of the amount of the fees for the issuing or renewing said license, to the Secretary of the Treasury. The Secretary of the Treasury shall transfer the total amount of the premiums collected to the Joint Underwriting Association.
However, the Joint Underwriting Association may establish through regulations to such effects, alternate methods for the payment of the premium for the compulsory liability insurance, provided there is assurance that the issuing or renewal of the motor vehicle license shall be subject to the owner of the said vehicle being insured either by traditional liability insurance or by the compulsory liability insurance.
The Secretary of Transportation and Public Works shall deny the [issuance] or renewal of any motor vehicle license in the name of any person who fails to comply with this provision.
(b) No person shall drive, conduct or operate a motor vehicle or allow the vehicle to travel on the public thoroughfares if he/she has not yet acquired compulsory liability insurance.
Every incidental owner or driver of a motor vehicle must ascertain that the vehicle being driven is covered by a compulsory liability insurance policy before traveling on the public thoroughfares of the country.
(c) The compulsory liability insurance shall be in effect during the term for which the motor vehicle license is issued and can only be cancelled when the subject of the insurance disappears, or in those circumstances in which it is guaranteed that the motor vehicle shall continue to be insured by insurance with a coverage similar to or greater than the compulsory liability insurance. To such effects, the Commissioner shall establish, through regulations, under what conditions the cancellation for the above reasons shall be carried out.
(d) Any motor vehicle owner who wishes to acquire compulsory liability insurance, may freely select the insurer he/she shall request the insurance from. The private insurers that offer this coverage may select their insured pursuant to the provisions of § 8054(b) of this title.
(e) When the motor vehicle license is transferred to another person, the compulsory liability insurance which covers said vehicle shall be kept in effect and shall then cover the legal liability of the new owner until the date of renewal of said motor vehicle’s license.
History —Dec. 27, 1995, No. 253, § 4; Aug. 20, 1997, No. 94, § 2; Dec. 26, 1997, No. 201, § 2; Aug. 7, 1998, No. 201, § 1; Dec. 29, 2009, No. 201, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8054 - Who shall offer the compulsory liability insurance

(a) All private insurers shall be bound to provide the compulsory liability insurance to those motor vehicle owners that request it, except as provided in subsection (b) of this section.
(b) The Commissioner shall establish the criteria through regulations to such effects, that the private insurers shall take into consideration to reject the applicants for compulsory liability insurance. If those criteria are not met, the Commissioner shall impose the penalties prescribed by this title for violations to its provisions on the [sic] private insurers.
(c) The compulsory liability insurance shall be underwritten by private insurers through the use of a uniform policy form which shall be subject to the provisions of §§ 1101–1137 of this title.
(d) The private insurers that underwrite compulsory liability insurance shall provide an information and orientation program on said insurance to the public, with special emphasis on the procedure to file the corresponding claims in cases of traffic accidents and in accordance with the guidelines that the Commissioner shall promulgate. Likewise, said official shall establish an information and orientation program which supplements that of the private insurers.
History —Dec. 27, 1995, No. 253, § 5; Aug. 20, 1997, No. 94, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8056 - Premiums

(a) The initial uniform premium of the compulsory liability insurance shall be ninety-nine dollars ($99) for each private passenger vehicle and one hundred forty-eight dollars ($148) for each commercial vehicle. The premium shall not be increased until three (3) years have elapsed in the case of private insurers, and two (2) years in the case of the Joint Underwriting Association, both terms counted as of the date in which the compulsory liability insurance is exigible.
The Commissioner may fix a premium other than that established herein for the compulsory liability insurance of those vehicles to which the Department of Transportation and Public Works has issued transitory or provisional licenses.
(b) The uniform premium of the compulsory liability insurance applicable to private passenger vehicles and commercial vehicles, as well as that of motor vehicles insured with the Joint Underwriting Association, may be revised pursuant to the applicable provisions of §§ 1201–1240 of this title.
(c) Any private insurer may submit for the approval of the Commissioner a variation of a uniform percentage to reduce the uniform compulsory liability insurance premium corresponding to private passenger vehicles or commercial vehicles, pursuant to the provisions of § 1214 of this title.
(d) The Joint Underwriting Association, taking as [a] basis the frequency and severity of the losses of its insured, may submit for approval by the Commissioner those rules and rate plans that contain norms for the application of surcharges to the corresponding uniform premium of private passenger or commercial vehicles insured thereby, subject to the provisions of §§ 1201–1240 of this title. Such rules and rate plans shall provide for the prompt elimination or modification of said surcharges, upon the approval of the Commissioner, when the premium and loss experience thus justifies it.
(e) Any modification, alteration, change, reduction, or increase in the uniform compulsory liability insurance premium shall be made pursuant to the applicable provisions of Chapter 12 of the Code.
(f) The uniform premium of the compulsory liability insurance shall not be subject to the payment of premium taxes established in § 702 of this title.
History —Dec. 27, 1995, No. 253, § 7; Aug. 20, 1997, No. 94, § 5; Dec. 29, 2009, No. 201, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8057 - Investigation, adjustment and resolution of claims

(a) The Joint Underwriting Association shall establish an initial liability determination system that shall facilitate, expedite, and uniform the payment of claims. Said system shall provide a reasonable term to make the liability determination. This system shall not impair the right of claimants to resort to the courts when the initial liability determination system thus allows or when any of the parties involved in a claim intend to obtain a compensation in addition to that paid by virtue of said system.
(b) The initial liability determination system originally drafted shall be reviewed or amended by the Joint Underwriting Association or its Board of Directors. The review or amendments shall be submitted to the consideration of the Commissioner. The amended determination system shall take effect immediately after its adoption by the Commissioner.
(c) The Commissioner may amend the initial liability determination system through the establishment of a taskforce composed of two (2) representatives from the Office of the Insurance Commissioner selected by the Commissioner, two (2) representatives from the Joint Underwriting Association selected by its Board of Directors, and one (1) member independently selected by mutual agreement of the Commissioner and the Joint Underwriting Association.
History —Dec. 27, 1995, No. 253, § 8; Dec. 26, 1997, No. 201, § 4; Dec. 29, 2009, No. 201, § 6.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8058 - Term for the payment of claims and penalties

Once the liability and the amount of the damages to a motor vehicle in an accident has been determined through the initial liability determination system or by the courts with jurisdiction, payment of the claim shall be made in a term which shall not exceed five (5) calendar days as of said determination. If payment is made after said term, the insurer shall be subject to an additional charge calculated on the basis of the prevailing legal interest for [sic] the benefit of the claimant. Furthermore, in these cases, the Commissioner may impose any administrative fines provided in the Code. The insurer shall make the corresponding payment to the owner of the affected motor vehicle or to the body shop selected by the affected person or both. The Joint Underwriting Association shall only accept repair estimates and shall only make payments to body shops that are duly registered in the Registry of Merchants of the Department of the Treasury. For such purpose, the Department of the Treasury shall periodically provide to the Joint Underwriting Association an updated list of body shops registered in the Registry of Merchants of said Department. For purposes of this section, the owner of the vehicle is that who appears as owner in the Department of Transportation and Public Works at the time the accident occurred, or the lessee in a lease contract subscribed under the provisions of the “Act to Regulate Personal Property Lease Contracts”, §§ 2401 et seq. of Title 10.
History —Dec. 27, 1995, No. 253, § 9; Sept. 2, 2000, No. 305, § 1; Dec. 29, 2009, No. 201, § 7.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8059 - Prescription

Any right to a claim against an insurer under the compulsory liability insurance shall prescribe after one (1) year has elapsed since the cause of action occurred.
History —Dec. 27, 1995, No. 253, § 10.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8060 - Penalty for driving an uninsured motor vehicle

(a) Any person who fails to comply with the provisions of § 8053(b) of this title shall incur a misdemeanor and, upon conviction, shall be sanctioned with a five hundred dollar ($500) fine. Furthermore, the court shall impose the payment of damages, as established in Section 16-102A [sic] of the Puerto Rico Vehicles and Traffic Act, for damages caused to an insured motor vehicle when it determines that said person caused it, and nothing provided herein shall affect any civil actions that may be filed.
When a law enforcement officer intervenes with any person, the former shall verify the effectiveness of the vehicle registration sticker, and if the person has failed to comply with the provisions of § 8053(b) of this title, the officer shall seize the license plate of the uninsured motor vehicle and issue the corresponding traffic ticket for violation of the provisions of this chapter and shall indicate said fact in the corresponding Police Report. The officer shall also remit said license plate to the Department of Transportation and Public Works within a term of no more than three (3) working days after the seizure. In those cases, said motor vehicle shall not be able to travel on public thoroughfares in Puerto Rico and the cost of its removal shall be assumed by the driver or owner of said vehicle. The owner may request the return of the seized license plate to the Secretary of the Department of Transportation and Public Works once he/she provides evidence of having complied with the provisions of this chapter.
(b) Any person who has failed to comply with the provisions in § 8053 of this title, whose motor vehicle is not insured, and who is involved in a traffic accident with a motor vehicle insured pursuant to the chapter, shall not be entitled to the benefits of the compulsory liability insurance for the damages to his/her motor vehicle. Likewise, the owner of a motor vehicle insured pursuant to this chapter, who causes damage to an uninsured motor vehicle, shall be exempted from liability for the damages covered by the insurance provided by this chapter, up to the limit thereof. Likewise, an authorized driver of an insured motor vehicle who causes damage to an uninsured motor vehicle, shall enjoy the same exemption as [does] the owner of such vehicle.
History —Dec. 27, 1995, No. 253, § 11; Aug. 20, 1997, No. 94, § 6; Aug. 7, 1998, No. 201, § 2; Dec. 29, 2009, No. 201, § 8.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8061 - Relationship between traditional liability insurance and compulsory liability insurance

(a) Those motor vehicle owners who have traditional liability insurance in effect at the time of the [issuance] or renewal of the motor vehicle license with a coverage similar to or greater than that of the compulsory liability insurance may continue to use said traditional insurance to comply with the insurance requirements established in this chapter.
Private insurers, agents, or brokers shall issue a certification authorized by the Joint Underwriting Association to persons or clients insured by them as evidence of compliance with the compulsory liability insurance in those cases in which the owner of a motor vehicle has traditional liability insurance or a coverage similar to or greater than that of the compulsory liability insurance. This certification of compliance shall have the effect of exempting said vehicle from the payment of the item corresponding to the compulsory liability insurance when paying the motor vehicle license fee.
(b) The Commissioner is hereby empowered to establish, through regulations, those measures that may be necessary so that motor vehicle owners who comply with the insurance requirements of subsection (a) of this section may present attesting proof of the [sic] said compliance, so that a fair and efficient coordination between the compulsory liability insurance and traditional liability insurance can be attained. The Commissioner shall also ensure that the private insurer who underwrites the traditional liability insurance acknowledges in the premiums charged for said insurance the amount of the payment received in compliance of the requirements stipulated in § 8053(a) of this title.
—Dec. 27, 1995, No. 253, § 12; Aug. 20, 1997, No. 94, § 7; Dec. 29, 2009, No. 201, § 9.
History
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 50 - Compulsory Motor Vehicle Liability Insurance (§§ 8051 — 8062) › § 8062 - Annual report

The Joint Underwriting Association shall submit an annual report to the Legislative Assembly at the Office of the Secretary and Clerk of each legislative body on or before March 15 of every year, which shall detail the incidence of accidents covered and the costs incurred in the repair of damages to motor vehicles insured by the Joint Underwriting Association.
History —Dec. 27, 1995, No. 253, added as § 13 on Dec. 29, 2009, No. 201, § 10.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 51 - Prohibition of Restricted Use of 9-1-1 Services by Health Plans (§§ 8071 — 8074) › § 8071 - Definitions

For the purpose of this chapter:
(a) Medical emergencies.— Shall mean any medical condition manifested by acute or severe symptoms that could include severe pain, before which a lay person with average medicine and health knowledge may think that the lack of medical assistance could result in:
(1) A health risk for a person; Provided, That, in the cases of pregnant women, it means a woman’s health risk due to her pregnancy;
(2) deterioration of the body functions, and
(3) dysfunction of an organ or part of the body.
(b) 9-1-1 system.— Shall mean the fast response system to public safety emergency calls by dialing 9-1-1, created pursuant to §§ 1911 et seq. of Title 25, known as the “Act for Speedy Attention of Public Safety 9-1-1 Calls” or “9-1-1 Calls Act”.
History —Sept. 6, 2000, No. 383, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 51 - Prohibition of Restricted Use of 9-1-1 Services by Health Plans (§§ 8071 — 8074) › § 8072 - Applicability

This chapter shall apply to the following entities:
(a) Insurance companies and health plans, nonprofit organizations that render health services to individuals or groups, under medical insurance policies issued or underwritten in Puerto Rico, or
(b) to health maintenance organizations (HMO), as defined in subsection (x) of § 334 of Title 24, that provide hospital, medical or surgical benefits to individuals or groups under contracts signed or executed in Puerto Rico.
History —Sept. 6, 2000, No. 383, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 51 - Prohibition of Restricted Use of 9-1-1 Services by Health Plans (§§ 8071 — 8074) › § 8073 - Prohibitions

For the purpose of this chapter:
(a) Any entity subject to its provisions shall not favor nor instruct its clients or insured people to exclusively contact a medical emergency system other than 9-1-1 during an emergency. It is provided that any entity subject to the provisions of this chapter may use a transportation system other than 9-1-1, but cannot prohibit its insured or clients to contact the 9-1-1 system for non-emergency medical cases.
(b) No entity subject to the provisions of this chapter shall require its insured or clients to obtain a preauthorization to contact the 9-1-1 system in case of a medical emergency.
(c) No entity subject to the provisions of this chapter may use false or deceitful language in the written material distributed to its insured or clients; or language prohibiting them or making them desist from contacting the 9-1-1 system in case of a medical emergency.
History —Sept. 6, 2000, No. 383, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 51 - Prohibition of Restricted Use of 9-1-1 Services by Health Plans (§§ 8071 — 8074) › § 8074 - Payment of medical services

Every entity subject to the provisions of this chapter shall pay directly to its service providers, with the exception of the co-payment percentages for any necessary medical service that had been provided to an insured or client using the 9-1-1 system due to a medical emergency.
History —Sept. 6, 2000, No. 383, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 52 - Insurance Products (§§ 8081 — 8096) › § 8081 - Adoption and purpose

It is the interest of the Commonwealth of Puerto Rico to accept and adopt the clauses and conditions established in the “Compact for the Interstate Regulation of Insurance Products”, which reads as follows:
The purpose of the present Compact is to promote and protect, through the joint action of and the cooperation between the subscribing states, the interest of the consumers of insurance products, such as annuities, life insurance, and disability and both individual and group long-term care insurance payments. The adoption of this Compact seeks to develop uniform standards among the various states for insurance products covered by the Compact.
The Interstate Insurance Products Regulatory Commission is hereby created as a body charged with developing and implementing uniform standards for the various insurance lines. To achieve the preceding, a central office is established to receive and expeditiously review the insurance products covered by the Compact as well as the advertising related to those products that are introduced by the insurers authorized to operate in one or more of the subscribing states. Another purpose of the former is to expedite the approval of the corresponding products and advertisements introduced that meet the applicable uniform standards.
The adoption of this Compact also seeks to foster the coordination of the regulatory resources and the expertise of the various state insurance departments regarding the establishment of uniform standards and to review the insurance products covered by said provision. To achieve this purpose all those functions consonant with the state regulations pertinent to the insurance business are carried out.
History —Dec. 22, 2005, No. 161, art. 1.1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 2 - Other Insurances (§§ 8001 — 8096) › Chapter 52 - Insurance Products (§§ 8081 — 8096) › § 8083 - Interstate Commission

The subscribing states hereby create and establish an entity known as the “Interstate Insurance Products Regulatory Commission”. Pursuant to § 8084 of this title, the Commission shall have the power to develop uniform standards for the product lines, to receive and make an expeditious review of the products introduced to said Commission and approve the products introduced that meet the applicable uniform standards; Provided, That the Commission shall not be the only entity in charge of receiving and reviewing the insurance products introduced. No provision of this section shall constitute a hindrance to the introduction of a product by an insurer in any state in which the former is authorized to engage in the insurance business. Said introduction shall be subject to the laws of the state in which the introduction is made.
The Commission is a corporate non profit entity independent and distinguishable from each of the subscribing states. The Commission shall have exclusive liability over its obligations, except as otherwise provided in the present Compact.
The proper forum for initiating judicial actions against the Commission or initiated by the latter, shall be the court of the jurisdiction corresponding to the seat of the Commission.
History —Dec. 22, 2005, No. 161, art. 1.3.