reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2727a - Civil immunity

Except when it has been demonstrated that gross negligence has been incurred no extra-contractual civil liability may be imposed to any person who in good faith and under the provisions of this Code provides information to the Commissioner or to any law enforcement agency about fraudulent acts related to the insurance business that have been committed, are being committed or are going to be committed.
History —Ins. Code, added as § 27.280 on Jan. 19, 2006, No. 10, § 1; renumbered as § 27.210 and amended on Aug. 9, 2008, No. 230, § 21, eff. 90 days after Aug. 9, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2730 - False information of fraudulent acts

Any person who furnishes information verbally or in writing, or offers any testimony on improper or illegal actions which, due to their nature constitute fraudulent acts in the insurance business, knowing that the facts are false shall incur a felony and, upon conviction, shall be punished by a fine of not less than five thousand dollars ($5,000), nor more than ten thousand dollars ($10,000) for each violation or by imprisonment for a fixed term of three (3) years, or both penalties. Should aggravating circumstances be present, the fixed penalty thus established may be increased to maximum of five (5) years; if extenuating circumstances are present, it may be reduced to a minimum of two (2) years.
History —Ins. Code, added as § 27.300 on Jan. 8, 2004, No. 18, § 5; renumbered as § 27.310 on Jan. 19, 2006, No. 10, § 4; renumbered as § 27.220 and amended on Aug. 9, 2008, No. 230, § 22, eff. 90 days after Aug. 9, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2731 - Action plan

The Board of Directors of every insurer of the country and every health services organization shall adopt a written action plan to detect, prevent and fight fraudulent acts in the insurance business.
Such action plan shall contain at least the following:
(1) A description of the procedures established to fulfill the obligation of detecting and investigating possible acts of fraud in the insurance business and to report said acts to the Antifraud Special Investigations Unit of the Office of the Insurance Commissioner. The procedure must include the establishment of an Antifraud Investigations Unit.
(2) A description of the plan for the education and training of its employees, particularly the one designed for the Antifraud Investigations Unit personnel.
(3) A description of the personnel hired or employed by the Antifraud Investigations Unit to execute the procedures established to detect and investigate acts of fraud and the functions assigned to each.
History —Ins. Code, added as § 27.310 on Jan. 8, 2004, No. 18, § 5; renumbered as § 27.320 and amended on Jan. 19, 2006, No. 10, §§ 3, 4; renumbered as § 27.230 and amended on Aug. 9, 2008, No. 230, § 23, eff. 90 days after Aug. 9, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2732 - Notice

Insurers and health service organizations are bound to include in every insurance application form and in every insurance claim form, a conspicuous and legible notice with the following information:
“Any person who knowingly and with the intention of defrauding presents false information in an insurance application, or presents, helps, or causes the presentation of a fraudulent claim for the payment of a loss or any other benefit, or presents more than one claim for the same damage or loss, shall incur a felony and, upon conviction, shall be sanctioned for each violation by a fine of not less than five thousand dollars ($5,000) and not more than ten thousand dollars ($10,000), or a fixed term of imprisonment for three (3) years, or both penalties. Should aggravating circumstances [be] present, the penalty thus established may be increased to a maximum of five (5) years, if extenuating circumstances are present, it may be reduced to a minimum of two (2) years.”
Noncompliance with the provisions of this section shall entail an administrative fine pursuant to the provisions of § 2735 of this title. Failure to include this notice on the indicated forms shall not constitute a defense for the insured or the third party claimant to fail to comply with the provisions of this chapter.
History —Ins. Code, added as § 27.320 on Jan. 8, 2004, No. 18, § 5; renumbered as § 27.330 on Jan. 19, 2006, No. 10, § 4; renumbered as § 27.250 and amended on Aug. 9, 2008, No. 230, § 25, eff. 90 days after Aug. 9, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2735 - Penalty for violations

In addition to any penalty provided in this Code, any person who violates a provision of this chapter may be punished by an administrative fine which shall not exceed ten thousand dollars ($10,000) for each violation.
History —Ins. Code, added as § 27.300 on July 23, 1974, No. 150, Part 1, p. 685, § 10; renumbered as § 27.350 on Jan. 8, 2004, No. 18, § 9; renumbered as § 27.260 and amended on Aug. 9, 2008, No. 230, § 26, eff. 90 days after Aug. 9, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2736 - Penalty for fraud

Any person who has committed fraud, as defined in §§ 2706, 2719, 2720, 2720a, 2730 of this title, shall incur a felony and upon conviction shall be punished for each violation by a fine of not less than five thousand dollars ($5,000), nor more than ten thousand dollars ($10,000), or a fixed term of imprisonment of three (3) years, or both penalties. Should aggravating circumstances are present, the fixed penalty thus established may be increased to a maximum of five (5) years, if extenuating circumstances are present, it may be reduced to a minimum of two (2) years. In addition to the penalties provided for in this chapter, any person who benefits in any way from obtaining insurance, or the payment for a loss under an insurance contract, as a result of the fraud committed, shall be imposed a penalty of restitution corresponding to the amount of money resulting from the fraud.
Any violation to the provisions of §§ 2706, 2719, 2720, 2720a, 2730 of this title shall have a period of prescription of five (5) years.
History —Ins. Code, added as § 27.270 on Aug. 9, 2008, No. 230, § 27, eff. 90 days after Aug. 9, 2008.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2801 - Scope of chapter

(1) This chapter shall apply only with respect to domestic insurers, except as provided by §§ 2819 (financing by foreign insurer) and 2820 (provisions exclusive) of this title.
(2) Any domestic insurer in process of organization on the effective date of this title shall be governed by such provisions of this chapter as the Commissioner deems to be practicably applicable, and otherwise according to laws in force immediately prior to such effective date.
History —Ins. Code § 28.010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2802 - Types of insurers permitted

An insurer formed in Puerto Rico shall be either:
(1) An incorporated stock insurer; or
(2) an incorporated mutual insurer; or
(3) a reciprocal insurer; or
(4) a Lloyd’s insurer,
with respective powers, duties, and restrictions as provided in this title.
History —Ins. Code § 28.020.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2803 - Assessment insurers prohibited, exception

No insurer shall be formed or be authorized in Puerto Rico to issue contracts of insurance the performance of which is contingent upon the payment of assessments, assessment premiums, or calls made upon its policyholders or members. This provision shall not be applicable to domestic mutual insurers formed for the purpose and transacting only agricultural insurance as defined in § 406 of this title.
History —Ins. Code § 28.030.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2804 - Incorporation of insurer

(1) This section applies to insurers hereafter incorporated in Puerto Rico.
(2) Five or more individuals of age of twenty-one years or more may incorporate a stock insurer; ten or more such individuals may incorporate a mutual insurer. A majority of the incorporators shall be citizens of the United States residing in Puerto Rico.
(3) The incorporators shall subscribe and acknowledge articles of incorporation in triplicate before a notary public.
(4) If the articles comply with law as to form, the Commissioner shall endorse his approval thereon to that effect, and one copy shall be filed in the office of the Secretary of State, one copy shall be filed in the office of the Commissioner, and the third copy returned to the insurer. Upon completion of such filings incorporation shall be deemed effectuated.
(5) Fees for such filings shall be as provided in § 701 of this title, and no additional fee shall be charged by the Secretary of State therefor.
History —Ins. Code § 28.040.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2805 - Articles of incorporation, contents

The articles of incorporation of an insurer shall state:
(1) The name of the corporation: if a mutual the [word] “mutual” or its derivatives, in Spanish or English, shall be a part of the name.
(2) The name of the city or town in which will be located the corporation’s principal place of business, which place must be in Puerto Rico.
(3) The duration of its existence, which may be perpetual.
(4) The kinds of insurance the corporation is formed to transact, according to the definitions thereof in this title, and without regard to the fact that the corporation may initially be authorized to transact but one of such kinds.
(5) If a stock corporation, its authorized capital, the classes and number of shares into which divided, the par value of each such share, which par value shall not be less than five dollars ($5), and the respective rights of each such class.
(6) If a mutual insurer, the maximum contingent liability of its policyholders for payment of losses and expenses incurred under its policies.
(7) The manner in which the powers of the corporation shall be exercised, the number of directors, which shall not be less than five, and designating from among the incorporators the members of the initial board of directors for a stated term of office of not less than two months or more than one year.
(8) Other provisions not inconsistent with law as may be deemed proper by the incorporators.
(9) The names and addresses of the incorporators.
History —Ins. Code § 28.050; June 13, 1966, No. 28, p. 149, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2806 - Solicitation permit required for financing an insurer

(1) No corporation formed for the purpose of becoming an insurer, and no person forming or proposing to form an insurer, or insurance holding corporation, or corporation to finance an insurer, or corporation to manage an insurer, or corporation to be attorney-in-fact for a reciprocal insurer or Lloyd’s insurer, or a syndicate for any of such purposes, shall advertise or solicit or receive any funds, agreement, stock subscription, or membership on account thereof unless a solicitation permit therefor, following application, has been issued by the Commissioner. This provision shall not apply with respect to funds, subscriptions, and agreements involving exclusively the incorporators, and of an amount and character reasonably necessary to cover the actual costs, expenses, and minimum arrangements for incorporation.
(2) Any person violating this section shall be subject to a fine of not more than ten thousand dollars ($10,000) or imprisonment for not more than five (5) years, or both penalties.
History —Ins. Code § 28.060.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2807 - Application for solicitation permit

(1) Application for a solicitation permit shall be in writing filed with the Commissioner, executed by or on behalf of the applicant, and if the applicant is a newly formed corporation, the application shall likewise be signed by the incorporators. The application shall be verified under oath by the applicant, or, if the applicant is a corporation, under oath of the applicant’s president and secretary.
(2) The application shall show:
(a) Name, type, and purpose of insurer, corporation, or syndicate as to which solicitations are to be made;
(b) names, addresses, and business records of each individual associated or to be associated in the formation of the proposed insurer, corporation, or syndicate;
(c) full disclosure of the terms of all understandings and agreements existing or proposed among persons so associated relative to the proposed insurer, corporation, or syndicate, or the formation thereof;
(d) the plan according to which solicitations are to be made;
(e) proposed budget setting forth principal uses to be made of funds secured through such solicitation;
(f) proposed managing personnel of proposed insurer, and insurance experience of each, and
(g) any additional information reasonably required by the Commissioner.
(3) With the application the applicant shall file with the Commissioner such of the following documents as may not already be so on file:
(a) Copy of articles of incorporation and bylaws, or syndicate agreement, or if the proposed insurer is to be a reciprocal, copy of proposed subscribers’ agreement and power of attorney; or if the proposed insurer is to be a Lloyd’s, copy of underwriter’s agreement and power of attorney;
(b) copy of any security proposed to be issued, and copy of application or subscription agreement therefor;
(c) if to be a mutual or reciprocal insurer, copy of any insurance policy proposed to be offered, copy of application therefor, and schedule of rates; and
(d) copy of any prospectus, advertising, or literature proposed to be used.
(e) At time of filing the application, the applicant shall pay to the Commissioner the fee therefor as specified in § 701 of this title.
History —Ins. Code § 28.070.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2808 - Issuance or denial of solicitation permit

The Commissioner shall expeditiously examine the application for a solicitation permit and make any investigation relative thereto deemed necessary. If the Commissioner finds that the application is complete, that the documents filed therewith are equitable in terms and proper in form, that the agreements made or proposed are equitable to present and future shareholders, subscribers, members, or policyholders, and that the proposed use of funds is fair and reasonable, he shall give notice to the applicant that he will issue a solicitation permit, stating the terms to be contained therein, upon the filing of the bond required by § 2810 of this title and upon completion of any arrangements to be required in the permit for the impounding of funds.
If the Commissioner does not so find, or if he finds that any of the individuals named in the application or known to him as being associated or to be associated in the proposed insurer, corporation or syndicate are untrustworthy, he shall deny the application for a solicitation permit and so notify the applicant, stating the grounds for the denial.
History —Ins. Code § 28.080.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2809 - Terms of solicitation permit

Every solicitation permit issued by the Commissioner shall:
(1) Be for a period of not over two years, subject to the right of the Commissioner to grant a reasonable extension for good cause.
(2) State the securities for which subscriptions are to be solicited, the number, classes, par value, and selling price thereof, or identify the insurance policy or policies for which applications and advance premiums or deposits are to be solicited.
(3) Limit the portion of funds received on account of stock or syndicate subscriptions, if any are proposed to be taken, which may be used for promotion and organization expenses to such amount as he deems adequate, but in no event to exceed fifteen percent (15%) of such funds as and when actually received.
(4) If to be a mutual or reciprocal insurer, limit the portion of funds received on account of applications for insurance which may be used for promotion or organization expenses to a reasonable commission upon such funds, giving consideration to the kind of insurance and policy involved and to the costs incurred by insurers generally in the production of similar business, and provide that no such commission shall be deemed to be earned nor be paid until the insurer has received its certificate of authority and the policies applied for and upon which such commission is to be based, have been actually issued and delivered to, and accepted by, the policyholders.
(5) Express such arrangements for impounding in an established bank or trust company of funds received pursuant to the solicitation permit as the Commissioner may deem to be necessary and reasonable for protection of investors and proposed policyholders pending completion of such financing or organization and appropriation of such funds to the purpose stated in the permit. Such arrangements may provide for the refund to persons entitled thereto of funds so impounded, after deduction therefrom (in the case of stock corporations or syndicates) of reasonable organization and sales expense as provided for in the solicitation permit, in event the financing or organization is not completed within the time allowed pursuant to subsection (1), above.
(6) State, and require, that the granting of the permit is permissive only and shall not constitute an endorsement by the Commissioner of any person or thing related to the proposed insurer, corporation, or syndicate, and that the existence of the permit shall not be advertised or be used as an inducement in any solicitation.
(7) Contain such other reasonable requirements as the Commissioner may deem necessary.
History —Ins. Code § 28.090.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2810 - Organization bond or deposit

(1) The Commissioner shall not issue a solicitation permit until the applicant files with him a corporate surety bond in the penalty of five thousand dollars ($5,000), in favor of the Commonwealth of Puerto Rico and for the use and benefit of subscribers or applicants of the proposed organization. The bond shall be conditioned upon a full accounting for funds received in accordance with the terms of the solicitation permit.
(2) In lieu of such surety bond, the applicant may deposit with the Commissioner five thousand dollars ($5,000) in cash or in bonds of the People or Commonwealth of Puerto Rico or of the United States, at par value, to be held in trust upon the same conditions as required for the bond.
(3) The Commissioner may waive the requirement for a bond or deposit if any of the following circumstances exist and if the solicitation permit so provides:
(a) If the proposed securities are to be distributed solely and finally to those few persons who are the active promoter intimate to the formation of the insurer, or other corporation or syndicate.
(b) If the securities are to be issued by a corporation possessed of such assets as to make such bond or deposit reasonably unnecessary for the protection of the public.
(4) Any bond filed, or deposit or remaining portion thereof held under this section, shall be released and discharged upon settlement or termination of all liabilities against it.
History —Ins. Code § 28.100.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2811 - Modification or revocation of permit

The Commissioner may, for good cause, modify a solicitation permit, and may, after a hearing, revoke any such permit for violation of any provision of this title, or of the terms of the permit, or of any proper order of the Commissioner, or for failure to account properly for funds, or for misrepresentation.
History —Ins. Code § 28.110.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2812 - Expense pending completion

(1) The incorporators of any insurer or other corporation, or the persons proposing to form a reciprocal insurer or Lloyd’s insurer, or a syndicate, shall be jointly and severally liable for its debts and liabilities until it has secured a certificate of authority, if an insurer, or has completed its proposed organization if a corporation other than an insurer, or a syndicate.
(2) Any portion of funds received on account of stock or syndicate subscriptions which is allowed therefor under the solicitation permit, may be applied concurrently toward payment of promotion and organization expense incurred.
History —Ins. Code § 28.120.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2813 - Sales representative’s license

(1) Actual solicitations under a solicitation permit shall be made only by individuals expressly licensed therefor by the Commissioner.
(2) Application for such license shall be made in writing by the applicant setting forth such information concerning the applicant and on such form as the Commissioner shall prescribe and furnish. The application shall be accompanied by record of the appointment of the applicant as a representative of the holder of the solicitation permit for the purpose of making solicitations thereunder, subject to issuance of the license.
(3) The Commissioner shall not so license any individual found by him to be untrustworthy, or to be a person of poor credit standing or of ill repute.
(4) The license shall expire as of midnight on the June 30 next following date of issue, and may be renewed for another year upon application therefor and payment of license fee.
(5) Fee for the license shall be as provided in § 701 of this title.
(6) Such license shall be in lieu of any insurance agent’s license as to a mutual or reciprocal insurer being formed, and in lieu of any similar license required under laws applicable to corporations in general.
(7) The Commissioner may revoke any such license for any cause for which granting of the license could have been denied if then existing and known to the Commissioner, or for misrepresentation. The Commissioner shall revoke any such license upon request of the holder of the solicitation permit, or upon expiration or revocation of the solicitation permit.
History —Ins. Code § 28.130.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2814 - Stock and syndicate subscriptions

(1) Upon issuance of the solicitation permit and licensing of one or more sales representatives to solicit thereunder, the directors and officers of a stock corporation may open its books for registration of subscriptions to its capital and commence solicitations therefor.
(2) All subscriptions shall be payable and shall be paid only in lawful money. No subscription not accompanied by cash amounting to at least ten percent (10%) of the total amount of the subscription shall be accepted.
(3) The subscription contract shall specify the allocation of funds payable thereon as between capital, contributed surplus, and expenses of promotion and organization. Such specification may be expressed in percentages, or in sums of money, as applicable to each unit of stock subscribed.
(4) Shares of stock of a proposed new insurer shall not be sold on original subscription at a premium in excess of one hundred percent (100%) of the par value of such shares.
(5) Stock subscription contracts shall provide that no certificate for shares subscribed and paid for thereunder shall be issued until after the corporation has qualified for and has secured a certificate of authority as an insurer from the Commissioner, if to be an insurer, or has completed its organization and proposed financing if it is to be another corporation.
(6) A stock subscription contract may provide for cancellation thereof and forfeiture of funds paid in thereon, if installment payments provided therein to be made by the subscriber remain in default after notice in writing thereof to the subscriber and expiration of a reasonable specified period thereafter.
(7) Syndicate subscriptions shall contain such additional reasonable terms and conditions as may be approved by the Commissioner.
History —Ins. Code § 28.140.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2815 - Applications for insurance in formation of mutual or reciprocal insurer

(1) Upon issuance of the solicitation permit and licensing of one or more representatives to solicit thereunder as provided in § 2813 of this title, the directors and officers of the proposed mutual or reciprocal insurer may open books for the registration of such requisite applications for insurance policies as they may accept, and may receive deposits of premiums thereon.
(2) All such applications for insurance shall be in writing, on such forms and according to such reasonable terms as may be approved by the Commissioner consistent with this title.
(3) All such applications shall provide that:
(a) Issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a proper certificate of authority; and
(b) no insurance is provided until the policy has been so issued, and
(c) the prepaid premium or deposit will be refunded in full to the applicant if the organization is not completed and certificate of authority issued prior to termination of the solicitation permit.
History —Ins. Code § 28.150.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2817 - Subsequent financing

(1) No insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact of a reciprocal or Lloyd’s insurer, or syndicate, after it has received a certificate of authority, if an insurer, or it has completed its initial organization and financing if a corporation other than an insurer or a syndicate, shall solicit or receive funds in exchange for any new issue of its securities, other than through a stock dividend, until it has applied to the Commissioner for, and has been granted, a solicitation permit.
(2) The Commissioner shall issue such a permit unless he finds that:
(a) The funds proposed to be secured are excessive in amount for the purpose intended; or
(b) the proposed securities or the manner of their proposed distribution are inequitable; or
(c) the issuance of the securities would jeopardize the interests of policyholders or the holders of other securities of the insurer, corporation, or syndicate.
(3) Any such solicitation permit granted by the Commissioner shall be upon such application, for such duration, and upon such conditions and terms as the Commissioner may reasonably specify or require.
(4) This section shall not apply as to funds borrowed by an insurer or corporation from a bank or other financial institution in regular course of business.
History —Ins. Code § 28.170.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2818 - False exhibits

Every person who, with intent to deceive, knowingly files or exhibits any false account, statement, document, or advertisement, relative to the affairs of any insurer, or of any corporation or syndicate of the kind enumerated in § 2806 of this title, formed or proposed to be formed, shall be guilty of a felony and be subject to a fine of not more than five thousand dollars ($5,000) or imprisonment for not more than five (5) years, or both penalties.
History —Ins. Code § 28.180.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2819 - Financing foreign insurers

(1) No foreign insurer or corporation of the kind enumerated in § 2806 of this title shall offer its securities or solicit capital funds in Puerto Rico without first obtaining permit therefor from the Commissioner.
(2) Application for such permit shall be executed by the applicant’s president and secretary, be authenticated by its corporate seal, and shall state:
(a) Applicant’s domicile, and date of organization.
(b) Full description of securities proposed to be sold, and price thereof.
(c) Reasonable detail as to uses to be made of proceeds.
(d) Compensation to selling agents in Puerto Rico.
(e) Such other information as the Commissioner may require.
(3) If, in the opinion of the Commissioner, the purposes of such proposed financing are proper, the financial condition of the issuer of the proposed securities is or will be satisfactory, and other aspects of the offering are fair and reasonable, he may, in his discretion, issue the permit upon such conditions and terms as he deems necessary for the reasonable protection of investors resident in Puerto Rico.
(4) All sales and solicitations under any such permit shall be by individuals licensed therefor pursuant to § 2813 of this title.
(5) Fees for such permit and licenses shall be as provided in § 701 of this title.
(6) Violation of this section shall be punished as provided in § 2806(2) of this title.
History —Ins. Code § 28.190.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 28 - Organization of Insurers (§§ 2801 — 2820) › § 2820 - Provisions exclusive

Insurers, corporations and syndicates which are subject to the provisions of this chapter, together with their sales representatives pursuant to this chapter, shall not be subject, with respect to the sale of their securities, to other laws of Puerto Rico governing sale of securities of corporations and syndicates in general. This provision shall not be deemed to relieve any such insurer, corporation, syndicate or sales representative, of any liability or penalty otherwise provided by law for misrepresentation, fraud, breach of contract, and other similar offenses or injuries to rights.
History —Ins. Code § 28.200.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2901 - Scope; provisions exclusive

(1) This chapter applies only to domestic stock and mutual insurers.
(2) Domestic incorporated insurers subject to this chapter are not subject to the provisions of the general corporation statutes.
History —Ins. Code § 29.010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2902 - Existing corporations

Existing domestic incorporated insurers are governed by the applicable provisions of this chapter.
History —Ins. Code § 29.020.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2903 - Stock insurer, defined

Stock insurer.— Is an incorporated insurer with capital divided into shares and owned by its shareholders.
History —Ins. Code § 29.030.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2904 - Mutual insurer, defined

Mutual insurer.— Is an incorporated insurer without capital stock or shares, and is owned by its policyholders.
History —Ins. Code § 29.040.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2905 - General corporate powers

Subject to other applicable provisions of this title and of the Constitution of the Commonwealth of Puerto Rico, an incorporated insurer has artificial personality, and has power:
(1) To have succession in its name as an artificial person for the duration of its existence.
(2) To sue and be sued in its own name.
(3) To have and use a seal as an [juridical] person. The insurer shall register its seal in the Commissioner’s office.
(4) To acquire, hold, hypothecate, convey, and otherwise manage, use, and dispose of real and personal property.
(5) To transact insurance.
(6) To conduct its affairs through its directors, officers, employees, and representatives duly thereunto authorized.
(7) To make, modify, and rescind bylaws governing its corporate procedures and the conduct of its affairs.
(8) To exercise, subject to law and the express provisions of the articles of incorporation, all such incidental and subsidiary powers as may be necessary or convenient to the attainment of the objectives set forth in such articles.
History —Ins. Code § 29.050.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2906 - Reservation of right by Legislature

Every such corporation shall comply with all such applicable laws as the Legislature may constitutionally enact. The Legislature reserves the right to make, amend, and repeal laws governing the existence, affairs, and operations of such corporations.
History —Ins. Code § 29.060.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2907 - Amendment of articles of incorporation

(1) Amendment of articles of incorporation of a domestic insurer changing place of business, changing name, modifying its powers and objectives, and for any other lawful purpose may be made by resolution adopted by a majority vote of its board of directors and by the affirmative vote or written assent of two-thirds of its outstanding voting capital stock, or two-thirds of the members (if a mutual insurer) voting at a valid meeting of members; except that no amendment changing the authorized capital of a stock insurer shall be made unless with unanimous written consent of its stockholders, or upon resolution adopted at a valid meeting of stockholders by a vote of not less than three-fourths of all outstanding shares then having voting rights. Provided, That upon the previous authorization of the Commissioner, articles of incorporation may be amended to reduce the parity of shares to an amount less than the par value stipulated in subsection (5) of § 2805 of this title, but no reduction may be authorized if same reduces the par value to an amount less than one dollar ($1).
(2) If the amendment is to change the insurer’s name after the transaction of insurance in Puerto Rico thereunder, the proposed amendment shall not be submitted to the insurer’s stockholders or members until after the insurer has applied for and received the consent of the Commissioner to the proposed change. The Commissioner shall promptly give such consent unless the proposed name would be in violation of § 325 of this title (name not similar to that of other authorized insurer, or deceptive as to type of organization).
(3) After adoption of the amendment by the insurer’s stockholders or members, the insurer’s president and secretary shall, under the corporate seal, certify the amendment in triplicate and file one copy with the Commissioner, one copy with the Secretary of State, and retain the other copy in the corporate records. Upon completion of such filings the amendment shall be deemed effectuated.
History —Ins. Code § 29.070; June 13, 1966, No. 28, p. 149, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2908 - Bylaws

(1) The stockholders or members shall have power by majority vote at a valid meeting of stockholders or members to make, adopt, amend, and rescind bylaws regulating corporate procedure and governing conduct of its affairs. Such bylaws, if consistent with law, shall govern:
(a) Number, qualifications, term of office and manner of election of directors.
(b) As provided in § 2914 of this title, the place, date, notice, quorum, and conduct of annual regular and special meetings of stockholders or members, and voting thereat.
(c) Time, notice, quorums, and conduct of annual regular meeting and special meetings of the board of directors.
(d) Number, designation, election, terms, and powers and duties of the respective corporate officers.
(e) Deposit, custody, disbursement and accounting of corporate funds.
(f) If a stock insurer, issuance and transfer of its shares.
(g) Other matters customary, necessary, or convenient to its corporate transactions.
(2) The insurer’s first board of directors as designated in its articles of incorporation may adopt bylaws. Such bylaws shall be submitted to the insurer’s shareholders or members at the first annual meeting thereof held after the insurer has received its certificate of authority as an insurer, and no part of such bylaws shall be effective after such meeting which is not approved by vote of such stockholders or members.
(3) The insurer shall promptly file with the Commissioner a copy, certified by the insurer’s secretary, of every modification of or addition to its bylaws. The Commissioner shall disapprove any bylaws provision deemed by him to be unlawful, unfair, or detrimental to the proper interest and protection of the insurer’s stockholders, members, or policyholders, or any class thereof. The insurer shall not, after receiving notice of such disapproval and during the existence thereof, effectuate any bylaw provision so disapproved.
History —Ins. Code § 29.080; Feb. 16, 1995, No. 26, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2909 - Membership in mutuals

(1) Each policy holder of a mutual insurer, other than as to reinsurance, is a member of such insurer with the rights and obligations of such membership, and each policy issued by such an insurer shall so specify.
(2) Any agency, instrumentality, or public corporation of the People or Commonwealth of Puerto Rico, or any political subdivision thereof, and any person, firm, corporation, board, association, entity, estate, assignee, fiduciary, or trustee is authorized to be a member of and to contract insurance with any mutual insurer authorized to transact insurance in Puerto Rico or by way of surplus line coverage pursuant to §§ 1001–1020 of this title.
History —Ins. Code § 29.090.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2910 - Rights of stockholders and members in general

(1) The stockholders are the owners of a stock insurer, and are entitled to participate in the profits thereof, subject to the contract rights of the insurer’s policyholders.
(2) The policyholders are the owners of a mutual insurer, and are entitled to participate in the savings or profits thereof, subject to contract and to such reasonable classifications as may from time to time be made by the insurer’s board of directors. A mutual insurer shall be operated in the interest of its members.
History —Ins. Code § 29.100.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2911 - Voting rights, stockholders

(1) Unless otherwise provided in the insurer’s articles of incorporation, each stockholder shall have as many votes at meetings of stockholders as there are shares registered in his name on the insurer’s books.
(2) Such a vote may be either in person, or, if absent, by mail, or by proxy. No mailed vote shall be valid unless made over the signature of the stockholder and received by the insurer at its home office prior to the convening of the meeting for which intended. No proxy shall be valid unless in writing signed by the stockholder and filed with the insurer at its home office not later than the time of convening of the meeting for which intended. No proxy shall be valid beyond the expiration date stated therein, and, unless coupled with a substantial ownership interest in the shares to be voted, shall be subject to revocation at any time and shall not be valid beyond three years from the date it was given.
History —Ins. Code § 29.110.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2912 - Voting rights, members

(1) Unless otherwise provided in the insurer’s bylaws, each member of a mutual insurer shall have one vote on each matter coming before meetings of members and regardless of the number of policies held by such member.
(2) Such vote may be either in person, or, if absent, by mail or proxy. No mailed vote shall be valid:
(a) Except as to matters of which full information in writing was received by the member before such vote was required to be sent.
(b) Unless signed by the member, and received by the insurer at its home office before convening of the meeting for which intended. No proxy shall be valid unless in writing signed by the member and filed with the insurer at its home office prior to the convening of the meeting for which intended. Every proxy shall be subject to revocation by the member, and shall not be valid after three years from the date it was given.
(3) Such an insurer may, by provision in its bylaws, establish reasonable qualifications for the right of a member to vote based solely upon any one or more of the following:
(a) Amount of insurance in the aggregate held by the member in the insurer.
(b) Type of policy or coverage.
(c) Length of time the member has been a policyholder.
(4) For the purposes of this section, the policyholder named in a group or blanket insurance contract shall be deemed to be the member of the insurer to the exclusion of the individuals insured thereunder.
(5) Every policy issued by a mutual insurer shall contain a concise statement of the voting rights of members.
History —Ins. Code § 29.120.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2913 - First annual meeting of stockholders or members

(1) As soon as stock to the amount of three-fourths (¾) of the funds required as qualification for its original certificate of authority has been paid for in a stock insurer being formed, or as soon as three-fourths of the total number of qualified applications required as qualification for its original certificate of authority have been secured as to a mutual insurer being formed, the directors of the proposed insurer shall call the first annual meeting of its stockholders or members. The meeting shall be held in the city or town of the corporation’s principal place of business as stated in its articles of incorporation, and written notice of the date, time, place, and purposes of the meeting shall be sent by registered mail to each such stockholder or member, addressed to the stockholder or member at his last address of record with the corporation, or delivered to him personally, not less than thirty days prior to the date of the meeting.
(2) The meeting shall consider and adopt corporate bylaws, elect directors, and transact such other business as may properly come before it.
History —Ins. Code § 29.130.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2914 - Regular and special meetings of stockholders or members

(1) The regular annual meeting of the stockholders or members of an insurer shall be held in any city or town of Puerto Rico, as stated in the bylaws of the insurer. Notice thereof shall be given at least twenty (20) days before, in the manner provided in the bylaws. The annual meeting shall fill the vacancies existing or occurring on the board of directors, shall receive and consider the reports of the insurer’s officials regarding their affairs, and shall resolve such other matters properly brought to its consideration.
(2) No meeting of stockholders or members shall amend the insurer’s articles of incorporation unless the proposal so to amend has been included in the notice of the meeting.
(3) If the insurer’s directors and officers fail to call and hold the regular annual meeting when due, any five (5) stockholders or members may call and hold the meeting and shall give notice thereof as required by the bylaws. In event any necessary officer fails to attend such meeting, the meeting may elect one of the stockholders or members present to act for such officer temporarily. Actions taken by any such meeting shall be fully as valid as if taken by the regular annual meeting, and shall be duly recorded in the insurer’s records.
(4) Special meetings of stockholders or members may be called upon not less than ten (10) days’ notice, as provided in the bylaws. The notice shall state the purposes of the meeting, and no business shall be transacted at the meeting of which notice was not so given.
History —Ins. Code § 29.140; Feb. 16, 1995, No. 26, § 1.