reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3321 - Assessments

(1) Assessments may be levied from time to time upon the subscribers of a domestic reciprocal insurer, other than as to nonassessable policies, by the attorney upon approval in advance by the subscribers’ advisory committee and the Commissioner; or by the Commissioner in liquidation of the insurer.
(2) Each such subscriber’s share of a deficiency for which an assessment is made, not exceeding in any event his aggregate contingent liability as computed in accordance with § 3323 of this title, shall be computed by applying to the premium earned on the subscriber’s policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.
(3) In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.
(4) No subscriber shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or losses payable.
History —Ins. Code § 33.210.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3322 - Time limit for assessment

Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his share of any assessment, as computed and limited in accordance with this chapter, if:
(1) While his policy is in force or within one year after its termination, he is notified by either the attorney or the Commissioner of his intentions to levy such assessment, or
(2) if an order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insured should not be appointed is issued pursuant to §§ 4001–4024 of this title while his policy is in force or within one (1) year after its termination.
History —Ins. Code § 33.220.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3323 - Aggregate liability

No one policy or subscriber as to such policy, shall be assessed or be charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year, in excess of the number of times the premium as stated in the policy as computed solely upon premium earned on such policy during that year.
History —Ins. Code § 33.230.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3324 - Extinguishment of contingent liabilities

(1) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum paid-in capital stock required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers’ advisory committee the Commissioner may authorize the insurer to extinguish the contingent liability of subscribers under its policies then in force, and to omit provisions imposing contingent liability in all policies thereafter issued for so long as all such surplus remains unimpaired.
(2) Upon impairment of such surplus, the Commissioner shall forthwith revoke the authority to issue nonassessable policies, and no policy shall thereafter be issued or renewed without providing for the contingent assessment liability of subscribers.
History —Ins. Code § 33.240.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3325 - Share in savings

A reciprocal insurer may from time to time return to its subscribers any savings or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks, or policies, or between subscribers, but such distribution may vary as to classes of subscribers, based upon the experience of such subscribers.
History —Ins. Code § 33.250.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3326 - Subscriber’s share of assets

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions to its surplus, and the return of any unused deposits, savings, or credits, shall be distributed to its subscribers who were such within the three full calendar years prior to the last termination of its certificate of authority according to such reasonable formula as is approved by the Commissioner; subject, however, to the right of the Commissioner to require extension of such eligibility period beyond such three years, if deemed by him to be necessary and practicable for an equitable distribution of assets.
History —Ins. Code § 33.260.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3327 - Merger or conversion

(1) A domestic reciprocal insurer, upon affirmative vote of not less than two-thirds of the subscribers who vote upon such merger pursuant to such notice as may be approved by the Commissioner and with the approval of the Commissioner of the terms therefor, may merge with another reciprocal insurer to be converted to a stock or mutual insurer.
(2) Such a stock or mutual insurer shall be subject to the same capital or surplus requirements and shall have the same rights as a like domestic insurer transacting like kinds of insurance.
(3) The Commissioner shall not approve any plan for such merger or conversion which is inequitable to subscribers, or which, if for conversion to a stock insurer, does not give each subscriber preferential right to acquire stock of the proposed insurer proportionate to his interest in the reciprocal insurer as determined in accordance with § 3326 of this title and a reasonable length of time within which to exercise such right.
History —Ins. Code § 33.270.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 33 - Reciprocal Insurers (§§ 3301 — 3328) › § 3328 - Impaired reciprocals, procedure thereon

(1) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or other parties, and to maintain the surplus required for the kinds of insurance it is authorized to transact, and if the deficiency is not cured from other sources, its attorney shall forthwith levy an assessment upon subscribers made subject to assessment by the terms of the policies for the amount needed to make up the deficiency.
(2) If the attorney fails to make the assessment within thirty days after the Commissioner orders him to do so, or if the deficiency is not fully made up within sixty days after the date the assessment was made, the insurer shall be deemed insolvent and shall be proceeded against as authorized by this title.
(3) If liquidation of such an insurer is ordered, an assessment shall be levied upon the subscribers for such an amount subject to limits as provided in this chapter, as the Commissioner determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds contributed by the attorney or other parties, but including the reasonable cost of the liquidation.
History —Ins. Code § 33.280.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3401 - Scope, objectives and purposes, special provisions

This chapter applies only to domestic insurance cooperatives.
The purpose of insurance cooperatives is to promote the general wellbeing of the community through the development of insurance contracts that satisfy the need for protection against risks of its members, sponsors and the general public, in harmony with the cooperativism philosophy. With this purpose, [they] shall educate and disclose information on the need for and benefits of insurance and shall allocate funds for the purposes of cooperative education.
History —Ins. Code, added as § 34.010 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 1, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3401a - General definitions

For the purposes of this chapter, unless otherwise expressly provided, the following definitions shall prevail:
(1) Cooperative Bank.— Refers to the Cooperative Bank of Puerto Rico.
(2) Cooperative affiliate.— Refers to a cooperative that has been admitted as a partner by the Board of Directors of the insurance cooperative.
(3) Fund contribution certificate.— Refers to the document that accredits the contribution or shares of a member in the capital of the insurance cooperative.
(4) Second-grade cooperative.— Refers to those cooperatives whose members are cooperative entities.
(5) Proxy.— Refers to the natural person designated by a member to represent him/her in the assemblies held by the insurance cooperative, provided that said member, whether an affiliate cooperative or the Cooperative Bank, has met the requirements established for such designation by the insurance cooperative in its bylaws.
(6) Officer.— Refers to persons who are in charge of the daily administration of the insurance cooperative, such as the president, vice-president, secretary, treasurer and any others necessary for such purpose.
(7) Board officers.— Refers to the directors elected by the Board to hold positions, such as the president, vice-president, secretary, treasurer of the Board of Directors of the insurance cooperative and other positions for which it is provided in the bylaws of the insurance cooperative.
(8) Board.— Refers to the Board of Directors of the insurance cooperative.
(9) Members.— Refers to those natural persons or affiliate cooperatives to which the insurance cooperative has issued a fund or share contribution certificate.
(10) Sponsorship.— Refers to the [ratio] that exists between the volume of business carried out between a cooperative and its members and the total volume of the same business carried out between said cooperative and its members and policyholders during a certain period of time.
(11) Term.— Refers to the period of time during which the person elected as such by the assembly of members or designated as such by the Board of Directors of the insurance cooperative shall perform as director of the insurance cooperative, in accordance with the provisions of this chapter.
(12) Duration of the term.— The duration of the term shall be three years, except in those cases in which:
(a) The director is designated by the Board of Directors of the insurance cooperative, in which case the duration of the term shall not exceed one (1) year; or
(b) by the initial staggered system established in the bylaws, or
(c) in the cases in which the assembly of the members elects a person for one or two years to complete the term of a director that has ceased to fill his/her position.
History —Ins. Code, added as § 34.011 on Nov. 12, 2007, No. 174, § 2, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3403 - Insurance cooperatives—Powers

The insurance cooperative shall have the same general powers as set forth in this Code for other insurers.
History —Ins. Code, added as § 34.030 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 4, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3404 - Insurance cooperatives—Incorporation

An insurance cooperative may organize under this chapter to underwrite insurance with its members and other sponsors:
(1) Eleven or more persons of legal age who are residents of Puerto Rico and who join in their capacity as consumers may incorporate an insurance cooperative. It being understood by “consumers” those persons who are to obtain the insurance services rendered by the cooperative.
(2) The incorporators must sign and certify in triplicate before a notary public the articles of incorporation.
(3) If the articles of incorporation comply with the provisions of this Code, the Commissioner shall endorse his/her approval thereon to that effect. One copy of said articles shall be filed in the Office of the Secretary of State, another in the Office of the Commissioner and the third copy shall be returned to the insurance cooperative. Once these copies are so filed the incorporation shall be deemed made.
(4) The fees for such filing shall be as provided in §§ 701–706 of this title and no additional fee shall be charged therefor by the Secretary of State.
History —Ins. Code, added as § 34.040 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 5, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3405 - Articles of incorporation, contents

The articles of incorporation of an insurance cooperative shall state:
(1) The name of the insurance cooperative, which shall contain as a distinctive part thereof, the word “Cooperative”. Provided, That no insurance cooperative may select a name already adopted by another insurer or which is so similar thereto as to be likely to create confusion.
(2) The name of the city or town in which will be located the insurance cooperative’s main 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 insurance cooperative is formed to transact, according to the definitions thereof in this Code. The insurance cooperative may initially be authorized to transact one or several kinds of insurance.
(5) There shall be indicated the authorized total number of fund contribution certificates and the amount of the contribution represented by each certificate. If the insurance cooperative authorizes more than one kind of contribution certificates, it shall indicate the description of each kind; the number of certificates making up each kind; and the rights, preferences and restrictions granted to or imposed on each kind.
(6) The names and mailing addresses of the incorporators and the number of fund contribution certificates underwritten.
(7) The names and mailing addresses of the provisional directors, who shall not be less than five.
The articles of incorporation of an insurance cooperative may include any other provision that is not contrary to the law, morality or the public order.
History —Ins. Code, added as § 34.050 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 2; Nov. 12, 2007, No. 174, § 6, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3406 - Amendments to articles of incorporation

(1) The articles of incorporation of an insurance cooperative may be amended by resolution adopted by ⅔ of the members present at a vote taken in a regular or a special assembly called for such purpose.
(2) If the amendment is to change the insurance cooperative’s name after the transaction of insurance in Puerto Rico thereunder, the proposed amendment shall not be submitted to the members [until] after the Board has applied for, and received the consent of the Commissioner to the proposed change. The amendment shall be deemed approved, unless it is denied by the Commissioner within thirty (30) days of it having been submitted to his/her consideration.
(3) After adoption of the amendment by the members of the insurance cooperative, its 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 insurance cooperative records. Upon completion of such filings the amendment shall be deemed effectuated.
History —Ins. Code, added as § 34.060 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 7, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3409 - First assembly of members

(a) As soon as contribution certificates in the amount of three fourths of the minimum surplus funds required have been paid, and as soon as three fourths of the total number of applications of members required to qualify for the original certificate of authority have been accepted, the directors of the cooperative insurer being formed shall call the first assembly of members. The assembly shall be held in any city or town of Puerto Rico as stated in the cooperative’s articles of incorporation, and written notice of the date, time, place, and purposes of the assembly shall be sent to each such member, addressed to the member at his/her last address in record with the cooperative, or delivered to him/her personally, not less than thirty (30) days prior to the date of the assembly.
(b) The assembly shall consider and adopt cooperative bylaws of the insurance cooperative, elect directors with different terms of one, two or three years, according to the initial staggered system established in the bylaws and shall transact such other business as may properly come before it for its consideration.
History —Ins. Code, added as § 34.090 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 5; Dec. 13, 1990, No. 36, § 3; Aug. 5, 1993, No. 47, § 1; June 28, 1994, No. 32, § 1; Nov. 12, 2007, No. 174, § 10, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3410 - Regular and special member assemblies

The general assembly of members of insurance cooperatives shall be held in any city or town of the Island of Puerto Rico in which there are members.
Notice of said assembly shall be given not less than twenty (20) days in advance. The annual regular assembly shall fill the existing vacancies or those that occur on the Board of Directors, receive or consider reports of the officers of the Board of the insurance cooperative with regard to its business and shall resolve all other matters that are duly submitted by the members. Provided, That not more than thirteen (13) months shall elapse between one (1) regular assembly of members and the next.
No assembly of members may amend the articles of incorporation and the regulations of the insurance cooperative unless the proposal for its amendment has been included in the notice of the assembly.
The contents of resolutions presented in the assemblies shall be consistent with the ends and purposes of the insurance cooperative, the laws and bylaws. Furthermore, it is provided that such resolutions shall be submitted duly approved by the Board of Directors of the members to the Board of the insurance cooperative within the term established in the bylaws, and in the absence thereof, as provided by the Board for its evaluation and recommendation to the assembly.
It shall be the duty of the board of directors to call a special general meeting of members when 10% of the members file with the secretary a petition, in writing, to hold such assembly and specifying the matters to be discussed thereat.
History —Ins. Code, added as § 34.100 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 6; Apr. 4, 1992, No. 6, § 1; Nov. 12, 2007, No. 174, § 11; Sept. 29, 2010, No. 146, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3412a - Duties of the directors in the performance of their functions

The directors of the insurance cooperative shall discharge their duties with the degree of care appropriate to the fiduciary relations they have toward the insurance cooperative. This fiduciary duty includes the duty of diligence and loyalty toward the insurance cooperative, as well as the duty to supervise and to give care as a good father of a family for the assets and the operations of the insurance cooperative.
No director or officer of an insurance cooperative shall accept, except for the insurer, nor shall he/she be the beneficiary of any fees, brokerage, donation or any other emolument by reason of any investment, loan, deposit, purchase, sale, exchange, reinsurance or any other transaction made by the insurance cooperative, or for himself/herself, nor shall he/she have any financial interest in said transactions in any capacity, except in representing the insurance cooperative.
This section does not prohibit said director or officer from becoming a policyholder of the insurance cooperative and enjoying, in accordance with the policy, all the rights and privileges commonly and usually provided therein for the policyholders in general.
When the directors and officers of the Board have personal or representation interests in matters that somehow affect the insurance cooperative, they shall be subject to the duty of loyalty that compels them to act ethically and in harmony with the bylaws and norms of the insurance cooperative with respect to matters concerning the latter.
History —Ins. Code, added as § 34.121 on Nov. 12, 2007, No. 174, § 14, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3413 - Board and administration officers

(1) The Board shall elect its officers. Provided, That any director who is elected for the first time and who has no experience or studies in the field of insurance shall not be an officer of the Board.
(2) The chief executive officer of the administration of the insurance cooperative does not have to be a member of an affiliate cooperative, but if he/she is, he/she may not be a proxy thereof at the same time. Provided, That such person shall not at the same time be a director of the Board of Directors of the insurance cooperative.
(3) No director may receive any compensation or bonus as such director, beyond the assigned travel expenses and per diems during the days in which he/she may attend Board meetings or activities related to the insurance cooperative by direction of the Board itself, be it in the insurance area, or because of its nature as a cooperative. The directors shall be entitled to be reimbursed of the necessary expenses incurred by them in the performance of their officer duties. They shall also receive per diems for each meeting they attend or for each day they engage in activities thereof. The per diem to be received by the directors shall be established in the bylaws established by the Board for such purposes. The directors may be granted such life insurance or other insurance that shall protect the cooperative as well as the officer in his/her functions, without it being understood to a compensation or bonus.
(4) No person may act as a director, an administration officer and an employee of the insurance cooperative at the same time.
(5) Every administration officer or employee who in the performance of his/her duty intervenes with or handles cash shall furnish a bond. The amount of the bond shall be determined by the Board of Directors. The premium or cost of the bond shall be defrayed by the insurance cooperative.
History —Ins. Code, added as § 34.130 on June 26, 1959, No. 84, p. 220, § 1; July 20, 1979, No. 165, p. 420, § 11; Dec. 13, 1990, No. 36, p. 1545, § 5; Nov. 12, 2007, No. 174, § 15, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3414 - Education

All the insurance cooperatives organized under this Code, shall be under obligation to set aside annually not less than one tenth (1/10) of one percent (1%) of the total volume of premiums paid for purposes of cooperative education. Provided, That the insurance cooperatives may contribute voluntarily to the League of Cooperatives of Puerto Rico a part of all their funds for educational purposes, in order that the latter may intensify the work on cooperative education.
History —Ins. Code, added as § 34.140 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 16, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3415 - Social reserve

The insurance cooperatives shall devote part of their net surplus available in an equitable manner to social programs such as hospitals, shelters or assistance programs for abused women and children, the terminally ill, elderly homes or centers, educational institutions and cooperative development programs that are directed to the development and growth of marginalized communities and groups. This reserve shall be established for a fixed annual amount, which means it shall not be a cumulative amount.
The use and administration of the social reserve shall be regulated by the Board of Directors of the insurance cooperative.
History —Ins. Code, added as § 34.150 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 17, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3416 - Use of the term “cooperative”

No person, firm, corporation, or association in Puerto Rico other than a cooperative association organized under the laws in force shall have the right to use the terms “cooperative”, “cooperation”, “cooperators” or words of similar meaning as a part of its name.
History —Ins. Code, added as § 34.160 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 18, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3417 - Insurance cooperatives are not in restraint of trade

No insurance cooperative organized this Code shall, for the sole reason of being and acting in accordance with its cooperative nature, be deemed to be a conspiracy or a combination in restraint of trade or an illegal monopoly; neither shall it be considered organized for the purpose of lessening competition or fixing premiums arbitrarily; nor shall contracts executed between them and their members and other policyholders, or other contracts authorized or executed by virtue of the provisions of this Code, be construed as an unlawful restraint of trade or as part of a conspiracy or combination to carry out an improper or illegal purpose or act.
History —Ins. Code, added as § 34.170 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 19, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3418 - Tax exemption

(1) Every cooperative insurer duly organized under this Code shall be exempted from all real and personal property taxes belonging to said cooperative insurer; Provided, That said exemption shall in no case exceed the appraised value of one million dollars ($100,000.000); Provided, further, That for fiscal years 2009-10, 2010-11, and 2011-12, the exemption that shall apply to such cooperative insurers shall be ten million dollars ($10,000,000).
(2) The tax exemption hereby authorized shall also include the stock issued by said cooperatives within the powers and faculties granted to them by this Code and the exemptions granted by the law to other types of cooperatives in Puerto Rico.
(3) Such cooperative insurers that wish to avail themselves of the tax exemption may request from the Director of the Municipal Revenues Collection Center exemption from the payment of taxes, accompanying with the application a statement of their assets and stock and the valuation thereof, the articles of incorporation, and all such data as the Director of the Municipal Revenues Collection Center may require of the cooperative in order to issue the exemption resolution. Once the resolution is issued, the insurers shall proceed to publish the same in a newspaper of general circulation in Puerto Rico.
(4) General rule.—
(a) Except as provided in clause (b) of this subsection, cooperative insurers organized pursuant to this Code, being non-profit associations, shall not be subject to the payment of income tax.
(b) Taxable years beginning after December 31, 2008, and before January 1, 2012.— Notwithstanding the provisions of §§ 8401–8697 of Title 13, and this Code, during each of the taxable years beginning after December 31, 2008, and before January 1, 2012, cooperative insurers organized pursuant to this Code shall be subject to a special five percent (5%) tax on the amount of their net income for the taxable year, to be computed in accordance with the provisions of §§ 8591–8602 of Title 13, regardless of the provisions of § 8501 of Title 13 or this Code, but only to the extent that said net income exceeds two hundred fifty thousand dollars ($250,000). Unless otherwise provided by the Secretary of the Treasury by regulation, circular letter or other administrative determination or communication of a general nature, such tax shall be reported, paid, and collected in such form and manner as established in §§ 8401–8697 of Title 13, for corporations to pay general income taxes.
History —Ins. Code, added as § 34.180 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 20; Mar. 9, 2009, No. 7, § 27; July 10, 2009, No. 37, § 18.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3419a - Acquisition of stock

Insurance cooperatives may organize and acquire other insurers and any other type of business, as provided in §§ 648–662 of this title or any other provision of this Code, by themselves or jointly with other cooperative institutions, for which they shall have the same powers and the same duties as the other insurers.
History —Ins. Code, added as § 34.191 on June 27, 1964, No. 110, p. 330; Nov. 12, 2007, No. 174, § 21, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3419b - Impaired assets

(1) If the assets of an insurance cooperative suffer impairment, the Commissioner shall immediately determine the amount of the deficiency and so notify the insurance cooperative to cover it, whether by requiring its members to make an additional contribution or in any other way, within ninety (90) days after being notified.
(2) The deficiency shall be made up with cash or eligible assets pursuant to this Code for the investment of the funds of the insurance cooperative.
(3) For the purposes of this section, an insurance cooperative shall be considered as having impaired assets to the extent that its liabilities exceed its assets, both to be determined as provided in Chapter 5 of this Code, but including as liability any minimum surplus fund required to be maintained as authorization to transact the kinds of insurance underwritten.
(4) If the deficiency is not covered, offering proof thereof to the Commissioner, within such ninety (90)-day term, the insurance cooperative shall be considered insolvent and proceeded against pursuant to the provisions of this Code.
(5) If the deficiency is not made up, the insurer may not issue or deliver any policy after the expiration of such ninety (90)-day term. Any officer or director of the Board violating this provision or knowingly permitting the same to be violated shall incur a fine of not more than one thousand dollars ($1,000) for each violation.
History —Ins. Code, added as § 34.192 on June 25, 1965, No. 86, p. 200, § 9; Nov. 12, 2007, No. 174, § 22, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3419c - Assigning quotas to members to cover impairment of assets

(1) If authorized by the vote of not less than two-thirds of the members of an insurance cooperative present at a special assembly called to said effect, the Board of Directors may impose a special prorated assessment on all contribution certificates issued by the insurance cooperative, to guarantee totally or partially the necessary funds to cover the impairment of assets, in accordance with the notification and requirement of the Commissioner, as provided in § 3419b of this title.
(2) Written notice of such assessment shall be transmitted by registered mail to each one of such members to the last address registered in the insurance cooperative, requiring payment of such assessment before the expiration of the term of eighty-five (85) days.
Upon prior agreement of the Board of Directors and with the consent of the Commissioner, such notice may provide that if the member fails to pay the assessment when due his/her fund contribution certificates, or such part thereof as may be necessary to said effect, shall, on a date within the period of five (5) days after expiration of the term specified in the preceding paragraph, become property of the insurance cooperative. In no case may the insurance cooperative appropriate for itself contribution certificates of members whose contribution exceeds the assessment corresponding to said members. The appropriation of fund contribution certificates by the insurance cooperative in the prescribed manner shall be recorded upon the books of the insurance cooperative and shall be fully binding and operative upon all parties. Provided, That as soon as the financial condition of the insurance cooperative so permits, the Board of Directors may proceed to accredit to members fund contribution certificates whose value shall in no case exceed the sums appropriated in the aforesaid manner. The insurance cooperative or its creditors shall have no further remedy against the member failing to pay the assessment thus imposed.
History —Ins. Code, added as § 34.193 on June 25, 1965, No. 86, p. 200, § 10; Nov. 12, 2007, No. 174, § 23, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3420 - Persons related with other insurers

No agent, solicitor, broker, adjuster, consultant or insurer related to insurers not organized under the provisions of this chapter may belong as a member, nor acquire fund contribution certificates, nor organize an insurance cooperative as it is defined in this chapter.
History —Ins. Code, added as § 34.200 on June 26, 1959, No. 84, p. 220, § 1; Dec. 13, 1990, No. 36, p. 1545, § 5; Jan. 19, 2006, No. 10, § 9; Nov. 12, 2007, No. 174, § 24, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3421 - Persons barred from membership

No natural or juridical person may be a member of an insurance cooperative under the provisions of this chapter, if said person has had his/her license cancelled in accordance with the provisions of §§ 949–953i of this title, or is under investigation toward that end by the Insurance Commissioner of the Commonwealth of Puerto Rico.
History —Ins. Code, added as § 34.210 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 25, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3422 - Applicability of other provisions

The provisions in §§ 2801–2820 of this title, which regulate the organization of insurers, shall not apply to insurance cooperatives, with the exception of the section that establishes a prohibition on constituting an insurer that depends on the payment of assessments, premiums for assessments or contributions made among its policyholders or members. Neither shall the provisions of §§ 2901–2954 of this title which regulate on [sic]the corporate powers and procedures of domestic stock and mutual insurers apply, with the exception of the sections on general corporate powers, on regular and special assemblies, on management and exclusive agency; contracts, on limitation of expenses, mutuals, on accounts, vouchers for expenditures, on borrowed funds, on repayment of borrowed funds, on transactions in other countries, on illegal dividends, penalties, on merger or consolidation, on effect of merger or consolidation, on voluntary liquidation and dissolution, on voluntary liquidation; administration, on voluntary liquidation; powers of the Commissioner, on voluntary liquidation; certificate of authority, on voluntary liquidation, certificate of dissolution, and on filing of certificate; effective date of dissolution, inclusive.
Insurance cooperatives shall not be subject to the provisions of the General Corporation Law, §§ 2601 et seq. of Title 14.
History —Ins. Code, added as § 34.220 on June 26, 1959, No. 84, p. 220, § 1; June 25, 1965, No. 86, p. 200, § 11; Nov. 12, 2007, No. 174, § 26, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 34 - Insurance Cooperatives (§§ 3401 — 3423) › § 3423 - Applicability of provisions not excepted

All the provisions of this Code not expressly excepted shall apply to insurance cooperatives to the extent they are applicable. In aspects of a cooperative nature not covered by this chapter, the first resort shall be the General Cooperative Associations Act, then the Savings and Credit Cooperatives Partnership Act, Cooperative Law, and last of all the Civil Code of Puerto Rico.
History —Ins. Code, added as § 34.230 on June 26, 1959, No. 84, p. 220, § 1; Nov. 12, 2007, No. 174, § 27, eff. 30 days after Nov. 12, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3501 - Scope

This chapter applies only to domestic Lloyd’s plan insurers.
History —Ins. Code § 35.010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3502 - Definition

For the purpose of this title, a domestic Lloyd’s plan insurer is a partnership of unincorporated individual insurers, having joint and several unlimited liability, acting through an attorney-in-fact, and transacting as insurer such kinds of insurance (or classes thereof) as may be authorized by the compact between such individuals and as may be authorized by law.
History —Ins. Code § 35.020.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3503 - General requirements as to Lloyd’s insurers

(1) Except as otherwise expressly provided, Lloyd’s insurers are subject to the same requirements and have the same privileges as apply under this title to insurers in general.
(2) Section 2932 of this title (as to operations in foreign countries) shall be applicable to Lloyd’s insurers.
History —Ins. Code § 35.030.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3504 - Attorney-in-fact

(1) The respective underwriters or insurers in a Lloyd’s (by power of attorney) shall vest in an attorney-in-fact full power to represent and bind them with respect to compliance by the insurer with the requirements of this title, and with respect to all insurance transactions under the certificate of authority.
(2) The attorney-in-fact may be either an individual or a corporation.
(3) The principal place of business of the attorney-in-fact shall be maintained in Puerto Rico.
(4) All reports, statements, and documents of or by the insurer shall be executed in its name by the attorney-in-fact.
History —Ins. Code § 35.040.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3505 - Qualification of Lloyd’s insurer

(1) A domestic Lloyd’s may be authorized to transact insurance while it maintains on deposit in trust for the benefit of its policyholders and creditors, with the Secretary of the Treasury through the office of the Commissioner, surplus funds in amount equal to the paid-in capital required of a domestic stock insurer transacting like kinds of insurance.
(2) The insurer must be comprised of not less than twenty-five individual underwriters or insurers, each of whom must be worth in his own right not less than twenty-five thousand dollars ($25,000) over and above all his liabilities.
(3) In addition to the requirements of § 317 of this title, when applying for a certificate of authority for a domestic Lloyd’s insurer the attorney-in-fact shall file with the Commissioner a financial statement of recent date as to each component underwriter or insurer.
History —Ins. Code § 35.050.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3506 - Emergency authorization

(1) Notwithstanding the provisions of § 3505 of this title, when for any reason hurricane insurance on crops and plantations in Puerto Rico cannot be secured through other authorized insurers, or as surplus line coverage under §§ 1001–1020 of this title, or cannot be so secured at reasonable rates or on reasonable terms and conditions of coverage, the Commissioner is empowered to facilitate the obtaining of such insurance by agriculturists, through a special temporary authorization which he may grant at the request of any group of individual insurers under the Lloyd’s plan, made through the Secretary of Agriculture, and approved by the Governor.
(2) The Commissioner shall issue such authority for such period and upon compliance with such terms and conditions as he deems reasonable in view of the circumstances then existing. Such insurer shall not transact any insurance except against windstorm, hurricane, and related risks.
(3) The provisions of §§ 2801–2820 of this title (organization of domestic insurers) shall not apply with respect to an insurer formed pursuant to this section. The Commissioner may waive such other provisions of this title as are, in his opinion, not reasonably or practically applicable to such an insurer.
History —Ins. Code § 35.060.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3507 - Substituted or additional underwriters

All underwriters substituted or added to a Lloyd’s insurer subsequent to issuance of its certificate of authority, shall be subject to the same obligations and liabilities as the organizing or original underwriters, as if they had signed the original power of attorney and other original documents of the insurer on file with the Commissioner.
History —Ins. Code § 35.070.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3508 - Other changes

(1) After issuance of a certificate of authority to a domestic Lloyd’s insurer, the compact among the individual insurers or underwriters, the power of attorney, and the name of the insurer shall not be changed except with the approval of the Commissioner.
(2) The insurer shall promptly notify the Commissioner in writing of any change:
(a) Of location of principal office or place of business.
(b) Substitution of attorney-in-fact.
(c) Substitutions or additions among individual insurers or underwriters.
The Commissioner may, in his discretion, require the execution and filing of new documents as originally required of the insurer, on account of any changes.
History —Ins. Code § 35.080.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3509 - Actions against Lloyd’s insurer

(1) Any cause of action against a Lloyd’s insurer may be instituted against any one or more of: The attorney-in-fact; the individual insurers or underwriters jointly or any number of them; any individual insurer or underwriter.
(2) Any judgment rendered against any one or more of the parties defendant as specified in subsection (1), in an action arising out of the insurance transactions of the Lloyd’s insurer, shall be equally binding on each and all of the individual insurers or underwriters, whether or not named as parties to the action. Any such individual insurers or underwriters having to make a payment over and above his proportional participation, shall be fully entitled to reimbursement therefor by the other insurers or underwriters.
(3) Service of process upon a Lloyd’s insurer, or upon any individual underwriter or underwriters as such, shall be upon the attorney-in-fact or upon the Commissioner, as provided in § 327 of this title.
History —Ins. Code § 35.090.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 35 - Lloyd’s Insurers (Domestic) › § 3510 - Impairment of surplus

(1) The surplus of a Lloyd’s insurer shall be deemed to be impaired when the amount of its assets is less than the amount of its liabilities, including as a liability, for the purposes of this provision, the amount of its surplus required under this title for authority to transact the kinds of insurance it is authorized to transact.
(2) If the Commissioner at any time finds that sich an impairment of surplus exists, he shall give the attorney-in-fact written notice thereof and demand that the deficiency be cured within ninety days after the date of the notice. If the deficiency is not so cured, the Commissioner shall, upon expiration of such ninety-day period, revoke the insurer’s certificate of authority and proceed against it as an insolvent insurer pursuant to the provisions of §§ 4001–4024 of this title.
History —Ins. Code § 35.100.