reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 25 - Reserve for Catastrophic Insurance Losses (§§ 2501 — 2509) › § 2504 - Trust of the assets that secure the reserve for catastrophic insurance losses

(1) On January 31 of each year, every native insurer who has underwritten catastrophic insurance during the previous year, shall deposit an amount of money equivalent to the reserve for catastrophic insurance losses computed according to § 2503 of this title, for the preceding year, in the trust established pursuant to the provisions of this section. The deposit shall also include the funds on account of transfers made pursuant to § 2503(5) of this title.
(2) The trust shall be previously approved by the Commissioner and shall meet the following requirements:
(a) The trust shall be constituted pursuant to the laws of Puerto Rico.
(b) The trust shall credit the income accrued on account of the investment of its assets, to its funds pursuant to the provisions of § 2505 of this title.
(c) Except for the provisions of §§ 2506(2) and 2507 of this title, the trust shall use its funds solely and exclusively for the payment of catastrophic insurance losses and for the adjustment expenses inherent to said losses.
(d) The trustee in charge of managing the trust, who shall be domiciled in Puerto Rico, must also be approved by the Commissioner, and must perform the operation of the trust from this jurisdiction.
(3) The Commissioner shall audit the operations of the trust to verify its compliance with the applicable laws.
History —Ins. Code, added as § 25.040 on Aug. 12, 1994, No. 73, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 25 - Reserve for Catastrophic Insurance Losses (§§ 2501 — 2509) › § 2505 - Investment of the funds of the trust

(1) The trust may invest its funds in securities authorized in Chapter 6 of this Code, pursuant to the investment policy dictated by the native insurer.
However, the trust shall not invest its funds in investments whose value is affected by the occurrence of the risks covered by catastrophic insurance in Puerto Rico.
(2) The revenues obtained from the investment of the funds shall also be a part of the reserve for catastrophic insurance losses.
History —Ins. Code, added as § 25.050 on Aug. 12, 1994, No. 73, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 25 - Reserve for Catastrophic Insurance Losses (§§ 2501 — 2509) › § 2506 - Charges against the reserve for catastrophic insurance losses

(1) Except as provided in subsection (2) of this section and § 2503 of this title, a native insurer may charge its reserve for catastrophic insurance losses, and withdraw the assets that are equivalent to said charges from the trust, exclusively for the payment of said losses and adjustment expenses thereof, in keeping with the catastrophic insurance policies issued by said insurer, provided that the catastrophic insurance losses exceed five percent (5%) of the net direct premiums underwritten by the native insurer during the calendar year preceding the year in which these losses occur. Said charges shall not exceed the amount withheld by said insurer pursuant to its reinsurance agreements.
(2) A native insurer may charge against its reserve for catastrophic insurance losses and withdraw from the trust those assets that are equivalent to said charges for the purpose of increasing its surplus for the policyholders, as defined in § 414 of this title, provided that:
(a) The liabilities of the native insurer are greater than its admitted assets, both determined according to Chapter 5 of this Code;
(b) the charge against the reserve will prevent the native insurer from being submitted to a formal collection procedure, pursuant to §§ 4001–4024 of this title, and
(c) prior authorization is obtained from the Commissioner.
(3) If a charge against the reserve for catastrophic insurance losses is made pursuant to § 2507(3) of this title, the native insurer shall not renew the underwriting of said insurance unless it complies with § 2507(3) of this title.
History —Ins. Code, added as § 25.060 on Aug. 12, 1994, No. 73, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 25 - Reserve for Catastrophic Insurance Losses (§§ 2501 — 2509) › § 2507 - Withdrawal of domestic insurer from the market

(1) Any native insurer who ceases to underwrite catastrophic insurance in Puerto Rico shall maintain its reserve for catastrophic insurance until six (6) months have elapsed after each and every one of its policies that provide catastrophic insurance coverage have ceased to be in effect or until all the claims that have arisen pursuant to said policies have been settled or closed, whichever of these two periods is the last.
(2) Once the period stipulated herein has elapsed, the domestic insurer may eliminate the reserve for catastrophic insurance losses only with the prior approval of the Commissioner, and through the payment to the Secretary of the Treasury, via the Commissioner, of a special tax of fifteen percent (15%) on the paid-in amounts and the taxable income obtained from the investment thereof which at the time of the approval are deposited in the trust established pursuant to § 2504 of this title, and whose taxation has been deferred pursuant to § 2503(6) of this title. The domestic insurer may eliminate the reserve for catastrophic insurance losses and withdraw the assets from the trust only after having obtained said approval and having paid the special tax.
(3) If said insurer wishes to resume underwriting said insurance after the date on which a native insurer has been given the approval to eliminate the reserve for catastrophic insurance losses from its liabilities and has withdrawn or reduced the assets of the trust, pursuant to § 2506(2) of this title, it would then be bound to establish such reserve through contributions of monies to the trust in amounts equal to a proportion of the amount of the reserve that existed at the time of its elimination or reduction. Said proportion shall vary depending on the time elapsed between the date the business is resumed and the date the reserve was eliminated or reduced, as follows:
Time elapsed Proportion Less than one (1) year 100% One (1) year but less than two (2) 80% Two (2) years but less than three (3) 60% Three (3) years but less than four (4) 40% Four (4) years but less than five (5) 20% Five (5) years or more 0%
History —Ins. Code, added as § 25.070 on Aug. 12, 1994, No. 73, § 1; Oct. 13, 2006, No. 227, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 25 - Reserve for Catastrophic Insurance Losses (§§ 2501 — 2509) › § 2508 - Compliance with other provisions

The contents of this chapter with regard to the establishment of the reserve for catastrophic insurance losses shall not be understood as releasing the native insurer from complying with §§ 412, 414, and 415 of this title.
History —Ins. Code, added as § 25.080 on Aug. 12, 1994, No. 73, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 25 - Reserve for Catastrophic Insurance Losses (§§ 2501 — 2509) › § 2509 - Penalties

If a native insurer does not establish the reserve for catastrophic insurance losses or does not deposit the corresponding amounts of money in the trust pursuant to the requirements of §§ 2503 and 2504 of this title, it shall be subject to an administrative fine amounting to the unestablished reserve or the amount of money not deposited in the trust, in addition to complying with said sections.
The second and subsequent violations of this nature shall entail the revoking of the authorization certificate of the native insurer, which shall not be reinstated for a period of at least one (1) year after the date of revocation.
History —Ins. Code, added as § 25.090 on Aug. 12, 1994, No. 73, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2601 - Title

This chapter shall be known as Life Insurance Companies, General Agents, Managers and Producers Unclaimed Funds Act.
History —Ins. Code, added as § 26.010 on May 30, 1970, No. 61, p. 159; July 23, 1974, No. 133, Part 1, p. 598, § 11; Jan. 19, 2006, No. 10, § 9, eff. 120 days after Jan. 19, 2006.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2602 - Scope

This chapter shall apply to unclaimed funds, as defined in § 2603(b) of this title of any insurer, general agent, manager and producer to whom the insurer may have returned or credited funds to transmit to a person entitled thereto, who is engaged in the business in Puerto Rico when the last known address of the person entitled to the funds is one in Puerto Rico, in accordance with the records of the insurer, general agent, manager and producer. If the person entitled to the funds is not the insured or the annuitant, and no address of this person is known, or if from the records there does not appear in a certain and definite manner what person is entitled to the funds, it shall be presumed, in both cases, for the purposes of this chapter, that the last known address of the person entitled to receive the funds is the same as the last known address of the insured or annuitant, in accordance with the records of the insurer, general agent, manager and producer.
History —Ins. Code, added as § 26.020 on May 30, 1970, No. 61, p. 159; July 23, 1974, No. 133, Part 1, p. 598, § 12; Jan. 19, 2006, No. 10, § 9, eff. 120 days after Jan. 19, 2006.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2603 - Definitions

(1) For the purposes of this chapter, the following terms shall have the meanings set forth hereinbelow:
(a) Insurer.— Means any insurer including a fraternal benefit society, as defined in § 3601 of this title, who carries out all kinds of insurance transactions in Puerto Rico.
(b) Unclaimed funds.— Means the money held and owed, including unearned premiums by any insurer doing business in Puerto Rico, unclaimed and unpaid for more than five (5) years after the moneys became due and payable under any insurance policy as established from the records of the insurer, or the general agent, manager, or authorized representative thereof.
(2) In the case of a life insurance policy which has not become due because of the conclusive evidence of the previous death of the insured shall be considered as due and the corresponding benefits shall be considered due and payable within the meaning of this chapter, if the policy is in effect when the insured has attained the age limit, under the mortality rate on which the reserve is based.
(3) Moneys otherwise admitted due and not paid shall be considered as “withheld and indebted” within the meaning of this chapter even when the policy or contract has not been delivered as required.
History —Ins. Code, added as § 26.030 on May 30, 1970, No. 61, p. 159; July 23, 1974, No. 133, Part 1, p. 598, § 13; Jan. 19, 2006, No. 10, § 9, eff. 120 days after Jan. 19, 2006; Aug. 22, 2012, No. 199, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2604 - Reports

(1) Every insurer and every general agent, manager or authorized representative shall, on or before May 1 of each year, submit a written report to the Commissioner on all unclaimed funds, as defined in § 2603(b) of this title, withheld and indebted to the former as of the immediately preceding December 31; but the report shall not be required to include sums of less than five dollars ($5) or sums which have been paid to another state or jurisdiction prior to the date of effectiveness of this act. In cases where the insurer has transmitted or credited the funds to his/her general agent, manager or authorized representative to be returned to the person entitled thereto, he/she shall be exempted from filing the report required in this section, but shall submit a certification to such effect to the Commissioner.
(2) The report shall be signed and sworn by an officer of the insurer and in the case of a general agent, manager, or authorized representative, it shall be signed by any of the persons appearing in the license and shall establish:
(a) In alphabetical order, the full name of the insured, annuitant, beneficiary or person who may have any interest in the funds, his/her last known address in accordance with the records of the insurer, general agent, manager or authorized representative and the number of the policy or contract.
(b) The amount indebted on the policy or contract in accordance with the records of the insurer, general agent, manager or authorized representative.
(c) The date on which the unclaimed funds became payable.
(d) The name and the last known address of each insured, beneficiary or person who, according to the records of the insurer, general agent, manager or authorized representative, may have an interest in the unclaimed funds.
(e) Any steps taken by the insurer, general agent or authorized representative to locate the insured or beneficiary.
(f) All such other information as the Commissioner may deem necessary to require.
(3) Every insurer, general agent, manager or authorized representative who does not have unclaimed funds shall submit a negative certification to such effect.
(4) Every insurer, general agent, manager or authorized representative who fails to submit the report required by this section on the date fixed, shall be penalized by the sanctions provided by the Code, as it corresponds. It shall be understood further that a report has not been duly submitted, if it fails to meet the requirements of subsection (2) of this section or does not contain all the information required by the Commissioner.
History —Ins. Code, added as § 26.040 on May 30, 1970, No. 61, p. 159; July 23, 1974, No. 133, Part 1, p. 598, § 14; Jan. 19, 2006, No. 10, § 9; Aug. 4, 2008, No. 155, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2605 - Notice of unclaimed funds; publication

(1) On or before September 1 following the presentation of the reports required under § 2604 of this title, each insurer and each general agent, manager, or authorized representative to whom the insurer may have remitted or credited funds, shall cause notices to be published based on the information contained in the reports and entitled, “Notice of Unclaimed Funds, Withheld and Indebted by Insurance Companies and/or General Agents, Managers or Authorized Representatives”. Such notice must be published once a week for two (2) consecutive weeks in a newspaper of general circulation in Puerto Rico.
(2) Each notice shall contain in alphabetical order the names of the insured persons or beneficiaries, in addition to:
(a) The amount reported as due and the date it became payable.
(b) The name and last known address of each insured, beneficiary or person that, in accordance with the reports of the insurer, general agent, manager or authorized representative, may have an interest in the unclaimed funds.
(c) The name and the address of the insurer, general agent, manager, or authorized representative.
(3) The notice shall also set forth that the unclaimed funds shall be payable by the insurer, general agent, manager, or authorized representative to those persons who may prove to his satisfaction before the next December 1, their right to receive same, and that not later than the following December 20, such unclaimed funds which still remain uncollected shall be paid to the Commissioner, who shall be thereinafter responsible for their payment.
(4) Insurers, general agents, managers, or authorized representatives shall not be under the obligation to publish amounts of less than fifty dollars ($50) in such notice, unless the Commissioner may consider that such publication is for the good of the public interest.
(5) Expenses incurred in connection with the publication required hereunder shall be defrayed by the insurer, general agent, manager, or authorized representative and chargeable against the unclaimed funds contained in said publication, deducting therefrom such expenses.
(6) The title of the notice to be published shall appear in a font not larger than thirty-eight (38) points, but may be smaller; however, the content of such publication must appear in a font size not smaller than ten (10) points.
(7) Every insurer, general agent or authorized representative shall strictly follow the procedures established herein for the notice and management of unclaimed funds, any noncompliance, default, or diversion from the procedures may be penalized with the sanctions set forth in the Code, as it corresponds.
History —Ins. Code, added as § 26.050 on May 30, 1970, No. 61, p. 159; July 23, 1974, No. 133, Part 1, p. 598, § 15; Jan. 19, 2006, No. 10, § 9; Aug. 4, 2008, No. 155, § 6.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2606 - Payment to Commissioner

All unclaimed funds contained in the report required under § 2604 of this title, except those which have ceased to be unclaimed funds, shall be payable to the Commissioner on or before the following December 20; as of said date, the payment of legal interest shall be imposed on the indebted sum, in addition to any sanctions provided in the Code, as it corresponds.
History —Ins. Code, added as § 26.060 on May 30, 1970, No. 61, p. 159; Aug. 4, 2008, No. 155, § 7.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2607 - Custody of unclaimed funds by Commonwealth; release from liability

Upon making the payment of unclaimed funds to the Commissioner the latter shall cover same into the general funds of the Commonwealth Treasury. The insurer who makes such payments shall be released from all liability or any claim or claims existing at that moment, with regard to unclaimed funds or that hereinafter be made or that may arise on or in connection with any of such unclaimed funds.
History —Ins. Code, added as § 26.070 on May 30, 1970, No. 61, p. 159; July 23, 1974, No. 133, Part 1, p. 598, § 16.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2608 - Refund for claims paid by insurers

Any person who allegedly claims to be entitled to unclaimed funds which have been paid to the Commissioner may present a claim before the Commissioner within the term of one (1) year reckoning from the date of the delivery to the Commissioner of said unclaimed funds. The above term of expiration, in case of minors, shall be reckoned from the date they may have attained the age of twenty-one years. Upon previous verification of the right of the claimant by the Commissioner, the Secretary of the Treasury is hereby authorized to reinstate such funds or the corresponding part thereof to said persons. Any unclaimed funds within the term herein established shall pass to be the property of the Commonwealth of Puerto Rico.
History —Ins. Code, added as § 26.080 on May 30, 1970, No. 61, p. 159.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2609 - Determination and revision of claims

The Commissioner shall have absolute discretion to accept or reject any claim. If a claim is rejected or no action is taken thereon within the ninety (90) days following the receipt of the claim, the claimant may solicit from the Court of First Instance an order, with notice to the Commissioner, so that the latter shows, within the term of thirty (30) days, cause whereby he has not accepted and paid the claim.
History —Ins. Code, added as § 26.090 on May 30, 1970, No. 61, p. 159.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2610 - Payment of allowed claims

Any claim allowed by the Commissioner or whose payment may have been ordered by him, or by a court of competent jurisdiction, shall be paid from the general funds of the Commonwealth Treasury.
History —Ins. Code, added as § 26.100 on May 30, 1970, No. 61, p. 159.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 26 - Unclaimed Funds in Insurance Companies, General Agents, Managers and Producers (§§ 2601 — 2612) › § 2611 - Reports required

The Commissioner shall keep in his office a public record of each payment of unclaimed funds received by him from any insurer, general agent, manager and producer. The report shall show, in alphabetical order, the name and last known address of each insured person or annuitant and of each beneficiary or person who, in accordance with the records of the insurer, may have interest in such unclaimed funds, and with regard to each policy or contract, its number, the name of the insurer and the amount due.
History —Ins. Code, added as § 26.110 on May 30, 1970, No. 61, p. 159; July 23, 1974, No. 133, Part 1, p. 598, § 17; Jan. 19, 2006, No. 10, § 9, eff. 120 days after Jan. 19, 2006.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 27 - Unfair Practices and Frauds (§§ 2701 — 2740) › § 2701 - Declaration of purpose

The purpose of this chapter is to regulate trade practices in the business of insurance by defining, or providing for the determination of, all such practices in Puerto Rico which constitute unfair methods of competition, or deceptive acts or practices, and by prohibiting the trade practices so defined or determined.
History —Ins. Code § 27.010.
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) › § 2702 - Unfair competition; unfair, deceptive practices prohibited

No person shall engage in Puerto Rico in any act or practice which is prohibited in this chapter, or which is defined therein as, or determined pursuant thereto to be, an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.
History —Ins. Code § 27.020.
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) › § 2703 - Unreasonable restraint of the insurance business, conditioned subscription, interlocking control, monopoly

(1) No person shall enter into or concert any action, or agreement to commit, or by any concerted action shall commit any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of or in a monopoly in the insurance business.
(2) No person shall force nor condition the subscription, assumption, sale or purchase of a specific risk of one type of insurance to the subscription, assumption, purchase or sale of another risk of another type of insurance. Nevertheless, any insurer may offer any of those multiple line insurance policies which are authorized by the Commissioner.
(3) Any insurer may retain, invest in or acquire the whole or any part of the capital stock of any other insurer or insurers, or have a common management with any other insurer or insurers, unless such retention, investment, acquisition or common management is inconsistent with any other provision of this title, or unless by reason thereof the business of such insurers with the public is conducted in a manner which substantially lessens competition in general in the insurance business or tends to create a monopoly therein.
(4) A person may be a director of two or more insurers which are competitors, unless the effect thereof is to substantially lessen competition between insurers in general or tends to create a monopoly.
History —Ins. Code § 27.030; July 20, 1979, No. 165, p. 420, § 6; renumbered as § 27.070 and amended on Aug. 9, 2008, No. 230, § 5, 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) › § 2703a - Obligation to notify coverage; policy copy

Unless otherwise provided in this Code, any insurer, health service organization or its authorized representative may submit, upon written request by the Commissioner, insurer, beneficiary or claimant, within ten (10) days following such notice, a copy or duplicate of the corresponding policy; Provided, That if such request is from the Commissioner, the same shall be free of charge; however, if it is from any other herein related parties, the cost per paper copy shall be not greater than ten cents (10¢) each.
Failure to comply with the obligation to deliver the required information or documents within ten (10) days or to collect payment for any of the above paragraphs, may be punishable by an administrative fine, pursuant to § 2735 of this title.
History —Ins. Code, added as § 27.040 on Aug. 9, 2008, No. 230, § 3, 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) › § 2704 - Advertisements in general

No person shall make or disseminate orally or in any other manner any advertisement, information, matter, statement, or any other type of communication or expression:
(1) Misrepresenting or exaggerating the terms of any policy or the benefits or advantages thereof or dividends or share of surplus to be received thereon, or setting forth false or misleading information or estimate as to dividends or share of surplus previously paid on similar policies.
(2) Using any name or title of any policy or class of policies misrepresenting the true nature thereof.
(3) Setting forth any misleading representation or any misrepresentation as to the financial condition of an insurer, or the volume of its business or as to the legal reserve system upon which any life insurer operates.
(4) Misrepresenting or exaggerating the financial condition, volume of business, or advantages of doing business through a particular producer or agency.
(5) Containing any assertion, representation, or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive, or misleading.
(6) Leading a person to believe that the insurance products offered by a financial institution, its subsidiaries or affiliates, that are obtained by any of them, are sponsored by the federal or state government.
(7) Providing for the sale of an insurance product not authorized under this Code.
History —Ins. Code § 27.040; Jan. 19, 2006, No. 10, § 9; renumbered as § 27.050 and amended on Aug. 9, 2008, No. 230, § 4, 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) › § 2705 - Advertisement of assets, liabilities

Any advertisement or other dissemination of information by or on behalf of an insurer stating the insurer’s assets shall, in the same connection and with equal conspicuousness, state the insurer’s liabilities, computed on the basis allowed for its annual statements. Any such statement purporting to show the insurer’s capital shall state only the amount of actually paid-in capital.
History —Ins. Code § 27.050, renumbered as § 27.060 on Aug. 9, 2008, No. 230, § 2, 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) › § 2706 - False financial statements

(1) No chief official of an insurer shall swear an annual statement report knowing that it contains false or inaccurate information.
(2) No person shall make any false entry in any book, report or statement or omit to make a true entry of any material fact pertaining to the business of the insurer, or file a false financial situation of any insurer or other person required to file accounts statements pursuant to the provisions of this Code.
(3) No person shall make a compilation that contravenes the accounting methods and practices generally accepted within the insurance business or those approved by the Commissioner.
(4) Any person who intentionally violates this provision shall incur a felony.
History —Ins. Code § 27.060, renumbered as § 27.090 and amended on Aug. 9, 2008, No. 230, § 7, 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) › § 2707 - Defamation prohibited

No person shall make, publish, or disseminate or aid, abet or encourage the making, publishing or dissemination of any information or statement which is false or maliciously critical of or derogatory to the financial condition of an insurer, and which is designed to injure in its reputation or business any insurer, or any domestic corporation or group being formed pursuant to this title for the purpose of becoming an insurer, or other person engaged in the insurance business.
History —Ins. Code § 27.070, renumbered as § 27.080 on Aug. 9, 2008, No. 230, § 2, 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) › § 2708 - Unfair discrimination prohibited

(1) No insurer other than a life insurer or disability insurer shall establish or permit any difference to be established on behalf of specific persons, and in prejudice of others, or between the insured or subjects of insurance having substantially similar insuring, risk and exposure factors, or expense elements, in the terms or conditions of insurance contracts, or in the rates or premiums charged therefor.
(2) No insurer shall make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contract, except that in determining the class, consideration may be given to the nature of the risk, plan of insurance, the actual or expected expense of conducting the business or any other relevant factor.
(3) No insurer shall make or permit any unfair discrimination between individuals of the same class involving essentially the same hazards, in the amount of premium, policy fees, or rates charged for any policy or contract of disability insurance or in the benefits payable thereunder, or in any of the terms or conditions of such contract, or in any other manner whatsoever, except that in determining the class, consideration may be given to the nature of the risk, plan of insurance, the actual or expected expense of conducting the business or any other relevant factor.
(4) No insurer shall cancel an insurance coverage if it were otherwise cancelable or shall refuse to grant or renew an insurance policy using as only basis the credit history of said applicant or insured, unless the insurer has creditable substantial documentation that the credit history is significantly related to the risk insured or to be insured or that the credit history of the applicant or insured significantly increases the risk insured by the policy.
History —Ins. Code § 27.080; June 4, 1983, No. 89, p. 211, § 7; Aug. 25, 2000, No. 196, § 1, renumbered as § 27.130 on Aug. 9, 2008, No. 230, § 2, 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) › § 2710 - Rebates and incentives

(1) No person shall provide as an incentive to buy insurance, or after having underwritten an insurance, or in connection with any insurance transaction in any policy, or shall offer, sell, buy, or offer or promise to buy, sell, give, promise, or allow, to the present or prospective insured nor to any other person, in his behalf, in any manner whatsoever:
(a) Any rebate, discount, abatement, credit or reduction of the premium stipulated in a policy.
(b) Any special favor or advantage in the dividends or other benefits to accrue in a policy.
(c) Any other valuable consideration including money, prizes, goods, wares, merchandise, shares or any other securities issued or to be issued, or any interest therein or rights thereto.
(d) Any incentive such as employment, advisory contract or agreement or similar which offers or promises special profits or returns.
(e) Commissions or compensations on a policy in excess of the maximum commission fixed by the approved rating classification filed for the class, or subdivision, of the corresponding type of insurance, or in excess of the maximum commission fixed by the Commissioner for such type of subdivision, except as provided for in § 949k of this title.
(2) No insured named in a policy, nor any employee or representative thereof, shall receive or accept, directly or indirectly, any such rebate, discount, abatement or reduction of premium, or special favor or advantage or valuable consideration or incentive.
(3) Any person who participates in an unlawful rebate or incentive shall be punished by an administrative fine which shall not exceed ten thousand dollars ($10,000) for each violation. In addition, he/she shall pay restitution for the total amount of the rebate, commission or profit and shall revoke, from the beginning, any prerogative, favor, advantage, profit, lucrative employment, position or any other valuable consideration involved, whether for the benefactor or the beneficiary.
(4) None of the provisions in this section shall apply to life or disability insurance. Except as expressly provided by law, no insurer, employee, representative, general agent, producer, authorized representative or solicitor shall permit or offer to make, nor shall make any life insurance, life annuity, or disability insurance contract or agreement as to such contract other than as is clearly expressed in the contract issued thereon, nor pay, nor allow or give nor offer to pay, allow or give, directly or indirectly, as incentive to such insurance, or annuity, any rebate of premiums payable on the contract, nor any special favor or advantage in the dividends or other benefits thereon, nor any other valuable consideration or incentive whatsoever not stipulated in the contract.
History —Ins. Code § 27.100; June 4, 1983, No. 89, p. 211, § 9; Jan. 19, 2006, No. 10, § 9; Aug. 9, 2008, No. 230, § 8, 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) › § 2711 - Exceptions to discrimination, rebate or incentive prohibition

Nothing in § 2710 of this title shall be construed so as to prohibit:
(1) Payment of lawfully earned commission or other lawful compensation to duly licensed producers, and solicitors.
(2) Distribution by a participating insurer to its participating policyholders of dividends, savings, or the unused or unabsorbed portion of premiums and premium deposits.
(3) Furnishing of information, advice or services for the purpose of reducing the loss or liability to loss under a policy.
(4) The collection of a premium as authorized by the applicable subscription.
(5) Reminders and any other type of promotional material with face value and which is not incompatible with other provisions of the Code or any regulation.
(6) The exceptions authorized by law regarding life and disability insurance.
(7) Life insurers from paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance, if such bonuses or abatements are fair and equitable to all policyholders and for the best interests of the insurer and its policyholders.
(8) In the case of insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expense or making allowance to policyholders who make premium payments at less frequent intervals than required.
(9) Readjustment of the rate of premium for a group insurance policy based on the loss or expense experience thereunder, at the end of any policy year of insurance thereunder, which may be made retroactive only for such policy year.
History —Ins. Code § 27.110; Jan. 19, 2006, No. 10, § 9; Aug. 9, 2008, No. 230, § 9, 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) › § 2711a - Document conservation

Any insurer, health service organization, body, advisory or service body, general agent, producer, advisor, proxy or adjuster shall keep and retain, for a five (5) -year period and in the manner provided by the Commissioner through regulations, his/her accounting books, records, and every document pertaining to its insurance business whether through physical or electronic filing. In the event that an investigation is in process, the final disposal or destruction of the documents related shall proceed only when the Commissioner issues an authorization to such effect. Any violation of the provisions of this section shall be subject to the penalties set forth in § 2726 of this title.
History —Ins. Code, added as § 27.120 on Aug. 9, 2008, No. 230, § 10, 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) › § 2714a - Notice of claim

An insurer, after being notified of a claim, shall acknowledge receipt thereof within the following fifteen (15) days after having being notified of the same. Any notice made to one of the persons authorized by the insurer to receive claims on his/her behalf shall be considered to be notified to the latter provided that the authorization or agreement is in effect and it has not been revoked. Any person that is not authorized to receive claims shall be required to notify the claimant of that fact, within the following seven (7) days, and indicate whom shall be notified with such notice with the address of such person. The violation of this section may be punished with an administrative fine pursuant to what is set forth in § 2735 of this title.
History —Ins. Code, added as § 27.150 on Aug. 9, 2008, No. 230, § 12, 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) › § 2715 - “Twisting” prohibited

No person shall make any misleading representations or incomplete or fraudulent comparisons of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any insurance policy.
History —Ins. Code § 27.150, renumbered as § 27.030 on Aug. 9, 2008, No. 230, § 2, 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) › § 2716b - Term for resolution of claims

(1) The investigation, adjustment, and resolution of any claim shall be made in the shortest reasonable period of time within the first ninety (90) days after said claim have been submitted to the insurer.
(2) In the event that an insurer is unable to resolve a claim within the term established in subsection (1) of this section, he/she shall maintain in its records any documents attesting to the existence of a just cause to exceed the term previously provided.
(3) The Commissioner may require the immediate resolution of any claim at any time if he deems that the same has been unduly and unfairly delayed or deferred.
History —Ins. Code, added as § 27.162 on July 20, 1979, No. 165, p. 420, § 7; Aug. 9, 2008, No. 230, § 15, 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) › § 2716c - Methods to settle a claim

The following actions constitute the resolution of a claim:
(1) The full payment of the claim.
(2) The written and duly justified denial of the claim.
(3) The closing of the claim due to inactivity of the claimant when the latter does not cooperate nor furnishes the information necessary for the insurer to adjust the claim. Provided, That the insurer shall notify immediately the claimant on the closing thereof, except that under such circumstances such closing shall be without prejudice to allow for the filing of such claim anew.
History —Ins. Code, added as § 27.163 on Aug. 9, 2008, No. 230, § 16, 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) › § 2719 - Reports and statements to obtain insurance

(1) No person may file, present, offer, participate in or help to file, present or offer any false document, information, statement or report in order to obtain an insurance policy.
(2) Any person who knowingly incurs in the acts described above shall be deemed to have committed fraud for the purpose of this chapter.
History —Ins. Code § 27.190; May 24, 1974, No. 46, Part 1, p. 200, § 7; Jan. 8, 2004, No. 18, § 2; Jan. 19, 2006, No. 10, § 9; renumbered as § 27.170 and amended on Aug. 9, 2008, No. 230, § 17, 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) › § 2720 - False claims or evidence

(1) Present a false or fraudulent claim, or alter or omit information or any evidence in support thereof, for the payment of a loss, in reference to an insurance policy; or
(2) help or participate in the filing of a fraudulent claim, or alter or omit information or any evidence in support thereof, for the payment of a loss, pursuant to an insurance contract; or
(3) prepare, make, or sign or alter or omit, or help or participate in preparing, making or signing, or altering or omitting any account, certificate, sworn statement, proof of loss or any other false document or writ, with the intention that the same be presented or used in support of said claim; or
(4) file a claim that affects the subrogation right held by an insurer to recover amounts paid under an insurance contract. A subrogation right shall be deemed to be the right that the insurer has to recover the damages that it has had to pay to an insured person under his/her policy. Said right arises by function of law when the insurer makes a payment to the insured, or
(5) file more than one claim for the same damage, loss or service on the same insured property, except in the case of life insurance.
Any person that intentionally and knowingly incurs in any of the above described practices shall be deemed to have committed fraud for the purposes of this chapter.
History —Ins. Code § 27.200; May 24, 1974, No. 46, Part 1, p. 200, § 8; Jan. 8, 2004, No. 18, § 3; renumbered as § 27.180 and amended on Aug. 9, 2008, No. 230, § 18, 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) › § 2720a - Misappropriation

Any person who takes money corresponding to received or returned premiums in the course of the insurance business, as well as any sum of money from the payment of claims or benefits without being duly authorized therefor may be punished by an administrative fine pursuant to the provisions of § 2735 of this title.
Any person who violates this provision shall incur a felony as provided under the Penal Code of Puerto Rico.
History —Ins. Code, added as § 27.190 on Aug. 9, 2008, No. 230, § 19, 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) › § 2726 - Requirement to report fraudulent acts in the insurance business

Any insurer, health services organization, general agent, producer, authorized representative, solicitor or adjuster who has a well grounded knowledge that an act described in §§ 2706, 2719, 2720 and 2720a of this title has been committed, is being committed or shall be committed, will be bound to submit to the Commissioner the information he has available on such act, to conduct an investigation, and otherwise facilitate it. Any insurer, health service organization, general agent, producer, authorized representative, solicitor or adjuster who fails to comply with this provision shall be punished by an administrative fine pursuant to the provisions of § 2735 of this title.
History —Ins. Code, added as § 27.260 on Jan. 8, 2004, No. 18, § 4; Jan. 19, 2006, No. 10, § 9; renumbered as § 27.200 and amended on Aug. 9, 2008, No. 230, § 20, 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) › § 2727 - Requirement to provide information on claims to a central data bank

Every authorized insurer shall provide information related to the claims that it receives to a central data bank recognized by the Commissioner. This requirement shall not apply to life and disability insurers.
History —Ins. Code, added as § 27.270 on Jan. 8, 2004, No. 18, § 4; renumbered as § 27.240 and amended on Aug. 9, 2008, No. 230, § 24, eff. 90 days after Aug. 9, 2008.