reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 405 - Marine and transportation insurance, defined

Marine and transportation insurance.— Is:
(1) Insurance against loss of or damage to:
(a) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidence of debt, valuable papers, bottomry and respondentia interests, and all other kinds of property and interests therein, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment, or while awaiting the same, or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder’s risks and all personal property floater risks.
(b) Person or property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or surety bonds, nor insurance against loss by reason of bodily injury to person, arising out of the ownership, maintenance, or use of automobiles).
(c) Precious stones, jewels, jewelry, precious metals, whether in course of transportation or otherwise.
(d) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage); piers, wharves, docks and slips, and other aids to navigation and transportation, including dry docks and marine railways, dams and appurtenant facilities for the control of waterways.
(2) Marine protection and indemnity insurance.— Means insurance against, or against legal liability of the insured for, loss, damage, or expense incident to ownership, operation, chartering, maintenance, use, repair or construction of any vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to property of another person.
History —Ins. Code § 4.050.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 406 - Agricultural insurance, defined

Agricultural insurance.— Includes insurance on farm buildings, machinery, equipment, animals, fowl, plantings, and crops, appurtenant to farms, against loss or damage from any and all hazards and causes, including losses occurring during transportation and delivery of crops to shipping points, but not including risks of marine transportation or navigation or commercial storage.
History —Ins. Code § 4.060.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 407 - Vehicle insurance, defined

(1) Vehicle insurance.— Is insurance against loss of or damage to any land vehicle or aircraft, or any draft or riding animal, or to property while contained therein or thereon or while being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, expense, or liability for loss of or damage to persons or property, resulting from or incident to ownership, maintenance, or use of any such vehicle or aircraft or animal.
(2) Insurance against accidental death or accidental injury to individuals, including the name insured, while in, entering, alighting from, adjusting, repairing, cranking, or caused by being struck by a vehicle, aircraft, or draft or riding animal, if such insurance is issued as a part of insurance on the vehicle, aircraft, or draft animal, shall be deemed to be vehicle insurance.
History —Ins. Code § 4.070.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 409 - Surety insurance, defined

Surety insurance.— Includes:
(1) Credit insurance as defined in § 408(9) of this title.
(2) Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.
(3) Guaranteeing the performance of contracts, and guaranteeing and executing bonds, undertakings, and contracts of suretyship.
(4) Indemnifying banks, bankers, brokers, financial or moneyed corporations or associations or other persons against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts, or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also against loss or damage to such an insured’s premises, or to his furnishings, fixtures, equipment, safes and vaults therein, caused by burglary, robbery, theft, vandalism or malicios mischief, or any attempt thereat.
History —Ins. Code § 4.090.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 410 - Title insurance, defined

Title insurance.— Is the insurance of owners of real or personal property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance or defective titles or invalidity or claims adverse to title and services connected therewith.
History —Ins. Code § 4.100; Aug. 26, 2005, No. 82, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 411 - Power to accept reinsurance

(1) An authorized insurer shall accept reinsurance only of those kinds of insurance which it is authorized to transact direct in Puerto Rico or elsewhere.
(2) No authorized insurer shall accept reinsurance in whole or in part of any risk resident, located, or to be performed in Puerto Rico which was insured as direct insurance by an insurer not then authorized to transact such insurance in Puerto Rico. This provision shall not apply with respect to life insurance or disability insurance or to surplus line insurance written pursuant to §§ 1001–1020 of this title.
History —Ins. Code § 4.110.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 413 - Third party’s rights against reinsurer

The original insured or policyholder or any person other than the ceding insurer, who enters a claim by virtue of any insured or policyholder’s insurance, shall not have any direct right of action against the reinsurer which is not specifically set forth in the reinsurance contract, or in a specific agreement between the reinsurer and such original insured or policyholder.
Upon the request of the insured, any insurer who cedes for reinsurance all, or any part of a risk, shall be obliged to furnish him with the following information:
(1) The reinsurer’s name and address.
(2) The total amount of the reinsured portion.
(3) The risks covered by the reinsurance agreement or contract.
The Secretary of the Treasury and the heads of those public authorities and corporations who have obtained the authorization to procure and contract their insurance directly, pursuant to subsection (3) of § 1202 of this title, shall have the obligation of procuring and obtaining the information described above from their insurers. In cases of reinsurance, the Secretary, or the head of those public authorities or corporations duly authorized pursuant to the above, shall be obliged to comply with the provisions of Article 4.130 of this Code [this section].
History —Ins. Code § 4.130; Feb. 16, 1979, No. 15, p. 28, § 4; May 23, 1984, No. 19, p. 41.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 414 - Limit of risk

(1) No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in Puerto Rico or elsewhere, in an amount exceeding ten percent (10%) of its surplus to policy holders, except that:
(a) A domestic mutual may insure up to such ten percent (10%) or up to the maximum applicable as set forth in § 28.160, paragraph (1), whichever is the larger.
(b) A cooperative may insure up to such ten percent (10%) or up to the maximum applicable as set forth in § 34.190, paragraph (1), whichever is greater.
(2) For the purposes of this section, a subject of insurance as to insurance against fire or other hazard insured against other than windstorm or earthquake, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or other such hazard insured against.
(3) Reinsurance authorized by § 412 of this title shall be deducted in determining risk retained. As to surety risks, deduction shall also be made of the amount assumed by any established incorporated co-surety and the value of any security deposited, pledged, or held subject to the surety’s consent and for the surety’s protection.
(4) For the purposes of this section, “surplus to policyholders” shall:
(a) Be deemed to include any voluntary reserves, or any part thereof, which are not required by or pursuant to law, and
(b) be determined from the last sworn statement of the insurer on file with the Commissioner pursuant to law, or by the last report of examination by the Commissioner, whichever is more recent at the time of assumption of such risk.
(5) In applying this section to foreign insurers not formed in a state of the United States but authorized to transact insurance in one or more of such states, the provisions shall relate only with respect to risks and surplus to policyholders of the United States branch of such insurer.
(6) This section shall not apply to life, disability, or title insurance, or to insurance of ocean marine risks, or marine protection and indemnity risks, nor to workmen’s compensation.
History —Ins. Code § 4.140; June 26, 1959, No. 84, p. 220, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 4 - Kinds of Insurance; Reinsurance; Limits of Risk (§§ 401 — 415) › § 415 - Limit of underwriting

(1) Any authorized insurer, except the life insurance insurer, and as provided in the following subsection (2), shall keep, at all times, a ratio or rate between the net premiums underwritten, to their surplus, for policyholders, as defined in § 414(4) of this title, which shall not be greater than the rate established by the Commissioner through regulations.
(2) Nevertheless, the rate to be established by the Commissioner shall not be less than three dollars ($3) of underwritten premium for each dollar of surplus for the policyholders, except when due to prevailing circumstances in the insurance business of the country, the need to establish a smaller ratio between the premiums underwritten and the surplus arises, in which case the Commissioner shall hold a hearing, after a ten (10) day advance notice thereof, shall hear the interested parties, shall identify and evaluate the factors which affect the adequate direction of the index, and within thirty (30) days after the conclusion of the hearing, shall dictate the regulations which are in order, which shall be effective, pursuant to the provisions of § 204 of this title.
(3) The insurer who finds that he will exceed the limits established in subsection (2) of this section shall file a written petition before the Commissioner stating his arguments, and including the statistical evidence needed for the Commissioner to make an adequate determination as to whether he allows a larger rate or not.
History —Ins. Code, added as § 4.150 on May 6, 1983, No. 34, p. 57, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 516 - Assets, definition

For purposes of §§ 516–524 of this title, assets shall be defined as probable future economic benefits obtained or derived by an insurer as a result of past transactions or events.
History —Ins. Code, added as § 5.010 on Mar. 22, 2003, No. 90, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 517 - Liabilities, definition

For purposes of §§ 516–524 of this title, liabilities shall be defined as probable future economic sacrifices that arise from the present obligations of an insurer, which consist of the transfer of assets, or the rendering of services to other entities in the future as a result of past transactions or events.
History —Ins. Code, added as § 5.020 on Mar. 22, 2003, No. 90, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 518 - Assets not allowed, definition

It shall be considered that an asset is not allowed if it is specifically identified as such by the accounting practices and procedures adopted by the National Association of Insurance Commissioners or if it is not specifically identified as an allowed asset by the accounting practices and procedures adopted by the National Association of Insurance Commissioners.
History —Ins. Code, added as § 5.030 on Mar. 22, 2003, No. 90, § 1; Apr. 2, 2008, No. 34, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 519 - Reduced unearned premiums reserve, new local insurers

(1) A local insurer of property, accidents, or guarantee insurance may, during the first five (5) natural years of its operations, subject to the dispositions set forth in subsections (2) and (3) of this section, maintain unearned premiums reserves in the following proportion of otherwise required reserves:
First complete natural year 50% Second complete natural year 60% Third complete natural year 70% Fourth complete natural year 80% Fifth complete natural year 90%
(2) From the third year onwards, none of the aforementioned reductions in the reserve shall be available for any natural year in which the expenses and disbursements of the insurer in the issuing and administration of insurance (which were not for boilers and machinery of elevators) performed by same, excluding paid losses, loss expense adjustments, investment expenses, dividends of policyholders, and contributions, exceeding the amount of:
(a) Forty percent (40%) of the net income of premiums during that year, after the deduction from same of the net reinsurance premiums earned in said year, plus
(b) all commissions for reinsurance received for reinsurance ceded by same.
(3) This section shall not apply to risks assumed by the insurer by means of reinsurance, whether by mass reinsurance or otherwise.
History —Ins. Code, added as § 5.040 on Mar. 22, 2003, No. 90, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 520 - Increase in reserves

(1) If the Commissioner determines that the non-earned premiums reserves of an insurer are inadequate, regardless of the manner in which same are calculated, he shall demand that the insurer maintains the reserves in an increased amount that turns out to be in agreement with any other generally acknowledged method.
(2) If the experience in losses of any insurer demonstrates that his loss reserves, regardless of the manner in which same are calculated, are inadequate, the Commissioner shall demand from the insurer to maintain loss reserves in the increased amount necessary to render them adequate.
History —Ins. Code, added as § 5.050 on Mar. 22, 2003, No. 90, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 521 - Credit in reserves for reinsurance

An insurer may obtain credit for reserves upon risks ceded to a reinsurer up to the amount reinsured, except:
(1) No credit shall be granted for reinsurance not authorized by § 412 of this title.
(2) No credit shall be granted as an asset nor as a deduction from the liabilities to any cedent insurer, unless the reinsurance is payable by the reinsurer based upon the liability of the cedent insurer, pursuant to the reinsured contracts, without decrease by reason of insolvency of the cedent insurer.
History —Ins. Code, added as § 5.060 on Mar. 22, 2003, No. 90, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 522 - Registry of liabilities

An insurer must keep a complete detailed registry showing all losses and claims of which same has been notified, in regard to property, accident and guarantees insurance, including all notifications received due to the occurrence of any event that may result in losses.
History —Ins. Code, added as § 5.070 on Mar. 22, 2003, No. 90, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 523a - Minimum reserves

(a) In no event shall an insurer’s aggregate reserves for said life insurance policies, excluding disability and accidental death benefits, be less than the aggregate reserves calculated pursuant to the method set forth in subsections (2) and (3) of § 523 of this title and in the regulations promulgated by the Commissioner, the mortality table or tables, and the rate or rates of interest used in calculating nonforfeiture benefits for such policies.
(b) In no event shall the aggregate reserves of all policies, contracts and benefits be less than the aggregate reserves determined by an actuary qualified to render actuarial opinion as required by § 523b of this title.
History —Ins. Code, added as § 5.090 on Apr. 2, 2008, No. 34, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 523b - Actuarial opinion

(a) Every insurer shall file annually, together with its annual report, the opinion of a qualified actuary stating whether the reserves of the policies and contracts specified by the Commissioner have been calculated properly, are based on assumptions that comply with the provisions of said contracts, are consistent with the sums previously reported, and comply with the laws of Puerto Rico. The Commissioner shall provide the contents and manner in which the actuarial opinion shall be issued.
(b) Every life insurer shall also file annually, together with the opinion required by subsection (a) of this section, an opinion of the same qualified actuary on whether the reserves of the policies and contracts specified by the Commissioner, in light of the assets of the insurer with respect to such reserves, adequately provide for the obligations that arise from such policies and contracts. The Commissioner may grant a transitional period for establishing any higher reserve deemed necessary by the qualified actuary to issue the opinion required by this section.
(c) The actuarial opinions required above shall be supported by a memorandum, which shall be provided as required by the Commissioner. If such memorandum is not provided or if it does not comply with the requirements of the Commissioner, the Commissioner may contract a qualified actuary, to be paid by the insurer, in order to review the opinion and the bases for the opinion and to prepare the required memorandum of support.
(d) The insurer shall file the actuarial opinions together with the annual reports, and the same shall show the value of the reserves for each year ending on December 31. Said opinions shall be based on the standards adopted from time to time by the Actuarial Standards Board and on those additional standards adopted by the Commissioner.
History —Ins. Code, added as § 5.100 on Apr. 2, 2008, No. 34, § 4.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 524 - Powers of the Commissioner

The accounting practices and procedures adopted in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, as well as the amendments that from time to time shall be promulgated by said entity, are hereby adopted as the statutory accounting standards that govern local insurers.
The Commissioner, through regulations, may modify said standards regarding the determination of the assets and liabilities of a local insurer to the extent that the same are contrary to the public interest, unreasonably impact the financial situation of local insurers, or are in conflict with any of the provisions of this Code.
History —Ins. Code, added as § 5.080 [bis] on Mar. 22, 2003, No. 90, § 1; renumbered as § 5.110 and amended on Apr. 2, 2008, No. 34, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 651 - Prohibited investments

An insurer shall not, directly or indirectly:
(1) Invest in an obligation or security of, or grant or offer a guaranty for the benefit of, or in favor of an official or director of the insurer.
(2) Invest in an obligation or security, grant a guaranty in benefit of or in favor of, or make other investments in a business entity of which five percent (5%) or more of the voting stock or interest in equity that belong directly or indirectly or are for the direct or indirect benefit of one or more officials or directors of the insurer.
(3) Participate, on its own, or through one or more affiliates of the insurer in one or a series of transactions geared to evade the prohibitions of §§ 648–662 this title.
(4) Invest in partnerships as a partner with unlimited liability except as provided in § 649(3) of this title. This subsection does not prohibit a subsidiary of the insurer or any other affiliate, which are not insurers in turn, to become a partner with unlimited liability in a partnership.
(5) Invest in or loan its funds secured by its own shares, but an insurer may acquire its own shares (although they shall not be admitted assets of the insurer) with the prior authorization of the Commissioner for the following purposes:
(a) Convert a stock underwriter into a mutual or reciprocal underwriter, or convert a mutual or reciprocal underwriter into a stockbroker;
(b) transfer shares to the directors, officers, employees and agents of the insurer according to a plan approved by the Commissioner to convert a public underwriter to a private underwriter or with regard to an employee benefit plan, or
(c) as allowed in a plan approved by the Commissioner.
(6) An insurer may not make short sales of securities.
(7) No insurer may, at any time, or in any way, own more than five percent (5%) of the outstanding stock with voting rights of a corporation, except with the prior authorization of the Commissioner.
History —Ins. Code, added as § 6.050 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 652 - Valuation of investments

(1) For purposes of §§ 648–662 of this title, the worth of an investment acquired or maintained under §§ 648–662 of this title, unless otherwise indicated in this Code, shall be the informed worth of the asset for statutory accounting purposes, as determined according to the procedures indicated in the valuation and accounting standards published by NAIC, including the Purposes and Procedures Manual, the Accounting Practices and Procedures Manual, the Annual Statement Instructions Manual of the SVO, or any valuation procedure officially adopted by NAIC.
(2) In those cases in which the NAIC does not provide for a valuation procedure or a valuation, the investment shall be appraised according to the price determined by the Commissioner as its fair market value.
History —Ins. Code, added as § 6.060 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 654 - Credit instruments or obligations

(1) Credit instruments or preferential debt.— An insurer may invest up to one hundred percent (100%) of its allowed assets in credit instruments issued, assumed, secured or insured by the United States or Puerto Rico; or a public agency, dependency, instrumentality or corporation of Puerto Rico or the United States; or a political subdivision or municipality of Puerto Rico; a State or enterprise sponsored by the governments of the United States, or any State, or Puerto Rico, if such instruments are assumed, secured or insured by the full faith and credit of said governments; or an enterprise that has been sponsored by the government of the United States, if such instruments maintain a triple AAA rating by a nationally recognized statistics rating entity; in obligations that are one hundred percent (100%) collateralized by the previously described credit instruments; or in stock and obligations issued by a Class One Bond Mutual Fund.
(2) Canadian credit instruments.— Subject to the limitations indicated in § 653(4) of this title, an insurer may invest up to twenty percent (20%) of its allowed assets in rated credit or debt instruments that have been issued, assumed, secured or insured by:
(a) Canada, or
(b) an enterprise sponsored by the government of Canada, if such instruments are assumed, guaranteed or secured by Canada or backed or secured by the full faith and credit of Canada.
(3) Other rated credit instruments and obligations.— Subject to the limitations indicated in § 653 of this title, an insurer may invest in the following rated credit instruments:
(a) Issued by a money market mutual fund of the government of the United States, or a Class One Money Market Mutual Fund;
(b) issued, assumed, guaranteed or secured by an enterprise sponsored by the government of the United States or Puerto Rico, other than those that qualify under subsection (1) of this section;
(c) issued, assumed, guaranteed or secured by a State of the United States, if the instruments are general obligations of the State;
(d) issued by a multilateral development bank, or
(e) issued, assumed, guaranteed or secured by an existing corporation under the laws of Puerto Rico or the United States, including, without being limited to obligations collateralized by mortgage loans and other obligations.
History —Ins. Code, added as § 6.080 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 655 - Interests in equity

(1) Subject to the limitations indicated in subsections (1) and (2) of § 653 of this title, an insurer may invest in securities of a registered investment company.
(2) Subject to the limitations indicated subsections (1) and (2) of § 653 of this title, an insurer may acquire interests in equity of any business entities organized under the laws of Puerto Rico or any state of the United States or province of Canada.
(3) An insurer may acquire interests in equity that are not registered with a registered exchange brokerage firm and that are not investments prohibited under § 651 of this title, if the aggregate amount of the interests in equity acquired under subsection (3) of this section do not exceed five percent (5%) of the allowed assets of the insurer.
(4) Unless otherwise indicated in §§ 648–662 of this title, an insurer may not acquire common stock as described in subsections (1), (2), and (3) of this section if, as a result of and after making the investment, the aggregate in common stock investments would exceed thirty percent (30%) of the allowed assets of the insurer.
(5) Tangible chattels subject to leasing.—
(a) An insurer may acquire interests in equity in chattels, located or used in whole or in part within the United States, or Puerto Rico through:
(i) Interests in partnerships, or interests in limited liability partnerships not prohibited under § 651(4) of this title;
(ii) joint ventures;
(iii) interests in equity from limited liability corporations or companies;
(iv) trust certificates, or
(v) other similar instruments.
(b) Investments according to subsection (1)(a) of this section shall be eligible only if chattels are subject to a lease contract or other agreement with a business entity whose obligations (totaling the purchase price of the chattel) may be acquired by the insurer independently, pursuant to § 654 of this title.
(c) An insurer may not acquire investments under this section if, as a result of and after making the investment, the worth of all the investments held by the insurer at that time under this section exceeds two percent (2%) of its allowed assets.
(d) For purposes of determining compliance with the limitations indicated in § 653(1) of this title, the investments acquired by an insurer under this section shall be added to all the investments assumed, issued or secured by the same leaseholder under other sections of §§ 648–662 of this title.
(e) This section shall not apply to chattel lease contracts between the insurer and its subsidiaries or affiliates.
History —Ins. Code, added as § 6.090 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 656 - Investment in subsidiaries

The limitations and restrictions to investment set forth in §§ 648–662 of this title shall not apply to investments made by an insurer in a subsidiary that was acquired or established by the insurer with prior authorization from the Commissioner. All entities that are directly or indirectly under the control of the insurer shall be deemed to be subsidiaries. However, the investment in all subsidiaries of the insurer shall not exceed twenty percent (20%) of its admitted assets or thirty percent (30%) of its capital and surplus, whichever is less.
History —Ins. Code, added as § 6.100 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 660 - Hedge transactions

(1) An insurer may use hedging instruments such as options, futures and other transactions, to protect interest rates solely for the following purposes: (a) to reduce the risk of its other investments, and (b) to improve the income of its other investments. The use of options, futures and other hedging instruments for said purposes shall be known as hedging strategies.
(2) The use of hedges options, futures or instruments for the purpose of speculating in financial markets is hereby prohibited. At the request of the Commissioner, an insurer must be able to explain, at any time, the nature of the hedging being used and the continued effectiveness of said hedge strategies using cash flow analysis or other appropriate analysis.
(3) The sum of the declared book value and the potential aggregate exposure of the financial instruments used by the insurer in its hedging strategies shall not exceed three percent (3%) of the allowed assets of the insurer.
(4) For purposes of this section, the term “option” means an agreement that grants to the buyer a call option (the right to purchase or receive) or a put option (the right to sell, execute, conclude or carry out a cash transaction) based on real or expected price, level, behavior or value of one or more underlying interests.
History —Ins. Code, added as § 6.140 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 661 - Loans on policies

A life insurer may make loans to policy holders with the collateral of their respective policies in amounts that shall not exceed the redeemable cash value according to the terms of the policy.
History —Ins. Code, added as § 6.150 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 6B - Investments (§§ 648 — 662) › § 662 - Authority for additional investment

(1) An insurer may acquire investments of any type that are not expressly prohibited by § 651 of this title without considering the categories, conditions, requirements or other limitations established by §§ 653–659 of this title, including exceeding the quantitative limits established in §§ 648–662 of this title, if as a result of, and after effecting the transaction, the total sum of the investments acquired under this section does not exceed whichever is less of the following:
(a) 5% of its allowed assets, or
(b) 25% of its capital and surplus.
(2) An insurer may not acquire an investment or engage in an investment practice under this section if, as a result of and after effecting the transaction, the total of all the investments in only one person or business entity held by the insurer under this section would exceed three percent (3%) of its allowed assets.
History —Ins. Code, added as § 6.160 on May 16, 2003, No. 130, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 702a - Tax exemption for domestic insurers maintaining a home office in Puerto Rico

(1) Every domestic insurer who maintains a home office in Puerto Rico as defined hereinafter, and the Insurers’ Syndicate as defined in § 4102 of this title, shall be exempted from the payment of taxes on premiums and annuity considerations established in § 702 of this title. The insurers thus exempted shall not be bound to comply with the provisions of §§ 703 and 704 of this title. Furthermore, all capital stock, obligations and securities issued by foreign corporations, companies or other entities owned by a domestic insurer who maintains a home office in Puerto Rico, shall also be exempted from the payment of personal property taxes levied under §§ 5001 et seq. of Title 21.
(2) By a home office, in the case of domestic insurers, it shall be understood an office performing the sale, underwriting, issuing and rendering of services related to insurance, including the following: actuarial functions, accounting functions, both in the operation of insurance and investment, medical functions (when required), legal services, approval or refusal of applications for insurance and the issuance of insurance policies, approval and advertisements and publications, public relations, supervision and training of insurance producers and service representatives, payment of any kind of claim and the keeping of all documents and records related to the functions hereinbelow listed. The collections made shall be kept at all times deposited in local banking institutions.
(3) Every insurer eligible for tax exemption under this section shall furnish the Commissioner of Insurance, on or before January 31 of each year, in the forms provided by him, proof that it qualifies for the exemption provided by this section.
(4) The Commissioner of Insurance shall be empowered to regulate the tax exemption provided by this section.
(5) The tax exemption provided by this section shall be effective beginning with calendar year 1962.
History —Ins. Code, added as § 7.021 on June 28, 1961, No. 129, p. 277, § 1; July 23, 1974, No. 212, Part 2, p. 120; Dec. 30, 1986, No. 4, p. 869, § 4; July 14, 1998, No. 126, § 3, eff. 30 days after July 14, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 702c - Special tax on premiums

(a) For taxable years beginning after December 31, 2012, there shall be imposed, collected, and paid a special one percent (1%)-tax on the premiums of every insurer, in addition to the tax on premiums imposed under § 702 of this title, and to any other tax imposed under this Code or under §§ 30011 et seq. of Title 13, known as the “Internal Revenue Code for a New Puerto Rico”. This provision shall only apply to premiums earned after June 30, 2013. The rules set forth in § 702 of this title shall apply to this special tax on premiums; however, the exception provided in § 702a of this title.
(b) The special tax described in subsection (a) shall not apply to premiums earned on Medicare Advantage, Medicaid, and premiums earned on the Mi Salud Program or on annuities.
(c) The special tax on premiums shall be paid to the Secretary of the Treasury of the Commonwealth of Puerto Rico through the Office of the Commissioner. Such tax shall be payable on or before March 31 of the following calendar year.
(d) For purposes of computing the authorized control level of health insurance issuers or health service organizations, the Office of the Commissioner shall consider the provisions of this section as a credit.
History —Ins. Code, added as § 7.022 on June 30, 2013, No. 40, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 703 - Tax statement; deposit

(1) The insurer shall file with the Commissioner as part of its annual statement, a statement of premiums for insurance and considerations for annuities received and on which tax is payable pursuant to § 702 of this title. Such tax statement shall be according to such form as shall be prescribed and furnished by the Commissioner. In every such statement the reporting of premiums for tax purposes shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement.
(2) Taxes as collected by the Commissioner shall be deposited and handled in the same manner as other public funds.
(3) The tax statement required under subsection (1) of this section shall become effective commencing as to premiums and considerations received during the first full calendar year which immediately follows the effective date of this Code. As to all premiums and considerations prior to such calendar year, report and payment thereof shall be as provided by laws in force immediately prior to the effective date of this Code.
History —Ins. Code § 7.030.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 704 - Failure to pay tax

(1) Any insurer that fails to file its tax statement and pay the specified tax on premiums after it is due shall be subject to an administrative fine of twenty-five dollars ($25) for each day of delinquency, subject to the Commissioner’s right to grant a reasonable extension of time for the filing and payment thereof. Provided, That said extension shall not exceed thirty (30) days counting from the date the insurer should have paid the taxes on premiums.
(2) At his discretion the Commissioner may revoke the certificate of authority of any such delinquent insurer, such certificate of authority not to be reissued until all taxes and penalties incurred by the insurer have been fully paid and the insurer has otherwise qualified therefor.
History —Ins. Code § 7.040; Apr. 15, 1987, No. 13, p. 29, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 705 - Refunds

If any person has paid to the Commissioner any tax, license fee, or other charge in error or in excess of that which he is lawfully bound to pay, the Commissioner may, upon proof thereof satisfactory to the Commissioner, make or cause to be made a refund thereof as the Secretary of the Treasury may prescribe. However, no such refund shall be made on account of tax paid on premiums written because the insurance was cancelled retroactive to the date of issuance unless such cancellation was within forty-five days from and after date of issuance.
History —Ins. Code § 7.050.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 7 - Fees and Taxes (§§ 701 — 706) › § 706 - Commonwealth preempts insurance tax field

The Commonwealth of Puerto Rico hereby preempts the field of imposing excise, privilege, franchise, income, license and similar taxes on insurers, health services organizations, general agents, producers, consultants, adjusters and solicitors, as such, and taxes on the intangible property of said insurers, health services organizations, general agents, producers, consultants, adjusters and solicitors; and no municipality, district, political subdivision, agency or body in Puerto Rico shall levy upon insurers, health services organizations, general agents, producers, consultants, adjusters and solicitors as such any such tax or duty in addition to those levied by the Legislature of Puerto Rico.
History —Ins. Code § 7.060; Apr. 15, 1987, No. 13, p. 29, § 3; 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 8 - Administration of Deposits (§§ 801 — 809) › § 801 - Insurers’ deposits

(1) The Secretary shall accept and hold in trust, when made through the Commissioner, deposits of securities or funds physically or electronically made by insurers; as follows:
(a) Deposits required for authority to transact insurance in Puerto Rico.
(b) Deposits of domestic or foreign insurers when made pursuant to the laws of other states, provinces, or countries as prerequisite for authority to transact insurance in such states, provinces or countries.
(c) Deposits in such additional amounts as are permitted to be made by § 806 of this title.
(2) All such deposits shall be held for the purposes specified in the law pursuant to which the deposit is made, or as specified in the Commissioner’s order if the deposit is made pursuant to the provisions of reciprocity contained in § 335 of this title.
(3) In order to make electronic deposits, a written agreement by the bank, the Secretary, the Commissioner, and the insurer shall be executed.
History —Ins. Code § 8.010; Aug. 4, 2008, No. 155, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 802 - Assets elegible for deposit

Assets eligible for deposit shall consist of any combination of the following: public obligations of Puerto Rico or the United States, state obligations, municipal obligations, public improvement bonds, certificates of deposit, whether physical or electronic, issued by commercial banks authorized to do business in Puerto Rico, and securities approved by the Governor, as specified in §§ 601 et seq. of this title.
History —Ins. Code § 8.020; June 28, 1966, No. 131, p. 409; Aug. 4, 2008, No. 155, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 803 - Registration of securities

Securities, titles or certificates of deposit shall be registered in trust in the name of the Secretary for the purpose required pursuant to the law, and any securities payable to the bearer shall be accompanied by assignment to such Secretary in trust for such purpose. In the case of certificates of deposit, in addition to the assignment in trust, a requirement shall be submitted to the bank duly signed before a notary.
History —Ins. Code § 8.030; Aug. 4, 2008, No. 155, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 804 - Commonwealth responsible

The Commonwealth of Puerto Rico shall be responsible for the safekeeping and return of all assets deposited pursuant to this title with the Secretary of the Treasury.
History —Ins. Code § 8.040.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 805 - Dividends and substitutions

So long as the insurer remains solvent and complies with this title it shall be entitled:
(1) To demand, receive, sue for, and recover the income from the securities deposited.
(2) To exchange and substitute for the securities on deposit or any part thereof, eligible securities of equivalent or greater value.
(3) To inspect, at reasonable times, any such deposit.
History —Ins. Code § 8.050.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 806 - Excess deposits

An insurer may so deposit eligible securities in an amount exceeding its required deposit under this title by not more than one hundred thousand dollars ($100,000), for the purpose of absorbing fluctuations in the value of securities held in its required deposit, and to facilitate the exchange and substitution of securities deposited. During the solvency of the insurer any such excess deposit or part thereof shall be released to the insurer upon its request. During the insolvency of the insurer such excess deposit shall be released only as provided in § 808 of this title.
History —Ins. Code § 8.060.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 8 - Administration of Deposits (§§ 801 — 809) › § 807 - Depletion of deposit

If at any time the Commissioner finds that the value of assets on deposit by an insurer is less than the amount required pursuant to this Code, he/she shall notify the insurer of such deficiency by registered mail addressed to the insurer at its home office, or at its main office in Puerto Rico, and require that the deficiency be resolved within sixty (60) days from the date of such notice. If said deficiency is not resolved within the term provided herein, it shall be understood that the insurer has failed to comply with an order of the Commissioner and shall be sanctioned as provided by the Commissioner.
History —Ins. Code § 8.070; Aug. 4, 2008, No. 155, § 4.