2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 29 - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers (§§ 2901 — 2954) › § 2949 - Voluntary liquidation—Administration and further procedure

(1) Upon adoption of the resolution provided for in § 2948 of this title, the insurer’s board of directors and officers shall continue to direct and administer its affairs to the end that the liquidation of the insurer’s assets and discharge of all its obligations shall be accomplished without unreasonable delay.
(2) The insurer shall forthwith reinsure all its insurance business remaining in force, in another authorized insurer and under terms approved by the Commissioner.
(3) The insurer shall liquidate its assets and pay and discharge all its other obligations as soon as is reasonably possible.
(4) After payment and discharge of all its obligations to its creditors, and with respect to its policyholders as such, the insurer shall distribute its assets remaining, after setting aside such funds as may reasonably be required to cover the costs of further necessary administration and procedures, to its stockholders as entitled thereto pursuant to its articles of incorporation, if a stock insurer, or to its members as determined and in amounts as required pursuant to § 2954 of this title, if a mutual insurer. If a cooperative insurer, such remaining assets shall be distributed among its partners entitled thereto, in the proportion that the amount of the fund contribution certificates of each partner bears to the total value of all fund contribution certificates. The total amount distributed shall in no case exceed the total par value of all fund contribution certificates acquired by the partners of the cooperative. Prior to or at the time or receiving such distribution, each such shareholder or member shall surrender each one of his stock certificates or fund contribution certificates to the insurer for cancellation. Any remaining funds of a cooperative insurer shall be distributed among members and policyholders on the basis of sponsorship, pursuant to the provisions of § 3402(8) of this title.
(5) No sale of any asset of the insurer shall be at a price less than its fair market value, and the Commissioner shall have power to establish or approve reasonable requirements for the conduct of such sales.
(6) Any funds remaining in the insurer’s possession at the end of ninety days after the distribution thereof to shareholders, partners or policyholders, or members in general, on account of inability to delivery such funds to particular shareholders or members, partners or policyholders, entitled thereto, shall be deposited in trust for such unpaid shareholders or members, partners or policyholders in such institution and under such reasonable terms as may be approved by the Commissioner, and shall be subject to diminution pro rata for payment of current costs, if any, of such trusteeship. Any funds so remaining in trust at the expiration of five years from date first deposited therein shall escheat to the Commonwealth of Puerto Rico and become part of its general funds, and without further right therein by or on behalf of any other person.
History —Ins. Code § 29.490; June 25, 1965, No. 86, p. 200, § 20.