2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 39 - Life and Disability Insurance Guaranty Association (§§ 3901 — 3918) › § 3905 - Definitions

As used in this chapter:
(1) Account.— Means any of the accounts created by § 3906 of this title.
(2) Association.— Means the Life and Disability Insurance Guaranty Association of Puerto Rico created by virtue of § 3906 of this title.
(3) Contractual obligation.— Means any obligation under a policy or contract, or certificate under a group policy or group contract, or a portion thereof, for which coverage is provided under § 3903 of this title.
(4) Covered policy.— Means any policy or contract within the scope of this chapter pursuant to § 3903 of this title.
(5) Impaired insurer.— Means a member insurer who, after the effective date of this act, is not an insolvent insurer, and
(a) Is considered by the Commissioner to be potentially unable to fulfill its contractual obligations, or
(b) is placed by a court of competent jurisdiction under an order of rehabilitation or conservation.
(6) Insolvent insurer.— Means a member insurer whom a court of competent jurisdiction places under an order for liquidation, upon a finding of insolvency, after the effective date of this chapter.
(7) Member insurer.— Means any insurer having a license or certificate of authority to transact in Puerto Rico any of the kinds of insurance for which coverage is provided under § 3903 of this title, and includes any insurer whose license or certificate of authority in Puerto Rico may have been suspended, revoked, not renewed or voluntarily withdrawn, but does not include:
(a) A nonprofit medical-hospital services organization, and any assistance or mutual aid association which operates any medical-surgical service plan in Puerto Rico;
(b) a health services organization, as defined in §§ 1901 et seq. of this title;
(c) a charitable fraternal society;
(d) a mandatory state pooling association;
(e) a mutual assessment company or any entity that operates on the basis of assessments;
(f) an insurance exchange, or
(g) any entity similar to any of those mentioned above.
(8) Moody’s Corporate Bond Yield Average.— Means the monthly corporate averages published by “Moody’s Investors Service, Inc.” or any successor thereof.
(9) Premiums.— Means the amounts received for covered policies or contracts, less premiums, considerations and deposits returned thereon, and less dividends and credits for experience thereon. “Premiums” does not include sums received for any policies or contracts or portions thereof for which no coverage is provided under § 3903(b) of this title, except that assessable premiums shall not be reduced by the provisions of §§ 3903(b)(2)(C) of this title regarding limitations in their interest, and 3903(c)(2) of this title concerning limitations with respect to any one life or any one contract holder.
(10) Resident.— Means a person residing in Puerto Rico at the time it is determined that a member insurer is impaired or insolvent, and to whom a contractual obligation is owed. A person may be a resident of only one state, which, in the case of a person who is not a natural person, shall be its main place of business.
(11) Supplementary contract.— Means any agreement for the distribution of the proceeds of a policy or contract.
(12) Unassigned annuity contract.— Means any annuity contract or group annuity certificate which is not issued to nor owned by an individual, except to the extent to which an insurer has guaranteed any annuity benefit under said contract or certificate to an individual.
(13) Affiliate.— Means a person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under the common control of an insolvent insurer as of December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer.
(14) Structured settlement annuity.— Means an annuity or contract with similar features, issued by an insurer authorized to do life insurance business in Puerto Rico, purchased in order to fund periodic payments to a plaintiff or claimant for or with respect to personal injury suffered by the plaintiff or other claimant.
History —Ins. Code, added as § 39.050 on Aug. 17, 1991, No. 72, § 1; Aug. 20, 2009, No. 82, § 2.