reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2101 - Definitions

The following definitions shall apply to §§ 2101–2122 of this title:
(a) The term “automobile club” or “association”, as used in this subchapter, is hereby defined as follows: Any natural or artificial person that, as of the effective date of this act or thereafter, in consideration of a sum of money as quota or premium, as the case may be, or for any other consideration, agrees to render to its members, associates or insureds one or more of the services of interest to the autoist, hereinafter defined in this chapter. The provisions of this chapter shall not be applicable to labor unions, fraternities, or associations of public automobile drivers which render the services specified in § 2102 of this title, provided such services are rendered exclusively to the members of the unions, fraternities, or associations of public automobile drivers.
(b) Commissioner.— Means the Commissioner of Insurance of Puerto Rico, his assistants, or any other person authorized to act on his behalf.
(c) Service contract.— Means an agreement whereby any association, for a sum of money, agrees to render, to furnish or to procure services of automobile clubs to any person, whether or not a member of the automobile club or association.
(d) Agent.— Is the person, firm or corporation that solicits the purchase of service contracts for the benefit of automobile drivers or in any wise helps in the delivery or negotiation of any such contract, or in its renewal or continuation.
History —Ins. Code, added as § 21.010 on June 15, 1961, No. 68, p. 133; Sept. 8, 2000, No. 392, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2103 - Term for filing application

Within the thirty days following the effective date of this act, any automobile club or association operating in Puerto Rico under the provisions of this subchapter shall file in the Office of the Commissioner, in the form provided by him for such purposes, an application for a license or certificate of authority to continue operating in Puerto Rico; and any automobile club or association desiring to start operations as such thereafter under the provisions of this subchapter, before commencing such operations, shall likewise make the corresponding application and obtain its license or certificate of authority from the Commissioner.
History —Ins. Code, added as § 21.030 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2104 - Application for authorization

Any application for an authorization filed under the provisions of this subchapter must be accompanied by the following documents, information, and exhibits:
(a) An application in the form prescribed by the Commissioner, signed under oath by the president of the association or any other of its principal officers.
(b) A certified copy of its articles of incorporation and bylaws.
(c) A financial statement of the association in the manner prescribed by the Commissioner, signed by the president or any other of its principal officers.
(d) A certificate from the Secretary of State, if a corporation, stating that it complied with the provisions of the Corporations Law of Puerto Rico.
(e) The sum of fifty thousand dollars ($50,000) in cash or its equivalent in securities subject to approval by the Commissioner to guarantee the faithful compliance by the applicant entity of all the provisions of this chapter as well as its obligations toward its members.
(f) When the application is made by a foreign automobile club or association it shall designate an agent authorized to receive service of process on behalf of the applicant, which agent shall in all cases be a resident of Puerto Rico.
(g) Copies of the application forms for membership, credentials as such, bylaws, service contracts, advertising material or any other document required by the Commissioner.
(h) The names of the incorporators or directors of the applicant with their postal addresses and personal circumstances, including their occupations and professions, so that with such information the Commissioner may verify their competence, good character, and reputation.
History —Ins. Code, added as § 21.040 on June 15, 1961, No. 68, p. 133; June 5, 1973, No. 98, p. 419, § 15; July 23, 1974, No. 133, Part 1, p. 598, § 10; Feb. 16, 1979, No. 15, p. 28, § 11.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2106 - Examinations

The Commissioner shall not issue a license until he is convinced that the automobile club or association has complied with the laws of Puerto Rico and that its administration is trustworthy and competent, for which he may conduct examinations of the automobile club or association and require that any necessary evidence be produced. The cost of any examination conducted shall be paid by the examined club or association.
History —Ins. Code, added as § 21.060 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2106a - Books and documents required

Every motorist club or association shall keep true and full accounts, as well as books carrying their assets, obligations, transactions and business, in accordance with accounting methods and practices generally accepted. All books and accounts shall be kept in such a manner as to facilitate the preparation of the reports required from the motorist club or association, as well as to make accessible the examination of the business by the Commissioner.
History —Ins. Code, added as § 21.061 on July 23, 1974, No. 133, Part 1, p. 598, § 19.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2107 - Duration of the license

Any license issued under the provisions of this subchapter shall continue in force upon payment of the corresponding fees on or before the midnight of June 30 of each year, unless it is revoked or suspended by the Commissioner in the course of a given fiscal year.
History —Ins. Code, added as § 21.070 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2108 - Revocation or suspension of license

If the Commissioner, after a hearing, finds that an automobile club or association has violated any provision of this subchapter, or that it is insolvent, or that its assets are less than its liabilities, or that the club or association, or its officers, refuses or refuse to be examined, or that it conducts its business in a deceitful way, or that its administration and business methods are inadequate or harmful to its service-contract holders, he may revoke or suspend its license and inform the public of his action in the manner he may deem convenient.
History —Ins. Code, added as § 21.080 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2109 - Annual statement

Every automobile club or association shall file in the Office of the Commissioner, on or before March 31 of each year, a financial statement in the form and manner prescribed by the Commissioner, signed under oath by its president or one of its principal officers, showing its financial condition as of the preceding December 31.
History —Ins. Code, added as § 21.090 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2110 - Approval of forms

No service contract issued in Puerto Rico shall become effective until a form of such contract has been kept filed in the Office of the Commissioner for sixty days, unless before the expiration of this term the form has been approved in writing by the Commissioner, nor shall any contract become effective or issued if the Commissioner informs the automobile club or association in writing, within such sixty-day period, that in his opinion the contract form does not comply with the laws of Puerto Rico, stating his reasons.
History —Ins. Code, added as § 21.100 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2111 - Contents of contract

No service contract shall be issued or delivered in Puerto Rico unless it contains the following:
(a) The name of the automobile club or association.
(b) The exact address of the home office of the automobile club or association and that of its business office in Puerto Rico showing the street, number, and city.
(c) A clause stating that the contract shall be cancellable at any time by the company or by the contract holder and that the latter has a right to receive the unearned portion of the money paid for such contract, on a pro-rata basis, with no discount whatsoever.
(d) A clause clearly specifying the services promised; another stating that the contract holder shall not have to pay any sum in addition to that specified in the contract, and another specifying the territory within which the services shall be rendered and the date on which such services shall commence.
History —Ins. Code, added as § 21.110 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2112 - Reserves

In addition to the deposits required in § 2104(e) of this title, the automobile club or association shall maintain a reserve of unearned income equal to twenty-five percent (25%) of the total unearned income of the contracts in force but in no case less than the total reimbursement of income made during the preceding twelve months. This reserve shall be computed considering the unearned income in a given year as fifty percent (50%) of the total income from quotas received during the year.
History —Ins. Code, added as § 21.120 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2112a - Assets and liabilities

Sections 5.010, 5.020 and 5.030 shall be applicable to motorists clubs or associations for the purpose of determining their economic status.
History —Ins. Code, added as § 21.121 on July 23, 1974, No. 133, Part 1, p. 598, § 20.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2113 - Unlawful practices

The purchase of contracts from unauthorized automobile clubs or associations is hereby prohibited.
No person shall solicit or help other persons in the purchase of a service contract issued by an unauthorized automobile club or association in Puerto Rico.
The twisting or exaggeration of the terms of a service contract is prohibited.
No automobile club or association or its officers or agents shall twist or exaggerate orally or in writing the terms, benefits, or advantages of a service contract to be issued.
History —Ins. Code, added as § 21.130 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2115 - Rules and regulations

The Commissioner may promulgate rules and regulations to enforce the provisions of this subchapter. The violations of these rules and regulations shall be punished by an administrative fine of not more than five hundred dollars ($500).
History —Ins. Code, added as § 21.150 on June 15, 1961, No. 68, p. 133; May 24, 1974, No. 46, Part 1, p. 200, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2116 - Appeals

The appeals from the decisions of the Commissioner regarding the enforcement of this subchapter shall be conducted as provided in § 226 of this title.
History —Ins. Code, added as § 21.160 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2117 - Restricted application

Nothing contained in this subchapter shall apply to lawyers acting in the normal course of their profession nor to any insurance company duly authorized under the laws of the Commonwealth of Puerto Rico.
History —Ins. Code, added as § 21.170 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2118 - License required

No automobile club or association or producer shall execute, issue or deliver a service contract unless previously licensed by the Commissioner of Insurance, pursuant to the provisions of this subchapter, nor shall an automobile club or association or producer collect or receive from any person, before the execution, issuance, or delivery of any of these service contracts, any sum of money or valuable thing under promise of agreement of executing, issuing or delivering any of these service contracts, unless previously licensed by the Commissioner as provided in § 2104 of this title.
History —Ins. Code, added as § 21.180 on June 15, 1961, No. 68, p. 133; 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 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2119 - Duplicate contracts; signature; disposal of copies

Each service contract executed, issued, or delivered in Puerto Rico shall be made in original and one copy, signed by the corresponding officer of the automobile club or association, or by its authorized agent and by the person in whose favor it is issued. The copy shall be kept by the automobile club or association, and the original shall be given to the member or associate.
History —Ins. Code, added as § 21.190 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2120 - Taxation

Every automobile club or association, as defined in this subchapter, that is organized for profit and that conducts business in Puerto Rico, shall pay on or before March 31 of each year to the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the Office of the Commissioner, a tax of one and a half percent (1 1 / 2 %) on the premiums or membership fees received by such automobile clubs or associations during the preceding calendar year.
Every automobile club or association, as defined in this subchapter, that fails to file its tax return or to pay the specified taxes on fees for more than thirty (30) days after their due date, shall be liable for the payment of an administrative fine of ten dollars ($10) for each additional day of delinquency, subject to the right of the Commissioner to grant a reasonable extension of time for such filing and payment.
Those automobile clubs or associations organized in Puerto Rico who maintain a main office within this jurisdiction are hereby exempted from the payment of this special tax.
History —Ins. Code, added as § 21.200 on June 15, 1961, No. 68, p. 133; Dec. 28, 2000, No. 455, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2121 - Penalties

(a) Any person violating this subchapter shall upon conviction be punished by a fine of not less than fifty dollars ($50) nor more than five hundred dollars ($500), or by imprisonment in jail for not more than six (6) months, or both penalties.
(b) Administrative fines.— The Commissioner may impose administrative fines of not more than five hundred dollars ($500) for any violation of this subchapter, after a hearing.
History —Ins. Code, added as § 21.210 on June 15, 1961, No. 68, p. 133; May 24, 1974, No. 46, Part 1, p. 200, § 6.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter I - Automobile Clubs or Associations (§§ 2101 — 2122) › § 2122 - Applicability

The automobile clubs or associations, as defined in this subchapter, shall not be subject to the other provisions of this Insurance Code, except in those cases where it is so expressly provided by law.
History —Ins. Code, added as § 21.220 on June 15, 1961, No. 68, p. 133, eff. July 1, 1961.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2123 - Service contracts

The provisions of §§ 2123–2134 of this title shall constitute a separate subchapter, which shall be applicable to service contracts, as defined below. All reference to “this subchapter” shall refer to the provisions of these sections. Except for those provisions of this Code expressly stated in this subchapter to apply to service contracts, and by Subchapters I and II, the other provisions of this Code shall not be applicable to said contracts.
History —Ins. Code, added as § 21.230 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2124 - Scope

This subchapter shall not apply to manufacturer’s guarantees or maintenance contracts as defined hereinbelow.
History —Ins. Code, added as § 21.240 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2127 - Required disclosures—Reimbursement insurance policy

(1) Every reimbursement insurance policy that insures service contracts issued, sold or offered for sale in Puerto Rico, shall specifically and visibly state, that when the provider incurs noncompliance of the service contract, such as the failure to return the unearned fees received, the insurer that issued the policy shall pay the holder of the contract whichever sums that the provider is legally bound to pay pursuant to the service contract issued by him/her, or shall provide the service that the provider is legally bound to provide according to the contractual obligations under the service contract issued by the provider.
(2) Nothing provided in this section shall imply that the insurer is exempted from the applicable provisions of §§ 1101–1137 of this title.
History —Ins. Code, added as § 21.270 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2129 - Prohibited acts

(1) No provider shall use in his name nor shall identify him/herself using words such as insurance, contingency, guarantee, bond, mutual, or any other words that describe the insurance business, or a name that is deceitfully similar to the name or description of any insurance or warranty insurance corporation, or of any other provider.
(2) No person shall make, or otherwise verbally divulge any announcement, information, matter, statement or anything that will misconstrue or exaggerate the terms of a service contract or a reimbursement policy, or the benefits and advantages thereof, nor shall intentionally omit any material statement that would be considered deceitful when omitted, in connection with the sale, an offer for sale, or advertisement of a service contract.
(3) No person shall bind nor condition the granting of a loan, or the sale of any goods, to the acquisition of a service contract.
History —Ins. Code, added as § 21.290 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2130 - Books and files

(1) Every provider shall keep exact accounts, books and files of the transactions regulated under this subchapter.
(2) The accounts, books and files of a provider shall, at least, include the following:
(a) Copies of each type of service contract issued;
(b) the name and address of each holder of a contract in the measure that this information has been provided by the holder of the contract;
(c) a list of the places in which the provider promotes, sells or offers service contracts for sale, and
(d) the claim files, which shall at least contain the date, amount and description of each receipt, claim or expense related to the service contracts.
(3) With the exception of what is provided in subsection (5) of this section, every provider shall keep the pertinent files of each holder of a contract for a period of not less than three years after the term of each coverage has expired.
(4) The providers may keep all the files required under this subchapter electronically or by similar filing systems. In said case, the files shall be readily accessible to the Commissioner from a terminal or other scanning device and shall have the capacity to be printed in a legible manner.
(5) Any provider who discontinues his/her business in Puerto Rico shall keep his files until he/she can present sufficient satisfactory evidence to the Commissioner that he/she has complied with all his/her obligations towards the holders of contracts in Puerto Rico.
History —Ins. Code, added as § 21.300 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2131 - Cancellation or non-renewal of reimbursement insurance policies

No insurer who has issued a reimbursement insurance policy shall cancel or refuse to renew the policy, unless he/she hands or sends a notice to such effect, at least sixty (60) days prior to the date that said cancellation or non-renewal becomes effective. A copy of the cancellation or non-renewal notice shall also be sent to the Commissioner, so that he may determine the subsequent compliance by the provider of the provisions of this subchapter. The termination of a reimbursement insurance policy shall not, in any way, affect the liability of the insurer for service contracts issued prior to the cancellation or non-renewal date.
History —Ins. Code, added as § 21.310 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2132 - Obligation to reimburse

Once a contract holder pays the corresponding service contract fee to a provider, and provided said service contract is insured under a reimbursement insurance policy, the holder of the contract shall be entitled to any benefit provided by the policy, regardless of whether the provider has paid or not the premium of the corresponding reimbursement insurance policy. The above provision shall not affect the reciprocal rights and obligations between the insurer and the provider. In those cases in which a provider recruits other persons for the promotion and sale of service contracts covered under a reimbursement insurance policy, the provider shall have the obligation of notifying the insurer of the identity of said other persons.
History —Ins. Code, added as § 21.320 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2133 - Service contracts in other jurisdictions

(1) Every service contract provider under this subchapter shall inform the Commissioner, within the term the Commissioner provides through regulations, whether the provider or any entity affiliated or related to him/her issues the same or similar service contracts to other jurisdictions of the United States. In the event that the provider reports that it or any affiliated or related entity issues the same or similar service contracts to residents of other United States jurisdictions, the provider shall certify to the Commissioner that the service contracts issued under this subchapter to residents of Puerto Rico offer substantially the same benefits for the same risks as the service contracts issued in other jurisdictions of the United States.
(2) In the event that the provider cannot produce the certification required by this section, the Commissioner shall not authorize the issue of new service contracts under this subchapter, unless the provider submits a plan to match the benefits within a term that the Commissioner deems reasonable. Nothing in this section shall be interpreted as to create a private cause of action in behalf of the holders of service contracts, applicants for said contracts and any other person, in the event that a provider does not provide the equal benefits stated in this section.
History —Ins. Code, added as § 21.330 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2134 - Compliance provisions

(1) The Commissioner shall have all the powers and prerogatives that are prescribed in §§ 201–232 of this title to enforce the provisions of this subchapter and protect the holders of contracts.
(2) The Commissioner shall take any action that is necessary and appropriate to enforce the provisions of this subchapter and promulgate the regulations and issue the orders needed to protect the holders of contracts; Provided, That said regulations shall include the specific terms that the Commissioner shall have, to handle and resolve any issue pursuant to said regulations.
(3) Violations of this subchapter shall be subject, among others that could otherwise be applicable, to the sanctions provided by § 2730 of this title.
(4) Any person that is affected by an act of the Commissioner under this subchapter may request a hearing before the Commissioner pursuant to the provisions found in §§ 202–232 of this title.
(5) The Authority of the Commissioner under this section does not limit any other authority conferred on him/her by the laws of Puerto Rico.
History —Ins. Code, added as § 21.340 on Sept. 8, 2000, No. 392, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 22 - Surety (§§ 2201 — 2205) › § 2201 - Appointment, licensing of attorney-in-fact

(1) A surety insurer shall file with the Commissioner the appointment and power of attorney of every individual authorized by it to execute surety instruments in Puerto Rico on its behalf.
(2) All such powers of attorney shall comply with and be subject to the laws of Puerto Rico regarding powers of attorney in general and protocolization thereof (§§ 921–927 of Title 4).
(3) No attorney-in-fact license shall be issued to any person, if the following qualifications are not met:
(a) To actually reside in Puerto Rico and to have been a bona fide resident of Puerto Rico for at least one year immediately before the date on which the license is applied for.
(b) To be trustworthy and competent.
(c) To be at least twenty-one years old and to have completed high school or its equivalent.
(d) To pass satisfactorily any examination required pursuant to Section 9.110.
(4) Upon such filing of such power of attorney, in proper form, and compliance by the applicant of the requirements of this section, the Commissioner shall issue to the individual so appointed a license as the insurer’s attorney-in-fact. The license shall be for such duration and be subject to renewal, suspension or revocation, as is provided under this title for the licenses of insurance producers. The license fee shall be as set forth in § 701 of this title.
(5) No person shall execute surety instruments on behalf of such an insurer in Puerto Rico, except in compliance with this section, including, but not limited to, officers of the insurer residing in Puerto Rico.
History —Ins. Code § 22.010; July 23, 1974, No. 151, Part 1, p. 695, § 9; 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 22 - Surety (§§ 2201 — 2205) › § 2202 - Requirements deemed met by surety insurer

Whenever by law or by rule of any court, public official, or public body, any surety bond, recognizance, obligation, stipulation or undertaking is required or is permitted to be given, any such bond, recognizance, obligation, stipulation, or undertaking which is otherwise proper and the conditions of which are guaranteed by an authorized surety insurer, or by an unauthorized surety insurer as a surplus line pursuant to §§ 1001–1020 of this title, shall be accepted and shall be deemed to fulfill all requirements as to number of sureties, residence, or status of sureties, and other similar requirements.
History —Ins. Code § 22.020.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 22 - Surety (§§ 2201 — 2205) › § 2203 - Release from liability

A surety insurer shall be released from its liability on the same terms and conditions as are provided by law for the release of individuals as sureties, except as otherwise expressly provided by the law under which any such surety undertaking is required.
History —Ins. Code § 22.030.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 22 - Surety (§§ 2201 — 2205) › § 2204 - Surety insurance; solidarity

Every surety insurance which guarantees performance of a contract, whether a civil or criminal bond, or any type of obligation shall jointly and severally bind the insurer and his principal, but subject to the terms of prescription or caducity.
History —Ins. Code, added as § 22.040 on May 10, 1976, No. 32, p. 84, § 21.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 22 - Surety (§§ 2201 — 2205) › § 2205 - Payment of claims

The surety insurer committed under the provisions of § 2204 of this title shall be bound to pay the debt of his principal at the request of the creditor, after verifying, within a term of ninety (90) days, that the claim exists, and is liquidable and demandable. If within that term the insurer does not pay the claim without good cause he shall be guilty of a violation of § 2716a of this title.
History —Ins. Code, added as § 22.050 on May 10, 1976, No. 32, p. 84, § 21.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 23 - Mortgage Loans Insurance (§§ 2301 — 2307) › § 2301 - Short title; definitions

This chapter shall be known as the “Mortgage Loans Insurance Act” and may be cited as such.
For the purposes of this chapter:
(1) Mortgage loans insurance.— Means insurance against financial losses arising from default in the payment of the principal, interest and other sums payable under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, trust deed, or other instrument constituting a lien or encumbrance on real property.
(2) Authorized realty guaranty.— Means a promissory note, bond, or any other evidence of amortizable indebtedness not exceeding one hundred percent (100%) of the reasonable market value of the realty, secured by a mortgage, trust deed, or any other instrument constituting the first encumbrance or lien on the realty; Provided, [That]:
(a) The property securing the insured loan must be of a residential type or
(b) Building or buildings designated to be occupied for industrial or business purposes.
(c) The lien on such real property may be subject and subordinate to the following:
(i) The lien of any public bond, impost or tax, whose payments are not in arrears.
(ii) Pending rights on minerals, petroleum or timber, easements, rights of way or support, sewer (or drainage) rights, restrictions for building or any other restrictions or agreements, conditions or regulations for use, or leases existing on said real property under which the rentals or benefits belong to its owner.
(3) Reserve for contingencies.— means an additional reserve of premiums established for the protection of the policyholders against the effects of adverse conditions in the economic cycle.
(4) Surplus with regard to policyholders.— means the aggregate sum of the capital, surplus and reserve for contingencies.
History —Ins. Code, added as § 23.010 on Mar. 11, 1976, No. 12, p. 27, § 1; Aug. 15, 1999, No. 244, § 1; May 16, 2002, No. 65, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 23 - Mortgage Loans Insurance (§§ 2301 — 2307) › § 2303 - Limitations and restrictions in transacting business

(1) Mortgage loans insurance may be transacted only by a stock insurer duly authorized pursuant to this chapter and shall be written only to insure loans secured by authorized realty guaranties as defined in § 2301 of this title.
(2) An insurer shall limit the amount or his obligation to a maximum of thirty percent (30%) of the amount of any claim payable under the terms of his policy, but instead of paying the above-mentioned amount the insurer may elect to pay in full the amount of the claim as defined in his policy, and acquire the ownership title to the realty guaranty. Upon determining his obligation, the insurer may deduct from it the portion ceded through the reinsurance authorized by § 412 of this title.
(3) An insurer of mortgage loans insurance who transacts elsewhere any kind of insurance other than mortgage loans insurance is not eligible for the issuance to him of a certificate of authority to transact mortgage loans insurance, nor for the renewal thereof.
(4) Nothing contained in this chapter shall be construed as limiting the right of any mortgage loans insurer to impose reasonable requisites to the lender with regard to the terms of any note or bond, or any other evidence of indebtedness secured by mortgage or trust deed, such as to require from the borrower a stipulated amount as down payment.
History —Ins. Code, added as § 23.030 on Mar. 11, 1976, No. 12, p. 27, § 1; Jan. 19, 1998, No. 31, § 2; May 16, 2002, No. 65, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 23 - Mortgage Loans Insurance (§§ 2301 — 2307) › § 2304 - Reserve for losses

(1) In addition to the reserve for contingencies required in § 2302 of this title, every insurer of mortgage loans shall establish a reserve for losses for the payment of estimated claims and adjustment expenses in the following cases:
(a) Loans in which the insured holds ownership title acquired as previous requirements to the filing of a claim.
(b) Loans under foreclosure proceedings.
(c) Loans in default for four (4) or more monthly payments.
(d) Expenses of losses adjustment in all the cases above mentioned.
(2) Properties acquired in payment of claims shall be entered in the books of the insurer at a value not to exceed the reasonable market value. When the cost of acquisition of the claim exceeds said value, the excess shall be charged to subscription losses.
History —Ins. Code, added as § 23.040 on Mar. 11, 1976, No. 12, p. 27, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 23 - Mortgage Loans Insurance (§§ 2301 — 2307) › § 2305 - Funds required

(1) The funds required from mortgage loan insurers in order to qualify for authority to contract this kind of insurance are those indicated under § 2302 of this title.
History —Ins. Code, added as § 23.050 on Mar. 11, 1976, No. 12, p. 27, § 1; July 20, 1979, No. 154, p. 395, § 9.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 23 - Mortgage Loans Insurance (§§ 2301 — 2307) › § 2306 - Application

(1) All provisions of the Insurance Code not in conflict with this chapter shall govern in so far as they are applicable to insurers of mortgage loans insurance.
(2) If any provision of this chapter or the application of such provision to any circumstance is adjudged invalid, the remainder of the chapter or the application of the provision to other circumstances shall not be affected.
History —Ins. Code, added as § 23.060 on Mar. 11, 1976, No. 12, p. 27, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 23 - Mortgage Loans Insurance (§§ 2301 — 2307) › § 2307 - Applicability

The provisions of this chapter shall not apply to those mortgage insurances in which the Housing Bank acts as insurer by virtue of §§ 261–272 of Title 7. Provided, That in cases where the Housing Bank may opt to contract the mortgage insurances with an insurance company, the latter shall be bound to comply with the provisions of this chapter.
History —Ins. Code, added as § 23.070 on Mar. 11, 1976, No. 12, p. 27, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 24 - Title Insurance (§§ 2401 — 2404) › § 2401 - Scope of chapter

This chapter relates only to title insurers.
History —Ins. Code § 24.010.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 24 - Title Insurance (§§ 2401 — 2404) › § 2402 - Guaranty fund

(1) A title insurer shall within thirty days after expiration of each calendar year set aside into a guaranty fund an amount equal to ten percent (10%) of premiums received by it for title insurance during that year until such guaranty fund amounts to not less than the amount of capital required under this title for authority to transact title insurance, and shall thereafter maintain such guaranty fund unimpaired.
(2) The guaranty fund shall be security for the payment of losses and expenses incurred on account of the insurer’s title insurance, and shall not be subject to the insurer’s other liabilities so long as any such insurance is outstanding. For the purposes of this provision, a title insurance policy in which the term thereof is not otherwise specified therein shall be deemed to expire twenty years after date of issuance.
(3) The insurer shall suspend issuance of new title insurance during any period in which the guaranty fund is less than the amount required by this section. The insurer’s officers and directors knowingly violating this provision shall be jointly and severally liable as to losses incurred thereby.
(4) The amount of the guaranty fund shall be reported to the Commissioner as part of the insurer’s annual statement.
(5) The insurer shall keep such guaranty fund in Puerto Rico and shall invest it only in such investments as are eligible under § 316(2) of this title; and shall keep such investments separate from the rest of his assets.
(6) Upon liquidation, or reinsurance of all the title insurance of the insurer, the Commissioner may permit withdrawal of such part of the guaranty fund as in his discretion may not reasonably be required for the continuing protection of outstanding title insurance, and may require or approve such arrangements for the continuing custody, administration, and final liquidation of the remaining portion of such guaranty fund as he may deem, in his discretion, to be both practicable and reasonably necessary for the protection of such outstanding insurance.
History —Ins. Code § 24.020; May 10, 1976, No. 32, p. 84, § 17.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 24 - Title Insurance (§§ 2401 — 2404) › § 2403 - Investments

(1) A domestic insurer transacting only title insurance may invest up to one-fourth of its minimum required paid-in capital, and any of its surplus in such books, maps, abstracts, and other records as are requisite or convenient for transaction of its business as title insurer, and in the maintenance thereof.
(2) Said insurer may invest the rest of its funds, after meeting its guaranty fund requirement, in such investments as are eligible as investments for other insurers under Chapter 6 of this title.
History —Ins. Code § 24.030; May 10, 1976, No. 32, p. 84, § 18.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 24 - Title Insurance (§§ 2401 — 2404) › § 2404 - Prohibition against guaranteeing obligations executed by others

An insurer shall not in any manner guarantee the payment of the principal of or interest on bonds or other obligations executed by others.
History —Ins. Code § 24.040.
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) › § 2501 - Statement of purposes

The purpose of this chapter is to require domestic insurers to establish a reserve for the payment of losses arising from the catastrophes to which Puerto Rico is exposed, so that said insurers may have the financial capacity to offer the greatest protection to those insurers exposed to said risks. The provisions of this chapter also seek that domestic insurers depend less on the capacity of foreign reinsurers, since when purchasing reinsurance for these risks, they would only be compelled to buy the excess of the required minimum withholding amounts. As a result of this, the types of catastrophic premium insurance rates in Puerto Rico would be affected in the least possible by the price demands of the world reinsurance market.
History —Ins. Code, added as § 25.010 on Aug. 12, 1994, No. 73, § 1; Oct. 13, 2006, No. 227, § 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) › § 2502 - Definitions

As used in this chapter:
(1) Trust.— Means the trust constituted by each native insurer pursuant to § 2504 of this title.
(2) Catastrophic insurance losses.— Means the aggregate losses due to an occurrence, as this term is defined in the insurance contract, sustained by a native insurer under a catastrophic insurance coverage or under a combination of said coverages.
(3) Net direct premiums.— Means the gross direct premiums underwritten in Puerto Rico for catastrophic insurance less the returned premiums or unused or unabsorbed portions of deposit premiums.
(4) Reserve for catastrophic insurance losses.— Means the reserve established pursuant to § 2503 of this title.
(5) Catastrophic insurance.— Means the insurance for all types of real estate or personal property, and the interest thereon, against loss or damage caused by an earthquake, hurricane, fire or other catastrophes, and against losses as a result of such loss or damage.
(6) Minimum withholding.— Means the amount to be withheld by each insurer in the purchase of reinsurance for catastrophic insurance.
(7) Catastrophic exposure.— Means the maximum probable loss to be sustained by an insurer before deducting reinsurance, due to the occurrence of a catastrophic event that has been estimated in accordance with a risk simulation model developed by a recognized firm and accepted by the Commissioner. In case of a hurricane, the simulation model shall use a hurricane whose occurrence probability is one (1) in every one hundred (100) years, and for an earthquake, the simulation model to be used shall be an earthquake whose occurrence probability is one (1) in every two hundred fifty (250) years.
History —Ins. Code, added as § 25.020 on Aug. 12, 1994, No. 73, § 1; Oct. 13, 2006, No. 227, § 2.