2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 18 - Consumer Credit Insurance (§§ 1801-1812 — 1823) › § 1821 - Premiums and reimbursements

(1) Each insurer that issues consumer credit insurance shall register the lists of the premium rates to be used in relation to said insurance with the Commissioner. The insurers may revise said lists from time to time, and in said case, shall be filed in the Office of the Commissioner. No insurer shall issue any consumer credit insurance coverage whatsoever for which the premium rate exceeds the rate registered before the Commissioner and which is in effect at that time. The Commissioner shall promulgate the regulations needed for the premium rates to be reasonable in relation to the benefits provided. Upon evaluating any submission pursuant to this chapter, the Commissioner shall take the following into account:
(a) Present and expected loss experience.
(b) General and administrative expenses.
(c) Payments for claims and loss adjustment expenses.
(d) Reasonable compensation to the creditor, as provided by § 1818(9) of this title.
(e) Investment income.
(f) Method for the payment of premiums.
(g) Other acquisition, reserve, taxes, license or apportionment expenses.
(h) Reasonable profit for insurer.
(i) Other relevant information consistent with generally accepted actuarial methods.
(2) Each individual policy or group insurance certificate shall provide for a reimbursement of premiums in the event that the insurance terminates before its normal expiration date. The unused premiums shall be promptly paid or credited to the person entitled thereto; Provided, however, That reimbursements for amounts less than an amount which is established by the Commissioner to such effect, shall not be subject to reimbursement. Any reimbursement formula that an insurer wishes to use, shall provide for reimbursements that are as favorable for the debtor, that shall be at least equal to the cost of a coverage offered by said insurer which commences on said termination date until the normal expiration date of the cancelled policy or group insurance certificate, which premium is figured according to the rates in effect on the date that the policy or group insurance certificate were originally issued. Any formula used to determine the reimbursement of premiums shall be submitted to, and approved by the Commissioner, provided it meets the above-established requirements.
(3) If a debtor applies for consumer credit insurance for which he/she has made a payment or a charge has been made, and the individual policy or the group insurance certificate is not issued, the creditor shall be bound to give written notice thereof to the debtor and shall promptly give credit or the corresponding reimbursement to the person entitled thereto within fifteen (15) days of having requested it, but in no case after ninety (90) days [from] having made the payment or charge.
(4) The amount charged to a debtor for any consumer credit insurance shall never be greater than the premiums charged by the insurer, as figured at the time the charge to the debtor is determined.
(5) In the event of a premature termination of any consumer credit insurance, in which compensation has been paid to the creditor pursuant to § 1818(9) of this title, for administrative expenses incurred by him/her when offering the policy to the debtors, the creditor shall reimburse that part of the compensation received, equal to the percent of the premium that must be returned to the debtor as a result of said cancellation.
History —Ins. Code, added as § 18.100 on Jan. 9, 1999, No. 15, § 2, eff. 90 days after Jan. 9, 1999.