reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4042 - Liquidation—Unclaimed and withheld funds

(1) Unclaimed funds subject to distribution remaining in possession of the liquidator after the final distribution, shall be deposited in an unclaimed fund account under the custody of the Commissioner. If the person entitled to said funds presents satisfactory proof of ownership of said right within two years after the liquidation, the Commissioner shall remit the funds to him/her. The interest earned on unclaimed funds may be used to pay administrative expenses related to the handling of the return of said funds.
(2) The Commissioner may file a motion requesting that the Receivership Court issue an order to dispose of the withheld funds that remain unclaimed after two years, as set forth in subsection (1) of this section. Any costs incurred in carrying out said disposal shall be paid from the unclaimed funds. The motion shall specify the name of the insurer, the names and last known addresses of the persons entitled to the unclaimed funds, if known, and the amount of the funds. Notice of said motion shall be given as provided by the court. Upon a finding by the court that the funds have not been claimed within two years after the liquidation proceeding has been completed, the court shall rule that any claim for unclaimed funds and any interest earned thereon have been abandoned, and shall provide for the distribution of the funds under any of the following methods:
(a) To be deposited in the general liquidation expense account as provided by subsection (3) of this section;
(b) to be transferred to the Secretary of the Treasury, or
(c) to be used to reopen the liquidation proceeding and conduct a new distribution among the known claimants as provided in § 4043a of this title.
(3) The Commissioner may open a bank account to deposit the unclaimed funds and use said funds:
(a) To pay general expenses related to the administration of liquidations, and
(b) to advance funds to any other liquidation that does not have sufficient funds to pay for its operating expenses.
(4) Any advance to an insurer in liquidation, as allowed under subsection (3)(b) of this section, may be deemed to be a Class 1 claim within the distribution order established in § 4039 of this title.
[(5)] If the Commissioner determines that the funds in the account exceed the amount needed for the purposes specified in subsection (3) of this section, the Commissioner may transfer said funds to the Secretary of the Treasury, chargeable to the General Fund.
History —Ins. Code, added as § 40.420 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 39.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4042a - Liquidation—Conditions for release from receivership proceedings

Unless otherwise provided in a plan approved by a guaranty association, until all payments on account of the insurer’s contractual obligations are repaid to the guaranty associations, plus expenses and interest incurred by the same, the insurer that is subject to a receivership proceeding may not:
(1) Solicit or accept new business or accept the restoration of any suspended or revoked license.
(2) Have its control of shareholders or private management restored.
(3) Have any of its assets returned to its shareholders or administrators.
History —Ins. Code, added as § 40.421 on Dec. 14, 2007, No. 206, § 40.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4043 - Liquidation—Termination of proceedings

(1) The liquidator shall petition the court for discharge of the liquidation once all the assets that justify collection and distribution expenses have been collected and distributed pursuant to this chapter. The court may grant the discharge and issue any other orders, including an order for the transfer of any remaining funds, whose high cost of distribution renders their distribution uneconomic, to where it may deem appropriate.
(2) Any other person may petition to the court at any time for an order in accordance with subsection (1) of this section. If the petition is denied, the person shall pay the costs and expenses incurred by the liquidator to oppose the petition.
History —Ins. Code, added as § 40.430 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4043a - Liquidation—Reopening

After liquidation proceedings are completed and the Receivership Court grants the discharge of the liquidation, the Commissioner may petition the Receivership Court to reopen the liquidation proceedings for just cause, including for the fact that additional property belonging to said estate has been discovered. If the court deems that there is justification for reopening the liquidation proceedings, it shall issue an order to such effects.
History —Ins. Code, added as § 40.431 on Dec. 14, 2007, No. 206, § 41.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4044 - Liquidation—Disposition of records during and after

(1) When the Commissioner, acting as liquidator of an insolvent insurer, deems that the records, documents and books of an insurer undergoing the process of liquidation or finally liquidated, are of no use whatsoever, he/she may recommend to the court and the court shall determine which records, documents and books shall be retained for future use and which shall be destroyed.
(2) If the liquidator determines that certain documents, records, and books of the insurer under a liquidation proceeding should be maintained after the closing of the liquidation, an amount of the estate of the insurer shall be reserved for the maintenance thereof. The amount reserved shall be deemed to be an administrative expense of the estate. The records, documents, and books retained pursuant to this section shall be transferred to the Commissioner, who shall retain and dispose of the same at his/her discretion. These records, documents, and books shall not be deemed to be official documents of the Office of the Insurance Commissioner, [for which reason] they shall not be subject to applicable laws regarding public documents.
History —Ins. Code, added as § 40.440 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 42.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4045 - Liquidation—External audit of the administrator’s books

The Receivership Court may order audits to be conducted on the books of the rehabilitation and liquidation proceedings established pursuant to this chapter and a copy of the audit report shall be filed with the Commissioner and another with the Receivership Court. The books, records and other documents of the administration shall be made available to the auditor at any time without prior notice. The expenses of each audit shall be deemed to be costs of the administration of the rehabilitation or liquidation proceedings.
History —Ins. Code, added as § 40.450 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 43.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4046 - Liquidation—Custody of property of foreign or alien insurers

(1) If a domiciliary liquidator has not been appointed, the Commissioner may request by verified petition that the Court of First Instance issue an order for the Commissioner to act as conservator of the property in Puerto Rico of an alien insurer not domiciled in Puerto Rico or a foreign insurer on one or more of the following grounds:
(a) Any of the grounds established in § 4009 of this title.
(b) That property of the insurer has been sequestered through official action in his/her domiciliary state, or in any other state.
(c) That a considerable portion of his/her property has been sequestered in a foreign country giving reasonable cause to fear that the insurer is or may become insolvent.
(d)
(1) That his/her certificate of authority to do business in Puerto Rico has been revoked, or that none was ever issued, and
(2) that there are residents of Puerto Rico with outstanding claims or policies in force.
(2) When an order is requested pursuant to subsection (1) of this section, the court shall cause the insurer to be given notice and shall grant it ten (10) days to respond.
(3) The court may issue the order in the terms it deems appropriate. The recording of the order with the Clerk of the Court of First Instance in the area where the main office of the insurer is located, or where the main business of the aforesaid is conducted, and in the case of real estate, with the Property Registrar where the same is located, shall have the same effect of notice as a deed, bill of sale or any other evidence of title duly filed and recorded with the Property Registrar would have on third parties.
(4) The conservator may at any time petition the court and the Court may grant an order pursuant to § 4047 of this title to liquidate the assets of a foreign or alien insurer under conservator, or, if appropriate, an order under § 4049 of this title to be appointed ancillary receiver.
(5) The conservator may at any time petition the court for an order terminating the conservation of an insurer. If the court determines that the conservation is no longer necessary, it shall order that possession of property and control of business be restored to the insurer and may order the insurer to reimburse the conservator the expenses incurred by him/her during the proceeding for the conservation of the property of the insurer. The court may also arrive at this conclusion and issue such an order on the motion of any interested party, but if such a motion is denied, the petitioner shall pay all costs that may be imposed.
(6) The conservator may liquidate property of the insurer, if necessary, in order to defray the expenses incurred in the initiation of the proceedings and the administration of the property of the insurer, as provided by this section.
History —Ins. Code, added as § 40.460 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 44.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4047 - Liquidation—Property of foreign or alien insurers located in Puerto Rico

(1) If no domiciliary administrator has been appointed, the Commissioner may petition to the Court of First Instance, by verified petition, to issue an order directing him/her to liquidate the assets located in Puerto Rico of a foreign insurer or an alien insurer not domiciled in Puerto Rico, on any of the following grounds:
(a) Any of the grounds established in § 4009 or 4014 of this title, or
(b) any of the grounds established in § 4046(1)(b)–(d) of this title.
(2) When an order is requested under subsection (1) of this section, the court may order that the insurer be given notice and grant the same a term of ten (10) days to respond.
(3) If the court should determine that the best interests of the policyholders, creditors and the public so require, it may issue a liquidation order under the terms it shall deem appropriate. The filing or recording of the order with the Clerk of the Court of First Instance, or in the case of real estate, with the Property Registry of the area where such property is located, shall have the same effect of notice as a deed, bill of sale or other evidence of title duly filed and recorded with the Property Registry would have on third parties.
(4) If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is proceeding pursuant to this section, the liquidator shall thereafter act as an ancillary receiver under § 4049 of this title.
(5) On the same grounds established in subsection (1) of this title the Commissioner may petition any court with jurisdiction to be appointed receiver to liquidate that portion of the assets and business of the insurer over which the court has jurisdiction or any lesser portion thereof that the Commissioner may deem desirable for the protection of the policyholders and creditors in Puerto Rico.
(6) The court shall order the Commissioner, when he/she has liquidated the assets of a foreign or alien insurer under this section, to pay the claims of the residents of Puerto Rico against the insurer under those rules established in this chapter for the liquidation of insurers and that are otherwise compatible with the provisions of this section.
History —Ins. Code, added as § 40.470 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 45.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4048 - Liquidation—Liquidators domiciled in other states

(1) The domiciliary liquidator of an insurer domiciled in a reciprocal state shall be vested, except regarding special deposits and security on secured claims pursuant to § 4049(3) of this title, with the title to all the assets, property, contracts, rights of action, balances of authorized representatives and all the books, accounts and other records of the insurer located in Puerto Rico. The date of vesting shall be the date of filing the petition, if that is the date specified in the domiciliary law for the vesting of property title in the domiciliary state. Otherwise, the date of vesting shall be the date of issue of the order to take possession of the property. The domiciliary liquidator shall have the immediate right to recover balances due from authorized representatives and obtain possession of the books, accounts and other records of the insurer located in Puerto Rico. He/she shall also have the right to recover all other assets of the insurer located in Puerto Rico, subject to the provisions of § 4049 of this title.
(2) Full faith and credit shall be given to all statutory provisions of reciprocal states and to orders issued by courts of competent jurisdiction in relation to the appointment of a rehabilitator, liquidator or administrator of an insurer, and any related proceeding.
(3) If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state, the Commissioner of that state shall be vested, by operation of law, with the title to all the property, contracts and rights of action, and over all the books, accounts and other records of the insurer located in Puerto Rico, at the same time that the domiciliary liquidator is vested with the title in the domicile. The Commissioner of Puerto Rico may request a conservation or liquidation order pursuant to § 4046 or 4047 of this title, or for an ancillary administration under § 4049 of this title or may, with the approval of the Court of First Instance, transfer title to the domiciliary liquidator, as the interests of justice and the equitable distribution of the assets require.
(4) Claimants residing in Puerto Rico may file claims with the liquidator or the ancillary administrator, if any, in Puerto Rico, or with the domiciliary liquidator, if allowed under the domiciliary law. The claims shall be filed on or prior to the last date fixed for filing claims in the domiciliary liquidation proceedings.
History —Ins. Code, added as § 40.480 on Aug. 17, 1991, No. 72, § 1; Jan. 19, 2006, No. 10, § 9; Dec. 14, 2007, No. 206, § 46.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4049 - Liquidation—Formal ancillary proceeding

(1) If a domiciliary liquidator has been appointed for an insurer not domiciled in Puerto Rico, the Commissioner may request that the Court of First Instance appoint him/her as ancillary administrator in Puerto Rico:
(a) If he finds that there are sufficient assets of the insurer located in Puerto Rico to justify the appointment of an ancillary receiver;
(b) if it is so required for the protection of the creditors or the policyholders in Puerto Rico.
(2) The court may issue an order appointing an ancillary receiver in any terms it may deem appropriate. The filing or recording of the order with the Property Registry in Puerto Rico shall impart the same notice given to third parties by a deed, bill of sales or other evidence of title duly filed or recorded with the Property Registry.
(3) When a domiciliary liquidator has been appointed in a reciprocal state, the ancillary receiver appointed in Puerto Rico may, whenever necessary, aid and assist the domiciliary liquidator to recover the insurer’s assets located in Puerto Rico. The ancillary receiver shall liquidate, as soon as practicable, those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in Puerto Rico from their respective securities, and shall pay the necessary expenses of the proceeding. He/she shall promptly transfer all the remaining assets, books, accounts and records to the domiciliary liquidator. Pursuant to this section, the ancillary receiver and his/her assistants shall have the same powers and the same obligations with respect to the administration of assets as the liquidator of an insurer domiciled in Puerto Rico.
History —Ins. Code, added as § 40.490 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 47.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4050 - Liquidation—Claims of nonresidents against insurers domiciled in Puerto Rico

(1) In a liquidation proceeding initiated in Puerto Rico against an insurer domiciled in Puerto Rico, claimants residing in foreign countries or in states that do not grant reciprocity to Puerto Rico, shall file their claims in Puerto Rico, and the claimants who reside in reciprocal states may do so with the ancillary receivers in their respective states, if any, or with the domiciliary liquidator. Claims must be filed on or before the final date set in the domiciliary liquidation proceedings for the filing of claims.
(2) Claims filed by claimants residing in reciprocal states may be proved either in the liquidation proceedings in Puerto Rico subject to the provisions of this chapter, or in the ancillary proceedings of the reciprocal states, if any. If the domiciliary liquidator of Puerto Rico is given notice of the claims and has the opportunity to appear and be heard, as provided in § 4051(2) of this title with regard to ancillary proceedings, the final allowance of claims by the court undertaking the ancillary proceedings of the reciprocal states shall be conclusive as to the amount and the priority against special deposits or other securities located in such reciprocal states, but shall not be conclusive with regard to priorities against the general assets pursuant to § 4039 of this title.
History —Ins. Code, added as § 40.500 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4051 - Liquidation—Claims of residents against insurers domiciled in reciprocal states

(1) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who reside in Puerto Rico may present their claims with the ancillary receiver in Puerto Rico, if any, or with the domiciliary liquidator. Claims must be filed on or before the final date set in the domiciliary liquidation procedures for the filing of claims.
(2) Claims of claimants residing in Puerto Rico may be proved either in the domiciliary state pursuant to the laws of that state or under the ancillary proceedings in Puerto Rico, if any. If a claimant decides to prove his/her claim in Puerto Rico, he/she shall present his/her claim to the liquidator according to the provisions of §§ 4032 and 4033 of this title. The ancillary receiver shall make his/her recommendation to the court according to the provisions of § 4040 of this title. He/she shall also set a date for a hearing, if necessary, under § 4036 of this title and shall notify the liquidator of the domiciliary state by certified mail or personal service, at least forty (40) days prior to the date of the hearing. If within thirty (30) days after notice the domiciliary liquidator gives notice in writing, by certified mail or by personal service, to the ancillary receiver and the claimant of his/her intention to contest the claim, he/she shall have the right to appear or be represented in any proceeding in Puerto Rico involving the adjudication of the claim.
(3) The final allowance of the claim by the courts of Puerto Rico shall be accepted as conclusive with regard to amount and priority against special deposits or other security locate din Puerto Rico.
History —Ins. Code, added as § 40.510 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4052 - Liquidation—Garnishment, attachment and writ of execution

While liquidation proceedings are pending in Puerto Rico or in any other state, be they denominated as such or not, no action or proceeding in the nature of a garnishment, attachment or writ of execution shall be commenced or maintained in Puerto Rico against the insurer or his/her assets.
History —Ins. Code, added as § 40.520 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4053 - Liquidation—Interstate priorities

(1) In a liquidation proceeding in Puerto Rico involving one or more reciprocal states, the order of distribution issued in the domiciliary state shall prevail in regard to all the claims of the residents of Puerto Rico and the reciprocal states. All the claims of residents of reciprocal states shall be given equal priority of payment from the general assets regardless of where such assets are located.
(2) The owners of special deposit claims against an insurer for which a liquidator has been appointed in Puerto Rico or in any other state of the United States, shall be given priority against the special deposits pursuant to the statutes governing the creation and maintenance of the deposits. If there is a deficiency in any deposit so that the claim secured by it cannot be paid in full, the claimants may share in the general assets, but the sharing shall be deferred until the general creditors as well as the claimants against other special deposits who have received smaller percentages of their respective special deposits have been paid percentages of their claims equal to the percentage paid from the special deposits.
(3) The owner of a secured claim against an insurer for which a liquidator has been appointed in Puerto Rico or any other state, may surrender his/her security and file his/her claim as a general creditor or the claim may be discharged by recourse to the surety, pursuant to § 4038 of this title, in which case the deficiency, if any, shall be deemed as a claim against the general assets of the insurer as if they were claims of unsecured creditors.
History —Ins. Code, added as § 40.530 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4054 - Liquidation—Noncooperation, subordination of claims

(1) If an ancillary receiver in another state or foreign country, whether named as such or not, fails to transfer to the domiciliary liquidator in Puerto Rico any assets within his/her control other than special deposits, reduced only by the expenses of the ancillary receivership, if any, the claims filed with the ancillary receiver, other than special deposit claims or secured claims, shall be included in the corresponding class of claims pursuant to § 4039(7) of this title.
History —Ins. Code, added as § 40.540 on Aug. 17, 1991, No. 72, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4101 - Program

A medical-hospital professional liability insurance program is hereby established in the Commonwealth of Puerto Rico, which shall be implemented pursuant to the provisions of this chapter. Said program and its activities shall be carried out by insurers licensed to contract accident insurance in Puerto Rico and an Insurers’ Syndicate, as provided in Article 41.020 of this chapter.
History —Ins. Code, added as § 41.010 on Dec. 30, 1986, No. 4, p. 869, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4102 - Definitions

For the purposes of this chapter, the following terms and phrases shall have the meaning set forth below:
(1) Health care or service.— Means any act, action or treatment provided or which should have been provided to a patient by a health service professional or a health care institution.
(2) Damage for malpractice.— Means any damage to a patient by error, omission, fault or negligence as a result of, or inherent in professional services rendered or which should have been rendered by a health service professional or a health care institution.
(3) Health care institution.— Means any facility or organization devoted to the care and maintenance of a patient’s health, including ambulatory surgical services authorized to operate as such, pursuant to the provisions of §§ 331 et seq. of Title 24, except nonprofit asylums as defined in said sections.
(4) Open market.— Means the market constituted by insurers, excluding surplus line insurers, who voluntarily and in the exercise of their rights to free competition, underwrite medical-hospital professional liability insurance policies.
(5) Plan.— Means the Insurers’ Syndicate Operating Plan.
(6) Health services professional.— Shall mean every person duly authorized pursuant to §§ 31–52d, 81–94u and 2851 et seq. of Title 20, and [who] practices the profession of physician, osteopath, dentist or podiatrist.
For the sole purpose that they may be insured by the Insurer’s Syndicate created in this chapter, this definition includes those professionals who are duly authorized to practice as naturopaths and doctors in naturopathy, as established by §§ 2501 et seq. and 2451 et seq. of Title 20.
(7) Medical-hospital professional liability insurance.— Means the professional liability insurance coverage established in this chapter for health service professionals and health care institutions.
(8) Qualified applicant.— Means any health services professional or health care institution, as defined herein, that has been unable to obtain medical-hospital professional liability insurance on the open market or prefers to obtain such insurance through the Syndicate.
(9) Syndicate.— Means the Insurers’ Syndicate to underwrite the medical-hospital professional liability insurance established in this chapter.
History —Ins. Code, added as § 41.020 on Dec. 30, 1986, No. 4, p. 869, § 1; Sept. 19, 1996, No. 242, § 1; Aug. 15, 1999, No. 247, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4103 - Insurers—Compulsory participation

Every insurer licensed in Puerto Rico to contract any type of insurance as defined in §§ 404–409 of this title shall participate through the Syndicate in issuing policies as contemplated in this program to cover the financial responsibility which is required hereinafter of the health service professionals and the health care institutions pursuant to what is established in this chapter.
The Commissioner, through regulation to that effect, and when deemed justifiable, shall distribute in equal amounts among insurers authorized in Puerto Rico to underwrite any type of insurance specified in the preceding paragraph, those policies exceeding the financial responsibility required by § 4105 of this title, whenever said persons could not find said coverage with authorized insurers in Puerto Rico, provided that the total policy shall not exceed two hundred and fifty thousand dollars ($250,000) per incident and five hundred thousand dollars ($500,000) per aggregate, and subject to reasonability, adequacy and market experience criteria, as established in § 1204 of this title.
History —Ins. Code, added as § 41.030 on Dec. 30, 1986, No. 4, p. 869, § 1; Dec. 19, 2002, No. 284, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4105a - Incorporation of naturopaths into the insurance program

The Insurer’s Syndicate created by § 4104 of this title, shall establish the measures needed to incorporate the naturopaths and Doctors in Naturopathy to the medico-hospital professional liability insurance program, in such a way that the naturopaths and doctors in naturopathy may begin to apply for coverage in the program thirty (30) days after the approval of this act.
History —Aug. 15, 1999, No. 247, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4106 - Reports—To the Commissioner

The insurers who participate in the open market, as well as the Syndicate shall submit to the Office of the Insurance Commissioner on the form required by him semiannual reports of each and every one of the malpractice claims, court resolutions, adjudications and judicial and extrajudicial transactions which are filed. This information shall be filed in the Office of the Insurance Commissioner on or before the month following the close of the previous semester. The Commissioner, in turn, shall remit a copy of said resolutions and adjudications and transactions, within thirty (30) days after having received them, to the Secretary of Health and the health service professionals board of examiners, as the case may be, to take whatever legal action is pertinent against the health service professionals or health care institutions. Failure to comply with this requirement shall be sanctioned by the Insurance Commissioner pursuant to the provisions of § 321 of this title.
History —Ins. Code, added as § 41.060 on Dec. 30, 1986, No. 4, p. 869, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4107 - Reports—To the Legislature

In view of the public interest which invests medicohospital liability insurance, the Commissioner shall file a report each year before the legislature on the operational results in this line of insurance individually and aggregately of the insurers who participate on the open market and the Syndicate. Said report shall include an evaluation of the operations and the manner that the insurers who are a part of the open market and the Syndicate are handling the needs of the health professionals and the health care institutions. He shall also report any problem that could seriously affect the interests of the participants and the insured, and advise of any legislative measures that should be considered to protect the Syndicate’s operational and financial integrity.
History —Ins. Code, added as § 41.070 on Dec. 30, 1986, No. 4, p. 869, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4108 - Claims—Complaint

Any civil suit that arises from a claim for damages due to fault or negligence in professional medicohospital malpractice shall be initiated by filing a complaint in the part of the competent court. In these civil suits, the court will have discretion to submit the claim to arbitration as provided in § 4109 of this title. In those cases in which one of the parties does not have sufficient means to pay the costs of the arbitration panel, he shall make it known by means of a motion after having been notified that the court plans to submit the claim for arbitration.
History —Ins. Code, added as § 41.080 on Dec. 30, 1986, No. 6, p. 927, § 1, eff. 60 days after Dec. 30, 1986.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4110 - Claims—Judgments; payments in installments

In judgments on civil actions for fault or negligence due to medical-hospital professional malpractice in which a compensation that exceeds one hundred thousand dollars ($100,000) is adjudicated, the court, after due petition of the party which justifies its necessity and convenience, or by stipulation, shall order or authorize installment payments of the amounts of the adjudicated compensation or stipulated between the parties in excess of said one hundred thousand dollars ($100,000) by means of a resolution to such effects.
For the purposes of this authorization or order, the court shall consider the financial means and current and future solvency of the parties, the rise in the cost of living, the resources that the party who was favored in the judgment requires for sustenance, and other needs, and anything else required to ensure the payment of the adjudicated compensation within the established terms and conditions. In its resolution, the court shall provide the dates, terms, and conditions of said installment payments, including interest to be paid, payment of the costs of the suit, the convenience of requiring the posting of a surety bond, and any other aspects thereof that are deemed reasonable and necessary.
If the amount of the judgment exceeds the total of the risk covered by a medical-hospital malpractice policy, the court may authorize the payment in installments of such part of the judgment that pertains to the insured’s health care professional or institution.
In no case may the payments for the fixed compensation exceed the term of eight (8) years.
When any installment of the adjudicated compensation is defaulted, the creditor may request the court to disallow the authorization to pay the compensation by installments, and the court shall issue an order requiring the debtor to pay the total unpaid balance in one payment.
If a complainant to whom compensation has been adjudicated dies, his heirs shall be entitled to receive the total of the balance of the adjudicated compensation still unpaid, unless some other thing is agreed to between said heirs and the defendant who is charged with paying the unpaid amount of the judgment.
History —Ins. Code, added as § 41.100 on Dec. 30, 1986, No. 6, p. 927, § 4; Aug. 5, 2003, No. 180, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 41 - Medical-Hospital Professional Liability Insurance (§§ 4101 — 4111) › § 4111 - Claims—Contingent fees; limit

The term “contingent fees” as used in this chapter means any agreement regarding fees under which the compensation is determined, in whole or in part, with the results obtained in the suit for damages for fault or negligence due to medicohospital professional malpractice against a health care professional or a health care institution.
With the exception of minors and disabled persons, for which the limits of contingent fees provided in § 742 of Title 4, shall prevail, attorneys shall not agree to or collect contingent fees to represent a person in a suit for damages for fault or negligence due to malpractice against a health care professional or a health care institution, in excess of the following compensation limits:
Compensation Fees (a) First $75,000 33% (b) First $75,001 to $150,000 $24,750 plus 25% of the excess $75,000 (c) $150,001 or more $43,500 plus 20% of the excess $150,000
Notwithstanding the above, the court may authorize the charging of contingent fees in these cases up to a maximum of 33% of the final product of the judgment, transaction or agreement, if the attorney should request it and can justify it.
This limit shall be of application [to any] transaction, arbitration award or judicial judgment, or if the person compensated is a nondisabled adult, except for the provisions of subsection (5) of this section.
History —Ins. Code, added as § 41.110 on Dec. 30, 1986, No. 6, p. 927, § 5, eff. 60 days after Dec. 30, 1986.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4201 - Charitable organizations—Definition

Any corporation or organization that is constituted pursuant to the laws of Puerto Rico, or a corporation or organization that is constituted pursuant to the laws of any state of the union or a foreign country that is duly authorized to do business in Puerto Rico, without capital shares, created as non-profitable, and actively managed for a term of at least five (5) years, prior to applying for a special license to subscribe life annuity contracts exclusively for religious, charitable, scientific, literary or educational purposes, or for the prevention of cruelty to children or animals, and tax exempted under Section 1101(4) of the Puerto Rico Internal Revenue Code of 1994.
History —Ins. Code, added as § 42.010 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4202 - Special license

The Commissioner may, at his discretion, issue a special license to charitable organizations to subscribe life annuity agreements known as annuities, with donors in Puerto Rico. The license will authorize the charitable organization to receive cash donations or properties, conditioned to or in exchange for an agreement to pay a life annuity or annuity payments to the donor or to the person designated by the donor, and to issue and execute said annuity contract. It shall also submit evidence that it has been duly registered in the Department of State of Puerto Rico.
No charitable organization may make or issue an annuity contract in Puerto Rico before obtaining a special license issued according to the provisions of this Code.
History —Ins. Code, added as § 42.020 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4204 - Required funds

The charitable organization shall possess and keep on deposit, assets for a value equal to the total of its reserves on annuity contracts in effect, plus a minimum surplus of ten percent (10%) of said reserves.
Upon determining said reserves, a deduction for the total or any portion of the risks of the annuities that are reinsured by a life insurance company authorized by the Insurance Commissioner to issue life insurance in Puerto Rico, shall be allowed.
The funds required for these annuities shall be invested in those investments authorized by this Code for the investment of the assets of the life insurance companies, and subject to the same limitations. Every authorized foreign charitable organization or [one] that requests authorization for a special license [to invest] its funds pursuant to the laws of the state, district, territory, country or province in which it is incorporated, shall be deemed to fulfill the requirements of this section for the investment of funds.
The required funds, and the income and earnings obtained from said funds, shall be kept apart as designated and separate funds, regardless of the other funds of the charitable organization, and shall not be used to pay debts or obligations nor for any purpose other than the payment of the benefits of the charitable annuities. The general assets of the charitable organization shall be responsible for any insufficiency of the funds thus segregated to meet the commitments contracted under the annuity contracts issued by said organization.
History —Ins. Code, added as § 42.040 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4205 - Annual reports

The charitable organization shall present an annual report to the Insurance Commissioner before March 31 of each year on the financial condition of the segregated fund of the charitable organization, in the form and with the general contents approved by the Commissioner of Insurance, unless the Commissioner extends said term.
History —Ins. Code, added as § 42.050 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4206 - Revocation or suspension of license

The Commissioner may investigate the operations of the charitable annuity programs of the charitable organizations holding special licenses, as empowered by §§ 201–232 of this title. If the Commissioner determines, after due notice and hearing, that a charitable organization holding a special license has not complied with the requirements of §§ 4201–4210 of this title, the Commissioner may revoke or suspend said special license or direct the charitable organization to desist from making new annuity contracts until it complies with said requirements.
History —Ins. Code, added as § 42.060 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4207 - Exemptions

Every charitable organization that obtains and maintains a special license shall be governed by the provisions of §§ 4201–4210 of this title, and those provisions of this Code that, because of their nature, are compatible with the purpose and scope of said sections.
History —Ins. Code, added as § 42.070 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4208 - Solicitation, negotiation, acquisition or subscription of annuity contracts

(1) The solicitation, negotiation, acquisition or subscription of annuity contracts shall be done directly by the charitable organization, its officers, salaried employees, and volunteers, and not by agents or other intermediaries.
(2) The charitable organizations mentioned in §§ 4201–4210 of this title, shall submit a list of all the persons who shall solicit, negotiate, obtain and subscribe annuity contracts, before the Commissioner, certifying that they have the necessary training and knowledge to carry out these tasks. Any changes or additions to the list shall be reported to the Commissioner within fifteen (15) days following the effectiveness of said additions or changes.
(3) Before accepting any property that is transferred to the charitable organization in exchange for an annuity contract, the organization shall obtain a sworn statement signed by the potential donor attesting to the following terms of the contract:
(a) The value of the transferred property.
(b) The amount of the periodic payments of the annuity contract.
(c) The manner that the payments are to be paid and the intervals for the payments.
(d) The fair value of the benefits created as of the date of the agreement.
(e) The date the payments shall begin.
(4) In addition to the above statements, the charitable organization shall obtain a written statement from the potential donor attesting that it has been informed that the payments made under the annuity contract are solely guaranteed by the full faith and credit of the organization; are not guaranteed or insured by an insurer; are not protected in any way by surety associations; and are not backed in any way by the Government of Puerto Rico.
(5) The requirements of subsections (3) and (4) of this section may be fulfilled by a recognition that is a part of the annuity contract that is signed by the donor.
History —Ins. Code, added as § 42.080 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4209 - Personal liability

No director, official or employee of the charitable organization shall be liable for the payment of any benefit provided by the annuity contract.
(1) No charitable organization shall discriminate or allow unreasonable discrimination between beneficiaries with the same life expectancy under life annuities of the same class when establishing the terms and conditions of the annuity contracts it issues.
(2) No charitable organization, per se or through others, shall give, offer, promise, grant, establish or pay, directly or indirectly, any asset or incentive to a donor to accept an annuity contract whose clauses and conditions are not those stated in the annuity certificate.
(3) The provisions of this Code shall be governed, as may be relevant, according to the provisions of the Civil Code of Puerto Rico concerning donations.
History —Ins. Code, added as § 42.090 on Aug. 12, 1999, No. 230, § 2.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 42 - Charitable Annuities (§§ 4201 — 4210) › § 4210 - Rules and regulations

The Commissioner may issue reasonable rules and regulations that will put any provisions of §§ 4201–4210 of this title into effect pursuant to § 204 of this title.
History —Ins. Code, added as § 42.110 on Aug. 12, 1999, No. 230, § 2.