2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4019 - Liquidation—Notice

(1) Unless the Receivership Court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:
(a) By first-class mail or other speedy printed means of communication, by telephone or electronic mail to the Insurance Commissioner of every jurisdiction where the insurer is doing insurance business;
(b) by first-class mail or electronic mail to any guaranty association or foreign guaranty association which is or may be obligated as a result of the liquidation;
(c) by first-class mail or electronic mail to all general agents, authorized representatives and producers who have placed insurance business with the insurer and all others the liquidator deems appropriate to their last known address, and
(d) by certified mail or electronic mail to any person known to have or reasonably expected to have claims against the insurer, including all policyholders, to their last known address as shown in the records of the insurer and also, through the publication of a notice once a week for three consecutive weeks in two newspapers of general circulation in Puerto Rico and other public places deemed appropriate by the liquidator.
(2) The notice to potential claimants pursuant to subsection (1) of this section shall require that they file with the liquidator their claims together with the corresponding proofs, as established in § 4033 of this title, on or before the date fixed by the Receivership Court for the filing of claims. Said term shall not exceed a period of six months from the date of issue of the liquidation order or any extension thereof that the Receivership Court may set for just cause. The liquidator need not require persons claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall have the obligation of keeping the liquidator informed of any change of address.
(3) If notice is given according to this section, the distribution of the assets of the insurer pursuant to this chapter shall be final with respect to all claimants, whether or not they have received the notice.
(4) The liquidation order notice shall contain the following information:
(a) A statement that the insurer has been placed in liquidation;
(b) a statement explaining that certain actions are stayed under § 4005 of this title and, if deemed necessary by the liquidator, describing any other relief ordered by the Receivership Court;
(c) a statement on the continuation of coverage of the policies in effect and on the date of termination;
(d) to the extent applicable, a statement of the coverage provided by guaranty associations for all or part of the policy benefits in accordance with the provisions governing guaranty associations;
(e) a statement of the deadline for filing claims and the requirements for filing the claims form pursuant to § 4033 of this title;
(f) a statement of the date, time, and location of any status hearing scheduled at the time the notice is sent;
(g) a description of the process for obtaining notice of matters before the Receivership Court, and
(h) other information as the liquidator or the Receivership Court deems appropriate.
(5) Notwithstanding the established above, the liquidator shall not be bound to locate a person or entity whose address does not appear on the records of the insurer, or if the notice is returned to the liquidator because its delivery at the address that appears on the books and records of the insurer was unsuccessful. In said cases, a notification through a notice in the newspaper, as required in this chapter, or a received notice shall be sufficient. The written certification of the liquidator, or of any other person acting on his/her behalf, attesting that the notices were deposited in the mail or transmitted electronically, shall be prima facie evidence that they were sent and received. It shall be the obligation of every claimant to keep the liquidator informed of any changes of address.
(6) Notwithstanding the provisions of subsection (1) of this section, by request of the liquidator, the Receivership Court may establish that the publication of the notice required by this section shall be sufficient notice to those persons who have an occurrence policy that matured more than four years before the liquidation order was issued, and under which no claims are pending; or the Receivership Court may order a new notice to those persons as it may deem appropriate.
History —Ins. Code, added as § 40.190 on Aug. 17, 1991, No. 72, § 1; Jan. 19, 2006, No. 10, § 9; Dec. 14, 2007, No. 206, § 19.