reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 12 - Rates and Rating Organizations (§§ 1201 — 1240) › § 1237 - Advisory organisms—Disqualification

No insurer which makes its own filings nor any rating organization shall support its filings by statistics or adopt rate making recommendations, furnished to it by an advisory or service organization which has not complied with §§ 1235 and 1236 of this title, or with an order of the Commissioner involving such statistics or recommendations issued under § 1236 of this title. If the Commissioner finds such insurer or rating organization to be in violation of this section, he may issue an order requiring the discontinuance of such violation.
History —Ins. Code § 12.370.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 12 - Rates and Rating Organizations (§§ 1201 — 1240) › § 1238 - Right to hearing before the Commissioner

Any insurer, rating organization, or advisory organization aggrieved by any order or decision of the Commissioner made without a hearing, may, within thirty days after notice of the order to the insurer or rating organization, make written request to the Commissioner for a hearing thereon. Pending the hearing and a decision affirming, reversing or modifying his previous action, the Commissioner may suspend or postpone the effective date of his previous action.
History —Ins. Code § 12.380.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 12 - Rates and Rating Organizations (§§ 1201 — 1240) › § 1239 - Appeal from Commissioner

The findings, determination and orders of the Commissioner made after notice and hearing, pursuant to this chapter, shall be subject to review by the Court of First Instance. In the event of final determination against any insurer, the amount of any overcharge received by such insurer during the pendency of such proceedings, with interest thereon, shall upon demand be refunded by such insurer to the persons entitled thereto.
History —Ins. Code § 12.390.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 12 - Rates and Rating Organizations (§§ 1201 — 1240) › § 1240 - Penalty for violations

Any person, association, corporation or rating organization that violates any of the provisions of this chapter shall, upon conviction thereof, be punished by a fine of not less than fifty dollars ($50) nor more than five hundred dollars ($500) for each offense.
If it is determined after due notice and hearing, that any authorized insurer, licensed insurance producer has violated any of the provisions of this chapter, the Commissioner, in lieu of any other penalty prescribed by law, may order such insurer, producer, as the case may be, to pay to the Commonwealth of Puerto Rico as a penalty, a sum no greater than five thousand dollars ($5,000) for each offense, and the failure of any person to pay such penalty within thirty days after issuing such order, unless such order is suspended by an order of the Court of First Instance, shall constitute a violation of the provisions of this chapter.
Within the meaning of this section, the issuing, procurement or denial of each insurance policy by the insurer, producer, as the case may be, in violation of the provisions of this chapter, shall be deemed a separate offense.
The proceeds of any penalty imposed by virtue of this chapter shall be covered into the general funds of the Commonwealth of Puerto Rico.
History —Ins. Code § 12.400; May 24, 1974, No. 46, Part 1, p. 200, § 4; June 4, 1983, No. 89, p. 211, § 6; 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 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1336 - Scope of chapter

The provisions of this chapter apply to contracts of life insurance and annuities other than reinsurance, group or collective life insurances or annuities. Sections 1367–1379 of this title, however, shall apply to both group and individual contracts on variable annuities.
History —Ins. Code, added as § 13.010 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1337 - Standard provisions required

(1) No policy of life insurance other than group and pure endowments with or without return of premiums or of premiums and interest shall be delivered or issued for delivery in Puerto Rico unless it contains in substance all of the provisions required by §§ 1340–1349 of this title. This section shall not apply to annuity contracts.
(2) Any of such provisions or portions thereof not applicable to single premium or term policies shall to that extent not be incorporated therein.
History —Ins. Code, added as § 13.020 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1338 - Right to examine the policy

A provision that establishes the right of the insured to examine the policy shall be included therein. The provision shall appear on the cover page of the policy, or in any area that is visible without opening the same.
History —Ins. Code, added as § 13.030 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1339 - Beneficiary

The policy shall include a beneficiary provision which shall describe the terms and conditions for designating or changing beneficiaries, or for selecting default beneficiaries, as needed, and indicating when such designation is effective. The policy shall state those changes in beneficiary, unless otherwise specified by the owner, subject to any payment made or action taken by the company prior to the receipt of this notice. If any reference to irrevocable beneficiaries is made in the policy, the same shall explain that such a beneficiary cannot be changed without the consent of the irrevocable beneficiary.
History —Ins. Code, added as § 13.040 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1340 - Grace period

There shall be a provision that the insured is entitled to a grace period of one (1) month, but not less than thirty (30) days, within which the payment of any premium after the first may be made, subject, at the option of the insurer, to an interest charge not in excess of six percent (6%) per annum for the number of days of grace elapsing before the payment of the premium, during which period of grace the policy shall continue in force, but in case the policy becomes a claim during the grace period before the overdue premium is paid, or the deferred premiums of the current policy year, if any, are paid, the amount of such premium or premiums with interest thereon may be deducted in any settlement under the policy.
History —Ins. Code, added as § 13.050 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1341 - Entire contract

In all such policies other than those containing a clause making the policy incontestable from date of issue, there shall be a provision that the policy and the application therefor, if a copy thereof has been endorsed upon or attached to the policy, at issue and made a part thereof, shall constitute the entire contract between the parties. Moreover, all statements made by the applicant or by the insured shall, in the absence of fraud, be deemed representations and not warranties.
History —Ins. Code, added as § 13.060 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1342 - Incontestability

There shall be a provision that the policy shall be incontestable after it has been in force during the lifetime of the insured, for a period not exceeding two (2) years from its issuance date, except for nonpayment of premiums and, at the option of the insurer, for violation of any of the limitations permitted under § 1360 of this title, if contained in the policy. No statement made by any insured person, in accordance with § 1110 of this title, shall be used in any litigation, unless a copy of the document that contains said statement is or has been delivered to said person or his/her beneficiary.
The policy shall allow a separate contestable period not to exceed two (2) years after the date of any change requiring underwriting. The contest shall be limited to the change and the statements provided therefor.
History —Ins. Code, added as § 13.070 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1343 - Misstatement of smoking status

The policy shall have a clause to the effect that if it is found that the insured has misstated or stated his/her smoking status contrary to fact at the time of making the statement, the policy may provide for an adjustment due to a false smoking status statement to be made during the first two (2) years thereof; provided, that the amount to be paid at the time of death shall be the benefit amount that the premium would have purchased taking into consideration the smoking status.
History —Ins. Code, added as § 13.080 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1344 - Misstatement of age or sex

There shall be a provision that if it is found that the age or the sex of the insured (or the age or sex of any other individual considered in determining the premium) was misstated or stated contrary to fact at the time the statement was made. The amount payable or benefit accruing under the policy shall be such as the premium would have purchased at the correct age, ages, sex or sexes according to the insurer’s rate at date of issue.
Misstatement of age or sex, as provided in the paragraph above shall not be cause for the termination or refund of the premium. At the option of the insured, the company shall extrapolate the premium and the term of coverage to the true age or sex of the insured.
History —Ins. Code, added as § 13.090 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1345 - Participation in surplus

(1) In all policies which provide for participation in the insurer’s surplus, there shall be a provision that the policy shall so participate annually in the insurer’s divisible surplus as apportioned by the insurer, except that, at the option of the insurer, such apportionment, if any, may be deferred to the end of the third policy year. Any policy containing provision for annual participation beginning at the end of the first policy year, may also provide that payment of the first dividend shall be subject to the payment of the premium for the next ensuing year. The person entitled thereto under any annual dividend policy shall have the right each year to have the current dividend arising from such participation either paid in cash, or applied in accordance with such other dividend option specified in the policy and elected by such person. The policy shall further provide which of the options shall be effective if such person shall not have elected an option prior to expiration of the period of grace allowed for the payment of premiums. This section shall not prohibit the payment of additional dividends on default of payment of premiums or termination of the policy.
(2) This section shall not apply to paid-up nonforfeiture benefits nor to paid-up policies issued on default in payment of premiums.
(3) If the policy includes participation, the specifications sheet shall indicate that the dividends are not guaranteed.
History —Ins. Code, added as § 13.110 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1347 - Table of installments

If the policy provides for payment of its proceeds in installments, a table showing the amount and period of such installments shall be included in the policy; except, with respect to any provision for payment of the proceeds as a life annuity based on or related to the insurer’s annuity rates in current use at the time the proceeds become payable; and except, further, that, if in the judgment of the Commissioner, it is not practical to include certain tables in the policy, the requirements of this section may be met as to such policy by the insurer’s filing such tables with the Commissioner.
History —Ins. Code, added as § 13.130 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1348 - Reinstatement

There shall be a provision that the policy may be reinstated at any time within three (3) years after the date of default in the payment of any premium, unless the policy has been surrendered for its cash value, or the period of any extended insurance provided by the policy has expired, upon evidence of insurability, including good health, satisfactory to the insurer, and the payment of all overdue premiums, and payment (or, within the limits permitted by the then cash surrender value of the policy upon reinstatement) of any other indebtedness to the insurer upon the policy, with interest as to both premiums and indebtedness at a rate not exceeding six percent (6%) per annum compounded annually.
(1) With respect to statements made in an application for reinstatement, the policy shall be incontestable after having been in force during the lifetime of the insured for a period not exceeding two (2) years from its issuance date, beginning on the date of reinstatement. The contestable period shall be based only on statements in the reinstatement application, unless the original contestable period has not yet expired.
(2) The suicide exclusion shall not exceed two (2) years from the date of reinstatement.
History —Ins. Code, added as § 13.140 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1349 - Settlement on proof of death

There shall be a provision that when a policy becomes a claim by the death of the insured, settlement shall be made upon receipt of due proof of death and surrender of the policy.
History —Ins. Code, added as § 13.150 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1350 - Annuities and pure endowment contracts; standard provisions required

(1) No annuity or pure endowment contract other than a reversionary annuity, a survivorship annuity, or a group annuity, shall be delivered or issued for delivery in Puerto Rico unless it contains in substance each of the provisions specified in §§ 1351–1356 of this title. Any of such provisions not applicable to single premium annuities or single premium pure endowment contracts shall not, to that extent, be incorporated therein.
(2) This section shall not apply to contracts for annuities included in, or upon the lives of beneficiaries under, life insurance policies.
History —Ins. Code, added as § 13.160 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1351 - Grace period

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity there shall be a provision that there shall be a period of grace of one (1) month, but not less than thirty (30) days, within which any stipulated payment to the insurer falling due after the first may be made, subject, at the option of the insurer, to an interest charge thereon at a rate to be specified in the contract but not exceeding six percent (6%) per annum for the number of days of grace elapsing before such payment, during which grace period the contract shall continue in full force and effect; but in case a claim arises under the contract during the grace period before the overdue premium is paid, or the deferred premiums or considerations of the current contract year, if any, are paid, the amount of such premium or considerations, with interest thereon, may be deducted in any settlement under the contract.
History —Ins. Code, added as § 13.170 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1352 - Incontestability

If any statements, other than those related to age, sex or identity, are required as a condition to issuing an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, subject to § 1354 of this title, there shall be a provision that the contract shall be incontestable after it has been in force during the lifetime of the person or of each of the persons [regarding] whom such statements are required, for a period not exceeding two (2) years from its date of issue, except for nonpayment of stipulated payments to the insurer and, at the option of the insurer, violation of any of the limitations permitted under § 1360 of this title, if included in the policy.
History —Ins. Code, added as § 13.180 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1353 - Entire contract

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that the contract shall constitute the entire contract between the parties, or, if a copy of the application is endorsed upon or attached to the contract when issued, a provision that the contract and the application therefor shall constitute the entire contract between the parties.
History —Ins. Code, added as § 13.190 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1354 - Misstatements of age or sex

If an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that if the age or the sex of the person or persons upon whose life or lives the contract is executed, or of any of them, has been misstated or stated contrary to fact at the time the statement was made, the amount payable or benefit accruing under the contract shall be such as the stipulated payment or payments to the insurer would have purchased according to the correct age or sex; and that if the insurer shall make or has made any overpayment or overpayments on account of any such misstatement, the amount thereof, with interest at the rate to be specified in the contract but not exceeding six percent (6%) per annum, may be charged against the current or next succeeding payment or payments to be made by the insurer under the contract.
History —Ins. Code, added as § 13.200 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1355 - Dividends

If an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, is a participating contract, there shall be a provision that the insurer shall ascertain and apportion any divisible surplus accruing on the contract beginning not later than the end of the third policy year and annually thereafter.
History —Ins. Code, added as § 13.210 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1356 - Reinstatement

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that the contract may be reinstated at any time within one (1) year from the date of default in making stipulated payments to the insurer, unless the cash surrender value of the policy has been paid upon delivery, but all overdue stipulated payments and any indebtedness to the insurer on the contract shall be paid or reinstated, with interest thereon at a rate to be specified in the contract but not exceeding six percent (6%) per annum compounded annually, and in cases where applicable, the insurer may also include a requirement of evidence of insurability, including good health, satisfactory to the insurer.
History —Ins. Code, added as § 13.220 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1357 - Reversionary annuities, standard provisions required

(1) No contract for a reversionary annuities shall be underwritten or issued for delivery in Puerto Rico, unless it contains in substance each of the provisions specified in §§ 1358 and 1359 of this title. Any of such provisions not applicable to single premium annuities shall not, to that extent, be incorporated therein.
(2) This section shall not apply to annuities included in life insurance policies.
History —Ins. Code, added as § 13.230 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1358 - Provisions for reversionary annuities same as for other annuities

Any reversionary annuity contract shall contain the provisions specified in §§ 1351–1355 of this title, except that under § 1351 of this title, the insurer may at its option provide for an equitable reduction of the amount of the annuity payments in settlement of an overdue or deferred payment in lieu of providing for a deduction of such payments from an amount payable upon a settlement under the contract.
History —Ins. Code, added as § 13.240 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1359 - Reinstatement of reversionary annuities

In reversionary annuity contracts there shall be a provision that the contract may be reinstated at any time within three (3) years from the date of default in making stipulated payments to the insurer, upon production of evidence of insurability, including good health, satisfactory to the insurer, and upon condition that all overdue payments and any indebtedness to the insurer on account of the contract be paid or reinstated, within the limits permitted by the cash surrender value of the contract with interest as to both premiums and indebtedness at a rate to be specified in the contract but not exceeding six percent (6%) per annum compounded annually.
History —Ins. Code, added as § 13.250 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1361 - Incontestability after reinstatement

The reinstatement of any policy of life insurance or contract of annuity underwritten or issued for delivery in Puerto Rico, after the effective date of this Code, may be contestable or on account of fraud or misrepresentation of facts material to the reinstatement, only for the same period following reinstatement as the policy provides with respect to contestability after original issuance.
History —Ins. Code, added as § 13.270 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1362 - Policy settlements

A life insurer shall have the power to retain under agreement the proceeds of any policy issued by it, upon such terms and restrictions as to revocation by the policyholder and control by beneficiaries, and with such exemptions from the claims of creditors of beneficiaries, other than the policyholder, as set forth in the policy or as agreed to in writing by the insurer and the policyholder. Upon maturity of a policy, in the event the policyholder has made no such agreement, the insurer shall have the power to retain the proceeds of the policy under an agreement with the beneficiaries. The insurer may retain such proceeds as part of its general assets.
History —Ins. Code, added as § 13.280 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1363 - Disposition of miscellaneous proceeds

Upon the death of the insured, and except as otherwise expressly provided by the policy, a life insurer may pay to the surviving spouse, children, beneficiaries, or other person other than the insured’s estate, appearing to the insurer to be equitably entitled thereto, sums then held by it and comprising:
(1) Premiums paid in advance but not due prior to such death, or funds withheld on deposit for the payment of future premiums.
(2) Dividends theretofore declared on the policy and withheld by the insurer under the insured’s option.
(3) Dividends becoming payable on or after the death of the insured.
History —Ins. Code, added as § 13.290 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1364 - Life insurance under a franchise plan

(1) Life insurance under a franchise plan is that which is issued to three or more employees of a common employer, or three or more members of a bona fide association or labor union organized and existing for purposes other than the obtaining of insurance, and according to which individual policies are issued to such employees or members. The premiums of these policies shall be paid to the insurer periodically through deductions in the payroll, or without deduction, by the employer or by the association, or by any employee or director of the association designated to act on behalf of the employer or of the association’s members.
(2) The term employer also includes the directors of the employer and the employer or the partners, if the employer is a person or a partnership.
(3) No life insurance policy under a franchise plan may be issued to the employees of an employer or the members of an association which provides a life insurance that, together with any other life insurance under a franchise plan issued to said employees or members, exceeds $150,000, unless [two hundred percent] (200%) of the annual compensation of such an employee or member exceeds $150,000, in which event the life insurance under the franchise plan shall not exceed $300,000, or [two hundred percent] (200%) of said annual compensation, whichever is the lesser.
(4) The life insurance under a franchise plan may be extended to cover the lives of the spouse and dependent children of the insured employee or member. The amount of insurance on the life of the spouse shall not exceed [fifty percent] (50%) of the amount of insurance on the life of the insured employee or member, or $75,000, whichever is the lesser, and the amount of insurance on the life of the dependent children shall not exceed $6,000.
(5) As of the second year after the effective date of this act, the sums of the life insurance and the percentages authorized by this chapter may be increased in accordance with the increases in cost of living as published by the Federal Department of Commerce.
(6) An insurer may charge different rates, provide different benefits or employ different procedures to underwrite insurances for insureds under a franchise plan, if such rates, benefits or procedures, as used, do not establish an unfair differentiation between franchise plans and insureds under those plans that essentially have the same factors of insurance, risks, exposition or expense elements.
(7) Life insurance policies under a franchise plan shall contain the standard provisions required by § 1337 of this title.
History —Ins. Code, added as § 13.300 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1365 - Prohibited policy plans

No life insurer shall hereafter issue for delivery, or deliver in Puerto Rico, any life insurance policy:
(1) Issued under any plan other than a legal reserve plan based on a mortality table approved by the Commissioner.
(2) Issued under any plan for the segregation of policyholders into mathematical groups and providing benefits for a surviving policyholder of a group arising out of the death of another policyholder of such group, or under any other similar plan.
(3) Providing benefits or values for surviving or continuing policyholders contingent upon the lapse or termination of the policies of other policyholders, whether by death or otherwise.
History —Ins. Code, added as § 13.310 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1367 - Local insurance companies

A local insurer can establish one or more separate accounts, and may place assets in them (including, without being limited to the products applied in agreement with the settlement options method or in agreement with dividend options) to be used for life insurances or annuities (and incidental benefits), payable in fixed or variable amounts or both, subject to the following:
(1) The income, earnings or losses, realized or unrealized, on assets placed in a separate account shall be credited to, or charged against the account, and shall neither affect nor be affected by other income, earnings, or loss of the insurance company.
(2) Except as provided with regards to guaranteed benefits reserves and funds referred to in § 1375 of this title:
(a) Assets placed in a separate account and accruals thereon may be invested and reinvested, notwithstanding the requirements or limitations prescribed by this title regulating investments of life insurers.
(b) Investments of a separate account or accounts shall not be taken into account in the application of the investment limitations otherwise applicable to the insurer’s investments.
(3) No insurer may sell, exchange or otherwise transfer assets between any of his/her separate accounts or between any other investments account and one or more of his/her separate accounts, unless, in case of a transfer to a separate account, said transfer is only made to establish the account or support the operation of the contracts with respect to the separate account to which the transfer is made, and unless such transfer, either to or from a separate account, is made: (a) through the transfer of assets, or (b) through the transfer of securities that have a market value easy to determine, as long as said transfer of securities is approved by the Commissioner. The Commissioner may authorize other transfers between said accounts, if, in his/her opinion, said transfers are equitable.
History —Ins. Code, added as § 13.330 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1368 - Statement in contract requirement

A variable contract delivered or issued for delivery in Puerto Rico shall include a statement of the essential characteristics of the procedure to be followed by the insurer when determining the sum of the variable benefit provided under the contract. Any contract of this kind under which the benefits vary to show the investment experience, including a group contract and certificates evidencing the variable benefits issued under a group contract shall specify that said sum shall vary in accordance with the investment experience and shall include in its first page a statement to the effect that the benefits of the same are variable.
History —Ins. Code, added as § 13.340 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1369 - Authorization certificate requirement

(1) No insurer may render or issue variable contracts for delivery in Puerto Rico, unless he/she is authorized to contract life insurance and annuities in Puerto Rico, and the Commissioner is satisfied that his/her operating state or method with regard to the issuance of said contracts and the maintenance of the separate account do not constitute a danger for the public or policy holders in Puerto Rico. With regard to the foregoing, the Commissioner shall take into consideration, among others, the following factors:
(a) History and financial state of the insurer;
(b) character, responsibility and competence of the officers and directors of the insurer as well as of his/her agents in Puerto Rico, and
(c) laws and regulations under which the insurer has been authorized in his/her state of residence to issue variable contracts.
(2) If the insurer is a subsidiary of an authorized life insurer in Puerto Rico, or if he/she is affiliated to such insurer authorized by shareholders or common administration, the Commissioner may deem that the provisions on the state or operating method of this section has been complied with if any of the two (2) insurers has complied with said provisions.
History —Ins. Code, added as § 13.350 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1370 - Independent investments

The amounts placed in any such separate account and the accruals thereon may be invested and reinvested regardless of the requirements or limitations prescribed by this Code regulating investments of life insurance companies. The investments of said separate account or accounts shall not be taken into consideration in the application of the investment limitations otherwise applicable to the company’s investments.
History —Ins. Code, added as § 13.360 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1371 - Income, earnings and losses

The income, earnings and losses realized or unrealized, on assets placed in a separate account shall be credited to, or charged against, the account, and shall neither affect nor be affected by other income, earning or loss of the insurance company.
History —Ins. Code, added as § 13.370 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1372 - Insurance company not a fiduciary

The amounts placed in a separate account in the exercise of the power conferred by this chapter, shall not convert the insurance company into a fiduciary of such amounts.
History —Ins. Code, added as § 13.380 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1373 - Insurance code application; exceptions; liability reserve

All pertinent provisions of this Code shall apply to the separate accounts and to the related contracts, except for §§ 1351, 1355, 1356 and 1359 of this title in the case of a variable annuity contract, and §§ 1340, 1346–1348 and 1366 of this title in the case of a variable life insurance policy. The Commissioner may, by regulations, require that an individual variable annuity contract underwritten or issued for delivery in Puerto Rico shall include appropriate provisions with regard to grace periods and reinstatement. Any individual variable life insurance contract underwritten or issued for delivery in Puerto Rico shall include appropriate provisions with regard to grace periods, reinstatement, and appropriate provisions in such contract regarding nonforfeiture. The liability reserve for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality warranty.
History —Ins. Code, added as § 13.390 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1374 - Authority of Commissioner

The Commissioner shall have the authority to prescribe appropriate rules and regulations to achieve the purposes and enforce the provisions of §§ 1336, 1367 and 1373 of this title.
History —Ins. Code, added as § 13.400 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1375 - Guaranteed benefits

The assets that support the guaranteed benefits reserve, in the amount as well as in the duration of the benefit, and guaranteed funds, in the principal as well as in the established interest rate, shall not be kept in a separate account.
History —Ins. Code, added as § 13.410 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1376 - Assessment of assets in separate accounts

Except as otherwise provided by the Commissioner through regulations:
(1) Assets placed in a separate account shall be assessed in the basis of market value at the time of the assessment or, in the event there is not an immediately available market at the time, the assessment shall be made in agreement with the terms of the contract, rules or other written agreement applicable to such separate account;
(2) Provided, That the portion, if any, of the assets of said separate account equal to the reserve of the insurer with respect to the benefits, and the funds referred to in § 1375 of this title, are assessed in agreement to the standards otherwise applicable to the assets of the insurer.
History —Ins. Code, added as § 13.420 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1377 - Special rights to persons who invest in separate accounts

As an insurer may deem it necessary to meet the applicable federal or state laws, said insurer, with respect to a separate account, including without being limited to any separate account that is a stocks management company or an investment trust, may grant the right to vote and other special rights and procedures to conduct the account business, to persons who are interested in the same, including without being limited to special rights and procedures related to the investment policy, investment consulting services, selection of independent public accountants, and the selection of a committee, whose members are not otherwise bound to be affiliated with the insurer, for managing the account business.
History —Ins. Code, added as § 13.430 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1378 - Applicability of the Investment Companies Act

The separate account created by a local insurer to be used for life insurance or annuities (and incidental benefits), payable in fixed or variable amounts or both, shall be considered an investment company under §§ 661 et seq. of Title 10, known as the “Investment Companies of Puerto Rico Act”; Provided, however, That subsections (b) and (c) of § 662 of Title 10, the last paragraph of § 663 of Title 10, and subsections (e) and (f) of § 666 of Title 10 shall not apply to the separate account under said sections.
History —Ins. Code, added as § 13.440 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 13A - Life Insurance and Annuities (§§ 1336 — 1379) › § 1379 - Uniform Securities Act

The powers granted to the Commissioner of Financial Institutions, pursuant to §§ 851–895 of Title 10, known as the “Uniform Securities Act”, with regards to the regulation and supervision of all aspects of the variable annuities as long as these are securities, shall not be affected in any manner by the enforcement of this section and §§ 1366–1374 of this title. These securities, variable annuities, shall remain covered by the “Uniform Securities Act” and the regulations approved thereunder.
History —Ins. Code, added as § 13.450 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 14 - Group Life Insurance (§§ 1401 — 1411) › § 1403 - Standard provisions

No policy of group life insurance shall be issued to be delivered in Puerto Rico unless it contains in substance the provisions of §§ 1404–1411 of this title, inclusive, or provisions which in the opinion of the Commissioner are more favorable to the persons insured, or at least as favorable to the person insured and more favorable to the policyholder; Provided, however, That:
(a) Sections 1408–1410 inclusive shall not apply to policies issued to a creditor to insure debtors of such creditor;
(b) the standard provisions required for individual life insurance policies shall not apply to group life insurance policies, and
(c) if the group life insurance policy is on a plan of insurance other than the term plan, it shall contain a nonforfeiture provision or provisions which in the opinion of the Commissioner is or are equitable to the insured persons and to the policyholder, but nothing herein shall be construed to require that group life insurance policies contain the same nonforfeiture provisions as are required for individual life insurance policies.
History —Ins. Code, added as § 14.030 on June 6, 1960, No. 64.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 14 - Group Life Insurance (§§ 1401 — 1411) › § 1404 - Grace period

A provision that the policyholder is entitled to a grace period of thirty-one days for the payment of any premium due except the first, during which grace period the death benefit coverage shall continue in force, unless the policyholder shall have given the insurer written notice of discontinuance in advance of the date of discontinuance and in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a pro rata premium for the time the policy was in force during such grace period.
History —Ins. Code, added as § 14.040 on June 6, 1960, No. 64.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 14 - Group Life Insurance (§§ 1401 — 1411) › § 1405 - Incontestability

(1) A provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two years from its date of issue; and that no statement made by any person insured under the policy relating to his insurability shall be used in contesting the validity of the insurance with respect to which such statement was made after such insurance has been in force prior to the contest for a period of at least two years nor unless it is contained in a written instrument signed by him.
(2) A provision that a copy of the application, if any, of the policyholder shall be attached to the policy when issued; that all statements made by the policyholder or by the persons insured shall be deemed representations and not warranties; and that no statement made by any person insured shall be used in any contest unless a copy of the instrument containing the statement is or has been furnished to such person or to his beneficiary.
History —Ins. Code, added as § 14.050 on June 6, 1960, No. 64.
2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 14 - Group Life Insurance (§§ 1401 — 1411) › § 1406 - Evidence of insurability

A provision setting forth the conditions, if any, under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as a condition to part or all of his coverage.
History —Ins. Code, added as § 14.060 on June 6, 1960, No. 64.