P.R. Laws tit. 5, § 1408
The Puerto Rico Farm Insurance Corporation shall fix premiums for the farm insurance authorized by this chapter at a reasonable rate which is sufficient to cover the possible claims for losses, considering the possible occurrence and severity of the risk or hazard to be insured for a specific number of years. Said premiums shall be paid in the manner and at the time that the Puerto Rico Farm Insurance Corporation may determine in the regulations which are to govern each said farm insurance; Provided, That no insurance contract shall exist until the amount of the premium has been received in the Central Office of the Farm Insurance Corporation, unless the postponement of its payment is permitted in the corresponding regulations. The income from said farm insurance shall be covered into the “Farm Insurance Fund”, but a separate account shall be kept for each type of farm insurance provided.
The Puerto Rico Farm Insurance Corporation shall ensure that a sufficient reserve of such premiums’ income be accumulated in order to operate or to continue operating the different insurance plans that it may establish, taking into account the obligations contracted and the reinsurance placed in each one of said insurance plans, and the possibility of catastrophic losses, as well as other risks not anticipated when structuring the rates. The Insurance Commissioner of Puerto Rico shall have the faculty to evaluate such reserves, from time to time, for the purpose of determining if they are appropriate and to require the Farm Insurance Corporation to adopt a plan to keep said reserves at a level that the Insurance Commissioner may deem adequate.
History —Dec. 12, 1966, No. 12, p. 62, § 8, renumbered as § 9 and amended on Aug. 11, 1988, No. 166, p. 718, § 10.