P.R. Laws tit. 5, § 1410
When it is impossible to obtain reinsurance under reasonable conditions with insurance companies authorized to do business in Puerto Rico, the Puerto Rico Farm Insurance Corporation is hereby authorized to do reinsurance business with the Federal Crop Insurance Corporation of the Department of Agriculture of the United States, with any group of individual underwriters of the Lloyd class, or with any insurance company of the United States or any foreign country. The Puerto Rico Farm Insurance Corporation may make the contracts authorized by this section directly or through intermediaries located in Puerto Rico or abroad. Said intermediaries shall be exempt from compliance with the requirements of the Insurance Code of Puerto Rico, with regard to the transactions authorized herein.
When the magnitude of the risk to be assumed by the Puerto Rico Farm Insurance Corporation in connection with certain insurance in any one year may endanger the stability of its resources, the latter may pay out of its funds the reinsurance costs in excess of the income from said insurance, and/or pay out of its funds such part that the Puerto Rico Farm Insurance Corporation may determine from the cost of the premiums collected from the insured by the direct underwriters, and/or the necessary or pertinent expenses to obtain direct insurance from other underwriters.
History —Dec. 12, 1966, No. 12, p. 62, § 10, renumbered as § 11 and amended on Aug. 11, 1988, No. 166, p. 718, § 12.