P.R. Laws tit. 6, § 46
No association subject to the provisions of this chapter may carry out the activities for which it was created without being previously authorized by the Commissioner of Insurance of Puerto Rico by means of the corresponding certificate. The application blank for that purpose shall be furnished by the Commissioner of Insurance upon request, and shall contain such information as the said Commissioner of Insurance may deem necessary. The application shall be accompanied by the following documents:
(a) Regulations of the association.
(b) Certified copy of the articles of incorporation.
(c) Form of contract to be issued to subscribers, showing table of rates to be charged and benefits to which they shall be entitled.
(d) Form of contract to be entered into between the association and the hospital or group of hospitals and/or group of doctors; showing conditions under which the services are to be rendered.
(e) Financial statement of the association, including the amount received from paid-up subscriptions or amounts subscribed and due the association as working capital, names of contributors, and terms of each contribution.
For every authorization certificate issued each year by the Commissioner of Insurance of Puerto Rico the sum of ten dollars ($10) shall be paid.
The Commissioner of Insurance shall not issue an annual license to any association organized under this chapter to establish, maintain, and operate a hospital and/or medical-surgical service, unless the following has been proved to his satisfaction:
(a) That the applicant has been organized as a bona fide nonprofit association to render hospital and/or medical-surgical services;
(b) that the contract entered into between the applicant and the participating hospitals and/or doctors shall compel the hospital or group of hospitals and the doctors who are parties to the contract to give services to each subscriber having a right thereto under the terms of the contract issued to him;
(c) that the fees established and the benefits offered are fair and reasonable;
(d) that the amounts set up as working capital shall be reimbursed only from the excess of the accrued income, after deducting the operating and hospitalization expenses and for medical services and from those reserves that the Commissioner of Insurance may consider adequate;
(e) that the amount available as working capital shall be sufficient to cover all operation expenses and acquisition costs for a reasonable length of time, commencing from the date on which the authorization certificate is issued, and
(f) that the association shall not devote more than 20 percent (20%) of its income from subscription fees in any one year to administrative expenses.
History —May 9, 1942, No. 152, p. 828, § 6; June 21, 1968, No. 109, p. 219, § 1.