P.R. Laws tit. 10, § 744
If the cost of any insurance were to be included in the contract:
(a) The contract shall state whether the insurance is to be procured by the buyer-holder or the seller.
(b) The amount, if any, so included for such insurance, shall not exceed the premiums approved by the Commissioner of Insurance.
(c) If the insurance is to be procured by the seller or holder, he shall, within thirty days after delivery of the goods or furnishing of the services under the contract, deliver, mail or cause to be mailed to the buyer, at his address as specified in the contract, a notice thereof or a copy of the insurance policy, or a certificate of the insurance so procured.
(d) Such notice, policy or certificate shall clearly set forth the amount of the premiums, the kind of insurance, the coverage thereof, and the terms, conditions, exceptions, limitations and restrictions of the insurance contracts. The retail installment buyer shall have the privilege of purchasing such insurance from an agent or broker of his own selection and of selecting an insurance company which is acceptable to the seller. However, the inclusion of the cost of the insurance premium in the contract when the buyer selects his agent, broker or company, shall be optional with the seller and, in such case, neither the seller nor the financing agency shall be under obligation to send or cause to be sent to the buyer, the notice, copy of the policy, or certificate thereof. Every institution engaged in financing the acquisition of motor vehicles by individuals, through a lease, shall provide to each individual requesting said financing, a form stating the following written notice in a clear and prominent text and in captions:
“IMPORTANT NOTICE: IT IS THE RIGHT OF EVERY CONSUMER TO CHOOSE HIS/HER PREFERRED INSURANCE AGENT OR BROKER OR INSURANCE COMPANY TO OBTAIN ANY INSURANCE NEEDED IN RELATION TO THE ACQUISITION OF A MOTOR VEHICLE. NO FINANCIAL INSTITUTION SHALL REQUIRE THAT THE CONSUMER OBTAIN, AS A CONDITION TO FINANCE SAID VEHICLE, INSURANCE FROM A PARTICULAR AGENT OR BROKER OR INSURANCE COMPANY. HOWEVER, THE FINANCIAL INSTITUTION MAY ESTABLISH STANDARDS IN TERMS OF THE TYPE OF INSURANCE COVERAGE OR THE EXTENT OF FINANCIAL SOLIDITY IT SHALL REQUIRE FROM THE INSURANCE COMPANY.”
Furthermore, before the applicant signs the aforesaid loan or financial lease contract, the financial institution shall obtain from the individual a written confirmation that he/she received the notice described above. The financial institution shall keep said confirmation in its records during the effectiveness of the contract.
History —June 19, 1964, No. 68, p. 192, § 204; July 23, 2008, No. 126, § 2, eff. 90 days after July 23, 2008.