P.R. Laws tit. 3, § 9034
The proceeds of the monthly premiums shall be allocated as follows:
(a) Ten percent (10%) to create a reserve fund which shall be used to defray claims filed prior to the approval of this act pending payment and for future contingencies or claims, except when the solvency of the fund does not allow it. This reserve shall not be less than fifty percent (50%) of the total deposits during the year immediately preceding.
(b) Fifteen percent (15%) or less to defray operating expenses of the insurance plan.
(c) The remainder shall be applied to provide for the life insurance in such amounts as the Assembly of Delegates may fix every year upon actuarial determination. These amounts shall be fixed for each one of the following categories, according to its own experience:
(1) Death of members, first category.
(2) Death of members, second category.
(d) Life insurance for former employees covered by first and second category insurance shall be of a value equal to that of active members. Of the premiums paid by former employees covered thereunder, no sum shall be used for the years of service insurance, but said total premiums shall be deposited into the death insurance fund for active members and former employees covered thereunder.
History —Apr. 25, 2013, No. 9, § 35.