P.R. Laws tit. 26, § 2303
(1) Mortgage loans insurance may be transacted only by a stock insurer duly authorized pursuant to this chapter and shall be written only to insure loans secured by authorized realty guaranties as defined in § 2301 of this title.
(2) An insurer shall limit the amount or his obligation to a maximum of thirty percent (30%) of the amount of any claim payable under the terms of his policy, but instead of paying the above-mentioned amount the insurer may elect to pay in full the amount of the claim as defined in his policy, and acquire the ownership title to the realty guaranty. Upon determining his obligation, the insurer may deduct from it the portion ceded through the reinsurance authorized by § 412 of this title.
(3) An insurer of mortgage loans insurance who transacts elsewhere any kind of insurance other than mortgage loans insurance is not eligible for the issuance to him of a certificate of authority to transact mortgage loans insurance, nor for the renewal thereof.
(4) Nothing contained in this chapter shall be construed as limiting the right of any mortgage loans insurer to impose reasonable requisites to the lender with regard to the terms of any note or bond, or any other evidence of indebtedness secured by mortgage or trust deed, such as to require from the borrower a stipulated amount as down payment.
History —Ins. Code, added as § 23.030 on Mar. 11, 1976, No. 12, p. 27, § 1; Jan. 19, 1998, No. 31, § 2; May 16, 2002, No. 65, § 2.