P.R. Laws tit. 26, § 2304
(1) In addition to the reserve for contingencies required in § 2302 of this title, every insurer of mortgage loans shall establish a reserve for losses for the payment of estimated claims and adjustment expenses in the following cases:
(a) Loans in which the insured holds ownership title acquired as previous requirements to the filing of a claim.
(b) Loans under foreclosure proceedings.
(c) Loans in default for four (4) or more monthly payments.
(d) Expenses of losses adjustment in all the cases above mentioned.
(2) Properties acquired in payment of claims shall be entered in the books of the insurer at a value not to exceed the reasonable market value. When the cost of acquisition of the claim exceeds said value, the excess shall be charged to subscription losses.
History —Ins. Code, added as § 23.040 on Mar. 11, 1976, No. 12, p. 27, § 1.