P.R. Laws tit. 26, § 2507
(1) Any native insurer who ceases to underwrite catastrophic insurance in Puerto Rico shall maintain its reserve for catastrophic insurance until six (6) months have elapsed after each and every one of its policies that provide catastrophic insurance coverage have ceased to be in effect or until all the claims that have arisen pursuant to said policies have been settled or closed, whichever of these two periods is the last.
(2) Once the period stipulated herein has elapsed, the domestic insurer may eliminate the reserve for catastrophic insurance losses only with the prior approval of the Commissioner, and through the payment to the Secretary of the Treasury, via the Commissioner, of a special tax of fifteen percent (15%) on the paid-in amounts and the taxable income obtained from the investment thereof which at the time of the approval are deposited in the trust established pursuant to § 2504 of this title, and whose taxation has been deferred pursuant to § 2503(6) of this title. The domestic insurer may eliminate the reserve for catastrophic insurance losses and withdraw the assets from the trust only after having obtained said approval and having paid the special tax.
(3) If said insurer wishes to resume underwriting said insurance after the date on which a native insurer has been given the approval to eliminate the reserve for catastrophic insurance losses from its liabilities and has withdrawn or reduced the assets of the trust, pursuant to § 2506(2) of this title, it would then be bound to establish such reserve through contributions of monies to the trust in amounts equal to a proportion of the amount of the reserve that existed at the time of its elimination or reduction. Said proportion shall vary depending on the time elapsed between the date the business is resumed and the date the reserve was eliminated or reduced, as follows:
Time elapsed Proportion Less than one (1) year 100% One (1) year but less than two (2) 80% Two (2) years but less than three (3) 60% Three (3) years but less than four (4) 40% Four (4) years but less than five (5) 20% Five (5) years or more 0%
History —Ins. Code, added as § 25.070 on Aug. 12, 1994, No. 73, § 1; Oct. 13, 2006, No. 227, § 4.