P.R. Laws tit. 26, § 2809
Every solicitation permit issued by the Commissioner shall:
(1) Be for a period of not over two years, subject to the right of the Commissioner to grant a reasonable extension for good cause.
(2) State the securities for which subscriptions are to be solicited, the number, classes, par value, and selling price thereof, or identify the insurance policy or policies for which applications and advance premiums or deposits are to be solicited.
(3) Limit the portion of funds received on account of stock or syndicate subscriptions, if any are proposed to be taken, which may be used for promotion and organization expenses to such amount as he deems adequate, but in no event to exceed fifteen percent (15%) of such funds as and when actually received.
(4) If to be a mutual or reciprocal insurer, limit the portion of funds received on account of applications for insurance which may be used for promotion or organization expenses to a reasonable commission upon such funds, giving consideration to the kind of insurance and policy involved and to the costs incurred by insurers generally in the production of similar business, and provide that no such commission shall be deemed to be earned nor be paid until the insurer has received its certificate of authority and the policies applied for and upon which such commission is to be based, have been actually issued and delivered to, and accepted by, the policyholders.
(5) Express such arrangements for impounding in an established bank or trust company of funds received pursuant to the solicitation permit as the Commissioner may deem to be necessary and reasonable for protection of investors and proposed policyholders pending completion of such financing or organization and appropriation of such funds to the purpose stated in the permit. Such arrangements may provide for the refund to persons entitled thereto of funds so impounded, after deduction therefrom (in the case of stock corporations or syndicates) of reasonable organization and sales expense as provided for in the solicitation permit, in event the financing or organization is not completed within the time allowed pursuant to subsection (1), above.
(6) State, and require, that the granting of the permit is permissive only and shall not constitute an endorsement by the Commissioner of any person or thing related to the proposed insurer, corporation, or syndicate, and that the existence of the permit shall not be advertised or be used as an inducement in any solicitation.
(7) Contain such other reasonable requirements as the Commissioner may deem necessary.
History —Ins. Code § 28.090.