P.R. Laws tit. 26, § 3633
Reports shall be filed and synopses of annual statements shall be published in accordance with the provisions of this section.
(1) Every society transacting business in Puerto Rico shall annually, on or before the 31st day of March, unless such time has been extended by the Commissioner, file with the Commissioner of Insurance a true statement of its financial condition, transactions and affairs for the preceding calendar year. The statement shall be in general form and context as approved by the Commissioner of Insurance of Puerto Rico.
(2) A synopsis of its annual statement providing an explanation of the facts concerning the financial condition of the society shall be printed and mailed to each benefit member of the society not later than June 1 of each year; Provided, That if such synopsis is published in the society’s official publication, the latter shall be mailed to each member.
(3) As a part of the annual statement herein required, each society shall, on or before the 31st of March, file with the Commissioner a valuation of its certificates in force on December thirty-first (31st) last preceding; Provided, [That] the Commissioner of Insurance may, in his discretion for cause shown, extend the time for filing such valuation for not more than two (2) calendar months. Such report of valuation shall be performed in accordance with the method of valuation approved by the Commissioner of Insurance.
(4) The present value of deferred payments due under incurred claims or matured certificates shall be deemed a liability of the society and shall be computed upon mortality and interest standards prescribed in subsection (5) of this section.
(5) Such valuation and underlying data shall be certified by a competent actuary or, at the expense of the society, by the actuary of the Department of Insurance of the state of domicile of the society.
The minimum standards of valuation for certificates issued prior to one (1) year from the effective date of this act shall be those provided by the laws applicable immediately prior to the effective date of this act, but not lower than the standards used in the calculating of rates for such certificates.
The minimum standard of valuation for certificates issued after one (1) year from the effective date of this act shall be three and one-half percent (3 1 / 2 %) interest and the following tables:
(a) For certificates of life insurance, American Men Ultimate Table of Mortality, with Bowerman’s or Davis’ Extension thereof or with the consent of the Commissioner of Insurance, the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table or the Commissioners 1958 Standard Ordinary Mortality Table, using actual age of the insured for male risks and an age not more than three (3) years younger than the actual age of the insured for female risks;
(b) for annuity and pure endowment certificates, excluding any disability and accidental death benefits in such certificates, the 1937 Standard Annuity Mortality Table or the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the Commissioner of Insurance;
(c) for total and permanent disability benefits in or supplementary to life insurance certificates, Hunter’s Disability Table, or the Class III Disability Table (1926) modified to conform to the contractual waiting period, or the tables of Period II disablement rates and the 1930 to 1950 termination rates of the 1952 Diability Study of the Society of Actuaries with due regard to the type of benefit. Any such table shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance certificates;
(d) for accidental death benefits in or supplementary to life insurance certificates, the Inter-Company Double Indemnity Mortality Table or the 1959 Accidental Death Benefits Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance certificates, and
(e) for noncancellable accident and health benefits, the Class III Disability Table (1926) with the Commissioners’ modifications thereto, or, with the consent of the Commissioner of Insurance, tables based upon the society’s own experience.
The Commissioner of Insurance may, in his discretion, accept other standards for valuation if he finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The Commissioner of Insurance may, in his discretion, vary the standards of mortality applicable to all certificates of insurance on substandard lives or other extra hazardous lives by any society authorized to do business in Puerto Rico. Whenever the mortality experience under all certificates valued on the same mortality table is in excess of the expected mortality according to such table for a period of three (3) consecutive years, the Commissioner of Insurance may require additional reserves when deemed necessary in his judgment on account of such certificates.
Any society, with the consent of the Commissioner of Insurance of the state of domicile of the society and under such conditions, if any, which he may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any insured member shall not be affected thereby.
(6) The Commissioner of Insurance may suspend the authority to transact business to any society failing to file its annual report on the date and in the manner herein established.
History —Ins. Code, added as § 36.330 on June 13, 1964, No. 55, p. 122.