P.R. Laws tit. 26, § 3702
(1) There is hereby created an Association for the Joint Underwriting, comprised by all the authorized insurers, or those that may be authorized in the future, to write, and which do write in Puerto Rico, directly, fire and allied lines insurance, including the insurers of such hazards through multi-hazards policies (package policies), covering residential or commercial buildings. Each one of such insurers shall be a member of the Association and shall continue being a member of such Association, as a condition for its continued authorization to write any kind of insurance business in Puerto Rico.
(2) The Association shall have, in accordance with the provisions of this chapter and of the operation plan and in respect to fire and allied lines insurance on insurable property, power, on behalf of its members to:
(a) Cause to issue, or issue, insurance policies to applicants;
(b) assure reinsurance from its members, and
(c) cede reinsurance.
(3)
(a) Within forty five (45) days after the effective date of this act, the directors of the Association shall submit to the Commissioner, for his consideration, a plan of operation, consistent with the provisions of this chapter, which shall provide for an economical, fair and nondiscriminatory administration, and for the fast and efficient marketing of the fire and allied lines insurance, which, for the benefit of the general welfare and security of the property owners, may permit a fair distribution of the insurable risks. This plan must contain provisions regarding, but not limited to:
Preliminary contribution by all of its members for the initial expenses needed to commence operations; the establishment of the necessary facilities; the administration of the Association, the contribution of its members to finance losses and expenses; commissions, reasonable and objective underwriting rules, acceptance and cession of reinsurance and procedures to determine the maximum limit of insurance which shall be provided.
[(b)] This plan of operations may also provide that the policies contain a clause requiring the insureds, to take special security measures after such conditions are approved by the Commissioner.
(c) The plan of operations shall be subject to the approval of the Commissioner, after consulting with the persons or organizations affected, and shall become effective ten (10) days after having been approved. If the Commissioner does not approve the plan, in whole or in part, the Directors of the Association, within the following fifteen (15) days of the notice of such disapproval, shall submit the plan, or the objected part thereof amended and revised, and if they fail to submit a new proposal, or if such proposal is not acceptable, the Commissioner shall promulgate his own plan of operations or the corresponding part of it, as the case may be.
(d) The Directors of the Association may, on their own initiative, or at the request of the Commissioner, amend the plan of operations, subject to the approval of the Commissioner.
History —Ins. Code, added as § 37.020 on June 14, 1968, No. 85, p. 152; May 25, 1973, No. 39, p. 107, § 1.