P.R. Laws tit. 26, § 3912
To aid in the detection and prevention of insolvencies or impairment of capital:
(a) It shall be the duty of the Commissioner:
(1) to notify Commissioners of all other states, territories of the United States and the District of Columbia when he/she takes any of the following actions against a member insurer:
(A) Revocation of his/her license;
(B) suspension of his/her license, or
(C) issue of formal orders for such company to restrict its premium writing, obtain additional contributions to the surplus, withdraw from Puerto Rico, reinsure all or part of its business or increase its capital, surplus or any other account for the protection of its policyholders or creditors.
(i) Such notice shall be mailed to all commissioners within thirty (30) days following the action taken, or the date in which such an action occurs.
(ii) Inform the Board of Directors when he/she has taken any action established in subparagraph (i) of this paragraph or has received a report from any other Commissioner indicating that such action has been taken in another state. The report to the Board of Directors shall contain all significant details of the action taken or of the report received from another commissioner.
(b) The Commissioner may request the advice and recommendations of the Board of Directors with regard to any matter affecting his/her duties and responsibilities concerning the financial condition of the member insurers and of the companies which request admission to transact insurance business in Puerto Rico.
(c) The Board of Directors may submit reports and recommendations to the Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any company seeking to do an insurance business in Puerto Rico. Such reports and recommendations shall not be deemed to be public documents.
(d) The Board of Directors may notify the Commissioner of any information indicating a member insurer may be an insurer with impairment of capital or an insolvent insurer.
(e) The Board of Directors may request the Commissioner to order an examination of any member insurer, which Board considers, in good faith, to be impaired of capital or insolvent. Within thirty (30) days from the receipt of said petition, the Commissioner shall begin said examination. The examination may be conducted as one of the National Association of Insurance Commissioners, or by the persons that the Commissioner designates. The cost of the examination shall be paid by the Association and the report thereof shall be treated in the same way as other examination reports. In no case shall such examination report be submitted to the Board of Directors before it is made public, but this shall not prevent the Commissioner from complying with subsection (a) of this section.
The Commissioner shall notify the Board of Directors when the examination has been concluded. The Commissioner shall keep the request for examination filed in his/her office, and it shall not be available for public inspection until the examination report has been made public.
(f) The Board of Directors may make recommendations to the commissioner for the detection and prevention of insurer insolvencies.
(g) The Board of Directors, on concluding the insolvency of an insurer in which the Association was obligated to pay covered claims, shall prepare a report to the Commissioner with the information it may have on the history and causes of said insolvency. The Board shall cooperate with the boards of directors of the guaranty associations of other states in the preparation of a report on the history and causes of the insolvency of a particular insurer and may adopt by reference any report prepared by such other associations.
History —Ins. Code, added as § 39.120 on Aug. 17, 1991, No. 72, § 1; Aug. 20, 2009, No. 82, § 3.