P.R. Laws tit. 26, § 4204
The charitable organization shall possess and keep on deposit, assets for a value equal to the total of its reserves on annuity contracts in effect, plus a minimum surplus of ten percent (10%) of said reserves.
Upon determining said reserves, a deduction for the total or any portion of the risks of the annuities that are reinsured by a life insurance company authorized by the Insurance Commissioner to issue life insurance in Puerto Rico, shall be allowed.
The funds required for these annuities shall be invested in those investments authorized by this Code for the investment of the assets of the life insurance companies, and subject to the same limitations. Every authorized foreign charitable organization or [one] that requests authorization for a special license [to invest] its funds pursuant to the laws of the state, district, territory, country or province in which it is incorporated, shall be deemed to fulfill the requirements of this section for the investment of funds.
The required funds, and the income and earnings obtained from said funds, shall be kept apart as designated and separate funds, regardless of the other funds of the charitable organization, and shall not be used to pay debts or obligations nor for any purpose other than the payment of the benefits of the charitable annuities. The general assets of the charitable organization shall be responsible for any insufficiency of the funds thus segregated to meet the commitments contracted under the annuity contracts issued by said organization.
History —Ins. Code, added as § 42.040 on Aug. 12, 1999, No. 230, § 2.