P.R. Laws tit. 26, § 4222
(a) Regarding viators residing in Puerto Rico, a person shall not operate as a viatical settlement broker without first obtaining a license from the Insurance Commissioner of Puerto Rico. The annual fees for the viatical settlement broker license shall not be greater than the cost of the annual fees required from a life insurance producer.
If there is more than one viator on a single policy and the viators are residents of different jurisdictions, the viatical settlement shall be governed by the laws of the jurisdiction in which the viator having the largest percentage ownership resides. Should the viators hold equal ownership, the viatical settlement shall be governed by the laws of the jurisdiction of residence of one viator, as agreed upon in writing by all viators concerned.
Regarding viators residing in Puerto Rico, a person shall not operate as a viatical settlement provider without first obtaining a license from the Insurance Commissioner of Puerto Rico and having submitted evidence that he/she is covered under a professional public liability policy.
(b) Regarding viatical settlement purchasers residing in Puerto Rico, a person shall not operate as a viatical settlement investment agent without first obtaining a license issued by the Insurance Commissioner. The annual fees for the viatical settlement investment agent license shall not be greater than the cost of the annual fees required for a life insurance producer license. If there is more than one purchaser of a single policy and the purchasers are residents of different jurisdictions, the viatical settlement purchase agreement shall be governed by the laws of the jurisdiction in which the purchaser having the largest percentage ownership resides. If the purchasers hold equal ownership, the viatical settlement purchase agreement shall be governed by the laws of the jurisdiction of residence of one purchaser, as agreed upon in writing by all purchasers concerned.
(c) A viatical settlement provider may offer, sell or solicit viatical settlement purchase agreements directly to or from viatical settlement purchasers residing in Puerto Rico only if he/she has obtained a license issued by the Insurance Commissioner.
(d) Applicants shall submit their applications to the Commissioner to obtain a viatical settlement broker license and to be authorized to do business as viatical settlement providers on the forms designated by the Commissioner, and such applications shall be accompanied by the payment of the annual fees specified in § 701(1) of this title. If the viator is a resident of another jurisdiction, such viatical settlement shall be governed by the laws of the jurisdiction where the viator is a resident.
(e) Licenses may be renewed from year to year on the anniversary date upon payment of the annual renewal fees specified in subsection (b) of this section. Viatical settlement producers shall renew their licenses in a series of steps pursuant to the rules established by the Commissioner for the renewal of the insurance producer license, which shall be renewed simultaneously. Failure to pay the fees by the renewal date results in expiration of the license.
(f) The applicant shall provide information on forms required by the Commissioner by means of regulation or regulatory document. The Commissioner shall have authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, officers, members and employees, and the Commissioner may, in the exercise of the Commissioner’s discretion, refuse to issue a license in the name of a legal entity if not satisfied that any officer, employee, stockholder, partner or member thereof who may materially influence the applicant’s conduct meets the standards of this chapter.
(g) A license issued to a provider authorizes all partners, officers, members and designated employees to act as viatical settlement providers, as applicable, under the license, and all those persons shall be named in the application and any supplements to the application.
(h) Upon the filing of an application and the payment of the license fee, the Commissioner shall make an investigation of each applicant and issue a license if the Commissioner finds that the applicant:
(1) Intends to act in good faith in the performance of activities related to the license applied for.
(2) Has a good business reputation and has had experience, training or education so as to be qualified in the business for which the license is applied for.
(3) If a viatical settlement provider, has provided a detailed plan of operation.
(4) If a legal entity, provides a certificate of good standing from the state of its domicile.
(5) If a viatical settlement provider or viatical settlement producer, has provided an anti-fraud plan that meets the requirements of § 4231 of this title.
(6) If a viatical settlement producer, holds and maintains a valid life insurance producer license.
(i) The Commissioner shall not issue a license to a nonresident applicant, unless a written designation of the producer for service of process is filed and maintained with the Office of the Commissioner, or the applicant has filed with the Commissioner the applicant’s written irrevocable consent that any action may be commenced against the applicant by service of process on the Commissioner.
(j) The viatical settlement providers or viatical settlement producers shall provide to the Commissioner new or revised information regarding officers, shareholders who own ten percent (10%) or more of the stock, partners, directors, members or designated employees within thirty (30) days of the change or of the information thus requested.
History —Ins. Code, added as § 43.020 on Dec. 28, 2005, No. 164, § 2; Jan. 19, 2006, No. 10, § 9; Aug. 4, 2006, No. 147, §§ 14–22; June 30, 2008, No. 104, § 3; Nov. 7, 2010, No. 166, §§ 3–5, eff. 90 days after Nov. 7, 2010; June 1, 2012, No. 101, § 2.