P.R. Laws tit. 26, § 4305
(1) Subject to the provisions of this chapter, after the filing of an application to such effects and the payment of the corresponding fees, the Commissioner may authorize an international insurer to contract with Class 1 Authority, Class 2 Authority, Class 3 Authority, Class 4 Authority, Class 5 Authority insurance, or any combination thereof.
(2) Such international insurer shall file, or cause to be filed, a certificate of authority application to operate as such using the form prescribed by the Commissioner for such purpose with the following information, and any other information or documents that the Commissioner may require by means of regulation or order:
(a) Name, address of the main office, date of organization and, if reciprocal, the name of its attorney-in-fact, and the address of the main office of said representative in Puerto Rico;
(b) class of authority requested;
(c) copy of the determination of its board of directors or other governing body authorizing it to transact insurance in Puerto Rico and designating the officer or officers of the insurer who shall be authorized to report to the Commissioner, from time to time, with respect to the matters over which it shall act on behalf of the insurer;
(d) certified copy of its articles of incorporation duly authenticated by the office in which the original is filed;
(e) copy of its bylaws, if any, certified by its president or secretary;
(f) designation of the principal representative of the insurer, who shall reside in Puerto Rico and shall be in charge of its businesses in Puerto Rico, along with the written acceptance of the principal representative;
(g) name, address and evidence of the acceptance of the designation by the international insurer’s auditor and the actuary;
(h) in the case of a branch, the international insurer shall also file or cause to be filed, the following:
(i) Copy of the insurer’s financial statements for its most recent fiscal year;
(ii) copy of the last examination report, if any, made on the insurer, certified by the insurance supervisory officer of the domicile of the insurer;
(iii) a certificate from the insurance supervisory officer of the domicile of the insurer stating the insurance classes the insurer is authorized to transact, and
(iv) a certification, duly signed by the chief executive officer of the insurer in which the insurer accepts that it may be sued in the courts of Puerto Rico, in compliance with the requirements in § 327 of this title.
(3) When considering whether to issue an authorization to an international insurer, the Commissioner shall take into consideration whether the officers and directors of the insurer demonstrate to be reliable and competent to transact insurance business, and in so doing, he/she shall evaluate at least:
(a) Whether the officers and directors have adequate knowledge and expertise;
(b) whether the officers, administrators or any other person in charge of the insurer’s administration in Puerto Rico are qualified to carry out such activities, and
(c) whether the location, if any, that the international insurer intends to use in Puerto Rico is appropriate for conducting its business.
(4) The international insurer shall pay the Commissioner a fee for the examination, investigation and processing of its authorization application, pursuant to § 4323 of this title. The Commissioner may engage legal, financial and investigative services to evaluate the authorization application, the cost of which shall be paid by the applicant.
(5) Should the Commissioner determine that the international insurer complies with the requirements established pursuant to this chapter, the corresponding certificate of authority shall be issued, stating the Authority Class for which the insurer is authorized in Puerto Rico. In the case of a negative determination, the Commissioner shall deny the authorization within a term of not more than sixty (60) days, after the insurer has submitted a complete application, pursuant to the provisions this chapter. The Commissioner may impose other conditions with respect to a particular class of insurer.
(6) The Commissioner may, at any time, at the request of the international insurer or motu proprio, add, change or eliminate any conditions imposed pursuant to subsection (5) of this section.
(7) Before the Commissioner, pursuant to subsection (5) of this section, with respect to an international insurer, imposes a condition that said insurer had not requested, he/she shall notify the international insurer of such condition and shall take into consideration any written objection made by the insurer within the reasonable term specified in the notice.
(8) The international insurer shall have the obligation to designate and maintain a principal representative in Puerto Rico, who in turn, shall be authorized by the Commissioner.
(9) Before obtaining the authorization, the international insurer shall promptly notify the Commissioner, in writing, of any change in the information submitted as part of the authorization application, pursuant to this chapter, but in no case shall it be later than ten (10) days after becoming aware of said information.
(10) The certificate of authority of the international insurer shall expire at midnight on June 30th immediately following the date of issue or renewal. If the insurer meets the renewal requirements and pays the corresponding fees provided in this chapter, its certificate may be renewed for a term that shall not exceed one year.
(11) The Commissioner may amend a certificate of authority at any time for purposes of adjusting it to changes in the articles of incorporation of the international insurer or within his/her powers with respect to such insurer.
(12) The Commissioner may effect the dismissal of any director or officer of an international insurer, pursuant to § 326 of this title.
(13) The international insurer shall maintain in its main office an updated and accurate list of all its insurance intermediaries in Puerto Rico, and if the Commissioner so requests it in writing, it shall provide a copy thereof to the Commissioner.
(14) International insurers shall maintain their books and records pursuant to § 330 of this title.
(15) Any international insurer that conducts business not incidental to the insurance business shall establish separate accounts to segregate the assets of the insurance business from the assets of the businesses not incidental to the insurance business. Provided, That the Commissioner, by regulations, may limit the businesses not incidental to the insurance business that an international insurer may carry out.
History —Ins. Code, added as § 61.050 on Sept. 22, 2004, No. 399, § 1, eff. 180 days after Sept. 22, 2004.