P.R. Laws tit. 26, § 4312
(1) No international insurer shall declare or pay dividends during a given fiscal year if such declaration or disbursement should cause said insurer to fail to comply with its premium or liquidity ratio. Any international insurer that fails to comply with such ratios at the closing of a given fiscal year shall declare or pay dividends during the following fiscal year without the approval of the Commissioner.
(2) No Class 4 Authority international insurer shall pay dividends in any given fiscal year in excess of twenty-five percent (25%) of its capital and surplus, as stated in its annual report for the previous fiscal year, unless the international insurer files a sworn statement, signed by at least two (2) directors of the insurer and by its principal representative in Puerto Rico before the Commissioner at least fifteen (15) days prior to the payment of such dividends. Said sworn statement shall attest that in the opinion of the signers, the declaration of such dividends shall not cause the international insurer to fail to comply with its premium ratio or its liquidity ratio.
(3) No Class 5 Authority international insurer shall declare or pay dividends to any person that is not a policyholder, unless the value of the assets of its business conducted pursuant to its Class 5 Authority, certified as such by its actuary, exceeds the total amount of liabilities of said insurer’s business, and the total amount of said dividend does not exceed the aggregate of:
(a) Said excess amount, and
(b) any other funds that are duly available for the payment of dividends and which result from the business of the insurer that is not the business conducted pursuant to its Class 5 Authority.
History —Ins. Code, added as § 61.120 on Sept. 22, 2004, No. 399, § 1, eff. 180 days after Sept. 22, 2004.