P.R. Laws tit. 26, § 4316
(1) With prior approval from the Commissioner, an international insurer may establish and operate one or more segregated assets plans. The international insurer shall submit to the Commissioner, not less than sixty (60) days in advance, the operational plan it intends to use with respect to the creation and administration of a segregated assets plan. If the Commissioner does not disapprove the same within thirty (30) days, as of the date of submittal, the operational plan shall be approved; although said term may be extended by the Commissioner, if he/she thus notifies it within said thirty (30) days.
(2) The operational plan of a segregated assets plan shall at least contain the following:
(a) Business objectives.
(b) Directors, officers in charge and managers.
(c) Obligations and the identification method thereof.
(d) Plan assets and identification method therof.
(e) Investment policy with respect to the plan assets.
(f) Plan for the valuation of the liabilities, if any; Provided, That all valuation plans shall be subject to the provisions in § 2817 of this title with respect to the solicitations of Puerto Rico residents.
(3) The international insurer shall submit to the approval of the Commissioner any amendments to the operating plan made after the initial approval, not less than thirty (30) days prior to its implementation.
(4) The assets of a segregated assets plan approved by the Commissioner shall be available solely for the payment of obligations specifically identified in the corresponding operational plan and shall not be available for the payment of the obligations of other segregated assets plans or of the general obligations of the international insurer.
(5) No segregated assets plan shall be considered as an entity with a juridical personality separate from that of the international insurer for legal purposes. The approval of the Commissioner of a segregated assets plan or its subsequent amendments shall not be construed in that sense.
(6) In the case of the liquidation or rehabilitation of an international insurer under the provisions set forth in §§ 4001–4054 of this title segregated assets plan, the segregated assets plan shall not be available for the payment of the general obligations of the insurer, and on the other hand, the capital and surplus of the international insurer shall not be available for the payment of the liabilities of the segregated assets plan, except as provided in the operating plan.
(7) Assets transferred to a segregated assets plan shall not be considered as a trust.
(8) In the case of the insolvency of a segregated assets plan, the same shall be subject to the provisions of §§ 4001–4054 of this title; Provided, That the definition of “assets” that appear in this chapter shall apply.
(9) The Commissioner may promulgate rules and regulations for the creation, administration and dissolution of the segregated assets plans under conditions of solvency.
History —Ins. Code, added as § 61.160 on Sept. 22, 2004, No. 399, § 1, eff. 180 days after Sept. 22, 2004.