P.R. Laws tit. 26, § 4324a
(1) Except as provided by subsection (3), any benefits (including the cash value and proceeds) to be provide to the owner, insured or beneficiary under a life insurance or annuity contract issued by an international insurer shall:
(a) Inure exclusively to the benefit of the person for whose use and benefit the insurance or annuity contract is designated in the contract; and
(b) Be fully exempt from and not subject to:
(i) Attachment, execution, or other seizure;
(ii) appropriation or application by any legal or equitable process or by operation of law to pay a debt or other liability of the owner, insured or beneficiary, either before or after the benefits are provided, and
(iii) a demand in a bankruptcy proceeding of the owner, insured or beneficiary.
(2) The provisions in subsection (1) shall apply regardless of whether:
(a) The power to change the beneficiary is reserved to the owner or insured; or beneficiary.
(b) The owner or insured or his/her estate is a contingent
(3) The exemptions provided in subsection (1) do not apply to:
(a) A premium payment made in fraud of a creditor, subject to the applicable statute of limitations for recovering the payment;
(b) a debt of the owner, insured or beneficiary secured by a pledge of the insurance policy or the proceeds of the policy; or
(c) a child support lien or levy established in accordance with the applicable law, or
(d) a debt of the person for whose use and benefit the insurance or annuity has been designated under the contract, if such debt has been incurred by the person after the date on which the benefit under the contract was made available for his/her use.
(4) This section does not prevent an insured, owner, or annuitant from assigning, in accordance with the terms of the life insurance or annuity contract:
(a) Any benefits to be provided under an insurance policy or annuity contract, or
(b) any other rights under the policy or contract.
(5) If an insurance or annuity contract, issued by an International Insurer prohibits a beneficiary from assigning or commuting benefits to be provided or other rights under the contract, an assignment or commutation or attempted assignment or commutation of the benefits or rights by the beneficiary is void.
History —Ins. Code, added as § 61.241 on June 20, 2011, No. 98, § 3.