P.R. Laws tit. 26, § 4506
(1) Authorized control level event— Means any of the following events:
(a) Submission by the insurer of a risk based capital report indicating that the adjusted capital of the insurer is greater than or equal to the mandatory control level, but lesser than the authorized control level;
(b) notice by the Commissioner to the insurer concerning a revised risk based capital report indicating the event described in clause (a) of this subsection, provided the insurer has not lodged an objection to said report under § 4508 of this title;
(c) notice to the insurer by the Commissioner of his/her determination against the objection to the revised report that reflects the event described in clause (a) of this subsection, lodged by the insurer under § 4508 of this title;
(d) when the insurer fails to respond to a corrective order to the satisfaction of the Commissioner, provided the insurer has not lodged an objection to the corrective order under § 4508 of this title, or
(e) when, after the determination by the Commissioner made totally or partially against an objection to a corrective order lodged by the insurer under § 4508 of this title, the insurer, in the judgment of the Commissioner, fails to respond or to act pursuant to said corrective order.
(2) In case an authorized control level event takes place in respect of an insurer, the Commissioner may:
(a) Implement any of the measures provided for in § 4502(2) of this title, relative to regulatory action level events, or
(b) take measures as necessary in order for the insurer to be placed under regulatory control under the insurer rehabilitation and liquidation procedure provided for in §§ 4001–4054 of this title, if in the judgment of the Commissioner, this measure inures to the benefit of the policyholders, the insurer’s creditors and the general public. In case the Commissioner takes such measures, the authorized control level Event shall constitute sufficient grounds to invoke § 4009(1) of this title, which provides the grounds for practicing the rehabilitation procedure, as well as § 4014 of this title, which provides the grounds for practicing the liquidation procedure concerning an insurer. The Commissioner shall have those rights, powers and duties in respect of the insurer provided for in said §§ 4001–4054 of this title.
History —Ins. Code, added as § 45.060 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.