P.R. Laws tit. 26, § 651
An insurer shall not, directly or indirectly:
(1) Invest in an obligation or security of, or grant or offer a guaranty for the benefit of, or in favor of an official or director of the insurer.
(2) Invest in an obligation or security, grant a guaranty in benefit of or in favor of, or make other investments in a business entity of which five percent (5%) or more of the voting stock or interest in equity that belong directly or indirectly or are for the direct or indirect benefit of one or more officials or directors of the insurer.
(3) Participate, on its own, or through one or more affiliates of the insurer in one or a series of transactions geared to evade the prohibitions of §§ 648–662 this title.
(4) Invest in partnerships as a partner with unlimited liability except as provided in § 649(3) of this title. This subsection does not prohibit a subsidiary of the insurer or any other affiliate, which are not insurers in turn, to become a partner with unlimited liability in a partnership.
(5) Invest in or loan its funds secured by its own shares, but an insurer may acquire its own shares (although they shall not be admitted assets of the insurer) with the prior authorization of the Commissioner for the following purposes:
(a) Convert a stock underwriter into a mutual or reciprocal underwriter, or convert a mutual or reciprocal underwriter into a stockbroker;
(b) transfer shares to the directors, officers, employees and agents of the insurer according to a plan approved by the Commissioner to convert a public underwriter to a private underwriter or with regard to an employee benefit plan, or
(c) as allowed in a plan approved by the Commissioner.
(6) An insurer may not make short sales of securities.
(7) No insurer may, at any time, or in any way, own more than five percent (5%) of the outstanding stock with voting rights of a corporation, except with the prior authorization of the Commissioner.
History —Ins. Code, added as § 6.050 on May 16, 2003, No. 130, § 1.