P.R. Laws tit. 26, § 8085
(a) Members, voting and statutes.—
(1) Every subscribing state shall have a member. Every member shall be qualified to serve as such pursuant to the laws of the subscribing state. Any member may be discharged or suspended from office pursuant to the laws of the state that appointed him/her. Any vacancy that may arise in the Commission shall be filled according to the laws of the subscribing state where the vacancy arose. None of the provisions of this paragraph shall affect the way in which the subscribing state determines the election or appointment and qualifications of its own Insurance Commissioner.
(2) Every member shall be entitled to one vote and have the opportunity of participating in the government of the Commission according to the statutes. However, no action of the Commission regarding the promulgation of any uniform standard shall be effective unless two thirds (2 / 3) of the members vote in its favor.
(3) The Commission shall approve statutes to govern its affairs through the majority vote of its members as necessary and appropriate to achieve the purposes and exercise the powers of the present Compact, which include but are not limited to:
(A) Establish the fiscal year;
(B) establish procedures to appoint and elect its members besides holding meetings of the Administrative Committee;
(C) provide reasonable standards and procedures to furnish information to other committees and establish the procedure for generally or specifically delegating any authority or function of the Commission;
(D) establish procedures to notify, convoke and conduct meetings of the Commission consisting of the majority of the members of the Commission, ensuring that they were duly notified about each meeting and that the citizens were given the right of attending every meeting to protect the public interest, the personal information of the individuals and the privileged information of the insurers, including business secrets. The Commission may meet in private only if the majority of the members vote to hold the meeting partially or totally closed. As soon as possible the Commission shall publish a copy of the number of votes cast in favor of holding a closed meeting containing the name and the vote of every members who exercised his/her right to vote. The votes cast by proxy shall not be considered in this type of meeting;
(E) establish the titles and define the duties of the officers as well as the procedures to elect them;
(F) establish personnel standards and procedures and programs related thereto. Notwithstanding the public service laws, or those of a similar nature of the subscribing state, said statutes shall exclusively govern the personnel policies and programs of the Commission;
(G) provide a mechanism for the close of the operations of the Commission and the disbursement of surplus funds that may exist after paying and/or setting asides reserves for paying all its debts and obligations when the Compact concludes, and
(H) publish its regulations and conserve a copy of the original and a copy of its amendments in each of the agencies or offices of the states which subscribe the Compact.
(b) Administrative Committee, officers and personnel.—
(1) An Administrative Committee shall be established constituted by not more than fourteen (14) members as indicated below:
(A) A member of each of the six (6) subscribing states with the largest volume of premiums for life annuities, disability payments and long-term care insurance products, as indicated in the N.A.I.C. registers for the preceding year;
(B) four (4) members of the subscribing states with at least two percent (2%) of the market on the basis of the aforementioned volume of the six (6) subscribing states with the largest volume of premiums, selected by rotation as provided in the statutes, and
(C) four (4) members of the subscribing states with less than two percent (2%) of the market on the basis of the aforementioned volume, each of which shall be selected from each of the four (4) zone regions of the N.A.I.C. as provided in the statutes.
(2) The Administrative Committee shall have the authority and the duties provided in the statutes, which shall include but not be limited to:
(A) Administering all affairs of the Commission according to its purposes;
(B) establishing and overseeing the internal organization structure as well as the proper procedures to enable the Commission to provide for the creation of uniform standards and other regulations for receiving and reviewing the introduction of products, the administrative and technical support functions, the review of decisions related to the denial of a product introduced and the review of cases whereby a subscribing state has opted to be excluded from a certain uniform standard. Provided, That the uniform standard shall not be presented to the subscribing states for their adoption unless it has been approved by two thirds (2 / 3) of the members of the Administrative Committee;
(C) overseeing the offices of the Commission, and
(D) planning, implementing and coordinating activities with other state and federal government entities that promote the goals of the Commission.
(3) The Commission shall annually elect the officers of the Administrative Committee who shall have the authority and duties provided through regulations.
(4) The Administrative Committee shall appoint or contract an executive director, subject to the approval of the Commission under the terms and conditions and with the compensation the Commission may deem appropriate. The executive director shall act as Secretary of the Commission but shall not be a member of the same. The executive director shall contract and supervise the additional personnel the Commission may authorize.
(c) Legislative and Consultancy Committees.—
(1) A legislative committee shall be established constituted by legislators or their representatives to oversee the operations of the Commission and make recommendations. Provided, That the manner in which said officer is to be selected and his/her term of office shall be established through bylaws. Before the Commission establishes any uniform standard, any review of the regulations or any annual budget or before it attends to any other important matter pursuant to the regulations, the Administrative Committee shall consult the legislative committee and submit a report thereto.
(2) The Commission shall establish two (2) consultancy committees, the first constituted by representatives of the consumers independent from the insurance industry and the second constituted by representatives of the insurance industry.
(3) The Commission may establish through regulations other consultancy committees to carry out its functions.
(d) Corporate registers of the Commission.— The Commission shall maintain its books and registers pursuant to the regulatory provisions.
(e) Limited immunity, defense and indemnification.— The members, officers, the executive director and the employees and the representatives of the Commission shall have immunity regarding any legal action, whether in their personal or official capacity, for any claim for damages or loss of property or personal injury or any other civil liability caused by or arising from any action taken or alleged, or error or omission which occurs within their workplace or concerning the duties or responsibilities of the Commission; Provided, That nothing of what has been established shall be construed as protecting any person against suits and/or any liability for damages, losses or bodily injuries caused by the crass, intentional and voluntary prejudicial action of that person.
The Commission shall defend all members, officers, the executive director and the employees or the representatives of the Commission in any civil action directed to imposing some liability arising from any actual or alleged action, or error or omission that occurs as a consequence of their employment, duties or responsibilities in the Commission or in those cases whereby the defendant had reasonable cause to believe that they occurred within his/her workplace, or regarding his/her duties or responsibilities in the Commission; further Provided, That the actual or alleged action, error or omission did not occur as a result of crass negligence or the intentional act on the part of said person.
The Commission shall provide compensation and relieve from all responsibility all members, officers, the executive director and the employees or the representatives of the Commission for any transaction or sentence pronounced against said persons, arising from an action, error or omission, real or alleged, that occurs within the workplace or the duties or responsibilities in the Commission; Provided, That the real or alleged action, error or omission was not the result of crass negligence or intentional improper conduct on the part of said person.
History —Dec. 22, 2005, No. 161, art. 1.5.