P.R. Laws tit. 26, § 4001
(1) This chapter comprises the provisions regarding the rehabilitation and liquidation of insurers.
(2) This chapter does not limit the powers granted to the Commissioner by other provisions of this title or any special law.
(3) This chapter shall be liberally construed to attain the purpose established in subsection (4) of this section.
(4) The purpose of this chapter is to protect the interests of the insured, claimants, creditors and general public with minimum interference with the normal prerogatives of the owners and managers of the insurers, through:
(a) The early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures;
(b) the application of improved methods for rehabilitating insurers, using the cooperation and management expertise of the insurance industry;
(c) clarification of the law so as to minimize legal uncertainty and litigation and thus achieve enhanced efficiency and economy of liquidation;
(d) the equitable assessment of any unavoidable loss;
(e) a decrease in the problem of interstate rehabilitations and liquidations by promoting cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside of Puerto Rico, and
(f) The regulation of receivership proceedings and the establishment of substantive rules for said proceedings.
(g) Provide, as part of the oversight of the insurance business, a comprehensive scheme for the rehabilitation and liquidation of insurers pursuant to this chapter. The proceedings in cases of insolvency and of any noncompliance by an insurer shall constitute integral aspects of the insurance business and as such are vested with public interest.
(5) This chapter and the chapters covering the Insurance Guaranty Associations of Puerto Rico contain the provisions applicable to rehabilitation and liquidation proceedings for insurers and the same must be construed as a whole in order for them to be consistent. In the event that a conflict arises between the provisions of said chapters and the provisions of any other law, the provisions of these chapters shall prevail.
History
—Ins. Code, added as § 40.010 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 1.