P.R. Laws tit. 26, § 4020
(1) Any person who receives a notice in the manner prescribed in § 4019(1)(c) of this title to the effect that an insurer with which he/she placed business as a general agent, authorized representative or producer is subject to a liquidation order, shall give notice of the liquidation order within thirty (30) days following the notice. The notice shall be sent by first-class mail, evidenced through a certificate of mailing, to every policyholder or any other person named in every policy issued by the insurer through the general agent, authorized representative or producer to the last address that appears on the corresponding records. A policy shall be deemed issued through a general agent, authorized representative or producer if any of the latter has proprietary interest on the maturity of the policy or if the authorized representative has had in his/her power a copy of the policy at any time during the life thereof, except when the ownership on the maturity of the policy has been transferred to another person. The written notice shall include the name and address of the insured party and of the general agent, authorized representative or producer, the identification of the affected policy and the nature of the liquidation proceeding, including the termination of coverage as described in § 4016 of this title. Any general agent, authorized representative or producer who is bound to give notice pursuant to this section shall render to the liquidator a sworn report of compliance not later than forty-five (45) days [following] the notification of the order.
(2) Any general agent, authorized representative or producer who fails to give notice of having rendered a compliance report, as required by subsection (1) of this section, may be subject to a fine that shall not exceed five thousand dollars ($5,000) and the suspension of his/her license, after a hearing before the Commissioner.
Regardless of the proprietary interest of the authorized representative, if any, on the maturity of the policy, the liquidator shall have the sole power to determine when and under what terms and conditions the policy is cancelled or transferred.
History —Ins. Code, added as § 40.200 on Aug. 17, 1991, No. 72, § 1; Jan. 19, 2006, No. 10, § 9; Dec. 14, 2007, No. 206, § 20.