Puerto Rico: premium trust account rules

Citation

26 L.P.R.A. §§ 952h; 953f; 953i

Source chart last reviewed this jurisdiction: 2/25

What the jurisdiction requires

All funds representing premiums received by an agent shall be received in a fiduciary capacity and shall not be mixed with other funds. Funds shall be credited and paid in full within 15 days after requested.

Penalties for diversion

Any agent receiving funds and not remitting them to the people entitled to them shall be bound to pay legal interest on the amount and shall be guilty of a crime and be punished as provided in the penal code of Puerto Rico. The commissioner may suspend, revoke, or refuse to renew a license for embezzlement or misappropriation for personal use or unlawful withholding of monies belonging to insurers or other persons, received in the course of business. In addition to or in lieu of denial, revocation or suspension of license, any licensee violating a provision of this title may receive an administrative fine not to exceed $5,000 for each fault, with a $50,000 maximum for all offenses or if convicted by a court the violator can be fined between $1,000 and $50,000.

Tie out a Puerto Rico trust account

Tie your premium trust account out three ways — bank, ledger and what you owe — with Puerto Rico's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.