P.R. Laws tit. 26, § 1104
(1) An individual of competent legal capacity may procure or effect an insurance contract upon his own life or body for the benefit of another person. But no person shall procure or cause to be procured any insurance contract upon the life or body of another individual unless the benefits under such contract are payable to the individual insured or his personal representatives, or to a person having, at the time when such contract was made, an insurable interest in the individual insured.
(2) If a beneficiary, assignee or other individual claiming to have a right to collect the policy violates the provision of this section, the insured, or his executor or administrator or authorized representative may institute contractual action against the insurer. If the insurer has paid the policy to the beneficiary, assignee or to any other individual, the insured may maintain an action to recover such benefits from the person so receiving them.
A beneficiary, assignee or any other individual receiving payment from a policy in violation of this section, shall have no right on the contract nor the right to receive or to keep any part of the benefits of the policy as beneficiaries, assigned heir or representative of the insured, nor in any other capacity.
(3) Insurable interest.— As used in this section and in § 1107 of this title includes only interests as follows:
(a) In the case of individuals related closely by blood or by law, a substantial interest engendered by love and affection.
(b) Those of a person liable for the support of a minor.
(c) In the case of other persons, a lawful and substantial economic interest in having the life, health, or bodily safety of the individual insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement, or injury of the individual insured.
(d) An individual heretofore or hereafter party to a contract or option for the purchase or sale of an interest in a business or professional partnership or firm, or of shares of stock of a close corporation or of an interest in such shares, has an insurable interest in the life of each individual party to such contract and for the purposes of such contract only, in addition to any insurable interest which may otherwise exist as to the life of such individual.
History —Ins. Code § 11.040.