P.R. Laws tit. 26, § 4011a
(1) The rehabilitator shall prepare and file a plan to effect rehabilitation with the Receivership Court within one (1) year after the date on which the rehabilitation order is entered or subsequently if the Receivership Court should so allow. After having filed the plan for approval and after the notice and hearings the Receivership Court may order, the Receivership Court may either approve or disapprove the plan proposed or modify the same and approve it as modified. Every plan approved under this section shall comply with the applicable laws and be fair and equitable for all parties involved. If the plan is approved, the rehabilitator shall carry out the plan as approved. In the case of a life insurer, the plan proposed may include the imposition of a preemptive attachment on policies of the insurer, if all rights of the shareholders are waived. A life insurer plan may also provide for the imposition of a moratorium upon loan and cash advance rights under the policies for a period not to exceed one (1) year from the date on which the order approving the rehabilitation plan is entered, unless the Receivership Court, for just cause, extends the moratorium.
(2) Once a plan is filed, any party in interest may object to the plan.
(3) The plan shall:
(a) Except as provided in subsection (E) of this Section [sic], provide no less a favorable treatment of a claim or class of claims than would occur in liquidation, unless the holder of a particular claim or interest agrees to a less favorable treatment of that particular claim or interest;
(b) provide adequate means for the implementation of the plan;
(c) contain information concerning the financial condition of the insurer and the operation and effect of the plan, as far as is practicable in light of the nature and history of the insurer, the condition of the insurer’s books and records, and the nature of the plan, and
(d) provide for the disposition of books, records, and documents and of any other information relevant to the duties and obligations covered by the plan.
(4) A plan may include any other provisions not inconsistent with the provisions of this chapter, including, but not limited to:
(a) Payment of distributions;
(b) assumption or reinsurance of all or portions of the insurer’s remaining liabilities, and transfer of assets, books and records to an authorized insurer or other entity;
(c) to the extent appropriate, application of market conduct standards established for insurers to any entity administering claims on behalf of the rehabilitator or directly assuming the liabilities of the insurer;
(d) contracting with a guaranty association of a state or any other qualified entity to conduct the administration of claims;
(e) annual independent financial and compliance audits of any entity administering claims on behalf of the rehabilitator that is not otherwise subject to examination pursuant to [the] Puerto Rico Insurance Code, and
(f) termination of the insurer’s liabilities, except for those under insurance policies as of a date certain.
(5) A plan may separately designate and treat one or more claim subclasses consisting only of those claims within the classes reduced to de minimis amounts. A de minimis amount shall be an amount equal to or lesser than a maximum de minimis amount approved by the Receivership Court as being reasonable and necessary for appropriate administration.
History —Ins. Code, added as § 40.111 on Dec. 14, 2007, No. 206, § 12.