P.R. Laws tit. 26, § 4015
(1) An order to liquidate the business of a domestic insurer shall appoint the Commissioner or any successor in office as the liquidator and authorize him/her to take immediate possession of the assets of the insurer and administer the same under the exclusive general supervision of the Receivership Court. The liquidator shall be legally vested with title to all the property, contracts and rights of action, and to all the books and records of the insurer ordered to be liquidated, wherever located, as of the date of entry of the final liquidation order. The liquidator shall be empowered to negotiate and reduce to cash, wholly or partially, any assets that may be needed to pay for the administration of the liquidation, provided he/she obtains the maximum yield possible in said negotiation. The filing or recording of the order with the Clerk of the Part of the Court of First Instance where the main office of the insurer is located, or its main business is conducted, and in the case of real estate, with the Property Registrar where said property is located, and in the case of personal property, in the Registry where the same may be recorded, shall have the same effect of notice as a deed, a bill of sale, or any other evidence of title duly filed and recorded with the Property Registry would have upon third parties.
(2) Upon issuance of the order, the rights and obligations of any such insurer and of his/her policyholders creditors, shareholders, members and all other persons interested in his/her estate shall be defined as they exist on the date the order of liquidation is issued, except as provided in §§ 4016 and 4034 of this title.
(3) An order to liquidate the business of an alien insurer domiciled in Puerto Rico shall be on equal terms and have the same legal effect as an order to liquidate a domestic insurer, except that the assets and the businesses in any state shall be the only assets and businesses included therein.
(4) At the time of petitioning for an order of liquidation, or at any time thereafter, the Commissioner, after making appropriate findings of an insurer’s insolvency, may petition the court for a judicial declaration of such insolvency. After the corresponding notices and hearings, the court may issue the declaration.
(5) Any order issued under this section shall require the liquidator to be accountable solely to the court. These reports shall be rendered at such intervals as specified by the court in its order; Provided, however, That said reports shall be rendered at least every six (6) months.
(6) In the event that a liquidation order is rendered ineffective, the insurer shall not be released from the liquidation proceeding until the insurer complies with the conditions provided in § 4042a of this title.
History —Ins. Code, added as § 40.150 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 16.