P.R. Laws tit. 26, § 4016
(1) All policies, other than life or disability insurance in effect at the time of issuance of an order of liquidation, shall only continue in effect for the lesser of the following periods:
(a) Thirty (30) days from the date of the liquidation order;
(b) the expiration of the policy coverage;
(c) the date in which the insured replaced the insurance policy with equivalent insurance in another insurer, or has otherwise terminated the policy;
(d) the liquidator has transferred the policy obligations pursuant to § 4018(1)(h) of this title.
(e) The date proposed by the liquidator and approved by the Receivership Court to cancel coverage.
(2) An order of liquidation under § 4015 of this title shall terminate the policy coverage at the time specified in subsection (1) of this section for the purpose of any other statute.
(3) Life or disability policies shall continue in force for the period and under the terms provided by any applicable guaranty association or foreign guaranty association.
(4) Life or disability policies, or any period or coverage thereof not covered by a guaranty association or foreign guaranty association shall terminate as provided in subsections (1) and (2) of this section.
(5) The cancellation of any bond or surety undertaking shall not release any cosurety or guarantor.
(6) Except as otherwise provided in this chapter, the obligations of the insolvent insurer’s reinsurers shall not cease by the termination of policies ceded to reinsurers.
History —Ins. Code, added as § 40.160 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 17.