P.R. Laws tit. 26, § 4507
(1) A “mandatory control level event” means any of the following events:
(a) Submission of a risk based capital report indicating that the adjusted capital of the insurer is lesser than the mandatory control level;
(b) notice to the insurer by the Commissioner concerning a revised risk based capital report that indicates the event described in clause (a) of this subsection, provided said report has not been objected to by the insurer under § 4508 of this title, or
(c) notice to the insurer by the Commissioner of his/her determination against the objection to the revised report that reflects the event described in clause (a) of this subsection, lodged by the insurer under § 4508 of this title.
(2) In case a mandatory control level event takes place, the Commissioner shall take measures as necessary to exercise regulatory control over the insurer under the rehabilitation and liquidation procedure provided for in §§ 4001–4054 of this title. In the case of an insurer that is not transacting new insurance businesses in Puerto Rico, even if the insurer continues to collect premiums on policies in force on risks located in Puerto Rico, the Commissioner may allow said insurer to continue the process of releasing such policies under the supervision of the Commissioner. In any case, it shall be deemed that the mandatory control level event constitutes sufficient grounds to invoke § 4009(1) of this title, which provides the grounds for practicing the rehabilitation procedure, as well as § 4014 of this title, which provides the grounds for practicing the liquidation procedure concerning an insurer. The Commissioner shall have, in respect of the insurer, all those rights, powers and duties provided for in said §§ 4001–4054 of this title.
History —Ins. Code, added as § 45.070 on Mar. 18, 2008, No. 32, § 1, eff. 1 year after Mar. 18, 2008.