P.R. Laws tit. 26, § 1007
Any portion or all of an insurance coverage which cannot be procured from authorized insurers, which coverage is hereinafter designated as “surplus line”, may be procured from unauthorized insurers if:
(1) The insurance cannot be procured from authorized insurers, or has been procured to the full extent such insurers are willing to insure; Provided, That in the case of residential condominiums of fifteen (15) meters or more, whether or not under the horizontal property regime, the insurance cannot be obtained from at least two (2) authorized insurers; and
(2) such insurance is procured through a licensed surplus line producer, hereinafter in this chapter referred to as the “producer”; and
(3) insurance in an unauthorized insurer is not sought or required in order to secure advantages either as to premium rate or terms of the insurance contract; Provided, That this subsection shall not apply to insurance for condominiums under the horizontal property regime[, and]
(4) the insurance is procured from unauthorized insurers eligible according to § 1007a of this title.
Subsection (1) of this section does not apply if the insurance coverage offered by an authorized insurer to cover the risk of medical-hospital professional malpractice does not constitute the minimum coverage needed to acquire a surplus line insurance in the surplus line market, in which case, the surplus line producer could reject the primary coverage offered by the authorized insurer and resort to the surplus line insurance market to obtain the coverage needed.
History —Ins. Code, § 10.070; Aug. 30, 1961, No. 7, p. 341, §§ 1, 2; Mar. 4, 2002, No. 47, § 1; Dec. 19, 2002, No. 284, § 2.