P.R. Laws tit. 26, § 1345
(1) In all policies which provide for participation in the insurer’s surplus, there shall be a provision that the policy shall so participate annually in the insurer’s divisible surplus as apportioned by the insurer, except that, at the option of the insurer, such apportionment, if any, may be deferred to the end of the third policy year. Any policy containing provision for annual participation beginning at the end of the first policy year, may also provide that payment of the first dividend shall be subject to the payment of the premium for the next ensuing year. The person entitled thereto under any annual dividend policy shall have the right each year to have the current dividend arising from such participation either paid in cash, or applied in accordance with such other dividend option specified in the policy and elected by such person. The policy shall further provide which of the options shall be effective if such person shall not have elected an option prior to expiration of the period of grace allowed for the payment of premiums. This section shall not prohibit the payment of additional dividends on default of payment of premiums or termination of the policy.
(2) This section shall not apply to paid-up nonforfeiture benefits nor to paid-up policies issued on default in payment of premiums.
(3) If the policy includes participation, the specifications sheet shall indicate that the dividends are not guaranteed.
History —Ins. Code, added as § 13.110 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.