P.R. Laws tit. 26, § 2502
As used in this chapter:
(1) Trust.— Means the trust constituted by each native insurer pursuant to § 2504 of this title.
(2) Catastrophic insurance losses.— Means the aggregate losses due to an occurrence, as this term is defined in the insurance contract, sustained by a native insurer under a catastrophic insurance coverage or under a combination of said coverages.
(3) Net direct premiums.— Means the gross direct premiums underwritten in Puerto Rico for catastrophic insurance less the returned premiums or unused or unabsorbed portions of deposit premiums.
(4) Reserve for catastrophic insurance losses.— Means the reserve established pursuant to § 2503 of this title.
(5) Catastrophic insurance.— Means the insurance for all types of real estate or personal property, and the interest thereon, against loss or damage caused by an earthquake, hurricane, fire or other catastrophes, and against losses as a result of such loss or damage.
(6) Minimum withholding.— Means the amount to be withheld by each insurer in the purchase of reinsurance for catastrophic insurance.
(7) Catastrophic exposure.— Means the maximum probable loss to be sustained by an insurer before deducting reinsurance, due to the occurrence of a catastrophic event that has been estimated in accordance with a risk simulation model developed by a recognized firm and accepted by the Commissioner. In case of a hurricane, the simulation model shall use a hurricane whose occurrence probability is one (1) in every one hundred (100) years, and for an earthquake, the simulation model to be used shall be an earthquake whose occurrence probability is one (1) in every two hundred fifty (250) years.
History —Ins. Code, added as § 25.020 on Aug. 12, 1994, No. 73, § 1; Oct. 13, 2006, No. 227, § 2.