P.R. Laws tit. 26, § 414
(1) No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in Puerto Rico or elsewhere, in an amount exceeding ten percent (10%) of its surplus to policy holders, except that:
(a) A domestic mutual may insure up to such ten percent (10%) or up to the maximum applicable as set forth in § 28.160, paragraph (1), whichever is the larger.
(b) A cooperative may insure up to such ten percent (10%) or up to the maximum applicable as set forth in § 34.190, paragraph (1), whichever is greater.
(2) For the purposes of this section, a subject of insurance as to insurance against fire or other hazard insured against other than windstorm or earthquake, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or other such hazard insured against.
(3) Reinsurance authorized by § 412 of this title shall be deducted in determining risk retained. As to surety risks, deduction shall also be made of the amount assumed by any established incorporated co-surety and the value of any security deposited, pledged, or held subject to the surety’s consent and for the surety’s protection.
(4) For the purposes of this section, “surplus to policyholders” shall:
(a) Be deemed to include any voluntary reserves, or any part thereof, which are not required by or pursuant to law, and
(b) be determined from the last sworn statement of the insurer on file with the Commissioner pursuant to law, or by the last report of examination by the Commissioner, whichever is more recent at the time of assumption of such risk.
(5) In applying this section to foreign insurers not formed in a state of the United States but authorized to transact insurance in one or more of such states, the provisions shall relate only with respect to risks and surplus to policyholders of the United States branch of such insurer.
(6) This section shall not apply to life, disability, or title insurance, or to insurance of ocean marine risks, or marine protection and indemnity risks, nor to workmen’s compensation.
History —Ins. Code § 4.140; June 26, 1959, No. 84, p. 220, § 2.