P.R. Laws tit. 26, § 4229
It is a violation of this chapter for any person to enter into a viatical settlement within a two-year period commencing with the date of issuance of the insurance policy or certificate unless the viator certifies to the viatical settlement provider that one or more of the following conditions have been met within the two-year period:
(a) The policy was issued upon the viator’s exercise of conversion rights arising out of a group or individual policy, provided the total of the time covered under the conversion policy plus the time covered under the prior policy is at least twenty-four (24) months. The time covered under a group policy shall be calculated without regard to any change in insurance carriers, provided the coverage has been continuous and under the same group sponsorship.
(b) The viator is a charitable organization exempt from taxation.
(c) The viator is not a natural person.
(d)
(1) The viator submits independent evidence to the viatical settlement provider that one or more of the following conditions have been met within the two-year period:
(A) The viator or insured is terminally or chronically ill;
(B) the viator’s spouse dies;
(C) the viator divorces his or her spouse;
(D) the viator retires from full-time employment;
(E) the viator becomes physically or mentally disabled and a physician determines that the disability prevents the viator from maintaining full-time employment;
(F) the viator was the insured’s employer at the time the policy or certificate was issued and the employment relationship terminated;
(G) [a] final and unappealable order is entered by a court of competent jurisdiction, on the application of a creditor of the viator, adjudicating the viator bankrupt or insolvent, or approving a petition seeking reorganization of the viator or appointing a receiver, trustee or liquidator to all or a substantial part of the viator’s assets;
(H) the viator experiences a significant decrease in income that is unexpected and that impairs the viator’s reasonable ability to pay the policy premium, or
(I) the viator or insured disposes of his or her ownership interests in a closely held corporation.
The certification required under subsections (a)–(d) shall be sworn and signed before a notary public.
(2) Copies of the independent evidence described in clause (1) of this subsection and documents required by § 4228(a) of this title shall be submitted to the insurer when the viatical settlements provider submits a request to the insurer for verification of coverage. The copies shall be accompanied by a sworn statement signed before a notary public by which the viatical settlement contract provider states that the copies are true and correct copies of the documents received by the viatical settlement provider.
(e) If the viatical settlement provider submits to the insurer a copy of the owner or insured’s certification described in subsection (d) of this section when the provider submits a request to the insurer to effect the transfer of the policy or certificate to the viatical settlement provider, the copy shall be deemed to conclusively establish that the viatical settlement satisfies the requirements of this section and the insurer shall timely respond to the request.
History —Ins. Code, added as § 43.090 on Dec. 28, 2005, No. 164, § 2; Aug. 4, 2006, No. 147, § 27.