P.R. Laws tit. 26, § 4401
As used in this chapter, the following terms shall have the meanings stated below, unless the context implies otherwise:
(a) Security holder.— A “security holder” of a specified juridical person is one who owns any security of such person, including common stock, preferred stock, debt obligations, or any other security convertible into or evidencing the right to acquire any of the foregoing.
(b) Affiliate.— An “affiliate” of, or person “affiliated” with, a specific person, is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.
(c) Control.— The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods and nonmanagement services, or otherwise, unless the power is the result of an official position held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent (10%) or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by § 4405(k) of this title. The Commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support the determination that control exists in fact, notwithstanding the absence of a presumption to that effect.
(d) Enterprise risk.— The term “enterprise risk” shall mean any activity, circumstance, event or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or the insurance holding company system, including, but not limited to, the levels of risk stated in Chapter 5 of the Insurance Code of Puerto Rico and the standards for risk based capital established in Rule No. 92 of the Regulations of the Insurance Code of Puerto Rico.
(e) Insurance holding company system.— For purposes of this chapter an “insurance holding company system” consists of two (2) or more affiliated persons, one or more of which is an insurer or a health service organization.
(f) Subsidiary.— A “subsidiary” of a specified person is an affiliate controlled by such person directly or indirectly through one or more intermediaries.
(g) Person.— Means any natural person, insurer, health services organization, association, group, syndicate, body, company, corporation, partnership, trade name, trust, juridical person, or entity.
(h) Voting security.— The term “voting security” shall include any security convertible into or evidencing a right to acquire a voting security.
History —Ins. Code, added as § 44.010 on Mar. 7, 2012, No. 51, § 1, eff. 30 days after Mar. 7, 2012.