P.R. Laws tit. 11, § 1b-3
The Board shall have the authority and the obligation to do the following:
(a) Appoint an Executive Secretary.
(b) Appoint an Administrator who shall be the Chief Executive Officer of the Corporation, who shall have those duties and functions assigned to him/her by the Board of Directors, according to the powers conferred upon the aforesaid.
(c) The Administrator shall be appointed for a term of six (6) years, taking into consideration his/her technical educational background, experience and other qualities which enable him/her to achieve the goals of the Corporation. Said Administrator shall not engage in any private business or exercise any profession whatsoever during the term of his/her appointment.
(d) Said Administrator shall direct and administer programs covering occupational accident and illness prevention, work injury and illness insurance and all services rendered to employees covered by the present chapter.
(e) Set the salary of the Administrator.
(f) Remove the Administrator from office for any justified cause, upon prior notice and the opportunity of being heard.
(g) Establish the coverage and amount of and the requirements for the bond of the Administrator and any other official or employee that should be covered by a bond, as determined by the Board.
(h) Consider, reach agreements and issue resolutions on issues submitted by the Administrator.
(i) Approve the necessary regulations to put into effect the provisions of this chapter, subject to §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act.” Furthermore, it shall approve rules for its organization and internal operation.
(j) Establish the administrative structure of the State Insurance Fund Corporation, including the systems, controls and standards for personnel remuneration, the budget, finances, purchasing, accounting, and any other administrative systems that may be necessary for a cost-effective and efficient service operation.
(k) Hold regular meetings at least once a month, and special meetings as deemed necessary, and draw complete minutes of all procedures.
(l) Contract, if deemed necessary, any advisors that may help the Board discharge the obligations and duties conferred hereby.
(m) It shall have power to contract external auditors, who shall advise the Board of Directors as to the faithful compliance with the applicable laws, regulations and fiscal procedures, and who shall submit a full audit report on the fiscal activities of the System.
(n) Approve the budget for those expenses that are necessary to perform the duties assigned hereby to the Corporation; Provided, That:
(1) The administrative expenses, including expenses for medical services and hospitalization, shall not exceed twenty-two percent (22%) of the total income accrued on account of premiums during the previous fiscal year, and
(2) the budget shall include an item set aside to cover the expenses apportioned in the budget of the Commonwealth of Puerto Rico for the operations and functions of the Industrial Commission, which item shall not exceed four percent (4%) of the total income accrued on account of the premiums during the previous fiscal year.
The resulting differences between the amounts spent annually by the Industrial Commission and the Office of the Administrator of the State Insurance Fund, and the total amount available to said entities for their budgets as provided by virtue of this section, with the exception of medical expense remainders, shall be deposited annually in the Catastrophe Reserve Fund of the State Insurance Fund.
(o) Establish procedures for the determination and revision of fees, collection of premiums and payment of claims.
(p) Revise, approve and submit at the end of each financial year, but no later than the first of November of each year, an annual report to the Governor and the Legislature, containing, among other matters; a financial statement including an income and expense statement for the corresponding year, a balance sheet, and detailed reports of the claims filed at the Corporation during the year; a loss reserve certification prepared by a professional actuary in compliance with the standards of the National Association of Insurance Commissioners to certify the reserves of commercial insurers; a report on the investment and property titles of the Corporation; and any other statistical and financial data which the Board may deem necessary for an adequate interpretation of the Financial Statement of the Corporation.
(q) Approve investments of the resources of the Corporation, subject to the provisions of § 30 of this title on the public policy on investments.
(r) Make the corresponding recommendations to the Governor regarding the candidates to be appointed to the Medical-Industrial Council, as provided in § 1c of this title and, once said Council is appointed, it shall aid and collaborate with the duties assigned to the aforesaid as provided thereby.
(s) Keep up with the development of the system, so that it may be a dynamic one.
The Board of Directors of the State Insurance Fund Corporation shall use its corporate powers to promote the Work Accident Compensation System established in this chapter, in accordance with the objectives and purposes of the statement of public policy stated in § 1a of this title. To such effects, the Board of Directors shall submit to the Governor of the Commonwealth of Puerto Rico and to the Legislature, within one year after being constituted and from then on, on each subsequent year, a full and detailed report of the measure administratively adopted in order to comply with such a task. Said report shall contain, whenever possible, an evaluating analysis of the achievements and results attained thereof.
In its annual report to the Governor and the Legislature, the Board of Directors of the Corporation must make mention on those areas which are in the process of being studied and considered for the purpose of complying with the task of reforming the Work Accident Compensation System. The Board of Directors of the Corporation shall also recommend, as soon as possible, those legislative measures that may be necessary to continue the reform process and which may be impossible to implement by administrative action.
History —Apr. 18, 1935, No. 45, p. 250, added as § 1B-3 on Oct. 29, 1992, No. 83, § 1.