P.R. Laws tit. 26, § 2954
(1) Upon any liquidation of a mutual insurer, its assets remaining after discharge of its indebtedness, policy obligations, and expenses of administration, shall be distributed to its members who were such at any time within the three years last preceding the date of the meeting of members at which was adopted the resolution authorizing such liquidation as provided in § 2948(2)(b) of this title, or, if liquidation is pursuant to §§ 4001–4024 of this title, to those members who were such within the three years last preceding the date of commencement of delinquency proceedings against the insurer, whichever date is the earlier; except, that if the Commissioner finds, after a hearing thereon, that the affairs of the insurer have been conducted in such manner as unfairly to reduce the number of policyholders who may be entitled to participate in any such distribution, he shall have the power to require and he shall order that such additional number of months be added to the qualifying period as he deems to be equitable and practical.
(2) The distributive share of each such member shall be in the proportion that the aggregate premiums earned by the insurer on the policies of the member during the combined periods of his membership, bears to the aggregate of all premiums so earned on the policies of all such members. The insurer may make a reasonable classification of its policies so held by such members and a formula based upon such classification for determining the equitable distributive share of each such member. Such classification and formula shall be subject to the Commissioner’s approval.
History —Ins. Code § 29.540.