P.R. Laws tit. 26, § 653
(1) Unless otherwise indicated in §§ 648–662 of this title, an insurer shall not acquire any investment under §§ 648–662 of this title if, as a result of, and after making the investment, the insurer has more than five percent (5%) of its allowed assets or more than ten percent (10%) of its capital and surplus, whichever is less, in any type of investments issued, assumed or guaranteed by one single person or business entity, including shares guaranteed by assets or loans guaranteed by a single set of assets. For the purposes of §§ 648–662 of this title, the securities issued by AFICA shall be deemed as issued by the business entity to which AFICA is lending the money resulting from the issue.
(2) Unless otherwise indicated in this Code, an insurer may only acquire investments allowed under §§ 648–662 of this title (excluding investments allowed under §§ 654(1), 657(3), 661 and 662 of this title and the investment practices allowed under §§ 658 and 660 of this title if, as a result of and after making the investment, they do not exceed forty percent (40%) of the allowed assets of the insurer.
(3) The investments of an insurer shall be limited according to their rating, as follows:
(a) Top rated investments.— An insurer may not acquire, directly or indirectly, an investment under §§ 654(2) and (3), 655 or 659 of this title, if as a result of and after making the investment, the sum total of the top rated investments owned at that moment would exceed forty percent (40%) of its allowed assets.
(b) Middle rated investments.— An insurer may not acquire, directly or indirectly, an investment under §§ 654(2) and (3) or 659 of this title, if as a result of and after making the investment, the sum total of the middle rated investments owned at that moment would exceed twenty percent (20%) of its allowed assets.
(c) Low rated and unrated investments.— An insurer may not acquire a low rated investment. An insurer may acquire unrated investments as provided in §§ 655 and 662 of this title.
(4) General limitations of Canadian investments.—
(a) An insurer may not acquire, directly or indirectly, those Canadian investments authorized by §§ 648–662 of this title if, as a result of and after making the investment, the total sum of such investments exceeds twenty percent (20%) of its allowed assets; the investments acquired under sections other than § 654(2) of this title, shall not exceed ten percent (10%) of its allowed assets.
(b) However, regarding an insurer authorized to do business in Canada or who has life and risk insurance, annuity or reinsurance contracts based or located in Canada that are denominated in Canadian currency, the limitations shall be whichever is greater between A and B, in which A is the limitations in the foregoing clause (a) of this subsection, and B shall be whichever amount is greater between:
(i) The amount required by Canadian law to be invested by an insurer in the jurisdiction of Canada or in Canadian currency, or
(ii) one hundred and fifteen percent (115%) of the amount of its reserves and other obligations under life or risk insurance contracts based or located in Canada.
History —Ins. Code, added as § 6.070 on May 16, 2003, No. 130, § 1.