P.R. Laws tit. 26, § 949n
(1) For the purposes of assisting in the enforcement of the laws against prohibited rebates and prevent the use of undue influences or coercion in insurance transactions, the Commissioner shall not grant any license as producer, general agent or solicitor to any person should he/she have reasonable grounds to believe that the license has been used to negotiate a controlled business.
(2) A license shall be deemed to be used for the purpose of negotiating a controlled business if the total net sum of the commissions or other compensation received or to be received by the licensee or applicant on a controlled business contracted or to be contracted during a specific period, exceeds thirty-five percent (35%) of the total net sum of commissions or other compensation received or to be received by the licensee or applicant, on every insurance business contracted or to be contracted by him/her during the same period.
(3) Controlled business.— Shall mean insurance transacted or to be transacted by said licensee or applicant or through either of them on:
(a) His/her own life, person, property or interests, or those of his/her spouse or relatives by consanguinity or affinity to the second degree;
(b) the life, person, property, casualty risks, surety risks, or title risks of his/her employer, or of his/her principal, or of his/her firm, or of his/her officer, director or stockholder, or of his/her client or any person to whom he/she serves through a professional service contract or of any officer, director, stockholder or member of his/her employer or firm that are not members of mutual insurers or of the spouse of said employer, officer, director, stockholder or member;
(c) the property or interests of the corporation whose stock is under its control or held by any combination of himself/herself, his/her firm, employer, major stockholders of his/her employer, his/her directors, officers, or stockholders and spouses of any of them; the property or interests of any subsidiary of said corporation;
(d) the life, person, property or interests of his/her ward or his/her employees or upon persons, property or interests under his/her control or supervision as trustee, attorney, agent or receiver or as administrator or executor of any estate, or
(e) property sold under contract by him/her as agent or principal, his/her employee, director or stockholder or by his/her employer or firm or by any officer, official, director, stockholder or member of his/her employer or firm, except in the case of real estate.
(4) The provisions of this section shall not apply to any general agent or producer who has a relationship as subsidiary or affiliate with a depository institution or financial holding company, provided these comply with the safeguards established by the Commissioner to protect consumers from the use of undue influences or coercion in the transaction of insurance and a conditioned subscription. The Commissioner may deny, revoke, suspend or refuse to renew the license of said general agent, producer or solicitor if, when transacting insurance, these fail to observe the safeguards established by the Commissioner. To those effects, the procedure established in subsection (2) of § 953g of this title shall be available to the Commissioner.
History —Ins. Code, added as § 9.080 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.