P.R. Laws tit. 26, § 952h
(1) Any premium paid by an insured to his/her producer shall not be deemed paid to the insurer unless it is delivered to the insurer, to his/her general agent or to an authorized agent, except that:
(a) If the insurer, either directly or through his/her general agent or authorized representative expressly authorized the producer in writing to collect said premium, the insurer shall be responsible for the same to the insured, or
(b) if the amount of the premium on a policy issued through a producer is charged by the insurer, his/her general agent or authorized representative to the current account of the producer, the insurer shall be responsible therefor to the insured and the premium thus received is remitted to the insurer within the fifteen (15) days following the date on which it is received. This provision shall not affect the rights and obligations of the insurer, the general agent, the solicitor and the producer among themselves.
(2) All funds representing premiums or returned premiums received by a producer, general agent or solicitor shall be received in a fiduciary capacity, shall not be mixed with other funds of the licensee and shall be credited and paid in full to the person entitled thereto within fifteen (15) days from the date in which requested, except that in case a different term should exist in the contract subscribed by the insurer with his/her authorized representative or general agent, said term shall prevail, but in no case shall it exceed the term of ninety (90) days as of the date of effectiveness of the policy. When the person entitled to received returned premiums fails to solicit their return, they shall be remitted within ninety (90) days as of the date of effectiveness of the policy the endorsement or the cancellation thereof.
The producer, general agent, solicitor or authorized representative of the insurer who receives returned premiums and fails to remit them to the person entitled thereto within the terms herein provided, shall be bound to pay legal interest on the amount of the premiums withheld and be subject to the imposition of sanctions provided in this Code.
(3) Any producer, general agent or solicitor who, without being legally authorized to do so, unduly takes or appropriates such funds or part thereof for his/her own use, and the managing partner, director, official or executive employee, should any of them be a juridical person, who approves or collaborates with said undue taking or appropriation, in addition to the other penalties provided in this Code shall be guilty of a crime and be punished as provided in the Puerto Rico Penal Code.
(4) Any managing partner, director, official or executive employee of a producer, general agent or solicitor who without being legally authorized to do so, unduly takes or appropriates such funds or part thereof for his/her own use shall be jointly and severally responsible to the insurer or insurers of the funds unduly taken or appropriated.
History —Ins. Code, added as § 9.380 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.