P.R. Laws tit. 26, § 953
(1) When an insurance policy originally subscribed through a particular producer whose premium has been billed and paid for in whole or in part is cancelled and substituted for one or more policies with the same coverage or with additional coverage for the same insured through another producer, whether or not subscribed with the same insurer and whether or not subscribed for the same term, the new producer shall be liable to the originating producer for the amount of any commission unearned by the latter for the term comprised between the date of cancellation and the date on which the next anniversary of the original policy begins, if the partial payment corresponding to the policy year on which the cancellation occurs has been paid.
To the effects of this section, the phrase “unearned commission” means the commission that has been advanced or paid or credited to the account of a producer on account of the premium that has been paid to and accepted by the insurer, but which the producer is bound to refund due to the cancellation of the insurance for which the premium was paid.
(2) It is essential that in the transfer of businesses the new producer acts in good faith. To those effects it shall be understood that the new producer acted in good faith if he/she immediately notifies the originating producer by certified mail with return receipt requested that the insured has appointed him/her as his/her producer. In the absence of such a notice it shall be understood that the appointment of the originating producer remains in effect.
(3) Both the originating producer and the new producer shall provide evidence available for the inspection of the Commissioner attending that he/she has complied with the requirements of this section.
(4) This section shall not apply to life and disability insurance.
History —Ins. Code, added as § 9.400 on Jan. 19, 2006, No. 10, § 8, eff. 120 days after Jan. 19, 2006.