On Jun. 30, PR RICO LEG passed bill to govern third party compliance.
PR RICO LEG passed bill PC 0303 to formalize regulation and registration of third-party administrators (TPAs) conducting business on behalf of insurers and operating in PR.
Amend PR RICO INS Act 77 (1957), Insurance Code of Puerto Rico, add Chapter 54.
Add article 7,010 subsection (gg) - (license fee) to make TPA registration fee $2500.
Applies to all insurance types, e.g., banking and lending, health, property, casualty.
Key Bill Provisions
Current law, Act 77, lacks precise rules to regulate hiring of third-party administrators.
NAIC developed model legislation re oversight of TPAs operating in multiple domiciles.
PC 0303 uses NAIC model to update the Act, provide for registration, licensing, record-keeping, advertising, policies of disclosure, claims and premiums collection by TPAs.
Require foreign TPAs to annually file declaration that their home State license is active.
Goal is to enhance oversight of TPAs as insurers outsource more processes to TPAs.
Legislative History
On Jan. 25, 2021, bill was introduced in House; on Oct. 26, 2021, bill passed in House.
On Nov. 1, 2021, bill introduced in the Senate; on Jun. 24, 2024, bill passed Senate.
On Jun. 30, 2024, bill was enrolled by both House and Senate chambers of the body.
Effectiveness
Law takes effect ninety (90) days after its approval.
Aug. 2024 PR RICO LEG Bill Approval
On Aug. 26, 2024, PR RICO LEG reported PC 0303 approved, assigned Law 16-2004.
Law 16-2004 provisions will become effective on Nov. 24, 2024.
Document dated Aug. 26, received from PR RICO LEG Sep. 4, summarized Sep. 6.
Regulators
PR RICO LEG
Entity Types
IB; Ins
Reference
Law 169-2004, Bill PC0303, 8/26/2024; Bill, PC0303, 6/30/2024; Citation: PR RICO INS Act 77;
