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PC 974

Para enmendar el Capítulo 44 del Código de Seguros de Puerto Rico, Ley Núm. 77 de 19 de junio de 1957, según enmendada, a los fines de atemperar sus disposiciones a las enmiendas introducidas por la Asociación Nacional de Comisionados de Seguros (NAIC, por sus siglas en inglés) a la ley modelo “Insurance Holding Company System Regulatory Act”.

2025-2028 Session

Puerto Rico bill aligns insurance holding company regulations with national NAIC standards to strengthen financial oversight and regulatory consistency in the territory's insurance sector.

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Bill Summary · PC 974

Legislative bill overview

Bill PC 974 amends Chapter 44 of Puerto Rico's Insurance Code (Law 77 of 1957) to align with updated model regulations from the National Association of Insurance Commissioners (NAIC) regarding insurance holding company systems. The bill modernizes Puerto Rico's regulatory framework to match national standards for supervising corporate structures that own insurance companies.

Why is this important

Insurance holding company regulations are critical for protecting policyholders and maintaining financial stability in the insurance sector. Modernizing Puerto Rico's framework ensures the territory's insurance regulators have contemporary tools to monitor complex corporate structures, detect financial risks early, and maintain competitiveness with other jurisdictions that have already adopted NAIC updates.

Potential points of contention

  • Regulatory burden: Enhanced compliance requirements for holding companies could increase operational costs for insurers operating in Puerto Rico, potentially affecting smaller companies disproportionately
  • Sovereignty and flexibility: Aligning with NAIC model laws may limit Puerto Rico's ability to implement island-specific insurance regulations tailored to local economic conditions
  • Implementation timeline: The bill does not specify transition periods, which could create compliance challenges for existing holding companies required to quickly meet new standards

Compiled from official sources — confirm details with the bill’s official record.

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