PR| Circular Letter CC-2025-2052-CIS, issued by the Puerto Rico Office of the Commissioner of Insurance, updates Puerto Rico’s regulatory framework so that international insurers operating through the CIS as Multistate International Insurers must meet NAIC‑consistent solvency, governance, reporting, and guaranty association standards, align with traditional insurer regulation, and transition their business plans and authorizations to the new Act 130‑2025 requirements within a defined timeframe.
Key Points:
- Multistate International Insurers (new Subclasses 3‑M, 4‑M, 5‑M) are defined as international insurers with authority 3, 4, or 5 that also hold authority/eligibility in at least one U.S. state and in Puerto Rico, including when acting as reinsurers or surplus lines insurers.
- These entities must comply not only with Chapter 61 but also with specified provisions on authorization, capital and risk‑based capital, investments, reinsurance, corporate governance, ORSA, group supervision, and participation in each relevant state’s guaranty association or fund.
- Act 130 is effective November 24, 2025; affected entities must use a new OCS authorization form, file an amended business plan within one year showing full compliance with Article 61.051 and related rules, and understand that reciprocal treatment in other jurisdictions is not automatic but requires separate applications under NAIC Accreditation Manual standards.
Click here to see Original (Spanish) PR Circular Letter CC-2025-2052-CIS
Below is the English translation of the main text of PR CC-2025-2052-CIS
OFFICE OF THE
COMMISSIONER OF INSURANCE
GOVERNMENT OF PUERTO RICO
December 31, 2025
CIRCULAR LETTER: CC-2025-2052-CIS
TO ALL INSURERS, REINSURERS AND SURPLUS LINES INSURERS THAT CONDUCT INSURANCE BUSINESS UNDER THE INTERNATIONAL INSURANCE CENTER (CIS)
TO ESTABLISH AND CLARIFY THE APPLICABILITY OF CHAPTER 61 OF THE PUERTO RICO INSURANCE CODE TO INTERNATIONAL INSURERS IN LIGHT OF THE ENACTMENT OF ACT NO. 130–2025.
Dear Sirs and Madams:
On November 24, 2025, the Governor of Puerto Rico, Hon. Jenniffer González Colón, signed Act No. 130-2025 (hereinafter, “Act 130”), through which she amended Chapter 61 of the Puerto Rico Insurance Code (hereinafter, the “Insurance Code”), for the purpose of creating Subclasses 3‑M, 4‑M and 5‑M applicable to international insurers that operate as Multistate International Insurers under the International Insurance Center (CIS), and harmonizing their regulatory framework with the uniform financial solvency standards of the National Association of Insurance Commissioners (NAIC) Accreditation Program.
Subsection (5) of Article 61.020 of the Insurance Code, as amended by Act 130, defines the Multistate International Insurer as:
“‘Multistate International Insurer’ means that international insurer with authority 3, 4, or 5, that: (a) is an authorized insurer in at least one state in addition to Puerto Rico; (b) operates in at least one state and also holds a certificate of authority from Puerto Rico; (c) operates as an accredited or certified reinsurer in at least one state and also holds a certificate of authority from Puerto Rico; (d) reinsures business covering risks located in at least one state and also holds a certificate of authority in Puerto Rico; or (e) operates as a surplus lines insurer in at least one state and also maintains a certificate of eligibility from Puerto Rico. For these purposes, the term ‘state’ shall have the same meaning provided in Article 3.010(5) of this Code.”
Likewise, Act 130 added Article 61.051, which establishes the additional requirements that Multistate International Insurers must meet in order to be authorized to conduct insurance business in the United States. In view of this, through this Circular Letter it is reiterated that said insurers must comply, in addition to what is set forth in Chapter 61 of the Insurance Code, with the following provisions:
(a) Articles 2.100 to 2.250 – Commissioner of Insurance
(b) Articles 3.300 to 3.330 – Authorization of Insurers and General Requirements
(c) Article 4.140 – Classes of Insurance; Reinsurance; Risk Limitations
(d) Articles 5.010 to 5.110 – Assets and Liabilities
(e) Articles 6.020 to 6.160 – Investments
(f) Articles 32.010 to 32.080 – Corporate Governance
(g) Articles 44.010 to 44.140 – Act to Regulate the Control Relationship of Insurers or Health Service Organizations by Holding Entities
(h) Articles 45.010 to 45.130 – Risk‑Based Capital
(i) Articles 46.010 to 46.140 – Reinsurance
(j) Articles 53.010 to 53.090 – Own Risk and Solvency Assessment and Management.
In addition, pursuant to Act 130, Multistate International Insurers must comply with all rules, regulations, and orders issued by the Office of the Commissioner of Insurance of Puerto Rico (OCS), and must participate in the guaranty association or fund of each state in which they underwrite insurance business, as required by the laws and regulations of such jurisdiction.
As an essential condition for the issuance of a certificate of authority under any of Subclasses 3‑M, 4‑M, or 5‑M, Multistate International Insurers must demonstrate to the OCS compliance through a certification of their participation in the corresponding guaranty associations as required by that state’s regulations. The Certificates of Authority to be issued by the OCS for all international entities will specify the authority under which the International Insurer will be authorized to operate in the United States.
Pursuant to the provisions of Act 130, if a liquidation proceeding is initiated in the state in which the Multistate International Insurer is authorized, the Commissioner of Insurance of Puerto Rico will act as an auxiliary receiver, in accordance with the provisions of Chapter 40 of the Insurance Code.
It is reaffirmed that, as provided in Article 61.051(3) of the Insurance Code, Multistate International Insurers and Reinsurers will be subject to the same special contribution set forth in Chapter 61 of the Insurance Code for International Insurers.
By virtue of Act 130, it is reiterated that Multistate International Insurers will be subject to the same supervision standards, reporting requirements, and regulatory processes applicable to traditional insurers in Puerto Rico. Consequently, they must comply with the provisions contained in Chapters 3, 28, and 29 of the Insurance Code.
The implementation of the provisions applicable to Multistate International Insurers under Chapter 61, as amended by Act 130, will be carried out in ongoing coordination with the staff of the NAIC Accreditation Program, in order to ensure that the regulatory practices and compliance measures adopted by the OCS in relation to the CIS are consistent with the uniform standards of the Accreditation Program and with the accredited jurisdictions in the United States.
The provisions of Act 130 have been in effect since November 24, 2025. Therefore, any entity that applies for authorization under Subclasses 3‑M, 4‑M, or 5‑M must comply with the financial solvency requirements established in said Act, and with the rules and regulations issued by the OCS that are consistent with the standards of the NAIC Accreditation Program. Likewise, they must submit their application using the authorization form for Multistate International Insurers and Reinsurers that will be adopted by the OCS and notified through circular letter.
Multistate International Insurers will have a period of one (1) year, from the effective date of Act 130, to submit to the OCS for its approval an amended business plan evidencing compliance with the provisions of Article 61.051 of the Insurance Code. When submitting said plan, they must ensure compliance with all the requirements established in Article 61.051 of the Insurance Code and with the regulations, normative letters and circulars, and applicable processes established by the OCS.
In cases in which a Multistate International Insurer is interested in being considered by another state or territory to receive reciprocal treatment, such recognition will not be granted automatically. The Multistate International Insurer must apply directly to the corresponding jurisdiction and comply with all applicable requirements of the NAIC Accreditation Manual for traditional insurers, as well as with any other requirement imposed by said jurisdiction.
The purpose of this Circular Letter is to update the regulatory framework applicable to Multistate International Insurers and Reinsurers in accordance with the amendments introduced to Chapter 61 by Act 130, and to ensure the uniform application of its statutory and regulatory provisions. In light of the foregoing, Circular Letter No. CC‑2024‑2032‑D, issued on January 19, 2024, is repealed and replaced by what is set forth herein.
All concerned entities are required to take notice of this Circular Letter and strictly comply with the statutory and regulatory provisions cited herein.
Sincerely,
Leda. Suzette Del Valle Lecároz
Commissioner of Insurance of Puerto Rico