OFFICE OF COMMISSIONER OF INSURANCE.

LEGAL AUTHORITY

Act No. 77 of June 19, 1957, as amended, known as the Insurance Code of Puerto Rico creates the Office of the Commissioner of Insurance.


MISSION

Promote the solvency, solidity, competitiveness and growth of the insurance industry as a vital sector of Puerto Rico's economy, by creating an agile environment of regulation and supervision, innovative as well as flexible, directed towards the satisfaction of insurance needs and the protection of citizens.


VISION

Exercise leadership in the development of an excellent insurance industry that is global, competitive, solvent and solid, centered on protecting the public interest, and supportive of Puerto Rico's economic well-being.


ORGANIZATIONAL STRUCTURE

The following organizational units compose the Commissioner of Insurance Office:

  • Administration Office
  • Legal Affairs
  • Customer Service
  • Supervision and Compliance
  • Advice Committee
  • Commissioner's Office


GEOGRAPHIC LOCATION

The Commissioner of Insurance Office is located on Tabonuco Street, GAM Tower Building, Suite 400, Caparra Hills Industrial Park in Guaynabo.


PROGRAMMATIC STRUCTURE

POSITIONS FILLED

Authorized and Proposed Positions 2009 2010 2011 2012
Sept./08 Sept./09 Sept./10 Feb./11 Proj.

 

Total amount of positions 133 113 103 101 125

Data comes from the Agency's Certified Headcount Reports. Figures for Fiscal Year 2011-2012 were estimated during the budget formulation process.

PROGRAM

Regulation and Inspection of the Insurance Industry

Program Description

Regulates, reviews and inspects Puerto Rico's insurance industry. Through audits, it ensures that the insurance industry complies with all the stipulations of the Puerto Rico Insurance Code, with emphasis on guaranteeing the economic solvency of authorized insurers in Puerto Rico and optimal functioning of the insurance industry in general. Also, authorizes the organization and operation in Puerto Rico, of local, national, and foreign insurance companies; and intervenes in the operations of all the insurers.

Statistical Data 2010 2011 2012

 

Audits conducted - test 32 35 19
Closed investigations - customer service 1,725 1,440 2,000
Customers served 14,421 43,456 29,594
Fraud investigations 83 130 90
Insurers authorization - financial analysis 20 33 25
Processed investigations - customer service 707 1,200 1,000
Proficiency exams-Services to Producers 3,704 4,901 4,119
Suppliers Complaints - prompt payment 261 200 300

The statistical data was provided by the Agency during the Fiscal Year 2011-2012 budget formulation process.

Customers

Mostly composed of agents and insurance brokers, adjusters, insurers, insured or holders of insurance, claimants, as well as the general public.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 98 85 77 91
Other staff 32 19 23 31
Information Systems 3 9 3 3
Total, Positions 133 113 103 125

FISCAL YEAR 2011-2012 ADOPTED BUDGET

The adopted consolidated budget for fiscal year 2011-2012 ascends to $11,896,000. The funds include $10,896,000 from State Special Funds and $1,000,000 from Federal Grants from the Health Insurance Premium Review proposal.

Operational Expenses reflect an increase of $2,471,000 in comparison with the funds assigned for fiscal year 2010-2011. These funds will be used to develop special projects directed towards the modernization of technological resources, the creation of a new Auxiliary Commissioner for Health Insurance and the proposed Health Insurance Premium Review. The use of these resources is authorized and stated by Act No. 77 of June 19, 1957, as amended.

The Agency plans to continue its regulatory function in the insurance industry and offer integrated, agile and efficient service. The agency will implement the new Health Insurance Code of Puerto Rico, and will publish eighteen (18) new rules associated with this. It will create a new Asistant Commissioner for Health Insurance, as well as expand service hours for those regulated and the general public. The Agency will continue to support the competitiveness and internationalization of Puerto Rico's insurance industry by focusing on modern mechanisms in order to facilitate negotiations to authorize International Insurers. Moreover, the Agency will strengthen collaboration efforts with international organizations, like the Association of Insurance Supervisors of Latin America (ASSAL, Spanish Acromym).

SUMMARY OF AVAILABLE RESOURCES

Consolidated Budget  (thousands $) 2009 2010 2011 2012

 

Program  
Operational Expenses Actual Actual Budget Adopted
Regulation and Inspection of the Insurance Industry 8,630 8,187 9,425 11,896
Subtotal, Operational Expenses 8,630 8,187 9,425 11,896
Total, Program 8,630 8,187 9,425 11,896
 
Funding Sources  
Operational Expenses  
Federal Grants 0 0 0 1,000
State Special Funds 8,630 8,187 9,425 10,896
Subtotal, Operational Expenses 8,630 8,187 9,425 11,896
Total, Funding Sources 8,630 8,187 9,425 11,896
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 6,358 5,842 6,634 7,118
Rent and Utilities 310 278 253 245
Purchased Services 1,247 1,237 1,323 1,322
Transportation Expenses 68 37 120 152
Professional Services 302 258 435 1,299
Other Expenses 172 319 167 167
Non Distributed Allocations 0 0 0 1,000
Previous Years Debt Payments 0 0 220 220
Equipment Purchases 37 82 72 172
Office Supplies and other Materials 80 68 101 101
Advertising and Media Expenses 56 66 100 100
Subtotal, Operational Expenses 8,630 8,187 9,425 11,896
Total, Expense Category 8,630 8,187 9,425 11,896