OFFICE OF THE COMMISSIONER OF INSURANCE.

LEGAL AUTHORITY

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

ORGANIZATIONAL STRUCTURE

  • Adjudication Office
  • Administration Office
  • Advice Committee
  • Commissioner's Office
  • Customer Service
  • Human Resources
  • Legal Affair
  • Supervision and Compliance


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 2011 2012 2013

 

Audits conducted - tests 14 19 11
Closed investigations - customer service 1,295 2,000 1,325
Customers served 16,677 29,594 21,223
Fraud investigations 87 90 80
Insurers authorization - financial analysis 6 25 9
Processed investigations - customer service 1,078 1,000 1,100
Scheduled exams-Services to Producers 3,807 4,119 3,904
Supplier complaints - prompt payment 192 300 300

The statistical data was provided by the Agency during the Fiscal Year 2012-2013 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.


FISCAL YEAR 2012-2013 PROPOSED BUDGET

The proposed consolidated budget for Fiscal Year 2012-2013 amounts to $10,896,000 from State Special Funds.

Operational Expenses reflect a decrease of $1,000,000 or 8.4% when compared to funds assigned in fiscal year 2011-2012 due to the loss of the Health Insurance Premium Review Federal Fund.

State Special Funds are assigned through legislation, specifically Act No. 77 of June 19, 1957, as amended. These resources will be used to cover operational expenses and will allow the Office to continue its regulatory functions and to provide services efficiently.


SUMMARY OF AVAILABLE RESOURCES

Consolidated Budget  (thousands $) 2010 2011 2012 2013

 

Program  
Operational Expenses Actual Actual Budget Proposed
Regulation and Inspection of the Insurance Industry 8,187 12,285 11,896 10,896
Subtotal, Operational Expenses 8,187 12,285 11,896 10,896
Total, Program 8,187 12,285 11,896 10,896
 
Funding Sources  
Operational Expenses  
Federal Grants 0 0 1,000 0
State Special Funds 8,187 12,285 10,896 10,896
Subtotal, Operational Expenses 8,187 12,285 11,896 10,896
Total, Funding Sources 8,187 12,285 11,896 10,896
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 5,842 5,592 7,118 7,625
Rent and Utilities 278 243 245 303
Purchased Services 1,237 1,290 1,322 1,297
Transportation Expenses 37 33 152 47
Professional Services 258 1,148 1,299 1,160
Other Expenses 319 3,738 167 151
Non Distributed Allocations 0 0 1,000 0
Previous Years Debt Payments 0 9 220 0
Equipment Purchases 82 130 172 171
Office Supplies and other Materials 68 58 101 82
Advertising and Media Expenses 66 44 100 60
Subtotal, Operational Expenses 8,187 12,285 11,896 10,896
Total, Expense Category 8,187 12,285 11,896 10,896