2504

(1) On January 31 of each year, every native insurer who has underwritten catastrophic insurance during the previous year, shall deposit an amount of money equivalent to the reserve for catastrophic insurance losses computed according to § 2503 of this title, for the preceding year, in the trust established pursuant to the provisions of this section. The deposit shall also include the funds on account of transfers made pursuant to § 2503(5) of this title.\n(2) The trust shall be previously approved by the Commissioner and shall meet the following requirements:\n(a) The trust shall be constituted pursuant to the laws of Puerto Rico.\n(b) The trust shall credit the income accrued on account of the investment of its assets, to its funds pursuant to the provisions of § 2505 of this title.\n(c) Except for the provisions of §§ 2506(2) and 2507 of this title, the trust shall use its funds solely and exclusively for the payment of catastrophic insurance losses and for the adjustment expenses inherent to said losses.\n(d) The trustee in charge of managing the trust, who shall be domiciled in Puerto Rico, must also be approved by the Commissioner, and must perform the operation of the trust

nherent to said losses.\n(d) The trustee in charge of managing the trust, who shall be domiciled in Puerto Rico, must also be approved by the Commissioner, and must perform the operation of the trust from this jurisdiction.\n(3) The Commissioner shall audit the operations of the trust to verify its compliance with the applicable laws.\nHistory —Ins. Code, added as § 25.040 on Aug. 12, 1994, No. 73, § 1.