(1) No cooperative or mutual cooperative stock insurer shall make any contract whereby any person is granted or is to enjoy in fact the management of the insurer or the controlling or preemptive right to produce substantially all insurance business for the insurer, unless such contract is filed with the Commissioner and be subject to his disapproval. The contract shall be deemed effective unless disapproved by the Commissioner within thirty days after date of filing, subject to such reasonable extension of time as the Commissioner may require by notice given within such thirty days. Each disapproval shall be delivered to the insurer in writing, stating the grounds therefor.\n(2) The Commissioner shall disapprove any such contract if he finds that it:\n(a) Subjects the insurer to excessive charges; or\n(b) is to extend for any unreasonable length of time; or\n(c) does not contain fair and adequate standards of performance, or\n(d) contains other inequitable provisions or provisions which jeopardize the proper interests of stockholders, partners, or members of the insurer.\nHistory —Ins. Code § 29.240; June 25, 1965, No. 86, p. 200, § 16.
Puerto Rico Legal Code