951

(1) No insurance producer license shall be issued or permitted to exist unless a bond is posted in the name of the Government of Puerto Rico to answer for the funds received by the producer as incidental to the insurance business and for the damages the interested parties may suffer as a result of the negligence of the producer in the performance of his/her duties. Provided, That this requirement shall not apply when a nonresident producer license is issued.(2) The bond shall be for the sum the Commissioner may require, taking into account, among other things, the volume of business subscribed through a producer, although it shall never be less than ten thousand dollars ($10,000). In the case of a corporation or partnership, the amount of the bond shall never be less than ten thousand dollars ($10,000) multiplied by the number of persons designated in its license. The Commissioner shall provide through rule or regulation the parameters pursuant to which the amount of the bond required shall be established.(3) The bond shall be effective by the date of effectiveness of the license.(4) The bond shall consist of:(a) A bond issued by an authorized surety insurer which shall not be

red shall be established.(3) The bond shall be effective by the date of effectiveness of the license.(4) The bond shall consist of:(a) A bond issued by an authorized surety insurer which shall not be subject to cancellation unless the Commissioner is notified thereof not later than sixty (60) days prior to its cancellation and in which it is established that the liability contracted under the bond contract until the date of cancellation shall not be extinguished nor be limited in any manner whatsoever because of the cancellation, or(b) Deposit of securities acceptable to the Commissioner.(5) In lieu of the bond the producer may submit a professional liability policy issued by an authorized insurer which shall be for an amount equal to or greater than the bond and be subject to the approval of the Commissioner. History —Ins. Code, added as § 9.200 on Jan. 19, 2006, No. 10, § 8; Dec. 28, 2010, No. 220, § 9.