Enmienda a la Carta Circular AM-I-12-1029-85 del 28 de enero de 1986

[LOGO] COMMONWEALTH OF PUERTO RICO # OFFICE OF THE COMMISSIONER OF INSURANCE June 1, 1987 Circular Letter No. AM-I-5-1089-87 TO ALL RATING ORGANIZATIONS, INSURERS, GENERAL AGENTS AND MANAGERS AUTHORIZED TO TRANSACT PROPERTY AND/OR CASUALTY INSURANCE IN PUERTO RICO Subject: Amendment to Circular Letter AM-I-12-1029-85 of January 28, 1986 Dear Sirs: Circular Letter No. AM-I-12-1029-85 of January 28, 1986, implemented the provisions of Section 8(e) of Rule XL of the Regulations of the Insurance Code of Puerto Rico outlining therein a gradual elimination of the schedule rating plans or manual rules applicable to the perils of windstorm and earthquake on an individual basis, or in combination with other perils. As you are all well aware, the insurance industry is about to implement, beginning on January 1, 1988, major rules, rates and forms revisions in the most important lines of commercial insurances. The most affected lines by the impact of rates increases will be the commercial multiple line policies, since monoline rates are used to develop the premiums of the coverages contained in these policies. Since the overall loss and expense ratio of the property and casualty insurance business in 1986 shows a considerable improvement when compared with the 1985 results, and since we have no way to anticipate the impact of rate increases over individual policies, this Office considers that the gradual elimination of schedule discounts should be allocated within a longer period of time than the one originally considered in the mentioned circular letter. In view of the above the gradual elimination of the maximum credit to be granted on windstorm and earthquake insurance is amended as follows: P.O. Box 8330 — Fernández Juncos Station — Santurce, Puerto Rico 00910 - 8330 -2- # Period beginning on | January 1, 1988 | | --- | | January 1, 1989 | | January 1, 1990 | | January 1, 1991 | | January 1, 1992 and thereafter | # Maximum Credit | 20% | | --- | | 15% | | 10% | | 5% | | No credit | Strict compliance with the provisions of this circular letter is hereby ordered and required. Cordially yours, Juan Antonio García Commissioner of Insurance