• Attorneys & Counselors

PR Senate Bill 1056


On August 20, 2018, senator Thomas Rivera Schatz and the Majority Members introduced Senate Bill 1056 to add a new Article 27.166 to Act No. 77 of June 19, 1957, known as the Puerto Rico Insurance Code, in order to authorize the Office of the Commissioner of Insurance to order property insurance companies to issue partial payments or in advancement of undisputed claims to the insured or claimant after a catastrophic event, without the need to wait for the final resolution of the claim. This bill was approved by the Senate on October 1, 2018 and sent to the House of Representatives on that same day, which approved the final text of the bill on October 29, 2018. The Senate approved the final text of the bill on November 12, 2018.

The proposed bill orders insurance companies to issue partial payments of undisputed claims after the insured provides all required documents no later than 10 calendar days after the claimant accepts the partial payment or advancement offer made by the insurance company. The partial payment or advancement will have applied the deductible payment and must be clearly identified as a partial payment or advancement.

Any payment offers which does not identify the insurance policy or does not include a breakdown of which damages or losses are being paid, will be considered an unfair practice in the claim adjustment.


Lastly, the proposed article clarifies that the acceptance of a partial payment or advancement will not be interpreted as a final payment or waiver of rights or defenses regarding other issues not included in the partial payment or advancement offer breakdown, neither does it constitute a final resolution to the totality of the claim.

If you have any questions about Senate Bill 1056 feel free to contact us at your convenience at (787) 765-5656.