Real Legacy Assurance under Puerto Rico Insurance Commissioner receivership
SAN JUAN – The Puerto Rico Insurance Commissioner’s Office requested and was granted Friday a “rehabilitation order” for insurer Real Legacy Assurance Co. before the Court of First Instance, Superior Court of San Juan.
As explained by Insurance Commissioner Javier Rivera Ríos, the order designates the commissioner, as “rehabilitator” and orders him to take possession of the insurer’s assets, “in protection of the interests of the policyholders with claims, creditors of the insurer and the public in general,” reads a release issued Friday.
After multiple efforts by Rivera Ríos and his team, among which are financial audits, the result was the court request.
“My main duty as Insurance Commissioner is to ensure the financial solvency of the insurers, with the purpose of safeguarding the public interest, and it is in defense of that mandate that we have initiated this course of action,” Rivera Rivera said in the statement.
“As Commissioner, the Court, in issuing a Rehabilitation Order, designates me Rehabilitator and empowers [me] to take possession and manage the operations and assets of the company; in this case Real Legacy Assurance Company, Inc., under the exclusive general supervision of the Court,” Rivera Ríos asserted.
The Commissioner also explained that a rehabilitation order is issued, among other reasons, because the insurer is in a financial condition that requires intervention to protect its assets, but at the same time allows the company to operate through an action plan to try to reorganize its operations and recover financially, without involving its closure or liquidation.