March 2, 2021

PR Headline News

Top Stories Without The Fluff

They propose to amend the Insurance Code to protect consumers


SAN JUAN – Five popular representatives filed House Bill 153, which proposes that no insurer can extinguish an obligation, which will allow the insured to feel more confident when it comes to protecting their properties.

The measure, likewise, as explained this Sunday in a press release, will require the insurance company to extinguish an obligation by means of the settlement payment figure without first providing the insured with a detailed explanation, in writing and orally about the scope and consequences of receiving such payment.

The representative authors of the measure are Jesús Manuel Ortiz, Ramón Luis Cruz, Héctor Ferrer, Orlando Aponte and Estrella Martínez, president of the Banking and Consumer Affairs Committee of the House of Representatives.

The settlement payment is a way to satisfy or settle an obligation.

It allows a debtor to satisfy what is owed to the creditor through a lower amount claimed, this in common agreement.

According to Ortiz, after the passage of Hurricane María and the earthquakes last year, “there have been many inconveniences that consumers have had with their insurance policies.”

“Many of them have seen the payments received in their claims for damages through the settlement payment figure dramatically decreased,” he added.

“This has led to court cases in which policyholders state that they were not provided with an adequate explanation about the scope of said payment,” he said.

Martínez, for his part, indicated that the proposal of the insurers to extinguish an obligation through the figure of the settlement payment, without first providing the insured with a detailed written and oral explanation of the scope and consequences of receiving said payment, “will allow policyholders feel more confident when it comes to protecting their properties ”.



Source link