Thursday, August 23, 2018

Puerto Rico Approves Appraisal Standards: Let’s Play Ball

At the start of the 2018 Atlantic Hurricane Season, we provided an overview of Puerto Rico’s codified prohibition against alternative dispute resolutions, such as arbitration and appraisal, in connection with insurance matters.  (See When It Comes to Insurance Disputes: No ADR in PR!). Subsequently on June 12, 2018, the Office of Commissioner of Insurance (OCI) for the Government of Puerto Rico issued Ruling Letter No. CN-2018-241-D, exercising its vested authority under 26 L.P.R.A. § 235(16), to formally establish the standards and procedures for the appraisal process as an alternative conflict resolution method in the insurance industry.