PUERTO RICO’S COUNTER-SIGNATURE LAW UPHELD

The U.S. Court of Appeals for the First Circuit has refused to overturn a ruling striking down Puerto Rico’s controversial countersignature law that required non-resident commercial insurance brokers to have the countersignature of a Puerto Rico resident agent before they could do business on the island.

The decision in Puerto Rico is not yet final because the Commonwealth still has 90 days to seek a Supreme Court review of the ruling. Although it is unlikely the Supreme Court will accept the case for review, agents and brokers must continue to comply with existing law until the Commonwealth has exhausted its review rights.