Puerto Rico law

Long-Term Disability & ERISA Laws in Puerto Rico.

Most private long-term disability (LTD) insurance in Puerto Rico is employer-sponsored and governed by ERISA — which preempts PR contract and bad-faith claims for employer-sponsored plans. ERISA claims must exhaust internal appeals and are reviewed under a deferential standard if the plan grants discretion. Individual (non-ERISA) policies are governed by Puerto Rico contract law under the Civil Code and the PR Insurance Code. Puerto Rico also administers its own State Insurance Fund providing short-term disability (SINOT — non-occupational disability).

Last verified: 2026-04-17

State law

Key Puerto Rico Statutes

ERISA Preemption29 U.S.C. § 1144

ERISA preempts Puerto Rico-law breach of contract and bad-faith claims for employer-sponsored LTD plans.

Individual Policy Bad Faith2020 Civil Code; PR Insurance Code

For non-ERISA individual LTD policies, PR contract law and Insurance Code provide remedies for insurer breach of good-faith duty.

SINOT (Non-Occupational Disability Insurance)Act No. 139-1968 (11 L.P.R.A. §§ 201 et seq.)

Puerto Rico's mandatory short-term disability insurance for non-occupational disability. Pays benefits for up to 26 weeks for disabilities not covered by workers' compensation.

State law

Official Sources

U.S. Department of Labor — EBSA PR State Insurance Fund Corporation (FSE)

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Puerto Rico.

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