"We stand by the constitutionality of the provisions of our statute and trust that the Puerto Rico Federal Court will be consistent with the decision that was issued by the Puerto Rico Supreme Court with regards to this matter," she said in an e-mail statement.

The department's statement came after a suit was filed by the Washington, D.C.-based Council of Insurance Agents & Brokers, in U.S. District Court for the District of Puerto Rico, that seeks to strike down the commonwealth's countersignature provisions.

In an interview, Ms. Santiago-Ducos said that the laws are necessary to protect consumers and validate insurance contracts in the commonwealth.

However, the department is planning to update the commonwealth's regulations and is seeking to update the countersignature requirements. She said there is a bill in the House of Representatives of Puerto Rico (Project 4719) which would update the insurance code.

Currently, any non-resident agent who does not have one year residency in Puerto Rico needs the signature of a resident agent for business placed in the commonwealth, she said. Under the proposed legislation, there would be no need for a countersignature for those agents whose states have adopted reciprocity based on the Producer Licensing Model Act adopted by the National Association of Insurance Commissioners. However, a countersignature would still be required for non-resident agents whose states have not adopted the act.

Resident agents do charge a fee for the service, she said, but it is not based on a percentage of the premium commission. However, she did not know how that fee is calculated.