On April 13, 2020, SUSEP Circular No 601/2020 (“Circular”) was published, establishing the conditions for the registration of surety insurance operations in systems approved and managed by registry entities accredited by the Superintendence of Private Insurance (SUSEP).
Jointly with the recently published SUSEP Circular No. 599/2020, which establishes the rules for the approval of the registration and accreditation systems of registry entities, the new Circular complements the list of rules necessary to start implementing the registration of operations specifically in the line of surety insurance.
The Circular determines that the supervised entities must register guarantee insurance operations related to policies issued after the rule comes into force within 2 business days, calculated from the occurrence of the following triggering events:
• issuance of policies and endorsements;
• settlement of insurance premiums, commissions, expenses and claim losses;
• registration of claim loss notice; and
• conclusion of the initial, partial or final assessment of a claim loss by the supervisee entity.
The rule lists the minimum information that must be registered in guarantee insurance operations, which are related to the policy; data of the parties; insured object; contracted coverage; movements and settlement of premiums; form of intermediation; handling, expenses and claim losses reimbursement; reinsurance contracts, including premium movements and accountability.
In this regard, the rule also requires that the entities register information regarding judicial blockages, or incumbrances of any kind that may fall on the policies.
In addition, other trigger events must be registered within 15 (fifteen) working days of their occurrence.
Finally, regarding the deadline for registration, the Circular determines that operations related to the policies in force on August 3, 2020, must be registered within 30 (thirty) business days from this date. Conversely, the operations related to the policies whose validity ended before August 3, 2020, must be registered within 10 (ten) business days counted from the first movement of loss occurring after this date.
The Circular will take effect on August 3, 2020.
Demarest’s Insurance and Reinsurance team is available to provide any additional clarifications on this matter.