Consolidation and simplification of rules applicable to the operation of extended warranty insurance as of May 2022

The Superintendence of Private Insurance (“SUSEP”) published Resolution CNSP No. 436/2022, which provides for the general guidelines applicable to the operation of extended warranty insurance, and complemented the regulation through SUSEP Circular No. 659/2022, which establishes the rules and criteria for the operation of extended warranty insurances.

The new regulations consolidate and simplify the rules applicable to extended warranty insurance, whose goal is to provide the insured (optionally and upon payment of a premium) with an extension of the guarantee period of the supplier of an acquired good and, when provided for, its complementation.

Among the most relevant aspects of this type of insurance, the following stand out:


Extended warranty insurance can only be contracted through the issuance of an individual policy or insurance certificate Contracting such type of insurance through a collective policy or including coverage pertaining to other lines of insurance is prohibited.

The contracting may be carried out remotely, directly with the insurance company or its representatives, or through the assistance of a duly qualified insurance broker.

If the extended warranty insurance is contracted at a different time from the acquisition of the good, its approval can be subject to prior inspection of the product.

The purchase prices of the asset and the extended warranty insurance must be provided in detail at the time of the offer.


The plans must still offer one of the three basic types of coverage for extended warranty insurance, as follows:

  • extension of the original warranty: includes the same coverage and exclusions offered by the supplier’s warranty;
  • extension of the original extended warranty: includes new coverage, as long as they are not included in other lines of insurance; or
  • reduced warranty extension: can include reduced coverage compared to those offered by the supplier’s warranty.

In addition, extended warranty insurance plans may optionally offer “complementation of warranty” coverage as well as include coverage excluded or not provided for in the supplier’s warranty, provided that they do not fall under the coverage of other specific lines of insurance.


The insurance must provide, at most, the same list of risks excluded from the supplier’s warranty of the insured good, except in the case of reduced guaranteed extension coverage.


Extended warranty insurance plans can provide for a mandatory percentage deductible by the insured only for coverage that differs from what is included in the supplier’s warranty coverage.


The start and end dates of the risk coverage must be highlighted on the insurance cover note or individual policy, through the use of a different graphic type. 


 The automatic renewal of extended warranty insurance remains prohibited. Renewal can only be carried out or requested by the insured or the insurer, provided that the insured has expressly agreed to it.


 In the event of total or partial termination of the contract, upon mutual agreement between the parties, the insured will be entitled to a refund of the insurance premium in the following scenarios:

  1.  if termination occurs between the effective date and the date of the risk coverage initiation, the insurance premium must be refunded in full;
  2. in the event that termination occurs after the date of the risk coverage initiation, the insurance premium must be, at least, partially refunded. The refund must be calculated proportionally, between the remaining term of the risk in progress and the complete period of risk coverage. 

For indemnity purposes and upon agreement between the parties, the extended warranty insurance must provide for the possibility of repairing the good, replace it or make a payment in cash. The insurer will have a period of 30 days to fulfill one of such obligations.

The new Resolution repealed Resolutions CNSP No. 296/2013, 306/2014, 309/2014 and 369/2018.

The Resolution and Circular both came into force on May 01, 2022.

Demarest’s Insurance and Reinsurance team is available to provide more information on this and other related topics.