New rules applicable to Personal Insurances

The Superintendence of Private Insurance (“SUSEP”) has published CNSP Resolution 439/2022 and SUSEP Circular 667/2022, which provides for the new rules applicable to coverage of personal insurance risks.

The new rules repeal several previous resolutions, mainly CNSP Resolution 117/2004, and  SUSEP Circular 302/2005, and therefore all rules applicable to personal insurance are now consolidated in these two new resolutions.

Travel, funeral and payment protection insurance, which previously had specific rules, are now governed by the new Circular and Resolution, in a more comprehensive way.

The new rules introduce the following changes and inclusions on the matter:

 

General provisions for personal insurance

  • Waiving from obligation to register technical actuarial papers related to personal insurance plans with risk coverage. Such obligation remains in effect only for plans that are based on capitalization and distribution of coverage capital.
  • Possibility of coverage combinations in different lines of business. This change is conditioned to compliance with specific regulations of each line of business and their individual accounting of premiums.
  • Expansion of indemnity payment methods, which now include, without prejudice to other methods agreed on: payment in cash, reimbursement, or the exclusive provision of services.
  • The prohibition from issuing insurance in foreign currency was maintained, but only for products subject to the capitalization financial system.
  • The prohibition from including a clause that sets a maximum period for notification of claims was maintained.
  • Inclusion of an article containing a provision previously established by SUSEP/DETEC Circular No. 8/2007, which prohibits the inclusion of an exclusive clause in contractual conditions for losses arising from acts practiced by the insured during periods of mental insanity, drunkenness and use of intoxicating substances.

 

Personal Accidents Insurance

  • Amendment of the definition of personal accident, with removal of the exhaustive list of considered events.
  • Specific regulation for passenger personal accident insurance, which includes plans without prior identification of the identity of persons exposed to risks related to the use of the means of transportation provided in the policy.

 

Payment protection Insurance

  • Summary of the rules of payment protection insurance, previously provided for in a separate regulation, now included in a specific chapter of the new CNSP Resolution and SUSEP Circular.

 

Travel Insurance

  • Change in the list of mandatory international travel insurance coverage, maintaining only the obligation to provide coverage for Medical, Hospital and Dental Expenses.

 

Finally, CNSP Resolution No. 439/2022 and SUSEP Circular No. 667/2022 establish a deadline of 270 days for the adjustment of personal insurance plans registered at SUSEP before the rules become effective.

The rules came into force on August 01, 2022.

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