On August 23, 2021, SUSEP Circular No. 640/2021 was issued, providing for the operations of the Insurance of Livestock, Animals, Rural Pledge, Agricultural Assets and Products and subsidized rural products (“rurais subvencionáveis”), which were subject to SUSEP Public Consultation No. 25/2021.
The Circular proposes to review and consolidate the rules relating to the Rural Group and repeals SUSEP Circulars No. 261/2004, 305/2005, 308/2005 and 571/2018.
The new Circular brings the following main changes:
- Extinction of the standardized rural pledge insurance plan, making the insurance operation more flexible and fostering product development;
- Possibility for insurers that sell rural insurance contracts covered by premium subsidy programs to be able to comply with the specific rules of these programs, including the setting of different deadlines for acceptance and submission of proposals and insurance policies, in addition to maximum deadlines for notice of claim, provided that such rules do not conflict with rights and obligations arising from the law; and
- Considering the occasional changes to these insurance lines, provided that the currently defined products are in compliance with the rules, it will not be necessary to make these practical adaptations. If not in compliance, the insurance plans must be adapted within 180 days of the Circular’s entry into force.
The Circular come into force on September 1, 2021 and its full text can be accessed at this link.
Demarest’s Insurance and Reinsurance team is available to provide any additional clarifications that may be necessary.