Through Public Notice No. 25/2020, the Superintendence of Private Insurance (SUSEP) has placed for Public Consultation a draft Circular, which establishes the conditions for the optional and mandatory registration of damage insurance operations and personal insurance structured under a simple financial distribution system in registration systems approved and administered by registration entities accredited by SUSEP.
Regarding the optional registration framework, the Circular requires that such registrations must contain at least the basic information contained in Annex I of the rule, while the mandatory registration of operations must contain, at least, in addition to the information contained in Annex I, the complementary information categorized by line or group of lines of insurance defined in the other annexes of the Circular. The initial dates and deadlines for mandatory registration will be established in the annexes referring to the complementary information.
In addition, along the same lines as the previous rule applicable to guarantee insurance, the proposed Rule stipulates that the Insurance Companies must perform the insurance registrations in the registration systems approved by SUSEP within 2 working days as counted from the following triggering events:
- Issuance of policies, certificates, tickets and endorsements;
- Financial settlement of premiums, commissions, expenses and claims;
- Registration of claims notice;
- Conclusion of the initial, partial or final assessment of a claim by the insurance company; and
- Closing of the monthly trial balance.
However, in the case that the above-mentioned triggering events do not occur, the Circular establishes that the deadlines for registration will be defined in a guidance manual made available by SUSEP on its website.
Furthermore, the draft Circular establishes, through Annex II, that the registration of insurance operations will be compulsory for financial risk groups, and the complementary information, besides the basic information contained in Annex I, must be observed. The rule excludes guarantee insurance, for which the obligation is already in force.
This obligation is effective as of May 3, 2021, and operations carried out before this date must be registered after the first claim processing operation.
The Public Consultation will be open until February 22, 2021 and comments and suggestions can be made through an electronic message addressed to firstname.lastname@example.org. Additionally, the table made available by SUSEP itself can be accessed at this link.
The entire draft of the CNSP Resolution can be accessed through this link.
Demarest’s Insurance and Reinsurance team will continue to monitor the news related to Public Consultation Notice No. 25/2020 of SUSEP’s draft Circular, and is available to provide any additional clarifications that may be necessary.