CNSP RESOLUTION No. 353 OF 20 DECEMBER 2017 (versão inglês/LegisMap)

CNSP RESOLUTION No. 353 OF 20 DECEMBER 2017¹

Amends the CNSP Resolution 168, of December 17, 2007, and provides other measures.

THE SUPERINTENDENCY OF PRIVATE INSURANCE – SUSEP, in the exercise of the powers conferred by Art. 34, item XI of Decree No. 60.459, of 13 March 1967, and considering what is contained in SUSEP’s Electronic Process No. 15414.629651/2017-48, hereby announces that the NATIONAL COUNCIL OF PRIVATE INSURANCE – CNSP, in the ordinary session held on 19 December 2017, based on sections II, VI and VII of article 32, of Decree-Law No. 73, of 21 November 1966, and the provisions of Complementary Law No. 126 of 15 January, 2007, resolved:

Art. 1^st -  To amend the CNSP Resolution No. 168, of 17 December 2007.

Art. 2^nd - The Art. 14 of the CNSP Resolution No. 168 of 2007, enters into force with the addition of the following §9^th and §10.

” § 9^th - The placement of reinsurance and retrocession referred to in the head of this article must guarantee the effective transfer of risks between the parties.

§ 10 - The reinsurance and retrocession operations made between affiliated companies or companies belonging to the same financial conglomerate must give one another balanced competition conditions. (New Wording)”

Art. 3^rd - The Art. 15 of the CNSP Resolution No. 168 of 2007, shall become effective with the addition of the §1^st to §5^th as follows:

 “§1^st - The preferential offer referred to in the head of this article consists in the right of preference owned by the local reinsurers in relation to the other reinsurers, for purposes of acceptance of automatic or facultative contracts, provided that the local reinsurer accepts the respective reinsurance offer in identical conditions as the ones offered and/or accepted by the international market.

§ 2^nd - The preferential offer referred to in the head of this article must guarantee equal treatment to all the reinsurers.

§ 3^rd - If unfair practices are identified during the fulfillment of the preferential offer, including, but not limited to unequal treatment to the reinsurers consulted or occasional changes of the contractual terms and conditions offered, with the issuance of endorsements that disregard the final terms and conditions of the placement, the reinsurance contract will be disregarded, without prejudice to the application of other applicable penalties.

§ 4^th - SUSEP shall provide for the effects of the provisions of § 3^rd.

§ 5^th - Without prejudice to the powers of the supervisory body, the audit committee of the insurers, as well as its independent auditors, will verify the compliance with the provisions of the head of this article and indicate the result by means of a detailed report on the noncompliance with laws and regulations. (New Wording)”

Art. 4^th - § 4^th, 6^th and 7^th of Art. 14 and the sole paragraph of Art. 15 of CNSP Resolution No. 168 of 2007 and Chapter IV of CNSP Resolution No. 241 of 1^st December 2011 are revoked.

Art. 5^th - This resolution enters into force on the date of its publication.

JOAQUIM MENDANHA DE ATAÍDES 
Superintendent

 (Official Gazette “DOU” of 22 December 2017 – pages 100 to 101 – Section I)

¹The information provided in this publication is general and may not apply to a specific situation or person. Every effort has been made to ensure that matters of concern to readers are covered. Although the information provided is accurate, be advised that this is a developing area. The information contained herein is not intended to be relied upon or to be a substitute for legal advice in relation to particular circumstances. Specific legal advice should always be sought from experienced local advisers. Accordingly, Editora Roncarati accepts no liability for any loss that may arise from reliance upon this publication or the information it contains.

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