CIRCULAR SUSEP NO. 545, OF 27 JAN. 2017 (versão inglês/LegisMap)

CIRCULAR SUSEP NO. 545, OF 27 JAN. 2017

This Circular establishes additional criteria for the preferential offer of risks to local reinsurers, and for compliance with the provisions of the head of article 15 of Resolution CNSP no. 168, of 17 December 2007.

The SUPERINTENDENT OF THE SUPERINTENDENCY OF PRIVATE INSURANCE – SUSEP, in accordance with article 36, line “b”, of Decree-Law no. 73, of 21 November 1966, with article 3^rd, sole paragraph, of Complementary Law no. 126, 15 January 2007, and with article 47 of Resolution CNSP no. 168, of 17 December 2007, and considering the contents of File SUSEP no. 15414.612 524/2016-29, resolved,

Art. 1^st This Circular establishes additional criteria for the preferential offer of risks to local reinsurers, and for compliance with the provisions of the head of article 15 of Resolution CNSP no. 168, of 17 December 2007.

Sole Paragraph. Notwithstanding the compliance with the procedures established by this Circular for the preferential offer, the insurance company shall adopt all reasonable steps and procedures to comply with the compulsory contracting as established per the sole paragraph of article 15 of Resolution SUSEP no.168, of 17 December 2007, including the replacement of the offered terms and/or conditions, and/or adopting the procedures described by Resolution CNSP no. 241, of 1 December 2011, if necessary.

Art. 2^nd The preferential offer referred to at the head of article 15 of Resolution CNSP no. 168, of 17 December 2007, consists in a right of first refusal given to the local reinsurers in comparison with other reinsurers, for the purposes of acceptance of an automatic or facultative reinsurance, provided that the local reinsurer accepts the respective reinsurance offer under conditions identical to those offered and/or accepted by the international market.

§1^st For the purposes of compliance with the preferential offer, the insurance company shall address a formal submission to one or more local reinsurers of its free choice.

§2^nd Local reinsurers shall have five working days, in the case of facultative contracts, or ten working days, in the case of automatic contracts, to formalize the preferential offer’s total or partial acceptance, or the refusal containing their express willingness to reassess the offer under different conditions. After these deadlines, the absence of answer from the local reinsurer shall be considered as its definitive refusal to the risk’s coverage under any terms and conditions.

§3^rd The definitive refusal to the risk’s coverage under any terms or conditions, or the absence of answer from a local reinsurer to a preferential offer as described in the previous paragraph, shall exempt the ceding company from presenting a new offer of the same facultative or automatic contract to such local reinsurer, even if there is change in the same risk’s terms and/or conditions.

§4^th The submission to which §1^st of this article refers shall contain the terms, conditions and information necessary to the risk analysis, and shall be made equally available to all contacted reinsurers.

§5^th When justified, and within the deadlines described in §2^nd of this article, local reinsurers could request documents and/or complementary information, one single time, in the case of facultative contracts, and more than one single time, in the case of automatic contracts, therefore suspending the deadline to which the mentioned paragraph refers until the delivery, by the ceding company, of the documents and/or information requested.

§6^th The insurance company could include in the submission, when available, quotations from admitted or occasional reinsurers, which are separately or jointly committed to accept the same offered conditions.

Art. 3^rd In the case of acceptance of the offered conditions by one, or more than one local reinsurer, the ceding company could freely contract one, or more than one among those local reinsurers, provided that their combined shares fulfill at least the percentage mentioned in the head of the article 15 of Resolution CNSP no. 168, of 17 December 2007

Art. 4^th In the case of the offer’s total or partial refusal, and the minimum percentage of offer determined in the head of the article 15 of Resolution CNSP no. 168, of 17 December 2007 is not fulfilled, the insurance company shall offer the reinsurance contract to all remaining local reinsurers, if necessary, so as to follow the provisions of this Circular.

Art. 5^th The requirement defined by the legal instrument mentioned in this Circular is considered as fulfilled when:

I – the minimum percentage of preferential offer defined in the head of article 15 of the Resolution CNSP no. 168, of 17 December 2007 is contracted with local reinsurers; or

II – all local reinsurers, having been contacted, jointly refuse in total or partially the preferential offer’s minimum percentage defined by the head of article 15 of the Resolution CNSP no. 168, of 17 December 2007, and the remaining reinsurers accept the remaining percentage under the same terms and conditions; or

III – admitted and/or occasional reinsurers accept terms and/or conditions differing from those initially offered and totally or partially refused by all local reinsurers, provided that those same terms and/or conditions have been offered to local reinsurers, as determined by this Circular.

Art. 6^th For each and every cession or acceptance, insurance companies shall store all documents concerning the conformity with the requirements of this Circular, for a five years period of time, as of the end of the period determined for the preferential offer

Art. 7^th This Circular shall enter into force on the date of its publication.

JOAQUIM MENDANHA DE ATAIDES

(Official Gazette DOU of 30.01.2017 – pages 71 and 72 – Section 1)

Tags Legismap: