CIRCULAR SUSEP N.º 537, OF 12 May 2016 (versão em inglês/LegisMap)

CIRCULAR SUSEP N.º 537, OF 12 May 2016 (*)

Determining additional criteria to the observance of the provisions of 4th of art.14 of Resolution CNSP nº 168, of 17 December 2007

THE SUPERINTENDENT OF THE SUPERINTENDENCE OF PRIVATE INSURANCE – SUSEP, acting in accordance with line “b” of art. 36 of Decree-Law n.º 73, of 21 November 1966; with sole paragraph of art. 3rd of Complementary Law nº 126, of 15 January 2007; and with art. 47 of Resolution CNSP n.º 168, of 17 December 2007, and considering the contents of SUSEP’s File no. 15414.002168/2012-15,

Resolves:

Art. 1.st - For the purposes of the provisions established by §4th of art. 14 of Resolution CNSP n.º 168, of 17 December 2007, the insurance company or local reinsurer should consider as “premium corresponding to each automatic or facultative contract”:

I - the reinsurance/retrocession premium ceded referring to each reinsured/retroceded risk in the cases of proportional facultative reinsurance/retrocession contracts;

II - the reinsurance/retrocession premium ceded referring to each reinsured/retroceded risk per each contracted layer, in the cases of non-proportional facultative reinsurance/retrocession contracts;

III - the reinsurance/retrocession premium ceded referring to risks underwritten and comprised by each proportional automatic reinsurance/retrocession contract;

IV - the reinsurance/retrocession premium ceded per contracted layer in each non-proportional automatic reinsurance/retrocession contract.

§1.st - The premium calculation mentioned on items III and IV, above, should be made considering each contract’s year of validity.

§2.nd - For the purposes of the rule established on §1st, above, a period shorter than 1 (one) year may be considered, provided that the total period of validity of the contract, or its remaining period of validity after the contract’s last anniversary, is shorter than 1 (one) year.

§3.rd - In the cases of combined reinsurance/retrocession contracts, that is, reinsurance/retrocession programs which combine proportional and non-proportional cessions, items I, II, III and IV, above, should be observed for each cession.

§4.th - For the purposes of the rules established on items I to IV, above, the reinsurance/retrocession commission should not be deducted from the ceded reinsurance/retrocession premium.

§5.th - The premium calculation mentioned on items II and IV, above, should be observed for each Group of Branches comprised by the contracts, including their contracted sub-layers.

§6.th – For the purposes of the rule established on item IV, above, minimum and deposit premium(s), as well as any premium adjustment, should be considered as ceded reinsurance/retrocession premium.

§7.th – For the purposes of the rule established on item IV, above, any resulting reinstatement premiums should be considered as ceded reinsurance/retrocession premium.

Art. 2.nd - This Circular becomes effective as of the date of its publication.


Sole paragraph – The contracts already signed and not yet compliant to what is established on Art. 1.st will be considered as valid until their renewal or for up to one year as of the date of publication of this Circular, whichever occurs earlier.

Rio de Janeiro, 12 May 2016

ROBERTO WESTENBERGER
Superintendent

(Official Gazette DOU of 30 May 2016 – pages 54 and 55 – Section1)

(*) The 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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