CIRCULAR SUSEP Nº 524, OF 14 January 2016 (versão em inglês/LegisMap)

CIRCULAR SUSEP Nº 524, OF 14 January 2016 (*)

Explaining and establishing additional criteria related to article 37 of  Resolution CNSP nº 168, of 17 December 2007, and making other arrangements.

THE SUPERINTENDENT OF THE SUPERINTENDENCY OF PRIVATE INSURANCE - SUSEP, acting in accordance with art. 36, line “b”, of Decree-Law nº 73, of 21 November 1966, art. 3^rd, sole paragraph, of Complementary Law nº 126, of 15 January 2007, and art. 47 of Resolution CNSP nº 168, of 17 December 2007, and considering the contents of Processo SUSEP nº 15414.003312/2014-94,

Resolves:

Art. 1^st - To explain and establish additional criteria related to art. 37 of Resolution CNSP nº 168, of 17 December 2007.

Art. 2^nd –The signing of the reinsurance contract by the duly identified reinsurer, containing date and identification of its representative signatory, will be regarded as the contractual formalization, for the purposes of article 37 of Resolution CNSP nº 168, of 17 December 2007.

§1^st - By reinsurance contract it is understood the physical or electronic document, comprising all terms, conditions and clauses agreed upon between cedent and reinsurer, concerning the automatic or facultative reinsurance contracted complying with the minimum elements required by the legislation.

§2^nd - The agreement of the cedent to the terms and conditions of the formalized reinsurance contract should be proven to SUSEP, in case the insurance supervisory body requires this.

§3^rd - The exemption from signature by the cedent for the purposes of complying with the contractual formalization does not prevent the cedent and/or the reinsurer from requiring it, in case they regard the signing as necessary for their own precaution.

§4^th - The reinsurance broker’s explicit acceptance of the terms and conditions of the contract does not substitute for the cedent’s express agreement.

§5^th - The cover note, issued by the reinsurance broker, does not substitute for the reinsurance contract.

Art. 3^rd - Any modification in the terms, conditions and/or contractual clauses in force require the issuance of a physical or electronic endorsement, which will form integral part of the original contract.

§1^st - The contractual formalization will be made upon the signing of the endorsement by the duly identified reinsurer, containing the date and the identification of its representative signatory.

§2^nd - The deadline for the contractual formalization of the endorsement is the one established by art. 37 of Resolution CNSP nº 168/2007, counting as of the effective date of the endorsement.

§3^rd - The deadline for the formalization of the endorsement does not align with the deadline for the formalization of the original contract, nor does it replace such deadline.

§4^th - The cedent’s agreement to the terms and conditions given in the endorsement mentioned in the head of this article should be proven to SUSEP, in case the insurance supervisory body requires this.

Art. 4^th - The receipt of a digitalized copy of the formalized contract by the cedent will be admitted as proof of the contractual formalization.

Art. 5^th - The contracts received by electronic means can be stored by cedents by any electronic or magnetic recording means, being such cedents exempt from its collection and custody in paper.

Sole paragraph – The period of custody for the electronic documents will be the same period of custody required for printed documents.

Art. 6^th - The acceptance of the reinsurance proposal by the reinsurer or reinsurers, including acceptance forwarded by electronic means, is proof of the contracted coverage, up until the contract or endorsement is formalized following the deadline established by the legislation.

Art. 7^th - The provisions of this Circular apply to the retrocession contracts.

Art. 8^th - This Circular is effective as of the date of its publication.

ROBERTO WESTENBERGER
Superintendent

(Official Gazette – DOU – of 21 January 2016 – pages 18 and 19 – Section 1) 

(*) 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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