The SUPERINTENDENCY OF PRIVATE INSURANCE - SUSEP, in exercise of the powers conferred by Art. 34, item XI of Decree No. 60.549, of 13 March 1967, and considering what is contained in CNSP Process No. 3, of 3 December 2007, originally, and SUSEP Process No. 15414.002699/2007-32, hereby announces that the NATIONAL COUNCIL OF PRIVATE INSURANCE - CNSP, in the ordinary session held on 17 December 2007, based on sections II, VI and VII of Art. 32, of Decree-Law No. 73 of 21 November 1966 and the provisions of Complementary Law No. 126, of 15 January 2007,

Resolved:

CHAPTER I
INTRODUCTION

Art. 1^st - All operations of reinsurance, retrocession and the intermediation of these operations are subject to the provisions of this Resolution.

CHAPTER II
DEFINITIONS

Art. 2^nd - For means of application of this Resolution it is considered:

I - cedent: the insurer that contracts a reinsurance operation or the reinsurer that contracts a retrocession operation;

II - automatic contract: the reinsurance operation through which the cedent agrees with the reinsurer or reinsurers the cession of a risk portfolio previously defined between the parties and comprising more than one policy or benefits plan, underwritten during a pre-determined period in the contract;

III - facultative contract: reinsurance operation through which the reinsurer or reinsurers provide coverage to risks related to one single policy or benefits plan or a group of policies or benefits plans previously defined upon the contracting between the parts;

IV - reinsurance broker: legal entity authorized to intermediate the contracting of reinsurance and retrocession, that disposes of professional liability insurance contract, and that has as technical responsible an insurance broker specialized and duly licensed, in the form defined by the National Council of Private Insurance - CNSP;

V - local reinsurer: reinsurer domiciled in this country, organized as a corporation, which has the sole purpose to carry out reinsurance and retrocession transactions;

VI - admitted reinsurer: reinsurer domiciled abroad, with a representative office in the country, which meeting the requirements of Complementary Law No. 126/07 and the norms applicable to reinsurance and retrocession activities, has been registered as such by the Superintendency of Private Insurance - SUSEP to carry out reinsurance and retrocession operations;

VII - occasional reinsurer: foreign reinsurer based abroad without a representative office in the country that, given the requirements of Complementary Law No. 126/07 and the norms applicable to reinsurance and retrocession activities, has been registered as such within SUSEP to carry out reinsurance and retrocession operations;

VIII - reinsurance: risk transfer operation of a cedent, with purposes of its own protection, to one or more reinsurers through automatic or facultative contracts, except as provided in section IX of this article; and

IX - retrocession: risk transfer operation of reinsurers’ reinsurance risks with purposes of their own protection, to reinsurers or insurers, through automatic or facultative contracts.

§ 1^st - A cooperative authorized to operate in private insurances, which contracts a reinsurance operation will be considered a cedent, provided that the conditions imposed on the insurers by the CNSP also apply to the cooperative.

§ 1^st - The cooperative society authorized to operate in private insurance, and the open complementary pension entity (EAPC), which contracts reinsurance operations, will be equivalent to a insurance company, provided that the conditions imposed on insurance companies by the CNSP also apply to them.

§ 2^nd - For the purposes and effects of this Resolution, the retrocession fits in, as applicable, in reinsurance operations.

§ 3^rd The closed complementary pension entity (EFPC), and the private health plan operator, which contracts reinsurance operations, will be equivalent to a cedent, without prejudice to the duties of the respective regulatory and supervisory body, being the powers of SUSEP affecting the EFPCs and the private health plan operators limited to the supervision of those reinsurance operations.

(Note: Paragraph 1^st amended, and paragraph 3^rd added, by Resolution CNSP n^o 380, of 04.03.2020)

CHAPTER III
ACCESS CONDITIONS AND OPERATION

Section I
Local Reinsurer

Art. 3^rd - The local reinsurer is subject, where applicable, to the provisions of Decree-Law No. 73 of 21 November 1966, and other laws, regulations and norms applicable to insurers.

Sole paragraph - The provisions of CNSP about the requirements and procedures for incorporation, authorization to operate, transfer of corporate control, corporate reorganization and cancellation of authorization to operate, and about the election or appointment of statutory members of companies supervised by SUSEP fully apply to the local reinsurer.

Art. 4^th - The local reinsurer will not explore any other field of business activity, nor underwrite direct insurance.

Art. 5^th - The minimum required capital for authorization and operation of local reinsurers will be established in specific regulation.

Art. 6^th - The investment of the resources of the technical provisions and funds of local reinsurers will be conducted in accordance with the guidelines of the National Monetary Council - CMN and will observe the criteria defined by the CNSP for making investments by the companies supervised by SUSEP.

(Note: Articles 3^rd to 6^th were repealed by CNSP Resolution 422, of 11.11.2021)

Section II
Admitted Reinsurer

Art. 7^th - The reinsurance and retrocession operations may be carried out with admitted reinsurers that have been duly registered within SUSEP.

Art. 8^th - For the registration purposes referred to in the previous article, the admitted reinsurer must meet the following minimum requirements:

I - document issued by the supervisory body of insurance and reinsurance from the country of origin, informing that:

a) the reinsurer is organized under the laws of its country of origin to underwrite local and international reinsurance, in the lines in which it intends to operate in Brazil and that has started to operate in the country of origin for more than 5 (five) years; and

b) the reinsurer is in good standing, regarding its solvency, before the supervisory body.

II - equity not lower than US$ 100,000,000.00 (one hundred million US dollars), or the equivalent in any other foreign currency freely convertible, to be certified by an external auditor.

III - solvency rating, issued by a rating agency, with the following minimum levels:

Rating Agency	Minimum Required Level	Rating Agency
Standard & Poors	BBB-	Standard & Poors
Fitch	BBB-	Fitch
Moody’s	Baa3	Moody’s

IV - power of attorney, appointing attorney, natural person, domiciled in Brazil with full administrative and judicial powers, who will receive summons, and to whom all notifications will be sent.

V - proof that the current legislation in force in the country of origin allows movement of freely convertible currencies, for the compliance with reinsurance obligations abroad;

VI - in order to guarantee its operation in the country, must have a foreign currency account in Brazil, linked to SUSEP, in a bank authorized to operate with foreign exchange in the country, with a minimum cash balance, enabling application in financial assets, subject to the guidelines set by CMN, without prejudice to Art. 24, of:

a) US$ 5,000,000.00 (five million US dollars), or the equivalent in any other freely convertible foreign currency, for reinsurers operating in all lines of business; and

b) US$ 1,000,000.00 (one million US dollars) or the equivalent in any other freely convertible foreign currency, for reinsurers operating in life lines;

VII - balance sheet and income statement of the last financial year, with the corresponding reports of the independent auditors;

VIII - establish representative office in the country, as provided for in Chapter VII and legislation in force.

§ 1^st - Any alteration about the information referred to from items I to V of this article will be immediately communicated to SUSEP.

§ 2^nd - The information referred to in items I, II and VII of this article will be annually updated.

§ 3^rd - SUSEP may, at any time, exclude the rating agency, referred to in section III.

§ 4^th - SUSEP may suspend or cancel the registration of the admitted reinsurer that fails to meet any of the requirements referred to in this article.

Art. 9^th - Lloyd’s can be registered as an admitted reinsurer upon request addressed to SUSEP, signed by its legal representative, pursuant to the defined requirements for reinsurers of this nature, being entitled to additionally submit the list of syndicates and members authorized to carry out operations in the country, updating it annually, since Lloyd’s takes the responsibility to allocate the resources of its members held in trust at Lloyd’s and to manage the Central Fund in order to ensure the solvency of its members.

§ 1^st - For registration purposes as an admitted reinsurer in accordance with this Resolution, the members of Lloyd’s will be considered as a single entity.

§ 2^nd - The Central Fund maintained by Lloyd’s might be accepted as the equity required by section II of Art. 8 of this Resolution for registration and maintenance purposes.

Section III
Occasional Reinsurer

Art. 10 - All reinsurance and retrocession operations may be carried out with occasional reinsurers that have been duly registered within SUSEP.

Art. 11 - For registration purposes referred to in the previous article, the foreign reinsurer based abroad, must meet the following minimum requirements:

I - document issued by the supervisory body of insurance and reinsurance from the country of origin, informing that:

b) the reinsurer is in good standing, regarding its solvency, before the supervisory body.

II - equity not lower than US$ 150,000,000.00 (one hundred and fifty million US dollars), or the equivalent in any other foreign currency freely convertible, to be certified by an external auditor.

III - solvency rating issued by a rating agency, with the following minimum levels:

Rating Agency	Minimum Required Levels
Standard & Poors	BBB
Fitch	BBB
Moody’s	Baa2
AM Best	B++

IV - power of attorney, appointing attorney, natural person, domiciled in Brazil with full administrative and judicial powers, who will receive summons, and to whom all notifications will be sent; and

V - proof that the current legislation in force in the country of origin allows movement of freely convertible currencies, for the compliance with reinsurance obligations abroad;

§ 1^st -The registration referred to in the head of this article is prohibited to foreign companies based in tax havens, defined as those countries or dependencies which do not tax income or tax it at a rate lower than 20% (twenty percent), or those whose inland legislation enforces secrecy concerning corporations’ list of shareholders or ownership.

§ 2^nd - Any alteration about information referred to from items I to V of this article will be immediately communicated to SUSEP.

§ 3^rd - The information referred to in items I and III of this article will be annually updated.

§ 4^th - SUSEP may, at any time, exclude the rating agency referred to in section III.

§ 5^th - Exceptionally, upon consultation, SUSEP may authorize the insurer or local reinsurer to act as an attorney of the occasional reinsurer, as provided for in item IV of this article.

Art. 12 - SUSEP may suspend or cancel the registration of any occasional reinsurer that fails to meet any of the requirements provided for in Art. 11 of this Resolution.

(Note: Articles 7^th to 12 were repealed by CNSP Resolution 330, of 09.12.2015)

CHAPTER IV
CONDITIONS FOR CONTRACTING REINSURANCE

Art. 13 - The contracting of reinsurance and retrocession in Brazil or abroad will be made by direct negotiation between the cedent and the reinsurer or by reinsurance brokers.

Art. 14 - The cedent may carry out the placement of its surplus in reinsurers of its own choice, subject to legal and regulatory requirements.

§ 1^st - When the cedent, the reinsurer or the retrocessionaire belong to the same financial conglomerate or are affiliated companies, the reinsurance or retrocession operations will be informed to SUSEP, as regulated by it.

§ 2^nd - For means of application of the provisions of paragraph 1st of this article, affiliated companies or companies belonging to the same financial conglomerate are considered those so defined by the CNSP norms that provide for the criteria for investments by companies supervised by SUSEP.

(Note: Paragraph 2^nd was repealed by CNSP Resolution No. 245, of 06 November 2011)

§ 3^rd - The cedent must inform SUSEP, according to the regulations, whenever it concentrates, with a single admitted or occasional reinsurer, its reinsurance or retrocession operations, in a higher percentage than the one provided in the following table:

Reinsurer's risk classification level according to the agency:			Ceded premiums as a percentage of adjusted stockholders' equity	Recoverable Claims as Percentage of adjusted stockholders' equity
Standard & Poors or Fitch	Moody’s	AM Best
AAA	Aaa	A++	25%	50%
AA+, AA, AA-	Aa1, Aa2, Aa3	A+	20%	40%
A+, A, A-	A1, A2, A3	A, A-	15%	30%
BBB+, BBB, BBB-	Baa1, Baa2, Baa3	B++, B+	10%	20%

§ 4th - The insurer or the local reinsurer may not transfer, to affiliated companies or of the same financial conglomerate based abroad, more than 20% (twenty percent) of the premium corresponding to each contracted coverage.

Note: Paragraph 4th included by CNSP Resolution No. 232 of 25 March 2011.

Note: Paragraphs 1^st and 3^rd revoked by Resolution CNSP n^o 380, of 04.03.2020.

§ 4^th - For affiliated companies or companies belonging to the same financial conglomerate based abroad, as long as they are admitted or occasional reinsurers, according to the limits established by Decree No. 6.499, of 1 July 2008, the following maximum limits of premium transfer for each contracted coverage apply:

(Note: See Circular SUSEP nº 537, of 12 May 2016 for additional criteria to the observance of the provisions of paragraph 4th)

I - 20% (twenty percent), until 31 December 2016;

II - 30% (thirty percent), from 1 January 2017;

III - 45% (forty-five percent), from 1 January 2018;

IV - 60% (sixty percent), from 1 January 2019;

V - 75% (seventy-five percent), from 1 January 2020.

(Note: Paragraph 4^th was amended and the items were included by CNSP Resolution No. 322, of 20 July 2015)

§ 5^th - By affiliated companies or belonging to the same financial conglomerate it is considered the group of related entities, directly or indirectly, by a share ownership of 10% (ten percent) or more in capital, or effective operational control, characterized by the administration or joint management, or the operation in the market under the same brand or trade name.

§ 6^th - Without prejudice to the powers of the supervisory body, the audit committee of the insurers and local reinsurers, as well as its independent auditors, will verify the compliance with the provisions of paragraph 4^th and clearly indicate the result by means of a detailed report on the noncompliance with laws and regulations.

§ 7^th - The maximum limit provided for in paragraph 4^th does not apply to the lines of bonds, export credit, rural, domestic credit and nuclear risks, to which the reinsurance and retrocession cessions are allowed for affiliated companies or belonging to the same financial conglomerate based abroad, subject to the other legal and regulatory requirements.

Notes:
Paragraphs 5^th, 6^th, 7^th and 8^th were included by CNSP Resolution No. 232 of 25 March 2011.
Paragraphs 4^th, 6^th and 7^thwere revoked by CNSP Resolution No. 353 of december 2017.

§ 8^th - The automatic contracts already signed will be considered, for the purposes of the limit provided for in paragraph 4^th, on their renewal or from 31 March 2012, whichever occurs first.

(Note: Paragraph 8^thwas repealed by CNSP Resolution No. 325, of 30 july 2016)

§ 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.

(Note: Paragraphs 9^thand 10 included by CNSP Resolution No. 353 of december 2017)

Art. 15 - The insurer will contract with local reinsurers at least forty percent of each cession in automatic or facultative contracts.

(Note: Art. 15 was amended by CNSP Resolution No. 225, of 6 December 2010)

§ 1^st - For purposes of compliance with the limit referred to in the head of this article, the insurer should direct formal query to one or more local reinsurers of its choice.

§ 2^nd - The local reinsurers will have a period of five business days, for the case of facultative contracts, or ten business days for automatic contracts, to formalize the full or partial acceptance of the offer referred to in the head of this article, after which, the silence is considered as a refusal.

§ 3^rd - The query referred to in the first paragraph of this article will contain the terms, conditions and information necessary for the analysis of the risk, so that equal treatment to all consulted local reinsurers is guaranteed.

§ 4^th - The insurer may include in the query quotations of admitted or occasional reinsurers, which are committed to accept, isolatedly or jointly, the same conditions offered, indicating the respective percentages of acceptance, whose sum may not be lower than 60% (sixty percent) of the reinsurance cession.

§ 5^th - In case of total or partial refusal, the insurer should offer the surplus to other local reinsurers in order to satisfy the provisions of the head of this article.

§ 6^th - The requirement defined in the head of this article is considered fulfilled when:

I - The minimum amount of the preferential offer referred to in the head of this article has been accepted by local reinsurers; or

II - once all local reinsurers were consulted, and they have as a whole refused totally or partially the minimum amount of the preferential offer referred to in the head of this article; or

III - there is acceptance, by the admitted and/or occasional reinsurers, in more favorable price conditions, provided that the same conditions and prices have been submitted to local reinsurers consulted according to preceding sections.

§ 7^th - The insurers should keep file, for each assignment or acceptance, as appropriate, of all the documents related to the proof of the requirements of this article for five years, from the period of closure for the preferential offer.

Sole paragraph - The automatic contracts already signed will be considered, for purposes of percentage provided for in the head, on their renewal or from 31 March 2012, whichever occurs first.

(Note: Sole paragraph included by CNSP Resolution 232 of 25 March 2011)

Art. 15 - The insurer will offer preferentially to local reinsurers at least 40% (forty percent) of its reinsurance cession in each automatic or facultative contract.

(Note: See Circular SUSEP nº 545, of 27.01.2017, for additional criteria for the preferential offer of risks to local reinsurers)

Sole Paragraph – For the purposes of the percentage provided for in the head of this article, the insurer will contract compulsorily at least the following percentages of reinsurance cession to local reinsurers in each automatic or facultative contract:

I - 40% (forty percent) until 31 December 2016;

II - 30% (thirty percent), from 1 January 2017;

III - 25% (twenty-five percent), from 1 January 2018;

IV - 20% (twenty percent), from 1 January 2019;

V - 15% (fifteen percent), from 1 January 2020.

(Note: Art. 15 was amended by CNSP Resolution No. 325, of 30 July 2015)

§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.

(Note: Paragraphs 1^st, 2^nd, 3^rd, 4^th and 5^thincluded and the sole paragraph revoked by CNSP Resolution No. 353 of december 2017)

(Note: Paragraph 5^th revoked by Resolution CNSP n^o 380, of 04.03.2020)

Art. 16 - The insurers and the local reinsurers may not cede, respectively, in reinsurance and retrocession, more than fifty percent of the premiums related to the risks that they have underwritten, considering their overall operations, in each calendar year.

§ 1^st - For the purposes of the head of this article, the cessions related to the following lines of business will not be considered:

I - bond insurance;

II - export credit insurance;

III - rural insurance; and,

IV - domestic credit insurance.

§ 2^nd - SUSEP may authorize cessions in a higher percentage than the one provided for in the head of this article, provided there is a technically justifiable reason.

§ 3^rd - SUSEP is hereby authorized to issue complementary norms about other insurance lines or modalities to which the limit set in the head of this article does not apply.

(Note: See CIRCULAR SUSEP No. 562 of 24 December 2017, for the limit of reinsurance cession and the form of calculation of the percentage fixed in Art. 16)

Art. 17 -The reinsurance operations related to endowment life insurances and complementary pension can only be executed with local reinsurers.

Sole paragraph - The risk coverage of life insurance, existing or commercialized in conjunction with plans of endowment life insurances or pension plans are not subject to the restrictions provided for in the head of this article.

(Note: Sole paragraph revoked by Resolution CNSP n^o 380, of 04.03.2020)

Sole paragraph – The restriction provided for in the head of this article does not apply to reinsurance operations related to risk coverages traded in endowment life insurance plans or complementary pension plans, separately or in in conjunction with endowment coverages.

(Note: Sole Paragraph included by Resolution CNSP no. 394, of 30 October 2020)

Art. 18 - The cedent will, whenever requested and within the deadline, submit to SUSEP the documents that prove its reinsurance operations, as well as to provide the required information.

CHAPTER V
REINSURANCE IN FOREIGN CURRENCY

Art. 19 - The reinsurance and retrocession may be contracted in foreign currency in Brazil when one of the following situations occurs:

I - the insurance has been contracted in foreign currency in Brazil;

II - there is reinsurance or retrocession acceptance or risks from abroad; or

III - there is majority share of foreign reinsurers, exclusively in cases of non-proportional reinsurance.

Art. 20 - The complementary norms of the National Monetary Council (CMN) must be observed according to this chapter.

CHAPTER VI
GUARANTEE AND PROVISIONS

Art. 21 - The insurers and the local reinsurers will constitute premium provisions to cover incurring claims, throughout periods to be incurred, related to risks in effect on the calculation base date.

§ 1^st - The amount of the premium provisions related to the responsibilities assumed by admitted reinsurers, weighed by the factor referring to the reinsurer’s risk rating level according to the following table, will be permanently covered, by the resources required in the country, as a guarantee according to item VI of Art. 8^th of this Resolution.

Level of Reinsurer’s Risk Rating, according to the agency:			Weighing factor (Percentage to be multiplied by the amount of provision)
Standard & Poors or Fitch	Moody’s	AM Best
Or higher	A3 or higher	Or higher	0%
BBB+	Baa1	B++	10%
BBB	Baa2	—	20%
BBB-	Baa3	B+	30%

Art. 22 - The settlement of balances relating to reinsurance contracts concluded with admitted or occasional reinsurers will be held at the maximum every six months, without prejudice to what is provided for in the clause of Cash Loss in the aforementioned contracts.

Art. 23 - The amount of provisions for claims or benefits related to reinsurance ceded by the insurers and local reinsurers to admitted reinsurers, weighed by the factor referring to the reinsurer’s risk rating level according to the following table, will be permanently covered, by the resources required in the country, as a guarantee according to item VI of Art. 8 of this Resolution.

Level of Reinsurer Risk Rating, according to the agency:			Weighting factor (Percentage to be multiplied by the amount of provision)
Standard & Poors or Fitch	Moody’s	AM Best
A- or higher	A3 or higher	A- or higher	0%
BBB+	Baa1	B++	10%
BBB	Baa2	—	20%
BBB-	Baa3	B+	30%

§ 1^st - The cedents will have a period of 180 (one hundred and eighty) days from the date of the claim record, as proof of the guarantees provided for in this article, which should be filed for any SUSEP request or inspection.

§ 2^nd - Once the period referred to in paragraph 1^st of this Article is due, the cedents will constitute and cover the amount referred to in the head of this article, until evidence that this article’s content has been fulfilled.

Art. 24 - The admitted reinsurer must provide resources to the account referred to in section VI of Article 8 of this Resolution, whenever the premium and claims provisions, duly weighed by the factors referred to in Articles 21 and 23 of this Resolution, and corresponding to the responsibilities it has assumed within the insurers and local reinsurers, exceed the stipulated amount referred to in that section.

Art. 25 - SUSEP will regulate the statements to be submitted by the admitted reinsurers, relevant to operations carried out in the country.

Art. 26 - The provisions of Articles 21 and 23 of this Resolution will not apply to reinsurance operations structured in the financial capitalization system, in which the provisions relating to the responsibilities assumed by admitted and occasional reinsurers will be retained by the insurers and local reinsurers.

Sole paragraph - In the operations referred to in the head of this article, it is up to the insurers to constitute and apply the provisions in accordance with the norms established by CNSP and CMN.

(Note: Arts. 21 to 26 revoked by Resolution CNSP n^o 380, of 04.03.2020)

CHAPTER VII
REPRESENTATION OFFICE

Art. 27 - The admitted reinsurer must install and maintain a representative office in the country, with the previous authorization of SUSEP, pursuant to the provisions of this Resolution.

Art. 28 - The office referred to in the previous article will have as its purpose the performance of representation of the admitted reinsurer in the country and its name will be the name of the admitted reinsurer, added by the expression: “Escritório de Representação no Brasil" ².

§ 1^st - In its media and advertising there should be express term to their status of “Representative Office in Brazil”.

§ 2^nd - The representative office will not explore in the country, any other fields of business activities, nor underwrite direct insurance.

Art. 29 - The representative office will keep, permanently, a representative in Brazil, with full powers to deal with any issues and resolve them definitely, with the possibility of being sued.

§ 1^st - The representative referred to in the head of this article may accumulate the function of attorney or admitted reinsurer, under item IV of Article 8 of this Resolution.

§ 2^nd - Only after the instrument of his appointment has been filed at the Public Registry of Commercial Companies, may the representative have relationship with third parties.

§ 3^rd - The representative referred to in the head of this article is subject to the same requirements, responsibilities and impediments, which the administrators of local reinsurers are submitted to.

§ 4^th - The obligations assumed by the representative in Brazil before the Brazilian cedents fully commit the admitted reinsurer.

Art. 30 - The representative office may maintain, permanently, a deputy representative in Brazil, which will replace, for all purposes, the representative in case of his absence, leaving him subject to the same requirements imposed on the principal representative.

Art. 31 - The opening and closing of branches in other federated states will be informed to SUSEP, as established by it.

Art. 32 - The closure of the representative office’s activities in Brazil is subject to CNSP norms that provide for the cancellation and suspension of the operating authorization of companies supervised by SUSEP.

Sole paragraph - The cancellation of the registration of the admitted reinsurer, by request or imposition of SUSEP, will entail in the closing of the representative office activities as defined in the head of this article.

(Note: Articles 27 to 32 were repealed by CNSP Resolution 330, of 09.12.2015)

CHAPTER VIII
CONTRACTS

Art. 33 -Reinsurance contracts should include a clause recognizing that in the event of the liquidation of the cedent, the reinsurer’s liabilities before the cedent’s bankruptcy estate will remain, limited to the reinsurance amount due under the terms of the reinsurance contract, whether or not indemnifications or benefits have been paid by the cedent to insureds, participants, beneficiaries or retirees, with exception of the cases comprised by Art. 34 of this Resolution.

Art. 34 - Reinsurers and their retrocessionaires will not be directly liable before the insured, participant, beneficiary or retiree for the shares assumed in reinsurance and retrocession contracts, remaining the cedents that issued the original policy entirely liable for indemnifying them.

Sole paragraph - In the event of the cedent’s insolvency, decreed liquidation, or bankruptcy, the direct payment of the indemnification or benefit to the insured, participant, beneficiary or retiree, corresponding to the reinsurance share is permitted, provided that the respective share has not been paid by the cedent to the insured, nor by the reinsurer to the cedent, when:

I - the reinsurance contract is regarded as facultative, as defined by the insurance regulatory body; or

II - in the other cases, if a contractual cut-through clause exists.

Art. 35 -No clauses that limit or restrict the direct relationship between cedents and reinsurers will be included in contracts intermediated by reinsurance brokers, nor powers or abilities will be granted to such brokers other than those necessary and appropriate to the performance of their duties as independent intermediaries in contracting the reinsurance.

Art. 36 - The inclusion of an intermediary clause is mandatory in the contracts referred to in the previous article, and it will state whether or not the broker is authorized to receive reinsurance premiums or to collect the amount corresponding to the recovery of indemnifications or benefits.

Sole paragraph -In case the broker is authorized to receive, or to collect, the sums referred to in the head of this article, the following procedures apply:

I - the payment of the premium by the cedent to the broker will be deemed to constitute payment to the reinsurer; and

II - the payment of indemnification or benefit by the reinsurer to the broker will be deemed to constitute payment to the cedent only to the extent that such payment is actually received by the cedent.

Art. 37 - The contractual formalization of the reinsurance operations will take place in up to 270 (two hundred and seventy) days from the beginning of the coverage effectiveness, resulting in penalty in case it is not considered, for all means and purposes, since its beginning.

Note:
1) The head of Art. 37 was amended by CNSP Resolution No. 203, of 27 April 2009.
2) See Circular SUSEP nº 524, of 14 january 2016 for additional criteria to the observance of the provisions of article 37.

§ 1^st - The provisions of the head of this article do not exempt the cedent to prove within SUSEP, the reinsurance operation, at any time, if so required.

§ 2^nd - The acceptance of the reinsurer or reinsurers, in the reinsurance proposal is a proof of the contracted coverage.

§ 3^rd - The contract must include the date of the offer, the acceptance date and the effective date of coverage, specifying still the location to be used as reference for the definition of start and termination time of the contract.

Art. 38 - The reinsurance contracts aiming at the protection of risks located in national territory, will include a clause determining the submission of any dispute to Brazilian laws and jurisdiction, except in case of arbitration clause, which will observe the legislation in force.

Art. 39 - The participation in the claim adjustment may occur, subject to the insurer liability before the insured party.

Sole paragraph - The reinsurance contracts, automatic or facultative, may provide for a claims control clause in favor of the local reinsurer, when it holds a greater share of proportional participation in the risk.

(Note: Sole paragraph was included by CNSP Resolution No. 225, of 6 December 2010)

Art. 40 - Without prejudice to the clauses mentioned in this chapter, the clauses of the reinsurance contracts will be freely agreed between the contracting parties, however, there might be some devices that will establish:

I - the beginning and termination of the rights and obligations of each party, including predicting how these responsibilities will cease in case of cancellation;

II - the cancellation criteria;

III - the covered risks and excluded risks; and

IV - the period of coverage, identifying the beginning of the reinsurer’s liability and the exact time when losses are covered in the contract.

Art. 40-A The provisions of this Chapter shall not include reinsurance or retrocession contracts accepted from cedents based abroad by local reinsurers, and the retrocession contracts accepted from cedents based abroad by insurance companies.

(Note: Article 40-A included byCNSP RESOLUTION No. 363 OF 11 OCTOBER 2018)

Art. 41 - The cedents and local reinsurers will maintain effective control of the contracts signed, of its ceded and/or accepted risks portfolio, as applicable, of the intermediaries, estimated and actual premiums, claim recoveries, as well as other relevant information, keeping them available to SUSEP.

Sole paragraph - The lawsuits or arbitration proceedings related to the payment of claims rejected by the reinsurer must be reported to SUSEP, within 30 (thirty) days from the date of its establishment.

CHAPTER IX
FINAL PROVISIONS

Art. 42 - Subject to the conditions provided for in this Resolution, the insured sums, premiums, indemnities and all other amounts related to reinsurance and retrocession operations will be expressed in national currency - Real (R$).

Art. 43 - Every public or private documentation required by SUSEP, coming from another country, must be duly consularized, except documents from countries, with whom Brazil has signed international agreements, and be attached to, whenever written in another language, translation to Portuguese, done by a sworn translator, according to the current legislation, except as otherwise provided by SUSEP.

Art. 44 - SUSEP may, at any time, conduct on-site inspections, as well as require the cedents, reinsurance brokers and representative offices, to provide information and to present whichever documents deemed necessary for the exercise of their control and inspection functions.

Art. 44. SUSEP may, at any time, conduct on-site inspections, as well as demand from the open complementary pension entities, insurance companies, local reinsurers, reinsurance brokers and representative offices to provide information and present documents as deemed necessary for the exercise of its controlling and supervisory functions.

(Note: Art. 44 amended by Resolution CNSP n^o 380, of 04.03.2020)

Art. 45 - SUSEP will maintain and disclose the registration of local, admitted and occasional reinsurers, as well as reinsurance brokers.

Art. 46 - The applicable accounting standards to reinsurance operations will be published by SUSEP.

Art. 47 - SUSEP is hereby authorized to issue complementary norms deemed necessary for the implementation of the provisions of this Resolution.

Art. 48 - The reinsurance and retrocession cessions signed in a date prior to the effectiveness of this Resolution will adapt to this standard upon their renewal.

Art. 49 - IRB-Brasil Resseguros S.A. is hereby authorized to continue carrying out its reinsurance and retrocession activities without any interruption, regardless of governmental application and authorization, being qualified as a local reinsurer and will have a period of 180 (one hundred and eighty) days from the date of effectiveness of this Resolution, to adapt to the provisions of this regulation.

Art. 49 - The IRB-Brasil Resseguros S.A. is hereby authorized to continue exercising its reinsurance and retrocession activities, without any interruption, irrespective of any requirement and governmental authorization, qualified as a local reinsurer and will have until 31 December 2008 to adapt to the provisions of this regulation.

(Note:Art. 49 was amended by CNSP Resolution No. 189, of 8 October 2008)

Sole paragraph - In the case of the line of nuclear risks, the period of adjustment referred to in the head will be until 31 December 2017.

(Note: Sole paragraph was amended by CNSP Resolution No. 324, of 30 july 2015)

Art. 50 - The reinsurers interested in applying for an operation license as a local reinsurer or in the registration as admitted or occasional reinsurers, in accordance with Chapter III, may do so from the date of publication of this Resolution.

Art. 51 - This resolution takes effect in the period of one hundred and twenty days, after its publication.

Rio de Janeiro, 17 December 2007.

Armando Vergilio dos Santos Júnior
Superintendent

(Official Gazette “DOU” of 19 December 2007 - pages 18 to 20 - Section 1)

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.

2 “Escritório de Representação no Brasil “stands for Representative Office in Brazil. (Translator’s note)

Tags Legismap:

Normas (Susep/CNSP) Normas Traduzidas Resolução CNSP