Amending Circular 15/17 of the Single Insurance and Surety Circular (Chapter 20.2 and Provision 20.2.7)

DOF: 27/12/2017

CIRCULAR Modificatoria 15/17 of the Single Insurance and Surety (Chapter 20.2 and Provision 20.2.7.)

At the margin, a seal with the National Coat of Arms, which says: United Mexican States.- Ministry of Finance and Public Credit.- National Commission of Insurance and Sureties.

AMENDING CIRCULAR 15/17 OF THE SINGLE INSURANCE AND SURETY CIRCULAR

(Chapter 20.2. and Provision 20.2.7.)

The National Commission of Insurance and Sureties, based on the provisions of articles 366, fraction II, 372, fractions VI and XLII, 373 and 381 of the Law of Insurance and Surety Institutions, and

CONSIDERING

That in terms of what is established in article 275 of the Law of Insurance and Surety Institutions, insurance institutions authorized to operate pension insurance derived from the social security laws referred to in fraction II of article 27 of the aforementioned Law, must establish special funds for each of the social security regimes, through private trusts, whose purpose will be to have financial resources that, if necessary, support the operation of these insurances.

That in terms of what is established in article 275, fraction III, subsection a) of the Law of Insurance and Surety Institutions, one of the objects of the trusts through which the special pension funds are constituted, is to provide funds to the corresponding institute or social security entity, so that it covers the insurance institution settlor with the resources it requires, in the event that the constitutive amount originally delivered to it for the contracting of a life annuity or survivorship pension insurance, has been insufficient to pay the corresponding pensions, due to changes in the composition and family characteristics of a pensioner and the welfare assistance to which they are entitled.

That it is necessary to establish the objective criteria applicable in order to rule on cases due to changes in the composition and family characteristics of a pensioner, whose transfer of complementary resources to the constitutive amount must be carried out by the Special Pension Fund, in accordance with article 275, fraction III, subsection a) of the Law of Insurance and Surety Institutions, which were previously provided for in the third paragraph of the Fiftieth of the Rules of Operation for pension insurance, derived from social security laws, repealed with the entry into force of the Single Insurance and Surety Circular on April 5, 2015.

For the aforementioned reasons, this Commission has resolved to issue an Amending Circular to the Single Insurance and Surety Circular in the terms set out below:

AMENDING CIRCULAR 15/17 OF THE SINGLE INSURANCE AND SURETY CIRCULAR

(Chapter 20.2. and Provision 20.2.7.)

FIRST.- The "Content" of the Single Insurance and Surety Circular is modified, to make reference to the new denomination of Chapter 20.2. of the aforementioned Single Circular, to read as follows:

"Chapter 20.2.

On the constitution, contributions and criteria on the allocation of resources of the Special Pension Funds"

SECOND.- The denomination of Chapter 20.2. of the Single Insurance and Surety Circular is modified, to read as follows:

"CHAPTER 20.2.

ON THE CONSTITUTION, CONTRIBUTIONS AND CRITERIA ON THE ALLOCATION OF RESOURCES OF THE SPECIAL PENSION FUNDS"

THIRD.- Provision 20.2.7. is added to the Single Insurance and Surety Circular, to read as follows:

"20.2.7.

For the purposes of what is stated in article 275, fraction III, subsection a) of the LISF, "changes in the family composition and characteristics of a Pensioner" shall be understood as the following cases:

the birth or adoption of a child, the entry into the National Education System of a child between 16 and 25 years of age or between 18 and 25 years of age for Pensions granted on the basis of the Social Security Law and the Law of the Institute of Security and Social Services for State Workers, respectively; the appearance of an ascendant entitled to a Pension, provided that there is no other Pension Beneficiary with equal right, as well as the marriage of the Pensioner; in the latter case, only when such event occurs after one year from the issuance of the respective resolution by the Mexican Social Security Institute or the Institute of Security and Social Services for State Workers."

TRANSITIONAL

SINGLE.-

This Amending Circular shall enter into force the day following its publication in the Official Gazette of the Federation.

The foregoing is made known to you, based on articles 366, fraction II, 372, fractions VI and XLII, 373 and 381 of the Law of Insurance and Surety Institutions.

Respectfully,

Effective Suffrage. No Re-election.

Mexico City, December 15, 2017.- The President of the National Commission of Insurance and Sureties, Norma Alicia Rosas Rodríguez.- Signature.

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