Compilation of Insurance and Reinsurance Regulations - Adaptation of Definitions for Pension Insurance Branches and Sub-branches in accordance with Law No. 20.130

1 Montevideo, July 12, 2024 Ref: COMPILATION OF INSURANCE AND REINSURANCE REGULATIONS - Adaptation of the definitions of the branches and sub-branches of pension insurance to what is provided for by Law No. 20.130

The market is informed that the Financial Services Superintendence adopted, on July 9, 2024, the following resolution:

1. SUBSTITUTE in Chapter I – Groups and branches of insurance, of Title I - Insurance and reinsurance companies, of Book I – Authorizations and registrations, Articles 1 and 2 with the following:

ARTICLE 1 (GROUPS AND BRANCHES OF INSURANCE). The insurance activity developed by public or private institutions, included in the provisions of Law No. 16.426 of October 14, 1993, will be divided into two groups:

I. Property Damage Insurance: The risks of loss or damage to assets or property are insured. The following branches will be distinguished:

• Fire: Corresponds to all those insurance coverages that guarantee an indemnification in case of damage to insured assets derived from a fire, with the exception of damages of this kind that are covered by contracts classified in the other branches of insurance.
• Motor vehicles and trailers: Corresponds to those insurance coverages that indemnify for damages caused to insured motor vehicles and trailers and their occupants, as well as for damages produced to third parties by reason of their use. Civil liability arising from collective land transport of persons, with respect to transported passengers or third parties, is excluded, which must be attributed to the Civil Liability branch.

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460

2

• Theft and similar risks: Corresponds to all those insurance coverages that indemnify for the damage or loss of insured assets derived from their illegitimate subtraction, including those caused to other objects on the occasion of the commission of the offense. Damages of this kind that are covered by contracts classified in the other branches of insurance are excepted.
• Civil Liability: Includes those insurance coverages that guarantee liability for damages and losses caused to third parties, with the exception of damages of this kind that are covered by contracts classified in the other branches of insurance.
• Suretyship: Corresponds to including those insurance coverages that guarantee the insured an indemnification for patrimonial damages that a third party may cause them on the occasion of the non-compliance with the obligations contracted.
• Transport: Corresponds to the insurance coverages that guarantee an indemnification in case of damage or loss in the merchandise transported by any means, including the civil liability of the carrier for damages in the transported cargo. Likewise, it includes the indemnification in case of damage to the insured maritime or air hull, including the coverage of civil liability for damages produced to third parties by its use, as well as the coverage of personal accidents of its crew and its occupants.
• Others: Corresponds to including any other coverage of property damage insurance, not indicated above.

II. Insurance for Persons: The risks that may affect the existence, bodily integrity, or health of the insured are insured, with the exception of risks of this kind that are covered by contracts classified in the other branches of insurance. They will be distinguished:

• Pension insurance: Comprises collective insurance contracts for disability and death and pension annuities (articles 56, 57, and 59 of Law No. 16.713 of September 3, 1995, and amendments).
• Non-pension insurance: Corresponds to including the remaining insurance coverages for persons.

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460

3

ARTICLE 2 (OPENING OF BRANCHES AND ASSIMILATIONS).

1. Opening of branches The following branches will be divided as detailed below: a) Suretyship

• Credit Insurance: Corresponds to those insurance coverages that guarantee an indemnification in case of non-compliance with the payment obligation of a granted credit.
• Suretyship Insurance: Corresponds to including the coverages of the Suretyship branch other than credit insurance.

b) Others

• Rural Insurance: Corresponds to those insurance coverages that guarantee an indemnification in case of losses or damages in agricultural, livestock, and forestry production, including those produced on the property and installations where the activity is developed.
• Engineering Insurance: Corresponds to those insurance coverages that guarantee an indemnification for risks derived from construction and civil engineering works. Likewise, it corresponds to including coverages for loss or damage in machinery of any kind.
• Work accident and occupational disease insurance: Corresponds to the insurance coverages provided for in Law No. 16.074 of October 10, 1989.
• All-risk operational insurance: Corresponds to those insurance coverages that comprehensively back the risks associated with commercial or industrial operations.
• Other risks: Corresponds to including any other coverage of the Other branch not included in the above.

c) Pension insurance

• Collective disability and death insurance: Corresponds to including the contracts of collective disability and death insurance provided for by articles 57 and 59 of Law No. 16.713 of September 3, 1995, and amendments. It comprises the temporary subsidy for partial incapacity and the coverage for insufficiency of the balance of the pension savings account.

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460

4

• Pension annuity insurance: Corresponds to including insurance contracts through which the insurance company commits to the payment of a monthly annuity to the insured with a common retirement cause or advanced age (according to what is established by articles 51 and 55 of Law No. 16.713), to the insured to whom the existence of total and absolute incapacity for all work has been accredited (according to what is established in articles 19 and 59 of said Law), or to the beneficiaries indicated in articles 55, 60, and 61 of Law No. 20.130, either by the death of the retiree, the active affiliate, or the affiliate in receipt of the temporary subsidy for partial incapacity.

d) Non-pension insurance Non-pension insurance that generates mathematical reserves:

• Life: Corresponds to those insurance coverages that guarantee the insured or their beneficiaries an indemnification in case of death, survival, or both jointly. It includes coverages that combine protection and savings. Life coverages that generate mathematical reserves must be included. It comprises both individually and collectively contracted insurance.

Non-pension insurance that does not generate mathematical reserves:

• Life: Includes life coverages that do not generate mathematical reserves and comprises insurance contracted individually and collectively.
• Personal accidents: Corresponds to including all those insurance coverages that cover bodily damages that the insured may suffer due to an accident, including death, when this is stipulated in the general conditions of the policy. An accident is understood as any unforeseen, involuntary, sudden, and fortuitous event. The coverage provided for in Law No. 16.074 of October 10, 1989, is excluded, which must be attributed to Work accident and occupational disease insurance.

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460

5

• Health: Corresponds to including all those insurance coverages that comprise the benefits provided with the aim of preventing diseases or restoring the health or physical integrity of individuals, whether they are granted through a care center or by reimbursement of incurred expenses.
• Various: Corresponds to including any other non-pension insurance coverage not included in the above.

In the case of insurance contracts that integrate coverages of different nature, each must be assigned based on its participation in the total premium, considering the openings detailed in articles 1 and 2, unless those provisions already provide for the inclusion of a part or all of the coverages in question, in which case the criterion established there must be followed. The same procedure must be followed with additional coverages provided for in the insurance contract.

2. Assimilations The coverages indicated below will be assimilated as follows: a) Fire Material damages on real estate caused by:

• Hurricanes, tornadoes, storms, hail, and other natural phenomena.
• Aircraft precipitation
• Vehicle collision
• Riots, popular disturbances, strikes
• Malicious material damages
• Explosion
• Electrical or electronic defects
• Floods
• Smoke
• Earthquake
• Pipe rupture or overflow

Other damages derived from fire or its assimilations:

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460

6

• Loss of benefits
• Expenses for rentals and/or leases
• Cessation of cold
• Removal of debris
• Dismantling of machinery or cleaning of merchandise
• Personal accidents of the insured
• Civil liability
• Mandatory insurance for horizontal property

b) Motor vehicles and trailers

• Theft
• Fire
• Glass

c) Theft and similar risks

• Purchase protection
• Home combined
• Commerce combined

d) Transport

• Theft of maritime and air hull
• Fire of maritime and air hull

e) Others / Engineering insurance

• All-risk construction and assembly

f) Others / Other risks

• Pet coverages
• Glass, except those corresponding to motor vehicles and trailers
• Personal or professional use goods or equipment (for example, works of art, drones, notebooks, cell phones)
• Unemployment
• Extension of guarantee for electrical, electronic, or mechanical equipment
• Fidelity

g) Non-pension insurance / Various

• Travel assistance

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460

7

• Disability

2. SUBSTITUTE in Title I BIS – Minimum capital, of Book II – Stability and solvency, Article 20 with the following:

ARTICLE 20 (MINIMUM CAPITAL - GROUP II). The minimum capital, to be able to function in the insurance activity of Group II, is fixed at the greater of the two parameters determined below:

A. Basic Capital The basic capital will be an amount equivalent to the Basic Capital for a branch, determined in the previous article. Insurance companies that wish to subscribe contracts of collective disability and death insurance and pension annuities for the payment of benefits of the mandatory individual savings regime (articles 56, 57, and 59 of Law No. 16.713 of September 3, 1995, and amendments) must credit an additional basic capital that will be equivalent in national currency to UI 6,400,000 (six million four hundred thousand indexed units), which will be updated quarterly to the value of the indexed unit in effect on the last day of each calendar quarter.

B. Solvency Margin The solvency margin will be the sum of the following results:

1. For insurance for persons that do not generate mathematical reserves, the amount resulting from applying the rules established in literal B. of article 19 for insurance of Group I. For the purposes of applying what is provided for in literal B. i. c. of said article 19, in the case where the insured capital is the payment obligation of an annuity, the actuarial present value of the annuities to be paid must be computed as a paid claim, only once and in the month of claim notification. In this situation, claims to be borne by the reinsurer will be computed by the fraction of the actuarial present value to be borne by it, according to the respective reinsurance contract. The premiums, claims, and reserves (literals a. to e. of article 31) corresponding to collective disability and death insurance will be computed in the same way as those referred to insurance for persons that do not generate mathematical reserves.

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460

8 2. For insurance for persons that generate mathematical reserves, the sum of: a. 4% (four percent) of the total mathematical reserves of direct insurance and active reinsurance and of the reserve for settled claims to be paid of the collective disability and death insurance corresponding to the temporary subsidy for partial incapacity (numeral i. of literal a. of article 31), multiplied by the ratio between mathematical reserves of own conservation and the total, which cannot be less than 85% (eighty-five percent). b. 3‰ (three per thousand) of the non-negative risk capitals multiplied by the ratio existing between risk capitals of own conservation and the total, which cannot be less than 50% (fifty percent).

CRISTINA RIVERO Superintendent of Financial Supervision 2023-50-1-01182

Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR N°2460