2020-06-29 | DOF 5595745

Added

Modifying Circular 6/20 of the Single Insurance and Surety Bond Circular

This circular modifies Annex 6.1.2 of the Single Insurance and Surety Bond Circular to establish the minimum paid-in capital requirements for insurance institutions, expressed in Investment Units (UDI), as determined by the Bank of Mexico. The updated capital thresholds specify distinct UDI amounts for life insurance, pension insurance, accident and health coverage, property damage lines, and surety bonds, with specific provisions for reinsurance and reinsuring activities. These requirements apply to all authorized insurance and surety institutions operating in Mexico, mandating that they multiply the specified UDI figures by the official UDI value published in the Official Gazette on December 31 of the preceding year. The modification entered into force the day after its publication in the Official Gazette on June 29, 2020.

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DOF: 29/06/2020

CIRCULAR Modificatoria 6/20 de la Única de Seguros y Fianzas

Al margen un sello con el Escudo Nacional, que dice: Estados Unidos Mexicanos.- HACIENDA.- Secretaría de Hacienda y Crédito Público.- Comisión Nacional de Seguros y Fianzas.

CIRCULAR MODIFICATORIA 6/20 DE LA ÚNICA DE SEGUROS Y FIANZAS

(Anexo 6.1.2.)

The National Commission of Insurance and Surety Bonds, based on the provisions of Articles 366, fraction II; 367, fractions I and II; 369, fractions I and III; 372, fractions V, VI, XLI and XLII, 373 and 381 of the Law of Insurance and Surety Bond Institutions, and

CONSIDERING

That Article 49 of the Law of Insurance and Surety Bond Institutions establishes that the minimum paid-in capital that Institutions must have for each operation or line of business, or line or sub-line, as the case may be, shall be equivalent in national currency to the value of the Investment Units determined by the Commission, with the agreement of its Board of Directors, through general character dispositions. Likewise, said article provides that this Decentralized Body shall make known, no later than June 30 of each year, the minimum paid-in capital that Institutions must have, which shall remain in effect until such time as the Commission itself modifies it, in which case it must make it known before June 30 of the corresponding year.

That Dispositions 6.1.1. and 6.1.2. of the Single Insurance and Surety Bond Circular refer that the minimum paid-in capital that Institutions must have is indicated in Annex 6.1.2. of said Circular.

That through the determination of the minimum capital, it is sought that Institutions have a solid financial position that allows them to respond to the obligations and responsibilities they assume in the exercise of their activity, so that with the objective of providing legal certainty regarding the regulatory framework to which they must be subject, it is necessary to modify Annex 6.1.2. of the Single Insurance and Surety Bond Circular in order to make known the value of the Investment Unit determined by the Bank of Mexico, which these institutions must consider to calculate the equivalence in national currency of their minimum paid-in capital.

For the above reason, this Commission has resolved to issue the following modification to the Single Insurance and Surety Bond Circular in the terms specified below:

CIRCULAR MODIFICATORIA 6/20 DE LA ÚNICA DE SEGUROS Y FIANZAS

(Anexo 6.1.2.)

SINGLE PROVISION.

Annex 6.1.2. of the Single Insurance and Surety Bond Circular is modified.

TRANSITORY PROVISION

SINGLE PROVISION.

This Modifying 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; 367, fractions I and II; 369, fractions I and III; 372, fractions V, VI, XLI and XLII, 373 and 381 of the Law of Insurance and Surety Bond Institutions.

Respectfully,

Mexico City, June 18, 2020. - The President of the National Commission of Insurance and Surety Bonds, Ricardo Ernesto Ochoa Rodríguez. - Rubric.

ANNEX 6.1.2.

MINIMUM PAID-IN CAPITAL THAT INSTITUTIONS MUST HAVE

The minimum paid-in capital that Insurance Institutions must have is fixed according to the following:

I. Life.- The equivalent to 6 ' 816,974 (Six million eight hundred sixteen thousand nine hundred seventy-four) UDIs.

II. Pension Insurance.- The equivalent to 28 ' 000,000 (Twenty-eight million) UDIs.

III. Accidents and diseases: a) Personal accident and/or medical expense lines.- The equivalent to 1 ' 704,243 (One million seven hundred four thousand two hundred forty-three) UDIs. b) Health line, including personal accident and/or medical expenses.- The equivalent to 1 ' 704,243 (One million seven hundred four thousand two hundred forty-three) UDIs.

IV. Damages: a) One line.- The equivalent to 5 ' 112,730 (Five million one hundred twelve thousand seven hundred thirty) UDIs. b) Two lines.- The equivalent to 6 ' 816,974 (Six million eight hundred sixteen thousand nine hundred seventy-four) UDIs. c) Three or more lines.- The equivalent to 8 ' 521,217 (Eight million five hundred twenty-one thousand two hundred seventeen) UDIs. d) Regardless of what is provided in the previous subsections for the operation of damages, specifically regarding the home credit and financial guarantee lines, the following is required: 1) Home credit.- The equivalent to 12 ' 200,000 (Twelve million two hundred thousand) UDIs. 2) Financial guarantee.- The equivalent to 33 ' 200,000 (Thirty-three million two hundred thousand) UDIs.

The minimum paid-in capital that Institutions operating Surety Bonds must have, for each line they are authorized to operate, including the sub-line or sub-lines of each one, is fixed according to the following:

I. Surety Bonds: a) One line.- The equivalent to 7 ' 310,308 (Seven million three hundred ten thousand three hundred eight) UDIs. b) Two lines.- The equivalent to 9 ' 747,077 (Nine million seven hundred forty-seven thousand seventy-seven) UDIs. c) Three or more lines.- The equivalent to 12 ' 183,846 (Twelve million one hundred eighty-three thousand eight hundred forty-six) UDIs.

For Insurance Institutions authorized exclusively to practice Reinsurance, 50% of the minimum paid-in capital expressed in UDI indicated above is fixed for each operation or line they have been authorized to practice, with the exception of the Re-suretying operation.

For Insurance Institutions that do not have authorization to operate surety bonds and that carry out Re-suretying operations, the following is fixed for each surety bond line:

I. Re-suretying a) One line.- The equivalent to 3 ' 655,154 (Three million six hundred fifty-five thousand one hundred fifty-four) UDIs. b) Two lines.- The equivalent to 4 ' 873,538 (Four million eight hundred seventy-three thousand five hundred thirty-eight) UDIs. c) Three or more lines.- The equivalent to 6 ' 091,923 (Six million ninety-one thousand nine hundred twenty-three) UDIs.

To cover the minimum paid-in capital in accordance with what is established in this Annex, Institutions must multiply the number of UDIs determined for each insurance operation or line, and/or surety bond line or sub-line, as the case may be, that they are authorized to operate, as well as for pension insurance derived from Social Security Laws, by the value of the UDI that the Bank of Mexico makes known in the Official Gazette of the Federation corresponding to December 31 of the immediate preceding year.


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