Norm on Insurance Intermediation Departments in Banks

INSURANCE INTERMEDIATION OPERATIONS THAT BANKS MAY CARRY OUT Approved in Resolution CD-SIB-146-2-FEB9-2001 of February 9, 2001

First.- Financial entities may offer their clients services for the contracting of insurance linked to their own operations, respecting at all times the freedom of these clients to choose, both the insurance company and the intermediary, if any, authorized by the Superintendency.

Consequently, banking entities may not at any time directly or indirectly condition the approval or execution of a credit operation that restricts the client's freedom in the aforementioned choice.

Second.- For the purposes of the preceding article, banking entities must maintain in the department or section where operations requiring the contracting of insurance are processed, a notice drafted in prominent and easily visible lettering, in which the client's option to choose the insurance company or intermediary of their convenience authorized by the Superintendency of Banks and Other Financial Institutions is made explicit.

Third.- Banks may establish a department or office for insurance brokerage or advisory for the purposes established in the preceding provisions, provided that they do not have significant links with an insurance company, as established in Article 50, paragraph 2 a) of the General Law of Banks, Non-Bank Financial Institutions and Financial Groups.

Fourth.- Non-compliance with any provision contained in this resolution will be subject to a monetary sanction of Two thousand to One hundred thousand córdobas referred to in Article 150 of the General Law of Banks, Non-Bank Financial Institutions and Financial Groups, without prejudice to the application of other sanctions contemplated in the Law.

Fifth.- This resolution will enter into force from its publication in the Official Gazette.