Resolution Amending Article 7 of the Reinsurance, Fronting, and Co-insurance Standard

Resolution No. CD-SIBOIF-1069-1-AGOST23-2018
Dated August 23, 2018
AMENDMENT TO ARTICLE 7 OF THE REINSURANCE,
FRONTING AND CO-INSURANCE STANDARD
The Board of Directors of the Superintendence of Banks and Other Financial Institutions.

CONSIDERING

I
That on July 7, 2015, the Reinsurance, Fronting and Co-insurance Standard was issued, contained in Resolution No. CD-SIBOIF-897-2-JUL7-2015, published in La Gaceta, Official Gazette No. 148, of August 7, 2015, which aims to establish minimum guidelines to be complied with by insurance companies in their reinsurance, fronting and co-insurance operations, as well as to create the Registry of Reinsurance Companies and Reinsurance Brokers of the Superintendence, establishing the corresponding registration requirements.

II
That it is necessary to modify Article 7 of the aforementioned standard in order to facilitate the registration process with the Superintendence of reinsurer companies resulting from corporate restructuring processes, given that the information of the originating companies is previously known.

III
That according to the above and based on the powers provided for in Articles 4, 5, subparagraphs 1) and 3); 6, subparagraphs 9) and 11); and 7 of Law 733, General Law of Insurance, Reinsurance and Suretyship, published in La Gaceta, Official Gazette No. 162, 163 and 164, of August 25, 26 and 27, 2010; and Article 3, subparagraph 13) of Law 316; Law of the Superintendence of Banks and Other Financial Institutions, and its amendments.

In exercise of its powers,
HAS ISSUED

The following,

Resolution No. CD-SIBOIF-1069-1-AGOST23-2018
AMENDMENT TO ARTICLE 7 OF THE REINSURANCE,
FRONTING AND CO-INSURANCE STANDARD

FIRST: Article 7 of the Reinsurance, Fronting and Co-insurance Standard, contained in Resolution No. CD-SIBOIF-897-2-JUL7-2015, published in La Gaceta, Official Gazette No. 148, of August 7, 2015, is hereby amended, which shall read as follows:

“Article 7. Update of Information.- One year after being registered in the registry, reinsurers must annually update the Superintendence with the following information:
a) Certificate or proof from the supervisory authority of the country of origin, evidencing that the reinsurer is operating; b) Risk rating referred to in Article 5 of this standard, which must be submitted no later than January 31 of each year. If during the validity of the contract, the risk rating assigned to a reinsurer turns out to be lower than the minimum established in Annex 1 of this standard, the insurance company must inform immediately the Superintendent; c) Audited Financial Statements by independent audit firms, corresponding to the last fiscal year, which may be submitted before the close of the following period; d) Proof of renewal of the signed contract (Binding Authority) as Underwriting Agency (Coverholder) of Lloyd’s, when applicable, which must be submitted no later than within sixty days following the renewal; and e) Address, telephone number, address of its offices in the country of origin, email address and website, no later than January 31 of each year. The aforementioned information must be submitted to the Superintendence after each annual closing of the reinsurer institutions. Likewise, in the event of modifications in the corporate name of the registered reinsurer, whether by merger, conversion or spin-off, it must inform the Superintendent about this within the month following the date on which the change originated. In the case that the company resulting from the aforementioned corporate restructuring processes is not registered in the Superintendence, it must comply with the requirements established in Article 5 of this standard for its registration in the Registry, without prejudice to the Superintendent’s ability to exempt from compliance with subparagraphs a) and c) of said article, and/or request the presentation of any other document that substitutes them.”

SECOND: This standard shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Gazette. (F) S. Rosales C. (F) V. Urcuyo (F) Fausto Reyes B. (illegible) (Silvio Moisés Casco Marenco) (F) illegible (Rafael Ángel Avellán Rivas).

RAFAEL ÁNGEL AVELLÁN RIVAS
Secretary of the Board of Directors SIBOIF