Resolution No. 1136-2006: Creation of the Registry of Insurance Policies and Technical Notes

Lima, August 31, 2006
S.B.S. Resolution
No. 1136-2006
THE SUPERINTENDENT OF BANKING, INSURANCE
AND PRIVATE PENSION FUND ADMINISTRATORS

WHEREAS:

That, pursuant to Article 345 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law No. 26702 and its amendments, hereinafter the General Law, it is the purpose of the Superintendency to protect the interests of the public in the field of the financial and insurance systems;

That, in accordance with Article 328 of the General Law, the policy models, the rates and the conditions resulting from the provisions of Articles 9, 326 and 327 do not require prior approval from the Superintendency of Banking, Insurance and Private Pension Fund Administrators, hereinafter the Superintendency, but must be brought to its knowledge before their use and application, and this Body is empowered to prohibit the use of policies drafted under conditions that do not satisfy such provisions;

That, by SBS Resolution No. 1420-2005, which approves the Regulation of Insurance Policies and Technical Notes, it is provided that the models of the general, particular and special conditions and additional clauses of the policies and the technical notes, prior to their use and application by insurance companies, must be brought to the knowledge of the Superintendency and have the registration code in accordance with the rule that this Control Body may provide for these purposes;

That, it is necessary to have a registry of the insurance policies marketed in the national market, under the articles of the General Law previously indicated, which allows supervising the quality of the insurance products existing in the market, in order to reinforce the legality and transparency of information for the benefit of users of the insurance system;

That, it is necessary to improve the conditions of access to information regarding such products by potential insurance users;

That, for this reason, it is convenient to create the Registry of Insurance Policies and Technical Notes and its pertinent rules, in order to establish the requirements and the procedure that insurance companies must comply with to register insurance policies and technical notes and;

That, consequently, it is necessary to modify the corresponding procedure in the Single Text of Administrative Procedures (TUPA) of the Superintendency;

That, additionally, it is necessary to specify the conditions for registration of the pension products regulated by the Third Final and Transitory Provision of the Regulation of the Single Ordered Text of the Law of the Private Pension Fund Administration System (SPP), approved by Supreme Decree No. 004-98-EF and Article 265 of Title VII of the Compendium of Regulatory Superintendency Rules of the Private Pension Fund Administration System (SPP), referring to Benefits, approved by Resolution No. 232-98-EF/SAFP;

In accordance with the opinion of the Deputy Superintendencies of Insurance, of Private Pension Fund Administrators, of Risks and of Legal Advice and of the Management of Planning and User Services; and,

In use of the powers conferred by numeral 9 of Article 349 of the General Law;

RESOLVES:

Article One.- Create the Registry of Insurance Policies and Technical Notes in which the products of insurance companies shall be registered, prior to their commercialization, according to the attached rules that form an integral part of this Resolution.

Article Two.- Modify Procedure No. 71 of the TUPA of the Superintendency of Banking, Insurance and Private Pension Fund Administrators, approved by SBS Resolution No. 131-2002, and its amendments, according to the text attached to this Resolution.

Article Three.- This Resolution enters into force on the day following its publication in the official newspaper "El Peruano".

Register, communicate and publish.

JUAN JOSÉ MARTHANS LEÓN
Superintendent of Banking, Insurance and Private Pension Fund Administrators

RULES FOR THE REGISTRATION OF INSURANCE POLICIES AND TECHNICAL NOTES

CHAPTER I
GENERAL PROVISIONS

Article 1.- Scope
The present Regulation is applicable to the insurance companies referred to in literal D of Article 16 of the General Law, hereinafter companies, as well as to insurance brokers, insofar as applicable.

Article 2.- Definitions
For the purposes of this Regulation, the following definitions shall be considered:

a) Additional clauses: Special conditions, according to the definition of the Regulation of Insurance Policies and Technical Notes, which may be incorporated into various types of insurance contracts.

b) Registration code: Alphanumeric symbol used to identify the insurance policies registered in the Registry.

c) Registry: Registry of Insurance Policies and Technical Notes.

d) Policies Regulation: Regulation of Insurance Policies and Technical Notes approved by SBS Resolution No. 1420-2005

e) SPP Registry: Title VIII of the Compendium of Regulatory Superintendency Rules of the Private Pension Fund Administration System (SPP), approved by Resolution No. 115-98-EF/SAFP.

f) Policy Annexes: Made up of the insurance certificate and the documents containing declarations made by the policyholder or insured on the occasion of contracting the insurance, in accordance with the provisions of literal i) of Article 2 of Resolution No. 1420-2005, such as the insurance application, the health declaration, the beneficiary declaration.

Likewise, the definitions established in Article 2 of the Policies Regulation apply to this rule.

Article 3.- Registry of Insurance Policies and Technical Notes
It is the system designed by the Superintendency for the registration of insurance policies and technical notes referred to in the Policies Regulation, before their use and application in the national market.

The Registry is made up of:

a) Registry of Insurance Policies b) Registry of Technical Notes

Article 4.- Registry of Insurance Policies
It is the Registry that gathers the models of the general, particular and special conditions and of the additional clauses and annexes of the different insurance policies marketed in the national market.

Companies may only offer or market, in the national market, the insurance policies registered in the Registry and that have the registration code referred to in the following chapter.

The information on the models of general, particular and special conditions is freely accessible to the public, through the Superintendency's website.

Article 5.- Registry of Technical Notes
It is the Registry that gathers the technical notes that support the pure risk premiums of the rates of the insurance policies and their respective technical reserves.

CHAPTER II
REGISTRY OF INSURANCE POLICIES

Article 6.- Registration of policy models
For the registration of the general, particular and special conditions, companies shall send a communication to this Superintendency, attaching the following information:

a) Commercial name of the insurance and its form of commercialization. If it is marketed through a company of the financial system, it must be indicated whether it will be subject to a new commercialization contract or will be included within the scope of a current one.

b) Texts of the models of the general, particular and special conditions with the signature and seal of the general manager on each of the corresponding pages.

c) Detail of the additional clauses applicable to it, documents annexed to the insurance policy and the summary of the policy.

d) Legal report signed by the legal manager or legal advisor and the general manager of the company, with the pronouncement on compliance with the provisions of the General Law, especially regarding the information requirements established in Article 326, the Policies Regulation, SBS Resolution No. 510-2005 and other applicable rules, as well as those related to consumer protection. The report shall have the character of a sworn statement, by virtue of which the Superintendency shall only verify the complete submission of the documentation and information in accordance with the requirements of the current regulations.

e) Classification of the type of insurance to which the conditions correspond according to the following detail:
General Insurance Policies
Life Insurance Policies
Personal Accident and Illness Insurance Policies

f) Risk covered according to the Concordant Table of Risks of the Chart of Accounts for companies of the insurance system, approved by SBS Resolution No. 348-95.

g) Currency in which the corresponding policy will be issued.

h) Estimated date of commencement of commercialization of the product. The effective date must be informed to this Superintendency by written communication, within ten (10) business days counted from the start of commercialization.

The Superintendency, within five (5) business days counted from the presentation of the aforementioned information, shall assign the corresponding Registry code, bringing it to the knowledge of the company, through the Supervised Portal and its publication on the institutional website, provided that the complete submission of the documentation and content of the information has been verified.

Companies must include the registration code granted by the Superintendency on the first page of the insurance policies and insurance certificates, where applicable.

The assignment of the registration code is made without prejudice to the power of the Superintendency to review the registered documents, when it deems pertinent, in order to verify the conditions of transparency, technical and legality under which they have been drafted, and may make observations of form and substance to their content.

In the cases of policies in commercialization that are subject to observation by the Superintendency, the corresponding companies must support, at its request, the lifting of such observations. When the observations are not lifted to the satisfaction of the Superintendency, this Body shall communicate to the pertinent company that it must proceed to suspend the commercialization of the product.

Article 7.- Modification of policy models
Companies must inform this Superintendency about the modifications made to the models of the registered insurance policies, in order to update the documentation contained in the Registry.

For the purposes of bringing to knowledge the modifications referred to in the preceding paragraph, companies must send to this Control Body a detail of the changes introduced, accompanying the information indicated in Article 6 within a period that may not exceed five (5) business days prior to the commercialization of the insurance policies.

Article 8.- Registration of Additional Clauses
For the registration in the Registry of the additional clauses that by their nature, type or purpose may be applied indistinctly and independently to registered insurance policies that belong to various branches or modalities of insurance, companies shall present to the Superintendency the information required in Article 6.

Likewise, in the registration application, the registration code corresponding to each of the insurance policies to which such clauses may be applicable must be indicated.

The modification of the aforementioned clauses shall be subject to the provisions of the preceding article.

When the clauses are subject to observation by this Superintendency, the procedure indicated in the last paragraph of Article 6 shall be followed; and if the observations are not lifted to the satisfaction of the Superintendency, the prohibition of inclusion of the corresponding clause in the insurance policies shall be ordered.

Article 9.- Exclusion from the Registry
In order to keep the Registry updated, companies must inform the Superintendency about the general, particular, special conditions and additional clauses that they cease to market, at least ten (10) business days before their withdrawal from the market, for the purpose of their exclusion from the Registry.

CHAPTER III
REGISTRY OF TECHNICAL NOTES

Article 10.- Registration of technical notes
For the registration of the technical notes of the corresponding insurance policies, companies must present the following information:

a) Technical note, with the signature and seal of the technical manager of the company.

b) Technical report signed by the technical manager or technical advisor and the general manager of the company, with the declaration that they have taken full knowledge of the conditions of the policy to which the technical note corresponds and the pronouncement on compliance with the provisions of the General Law and the Regulation of Insurance Policies and Technical Notes. The report shall have the character of a sworn statement, by virtue of which the Superintendency shall only verify the complete submission of the information in accordance with the requirements of the current regulations.

Once the information submitted has been verified, if found in accordance with the provisions of the Policies Regulation, the Superintendency shall register it with the same code assigned to the insurance policy to which it corresponds and shall communicate it to the company through the Supervised Portal, proceeding to its filing in the corresponding file. This information is confidential.

In cases where the Technical Notes are subject to observation by the Superintendency, the corresponding companies must support, at its request, the lifting of such observations.

Companies must inform this Superintendency about the modifications made to the registered Technical Notes, in order to update the documentation contained in the Registry. For such purposes, companies must send to this Control Body a detail of the changes introduced, accompanying the information indicated above.

CHAPTER IV
INFORMATION TO THE SUPERINTENDENCY

Article 11.- Information on in-force policies
Companies shall send quarterly, together with the corresponding statements, the information indicated below:

• Information on in-force insurance policies

For such purposes, the format attached to this Resolution shall be used.

CHAPTER V
APPLICATION OF SANCTIONS

Article 12.- Sanctions
Companies that use insurance policies and technical notes that have not been previously registered in the Registry, or that contain modifications not registered with the Superintendency, shall incur a serious infraction and shall be sanctioned in accordance with the Superintendency's Sanctions Regulation.

Likewise, the failure to lift, to the satisfaction of the Superintendency, the observations to the content of the Technical Notes presented for the Registry shall be considered a serious infraction.

Likewise, insurance brokers that offer insurance policies under the conditions indicated in the preceding paragraph shall incur a serious infraction and shall be sanctioned in accordance with the provisions of the Superintendency's Sanctions Regulation.

FINAL PROVISIONS

First.- Policies marketed prior to the entry into force of this rule shall be automatically incorporated into the Registry, with this Superintendency informing the respective companies of the assigned codes, through the Supervised Portal and their publication on the Institution's website.

Second.- The registration of pension products in the SPP Registry, referred to in Title VIII of the Compendium of Regulatory Superintendency Rules of the SPP, shall be subject to the provisions established in Title VII of the aforementioned Compendium, approved by Resolution No. 232-98-EF/SAFP, as well as to AFP Circulars No. 041-2004 and No. 051-2004, or rules that replace them, so that an insurance company may not use insurance policies without having the pronouncement of the Superintendency regarding their registration in the aforementioned registry.

Third.- Companies shall have a period ending within ninety (90) days of the entry into force of this rule, to proceed to send the additional clauses that apply to the policies marketed in the market.

Fourth.- This Superintendency may provide, through Multiple Official Letter, the submission of policy models, additional clauses and technical notes, through other information transfer mechanisms.

ANNEX ES-10 1
INFORMATION ON IN-FORCE INSURANCE POLICIES
AS OF ….... /………./ 200……
INSURANCE COMPANY: ......
BRANCH RISK (2) REGISTRATION CODE COMMERCIAL NAME OF THE PRODUCT OR INSURANCE POLICY CURRENCY START DATE OF COMMERCIALIZATION NUMBER OF INSUREDS (2) According to the code of the Concordant Table of Risks of the Chart of Accounts for Companies of the Insurance System.

1 Annex numbering modified by SBS Resolution No. 2842-2012 of 05-11-2012.