Resolution No. 2137-2020: Modifies the Solvency Fund Regulation for AFOCATs, the Regulation for the Direct Administration of the Fund's Surplus for AFOCAT Investments, and the Single Text of Administrative Procedures - TUPA of the Superintendency of Banking, Insurance and AFPs.

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511)6309000 Fax: (511) 6309239 Lima, September 2, 2020 Resolution S.B.S. N° 2137- 2020 The Superintendent of Banking, Insurance and Private Pension Fund Administrators:
CONSIDERING:
That, paragraph 30.1 of article 30 of the General Law of Transport and Terrestrial Transit, Law N° 27181 and its modifying norms, states that the Associations of Regional or Provincial Funds against Traffic Accidents (AFOCAT) are regulated, supervised, overseen and controlled by the Superintendency of Banking, Insurance and Private Pension Fund Administrators, in accordance with the powers established in article 345 and subsequent articles of the General Law of the Financial System and of the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law N° 26702 and its modifying norms, hereinafter the General Law; That, the Regulation for the Supervision of Regional or Provincial Associations of Funds against Traffic Accidents and for the Operation of the Central Registry of Accident Claims, approved by Supreme Decree N° 040-2006-MTC and modifying norms, hereinafter the AFOCAT Regulation, considers that this Superintendency has among its faculties, that of regulating the scope of information, formats, financial statements and statistics required from AFOCATs; as well as regulating the composition, characteristics and administration regime of the Regional or Provincial Fund against Traffic Accidents (AFOCAT); That, paragraph 29.2 of article 29 of the AFOCAT Regulation states that the methodology for calculating the Solvency Fund and other provisions regarding its control and supervision, will be established by the Superintendency. In this regard, said mandate is developed in the Solvency Fund Regulation for AFOCATs, approved by SBS Resolution N° 931-2017, which establishes that as part of the methodology for calculating the Solvency Fund, the amount of the Fund cannot be less than the maximum between the Solvency Fund and the Minimum Fund; That, in this regard, in the First and Second Transitory Provision of the Solvency Fund Regulation for AFOCATs, an adaptation period was established for compliance with the provisions of the preceding paragraph, as well as the application rate of the Solvency Fund for Claims Deviation by calculation date; in order for AFOCATs to constitute their Solvency Fund progressively, until December 2021; That, likewise, paragraph 27.6 of article 27 of the AFOCAT Regulation states that the Superintendency may authorize AFOCATs that so request, the direct administration of the Fund's surpluses with respect to the Solvency Fund, provided that the latter is greater than the Minimum Fund. In this regard, said mandate is developed in the

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511)6309000 Fax: (511) 6309239 Regulation for the Direct Administration of the Fund's Surplus for AFOCAT Investments, approved by SBS Resolution N° 1287-2020, hereinafter the Surplus Use Regulation, which establishes the conditions and requirements that must be met in order for AFOCATs to be able to request the direct administration of the Fund's surpluses with respect to the Solvency Fund; That, in the Sole Complementary Transitory Provision of the Surplus Use Regulation, it was established that exceptionally AFOCATs may request the direct administration of surpluses to cover their administrative expenses for forty-two (42) days in the context of the National State of Emergency as a consequence of the Coronavirus (COVID-19) outbreak; That, in this context, since the declaration of the National State of Emergency as a consequence of the Coronavirus (COVID-19) outbreak, AFOCATs have seen their income from CAT emissions reduced, which generates a negative impact on the Fund's results, considering it necessary to modify the adaptation parameters for the constitution of the Solvency Fund and the extension of the term for AFOCATs to make the repayment of the amount they have requested to cover their administrative expenses; That, in this sense, it is also considered necessary to extend the possibility of using Fund surpluses in other national, regional and local emergency declarations; as well as, to recognize investments of Fund surpluses in real estate assets, rapid intervention vehicles, computer equipment and systems made by AFOCATs before the entry into force of the Surplus Use Regulation; That, in order to gather opinions from the general public, the draft resolution was pre-published on the Superintendency's electronic portal, under the provisions of the Thirty-Second Final and Complementary Provision of the General Law and in accordance with the exception conditions provided in numeral 3.2 of article 14 of Supreme Decree N° 001-2009-JUS and its modifying norms; With the approval of the Assistant Superintendencies of Insurance and Legal Advisory; and, In use of the powers conferred by article 30 of the General Law of Transport and Terrestrial Transit, as well as by numerals 7, 9 and 13 of article 349 of the General Law; RESOLVES:
Article First.- Modify the First and Second Transitory Provision
of the Solvency Fund Regulation for AFOCATs, approved by SBS Resolution N° 931-2017, as stated below:
“TRANSITORY PROVISIONS
First.- Adaptation period for compliance with the Solvency Fund as a limit An adaptation period is granted for compliance with the provisions of numeral 3.8 of article 3° of this Regulation, solely regarding that the Fund cannot be less than the Solvency Fund, according to the following:

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511)6309000 Fax: (511) 6309239 Calculation date Minimum Fund amount 31/12/2017, 30/06/2018 50% of the Solvency Fund 31/12/2018, 30/06/2019, 31/12/2019, 30/06/2020 and 31/12/2020 65% of the Solvency Fund 30/06/2021 70% of the Solvency Fund 31/12/2021 80% of the Solvency Fund 30/06/2022 90% of the Solvency Fund 31/12/2022 onwards 100% of the Solvency Fund Second.- Solvency Fund for Claims Deviation. The application rate of the Solvency Fund for Claims Deviation, variable “e”, to which numeral 1 of Annex N° 1 of this Regulation refers, will have the following values:
Calculation date Variable “e”
31/12/2017, 30/06/2018 20%
31/12/2018, 30/06/2019, 31/12/2019,
30/06/2020 and 31/12/2020 40%
30/06/2021 50%
31/12/2021 60%
30/06/2022 80%
31/12/2022 onwards 100%”
Article Second.- Modify the Regulation for the
Direct Administration of the Fund's Surplus for AFOCAT Investments, approved by SBS Resolution N° 1287-2020, as stated below:

1. Incorporate the following Final Complementary Provision:
   “FINAL COMPLEMENTARY PROVISION
   SOLE.- Exceptional use of surpluses in national, regional and local emergencies In the event of declarations of a State of Emergency by the National Government, AFOCATs may exceptionally request authorization for the direct administration of surpluses with the purpose of covering their administrative expenses and thus maintaining the continuity of their operations. For this, they must comply with the conditions that the Superintendency establishes through multiple official letters or general norms, on each occasion.”
2. Modify the Sole Complementary Transitory Provision in the following aspects:
   “COMPLEMENTARY TRANSITORY PROVISIONS
   First.- Exceptional request for the use of surpluses due to the declaration of a State of Emergency at National Level by Supreme Decree N° 044-2020-PCM (…) The conditions for AFOCATs to access the surpluses are the following:
   (…)

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511)6309000 Fax: (511) 6309239
6. The repayment of the granted amount must be made over three years (2023, 2024 and
2025).
(…)
While the AFOCAT has not completed the repayment of the resources it received from the Fund and a deficit of the Fund's resources with respect to the Solvency Fund requirement is detected, the following must be taken into account:
1. The Solvency Fund requirement is determined in accordance with the Solvency Fund Regulation.
2. Until December 2022, the deficit cannot be greater than the amount that the AFOCAT
has pending repayment to the Fund.
3. In June 2023, the deficit cannot exceed the lower value between the amount pending
repayment on that date and 83.5% of the amount initially received by the AFOCAT.
4. In December 2023, the deficit cannot exceed the lower value between the amount pending
repayment on that date and 67% of the amount initially received by the AFOCAT.
5. In June 2024, the deficit cannot exceed the lower value between the amount pending
repayment on that date and 50.5% of the amount initially received by the AFOCAT.
6. In December 2024, the deficit cannot exceed the lower value between the amount pending
repayment on that date and 33% of the amount initially received by the AFOCAT.
7. In June 2025, the deficit cannot exceed the lower value between the amount pending
repayment on that date and 16.5% of the amount initially received by the AFOCAT.
8. As of December 2025, the deficit is determined in accordance with the provisions of the
Solvency Fund Regulation.”
3. Incorporate the Second and Third Complementary Transitory Provision, in accordance with the
following text:
“Second.- Modification of the repayment schedule for requested surpluses AFOCATs that, within the framework of the provisions of the First Complementary Transitory Provision of the Regulation and that have already requested the aforementioned use of surpluses, may submit a new repayment schedule. The new schedule must be signed by the President of the AFOCAT and must not exceed three (3) years, comprised between the years 2023 to 2025. Third.- Exception for the use of Fund resources made before the entry into force of this Regulation Fund resources already used by the AFOCAT and already registered as debts of the latter to the Fund, may be validated and recognized by this Superintendency for a single time, as
part of the direct administration of the Fund's surpluses for investments, provided that these meet the following conditions:
1. The AFOCAT must have maintained the Fund's amount in the Trust above the 100% current
Solvency Fund and the Minimum Fund, for a period of no less than three (3) consecutive months.
2. Maintain the amount of its basic cash constituted in the paying account in accordance with the
provisions of Circular N° AFOCAT-8-2013, for a period of no less than three (3) consecutive months.
3. Carry out the operation of the trust through its paying account, for a period of no less than three (3)
consecutive months.
4. The investments made with Fund resources must be framed in the investment activities
detailed in numerals 1, 3 or 4 (real estate, rapid intervention vehicles,

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511)6309000 Fax: (511) 6309239 computer equipment and systems) of paragraph 4.1 of article 4 of this Regulation.
5. The amount of Fund resources used for the investments detailed in the previous literal
must be previously recognized as debts of the AFOCAT to the Fund.
The AFOCAT that avails itself of this exception must submit to the Superintendency the documentation that proves compliance with the conditions indicated above. The deadline for submitting applications must not exceed two hundred and forty (240) calendar days, counted from the entry into force of SBS Resolution N° 2137-2020.
Article Third.- Modify procedure N° 119
“Authorization to AFOCATs for the Direct Administration of the Fund's Surplus for AFOCAT Investments” in the Single Text of Administrative Procedures – TUPA of the Superintendency of Banking, Insurance and AFP, approved by SBS Resolution N° 1678-2018 and modifications, in accordance with the text attached to this Resolution, which is published on the institutional portal (www.sbs.gob.pe).
Article Fourth.- This resolution enters into force on the
day following its publication in the Official Gazette “El Peruano”.
Register, communicate and publish.
SOCORRO HEYSEN ZEGARRA
Superintendent of Banking, Insurance and
Private Pension Fund Administrators