Resolution SBS No. 1840-2022: Amending the Market Conduct Management Regulation of the Insurance System and the Regulation on the Registration of Policy Models and Minimum Requirements for Technical Notes

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 Lima, June 6, 2022

S.B.S. Resolution
No. 1840-2022

The Superintendent of Banks, Insurance and Private Pension Fund Administrators (acting) CONSIDERING:
That, Law No. 31143, Law that protects consumers of financial services from usury, modifies several regulatory provisions linked to the approval of policy conditions, marketing of insurance products and tariffs; That, article 3 of the aforementioned Law modifies article 9 of Law No. 26702, General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banks and Insurance, in order to establish that tariffs, general and specific conditions of policies are freely determined by the companies of the insurance system and must be approved by this Superintendency, as well as be made known to the public; That, for the aforementioned reason, it is necessary to modify the regulation issued by this Superintendency in order to concord it with the new provisions formulated in the aforementioned Law, resulting in the need to modify the procedure, deadlines and obligations applicable in the approval of the conditions of insurance policy models subject to prior review, applicable to all products that contain the minimum conditions of Law No. 29946, Insurance Contract Law; That, in virtue of what has been stated, it is necessary to modify the Market Conduct Management Regulation of the Insurance System, approved by SBS Resolution No. 4143-2019 and the Regulation on the Registration of Policy Models and Minimum Requirements for Technical Notes, approved by SBS Resolution No. 7044-2013 and its modifying norms; That, in matters of tariffs, this Superintendency has established through the Market Conduct Management Regulation of the Insurance System, approved by SBS Resolution No. 4143-2019, the requirement to disseminate the rate sheets of mass products, in order to provide users with information on the amount of the commercial premium, charges

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 as deductible, franchise, copayment or co-insurance costs, when applicable, as well as interest, in the case of installment payments, among other elements that the rate sheet must contain; That, in this context, it is necessary to issue regulation with the purpose of concordant the existing provisions with respect to the aforementioned Law, in matters of the regulation of tariffs and commissions, understanding these as the commercial premiums that insurance companies charge users, so that the guidelines and minimum content of the rate sheets are regulated, as well as their dissemination; Having the approval of the Adjunct Superintendencies of Insurance, Market Conduct and Financial Inclusion and of Legal Advice; and, That, in order to collect the opinions of the general public, the draft resolution was pre-published on the electronic portal of the Superintendency under the provisions of Supreme Decree No. 001-2009-JUS; In exercise of the powers conferred by paragraphs 7 and 9 of article 349 of the General Law and Law No. 31143, Law that protects consumers of financial services from usury; RESOLVES:
Article First.- Modify the Market Conduct Management Regulation of the Insurance System, approved by SBS Resolution No. 4143-2019 and its modifying norms, according to the following text:
1. Replace the following paragraphs of article 2 "Definitions", according to the following text:
"Article 2. Definitions
For the purposes of what is established in this Regulation, the following definitions and references must be considered:
(…)
6. General contracting clauses: set of basic stipulations established by companies to govern contracts belonging to the same line, risk or marketing modality of insurance. The approval of the minimum conditions contained in the general contracting clauses is carried out in a single instance, according to the procedure approved by this Superintendency.
(…)

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000
8. General conditions: set of stipulations that cover aspects related to the extension of insurance coverage, excluded risks, procedure for requesting coverage and settlement of claims. The approval of the minimum conditions contemplated in the general conditions of the product will be carried out each time a new product is requested to be incorporated into the Policy Models Registry, in the procedure provided by the Superintendency.
(…)
10. Particular or specific conditions: stipulations related to the individualized risk that is insured, such as the identification of the parties, the designation of the insured and the beneficiary, if any, the description of the insured subject matter, the insured amount or the scope of coverage, the amount of the premium and the corresponding payment agreement, the place and form of payment, the validity of the contract, among others. Any reference to particular conditions is understood to refer to specific conditions.
(…)
23. Commercial premium: includes the pure risk premium, evaluation, administration, issuance, production and risk redistribution (co-insurance and reinsurance) charges, charges for the intermediation of insurance brokers, contracting of marketers, and the commercial benefit of the company. The cost of the premium can be expressed as a fixed amount or a percentage value.
(…)"
2. Replace the following in article 14, paragraph 16.4 of article 16 and paragraphs 17.2 and 17.3 of article 17, as well as the title of Chapter II of Title IV and incorporate article 16A, according to the following text:
"Article 14. Mechanisms and channels for information dissemination Companies disseminate information regarding the commercial premium, coverage, exclusions and other characteristics of the insurances contained in the policies, as applicable, through the following mechanisms and channels:
1. Mandatory mechanisms:
Rate sheet and/or calculator.- applicable to insurance products offered or promoted under any marketing modality, except those that are entirely negotiated. The rate sheet must additionally contain the following information:
1. Commercial name of the product and SBS registration code.
2. The amount of the commercial premium, including IGV, which must be shown separately. Exceptionally, in private annuity coverages, the sales rate with which the annuity is calculated may be indicated.
3. Detail the main and additional coverages and assistance services.

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000
4. Costs for deductible, franchise, copayment or co-insurance, as applicable.
5. In case of offering installment payments of the commercial premium, indicate the applicable interest rate and the amount for interest.
6. Specify the periodicity of the product (annual, monthly or other).
7. In case insurance broker intermediation applies; or the marketing of insurance through promoters, bancassurance or other marketer, indicate the commission charge corresponding to each. Also, detail the applicable taxes, the established percentage and, if applicable, the amount.
8. Any other information determined by the company.
In those cases where the determination of the commercial premium depends on insurability requirements, the criteria for its determination must be indicated.
The rate sheet may group one or more insurance products, based on common characteristics, such as behavior, homogeneity, insured ages, among others; indicating the grouping criteria or considerations.
Additionally, the company determines if it includes ranges, according to the cost of the commercial premium for each product, taking into consideration the nature of this and ensuring that they provide better understanding for users.
Companies must make the insurance rate sheets available to users in detail, at minimum, in their customer service offices and website. This document may be contained in physical or electronic media; facilitating user access.
Likewise, companies must keep a historical record of the rate sheets for each period of marketing of their products, including any modification, inclusion or elimination that is made. This record must be available to this Superintendency.
2. Optional mechanisms:
a. Qualitative informative brochures.- used to disseminate the specific characteristics of the insurance products offered. In case the company decides to use them, they must contain: i) a brief description of the product, ii) the main coverages and main exclusions, iii) the existence of deductibles, franchises, copayment or co-insurance, as applicable, iv) the identification of the company, if they are group or collective insurances; v) the channels made available to provide information and present complaints to the company regarding the product it offers, and, vi) other relevant information identified by the company. b. Quantitative Informative Brochures.- used to disseminate information regarding the commercial premium. In case the company decides to use them, they must contain the applicable amount and its periodicity, as well as the information indicated in the previous paragraph.

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 Additionally, in case installment payments of premiums apply, or a guaranteed or expected return in products with savings and/or investment components, the following must be considered:
i. Regarding the installment payment of insurance premiums, the amount for interest, detailed in an disaggregated manner, and an explanatory example.
ii. In case there is a savings and/or investment component, the precision on whether it is a guaranteed return or an expected return, as well as an explanatory example. In case it is an expected return, this situation must be informed with a clarifying note, specifying the assumptions used for the projection and the main associated risk factors, and/or the types of scenarios in which there would be a return lower than expected. Additionally, it must include additional information required by this Superintendency through a general character norm, which reaches life insurances with savings and/or investment components.
c. Other mechanisms determined by the company.
3. Mandatory channels:
1. Website: used for the dissemination of information on the main applicable conditions, such as coverages, exclusions, deductibles, copayments and other information that companies consider as minimum, of the risks associated with personal, mandatory, vehicle, mass insurances offered by the company and others that the Superintendency determines through a multiple letter.
2. Offices: Those companies that have customer service offices must disseminate information regarding the commercial premium, coverage, exclusions and other necessary information about the products they offer."
(…)
"CHAPTER II
CONDITIONS OF MASS, PERSONAL AND MANDATORY INSURANCES" (…)
16.4 Minimum conditions that do not have prior approval from the Superintendency cannot be used. The Superintendency does not issue pronouncements on the application of norms and particular provisions issued by other organisms authorized for such purpose.
(…)
Article 16A. Basic content of particular or specific conditions
16A.1 In addition to what is stated in paragraph 10 of article 2 of this Regulation, the basic content of the particular or specific conditions of the policies is the following:
1. Data of the policyholder and insured
2. Data of the beneficiary

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000
3. In the case of life insurance, age of entry and permanence
4. In the case of property insurance, data of the insured asset, if applicable
5. Coverages
6. Zone of insurance coverage, if applicable
7. SBS Code
8. Data and policy number
9. Renewal form
10. Validity
11. Currency
12. Charges for intermediation or marketing of insurance
13. Waiting and probation periods
14. Deductibles, copayments or franchises
15. Agreed communication channel
16. Others determined by the Superintendency through a general character norm.
16.A2. Particular or specific conditions cannot be used to incorporate additional rights or obligations to those established in the minimum conditions approved by the Superintendency, nor modify the content of said conditions. The mere presentation of the minimum conditions for administrative approval obligates companies to comply with what is established in this paragraph.
Article 17. Aspects linked to administrative approval
(…)
17.2 In the case of regulatory modifications that have an impact on the approved minimum conditions, companies must present the modified conditions to the Superintendency, including the indication of those conditions that are affected by the regulatory modification, for their respective approval. The Superintendency, through a multiple letter, informs companies about the modified conditions that require approval. In case the modification is due to the approval of norms of imperative character, the company has the obligation to apply said norms from the date they enter into force.
17.3 Companies may adopt conditions that have been previously approved by the Superintendency to other companies, individually or organized in a group or guild manner, for which purpose they must send a communication indicating the conditions they request to adopt and the number of the Resolution through which they were approved, in order for their use to be authorized by the Superintendency. The same procedure is applicable to minimum conditions that have been previously approved in the general contracting clauses of the applicable line or risk.
3. Replace paragraphs 34.1 and 34.3 of article 34, according to the following text:
"Article 34. Resolution without expression of cause
34.1 In insurance contracts, with the exception of life, health and surety insurances, it may be agreed that either party has the right to resolve the contract without expression of cause. If the company exercises the faculty to resolve the contract, it must communicate this previously to the insured and/or policyholder, with a notice of no less than thirty (30) days. In those cases where the insured and/or policyholder requests the resolution of the contract, the company must fulfill informing them of the consequences that the resolution has on the insurance coverage.
(…)
34.3 Regarding non-mass insurances, the company must proceed with the refund of the premium based on the unexpired term and within the return period agreed with the user. The start of the computation of the deadline for the aforementioned return is calculated from the request for resolution of the contract communicated by the user."
Article Second.- Modify the Regulation on the Registration of Policy Models and Minimum Requirements for Technical Notes, approved by SBS Resolution No. 7044-2013 and its modifying norms, according to the following text:

1. Replace literals b) and m) of article 2 on Definitions, according to the following text:
   "b) General contracting clauses: Set of basic stipulations established by companies to govern contracts belonging to the same line, risk or marketing modality of insurance. The approval of the minimum conditions contained in the general contracting clauses is carried out in a single instance, according to the procedure approved by this Superintendency. m) Market Conduct Regulation of Insurance: Market Conduct Management Regulation of the Insurance System, approved by SBS Resolution No. 4143-2019 and its modifying norms. Replaces any reference to the Transparency Regulation"
2. Replace the following articles, according to the following text:
   (…)
   Article 10. Registration of policy models of products subject to prior administrative approval
   The incorporation in the Registry of the policy models, summary, insurance certificate, insurance application and application-certificate, among which are personal, mandatory and mass products, proceeds provided that:
   a) The prior administrative approval of the minimum conditions of said products is carried out by the Superintendency; b) It is verified that the documentation presented, which has not been submitted to prior administrative approval, complies with the current regulatory framework that is under the competence of the Superintendency, in order to identify abusive clauses or contrary to said norms. The Superintendency does not issue pronouncements on the application of norms and provisions issued by organisms authorized for such purpose. In case observations are detected, they are sent according to the provisions that regulate the procedure. The failure to remedy observations within the terms indicated and/or deadline granted results in the denial of registration. If there are no observations or they have been remedied according to the provisions that regulate the procedure, the Superintendency proceeds to the approval of the aforementioned minimum conditions and assigns the corresponding registration code. The maximum deadline for the approval procedure of the minimum conditions and granting of the registration code is ninety (90) business days, counted from the day following the entry of the registration request of the policy model of the new product. In case said policy model has minimum conditions previously approved, by virtue of the use of general contracting clauses of the risk or line applicable to the product, the maximum deadline is sixty (60) business days counted from the day following the entry of the registration request of the policy model. In both cases, the product can only be marketed from the day following the date on which the company receives a communication from this Superintendency, informing of the incorporation of the policy model into the Registry.
   Article 11. Approved minimum conditions
   The Superintendency approves the minimum conditions according to article 16 of the Market Conduct Regulation of Insurance, which are disseminated through its website or other mechanism that this establishes for such purposes. Any company may use the minimum conditions previously approved and disseminated by the Superintendency, for the elaboration of its policy models. For this purpose, the procedure established in article 10 must be followed.
   Article Third.- This Resolution enters into force the day following its publication, with an adaptation period of one hundred eighty (180) days counted from the day following its publication.
   Register, communicate and publish
   SERGIO JAVIER ESPINOSA CHIROQUE
   Superintendent of Banks, Insurance and
   Private Pension Fund Administrators (acting)