Resolution SBS No. 4462-2016: Amend the Policy Model and Technical Notes Registry Regulation approved by Resolution SBS No. 7044-2013

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 Lima, August 17, 2016 Resolution S.B.S.
No. 4462 -2016

The Superintendent of Banking, Insurance and Private Pension Fund Administrators

CONSIDERING:

That, in accordance with Article 345 of the General Law of the Financial System and the Insurance System and the Organic Law of the Superintendence of Banking and Insurance, Law No. 26702 and its amendments, hereinafter General Law, it is the objective of the Superintendence to protect the interests of the public within the scope of the supervised systems;

That, in accordance with Articles 9 and 326 of the General Law and Article 27 of the Insurance Contract Law, Law No. 29946, insurance companies freely determine the conditions of policies and their rates, without prejudice to the fact that, in the matter of personal, mandatory, and mass insurance, contracts must be subject to the minimum conditions and/or clauses approved by the Superintendence, which must be incorporated into the corresponding insurance contracts;

That, the Regulation on Transparency of Information and Insurance Contracting approved by Resolution SBS No. 3199-2013, establishes that, in the case of personal, mandatory, and mass insurance, policies must be subject to the minimum conditions determined by the Superintendence, for prior approval, which constitutes a requirement for the granting of the identification code in the Registry of Policy Models and Technical Notes;

That, the Regulation on the Registry of Policy Models and Technical Notes, approved by Resolution SBS No. 7044-2013, states that all products that do not correspond to personal, mandatory, and mass insurance are subject to subsequent administrative review; specifying that, for their incorporation into the Registry, companies must comply with presenting the documentation established in the Registry Regulation.

That, with the aim of improving and simplifying the procedure for prior administrative approval and subsequent administrative review, the Superintendence has developed computer tools for their processing, in order to dynamize the procedure and improve approval and review deadlines;

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That, in order to collect the opinions of the general public regarding the aforementioned modification proposals, the draft resolution was pre-published on the Superintendence's electronic portal, under the provisions of Supreme Decree No. 001-2009-JUS;

Having the approval of the Adjunct Superintendencies of Insurance, Legal Advice, and Market Conduct and Financial Inclusion; and,

In exercise of the powers conferred by paragraphs 7, 9, 18, and 19 of Article 349 of the General Law;

RESOLVES:

First Article.- Substitute literal a) of Article 2, Articles 3, 4, 6, 8, 10, 13, 14, 15, 16, 17, 20, the Third Complementary Provision of the Regulation on the Registry of Policy Models and Technical Notes, approved by Resolution SBS No. 7044-2013, according to the following texts:

“Article 2.- Definitions a) Additional clauses: These are the special and optional conditions to one or more policies, which allow extending or expanding the main coverages of the insurance product, included in the general conditions, including risks not contemplated or expressly excluded.

Article 3.- Registry of Policy Models and Technical Notes
The Registry of Policy Models and Technical Notes is the system designed by the Superintendence for the registry of policy models, summaries, insurance certificates, insurance applications, application-certificates, and technical notes, before their use and application in the national market.

This registry is composed of:
a) The Registry of policy models. b) The Registry of technical notes.

Article 4.- Registry of policy models
The Registry of policy models is that which gathers the models of policies, summaries, insurance certificates, insurance applications, and application-certificates, that are commercialized in the national market.

Companies may only offer or commercialize, in the national market, insurance policies whose models are incorporated in the Registry and which have the code referred to in the following chapter of this Regulation.

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The information in this Registry is freely accessible to the public through the Superintendence's website. Likewise, through said website, it is informed whether the commercialization of a product is suspended or if the product's code has been revoked, referencing in the latter case, the reasons supporting the revocation of the code, without prejudice to the obligation of companies to inform the policyholders, through the means established in Article 15, about said situation.

Article 6.- Company Obligations
Companies have the following responsibilities:
a) Verify that the documentation presented for incorporation into the Registry complies with the requirements demanded by the Insurance Law, the Transparency Regulation, this Regulation, and other applicable norms. b) Verify the compatibility between the additional clauses and/or the modifications proposed to the previously approved and/or registered conditions; and, the policies to which they are to be added, so that it complies with what is provided by the Insurance Law, the Transparency Regulation, this Regulation, and other applicable norms. c) Verify the consistency between what is established in the obligations assumed in the policy and its technical note. d) Attend to inquiries made regarding the application for incorporation into the Registry, modifications, adaptations, and other similar matters, presenting the support required for such effect. e) Have a responsible representative for the registration and/or modification procedure of insurance policies, as appropriate, in accordance with the regulations issued by the Superintendence.

Article 8.- Documentation required for the registration of policy models
For the incorporation in the Registry of policy models, summaries, insurance applications, insurance certificates, and application-certificates, companies must present to the Superintendence through the electronic means determined by it, the documentation indicated below, indicating the technical risk to which the product corresponds and the applicable commercialization mechanisms:
a) Model of general conditions, highlighting the minimum conditions applicable in the case of personal, mandatory, and mass insurance. b) Model of particular conditions. c) Model of the summary of the policy coverage. d) Model of insurance application, if applicable. e) Model of insurance certificate, if applicable. f) Model of application-certificates, if applicable. g) Models of additional clauses, if applicable. h) Models of general contracting clauses, if applicable. i) The information referred to for the registration of technical notes indicated in Chapter III of this Regulation.

For the registration of mandatory insurance whose policy models have been regulated by special norms, companies must present the documentation detailed as appropriate, according to what is provided in the aforementioned special norms; and, the provisions that for such effect the Superintendence may establish, which are communicated through physical or electronic means.

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Article 10.- Registration of policy models of products subject to prior administrative approval of minimum conditions
The incorporation in the Registry of policy models, summaries, insurance certificates, insurance applications, and application-certificates in the cases of mass, mandatory, and personal insurance, proceeds whenever:
a) The prior administrative approval of the minimum conditions of said products is carried out by the Superintendence; and, 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 Superintendence, for the purpose of identifying abusive clauses or contrary to said norms.

The Superintendence does not issue a pronouncement on the application of particular norms and provisions issued by organisms authorized for such purpose.

In case observations are detected, they will be sent in accordance with 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 these have been remedied in accordance with the provisions that regulate the procedure, the Superintendence proceeds to the approval of the minimum conditions and assigns the corresponding registration code.

The maximum deadline for the procedure for the approval of minimum conditions and granting of the registration code is ninety (90) business days, counted from the day following the entry of the application for registration of the policy model, must communicate it to the company. The product may be commercialized from the day following the date on which the company receives said communication.

Article 13.- Registration of policy models
For the incorporation into the Registry of policy models, summaries, insurance certificates, insurance applications, and application-certificates, not subject to the prior approval indicated in the previous subchapter, companies must additionally present a legal report signed by the legal manager or legal advisor and by the general manager of the company, with the specific pronouncement on the compliance with what is stated in Article 6 of this Regulation.

With respect to the model of insurance application indicated in literal d) of Article 8 of this Regulation, corresponding to insurance subject to this procedure, the following text must be included:

“The conditions of this policy are subject to a subsequent review by the Superintendence, therefore, in case abusive clauses are identified within the framework of the Insurance Contract Law and regulatory norms or contrary to said norms, and these are not remedied by the company, the Superintendence may revoke the assigned registration code which will determine the prohibition of its commercialization.”

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The Superintendence will assign the corresponding registration code within fifteen (15) business days of receiving the complete documentation, must communicate it to the company.

The product may be commercialized from the day following the date on which the company receives said communication.

Article 14.- Subsequent Review
For the subsequent review of policy models incorporated in the Registry, the Superintendence evaluates the documentation presented, taking into consideration the current regulatory framework and the scope of its competence, and does not issue a pronouncement on the application of particular norms and provisions issued by organisms authorized for such purpose.

In case observations are detected, they will be sent in accordance with the provisions that regulate the procedure. The failure to remedy observations within the terms indicated and/or deadline granted for such purpose, results in the suspension of the commercialization of the product, granting a new deadline for the remediation of observations. If the company persists in non-compliance, the Superintendence revokes the assigned registration code.

If there are no observations or these have been remedied within the granted deadline, the Superintendence concludes the review stage in the procedure in progress for said product, leaving a record of it in the Registry, must communicate it to the company.

The Superintendence may also formulate inquiries about the content of policy models, in accordance with the provisions that regulate the procedure.

Article 15.- Effects of the suspension and revocation of the registration code
The suspension of commercialization implies a temporary impediment to commercialize the product for not remedying the observations within the deadline and form indicated by the Superintendence. The revocation of the registration code may be established when the company persists in not remedying the observations, in which case it cannot commercialize the product again.

In the case of revocation of the registration code, companies must inform the policyholders, 30 days in advance of the date of conclusion or renewal of the contract and through the direct communication mechanisms agreed upon, that they are no longer authorized to commercialize the product, in order for the policyholders to take actions to protect their interests in a timely manner.

Likewise, they must disseminate the list of products whose registration codes have been revoked by the Superintendence through their website and keep updated in said portal the list of said products.

Companies are prohibited from entering into new contracts using models whose codes have been revoked or whose commercialization has been suspended.

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Article 16.- Modification of policy models in the registry
Modifications of policy models incorporated in the Registry may refer to coverages, exclusions, as well as any technical, legal, or formal aspect of the policy models, without prejudice to the limitations derived from special norms. The use of modified policy models must be subject to the current regulatory framework.

Any request for modification of the documentation detailed in Article 8 incorporated in the Registry is subject to the deadlines and conditions indicated in Subchapters II and III of this chapter, as appropriate. Without prejudice to this, said request must reference the registration code of the policy model to be modified, being the responsibility of the company to clearly identify the clauses and changes made that are submitted to review, attaching the documentation indicated in Article 17. Once the deadline established in the communication made by the Superintendence notifying the approval of the modification of the models has passed, companies cannot use the previous policy model for commercialization.

The registration request for additional clauses is considered as a request for modification of the content of the policy model, being applicable the deadlines and conditions established in Subchapters II and III of this chapter, as appropriate. Without prejudice to this, said request must reference the registration code of the policy in which said additional clauses are registered, attaching the documentation indicated in Article 17.

Article 17.- Documentation required for the modification of policy models
For the modification of the documentation detailed in Article 8, companies must present to the Superintendence through the electronic means determined by it, the documentation indicated below:
a) Text of the modified models. b) Document specifying the modifications made. c) In accordance with what is stated in Article 16, in the case of registration of additional clauses, the text of the additional clause must be presented, as well as the modified policy models, in case the incorporation of said clauses impacts their content. d) When appropriate, the legal report with the specific pronouncement on the compliance with what is stated in Article 6 of this regulation. e) The information indicated in Chapter III of this Regulation for the registration of technical notes.

In case the technical note has not suffered modifications, the responsible technical official must send a declaration stating that the modification in the policy model does not affect the content of the respective technical note.

Article 20.- Policy models that have ceased to be commercialized
With the aim of keeping the registry updated, companies must communicate to the Superintendence, within the first fifteen (15) days of each year, the insurance policy models that have ceased to be commercialized and that do not maintain insureds, for the purpose of their exclusion from the Superintendence's registry or otherwise, must confirm that they have incorporated in the registry:
a) All products they commercialize; and,

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b) Products that, although no longer commercialized, maintain active contracts. These insurance policy models must not be excluded from the registry until the end of the validity of the last of the contracts entered into, which must be communicated by companies to the Superintendence within the month following the expiration of the last contract.

Third.- The provisions of this Regulation do not apply to policies that are not offered in the market, as long as their conditions and clauses are designed specifically to cover a certain risk, based on the negotiation carried out between the contracting parties; however, the policy and the technical note must be available to the Superintendence.

Policies whose content is negotiated integrally between the parties must contain the following indication:

“Condition not incorporated in the Registry of Policy Models and Technical Notes, having been, its conditions, the subject of integral negotiation between the parties”

Second Article.- Incorporate Articles 13-A and 17-A into the Regulation on the Registry of Policy Models and Technical Notes, approved by Resolution SBS No. 7044-2013, according to the following text:

Article 13-A.- Procedure for the Registration of Policy Models
For the incorporation in the Registry of policy models, summaries, insurance applications, insurance certificates, and application-certificates, companies must present said documents to the Superintendence through the electronic means determined by it and in accordance with the provisions that regulate the registration procedure.

Article 17-A.- Formal Modifications in the Registry of Policy Models and Technical Notes
Formal modifications shall be considered those that correspond to the incorporation of commercial names used in the commercialization of insurance policy models, as well as the modification of the SBS Codes assigned to registered insurance policy models.

For said modifications, companies must present a request to the Superintendence indicating the type of modification to be made.

Third Article.- Modify literal j. and incorporate literals k. to m. of Article 10, Article 11, and incorporate Article 11-A into the Regulation on Transparency of Information and Insurance Contracting, approved by Resolution SBS No. 3199-2013, according to the following text:

Article 10°.- Prior administrative approval of minimum conditions
(…) j. The deadlines referred to the prescription of actions based on the insurance contract, in accordance with Article 78 of the Insurance Law.

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k. Procedure for the renewal of the policy, as well as the modification procedure, if applicable.
l. In life insurance where the policyholder is different from the insured, the precision regarding the right of revocation of consent by the insured.
m. Others determined by the Superintendence.

Article 11.- Dissemination of information related to norms of an imperative nature
When policy models are modified by norms of an imperative nature, companies must:
a. Disseminate on their website -along with the policy models-, the provisions approved by norms of an imperative nature that impact the content of the policy models, in accordance with Article 11-A. b. When the minimum conditions previously approved by the Superintendence are modified by norms of an imperative nature, companies must indicate, in said minimum conditions, a text indicating that they are in the process of review and approval by the Superintendence.

For its part, the Superintendence will disseminate, through its website, the minimum conditions it has approved by branch and product.

Article 11°-A.- Requirements applicable in the face of norms of an imperative nature
In those cases where norms of an imperative nature impact the content of insurance policies, even if they are minimum conditions previously approved, companies must:
a. Inform policyholders, insureds, and the general public about the provisions approved by norms of an imperative nature that impact the content of the policies. For this purpose, companies must inform about the applicable provisions through their website, public service offices, and other mechanism they determine. The use of said information mechanisms must be incorporated into the policies and policy models. b. Apply norms of an imperative nature from the date they enter into force.

Fourth Article.- Repeal Article 7 of the Regulation on the Registry of Policy Models and Technical Notes, approved by Resolution SBS No. 7044-2013.

Fifth Article.- Modify Annex ES-10 “Information on active insurance policies”, of Resolution SBS No. 7044-2013 which approves the Regulation on the Registry of Policy Models and Technical Notes, eliminating the column of “Net Insurance Premiums”, whose model is published on the Institutional Portal (www.sbs.gob.pe), in accordance with what is provided in Supreme Decree No. 001-2009-JUS and its amendments.

Sixth Article.- Applications for registration of insurance policy models, as well as modification requests, presented before the entry into force

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of this resolution are governed by the provisions in force at the time of their presentation.

Seventh Article.- This resolution enters into force the day following its publication in the Official Gazette El Peruano.

Register, communicate, and publish.

JAVIER MARTÍN POGGI CAMPODÓNICO
Superintendent of Banking, Insurance and Private Pension Fund Administrators (e)