Regulatory Alerts1997-01-08 | CD-SUPERINTENDENCIA-XLIX-1-97Added · Updated
Rules on Debt Limits, Premium Retention Limits, and Investment Adequacy
The document establishes maximum debt limits for insurance companies, capping total debt at five times net worth for property insurance firms and fifteen times for life insurance firms, while limiting non-technical reserve debt to equal net worth. It prohibits retaining net premiums exceeding three times net worth and defines key financial terms such as effective investments, required liabilities, and risk capital. In cases of capital deficits, companies must report within five days and convene a shareholder meeting within ninety days to raise capital, facing license revocation if unresolved. For investment or debt deficiencies, companies must submit adjustment plans within fifteen days, with the Superintendent empowered to assume administration and revoke licenses if compliance is not achieved within specified deadlines.