Los Laureles Nº 214 - Lima 27 - Perú Tel.: (511)6309000 Fax: (511) 6309239

Lima, 24 May 2013

S.B.S. Resolution N° 3198 -2013 The Superintendent of Banking, Insurance and Private Pension Fund Administrators

WHEREAS:

That by SBS Resolution N° 225-2006 the Regulation for the Payment of Premiums of Insurance Policies was approved, regulating articles 329° and 330° of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banking and Insurance, Law N° 26702 and its amendments, hereinafter the General Law;

That, by Law N° 29946, the Insurance Contract Law was approved, which, among others, establishes provisions referring to the beginning of insurance coverage and the payment of the premium, having repealed articles 329° and 330° of the General Law;

That the aforementioned Law incorporates new criteria to be considered regarding the beginning of the policy's validity, effects of non-payment of the premium, reinstatement and termination of the insurance contract, among others;

That, consequently, it is necessary to adapt the aforementioned regulation to the new provisions of the Insurance Contract Law - Law N° 29946;

That, in order to gather the opinions of the general public regarding the regulatory proposal, the pre-publication of this resolution was ordered, under the provisions of Supreme Decree Nº 001-2009-JUS;

With the approval of the Deputy Superintendencies of Private Pension Fund Administrators and Insurance, Legal Counsel and the Management of Products and Services to the User;

In use of the powers conferred by numerals 7 and 9 of article 349° of the General Law,

RESOLVES:

Article One.- To approve the Regulation for the Payment of Premiums of Insurance Policies in the terms indicated below:

Los Laureles Nº 214 - Lima 27 - Perú Tel.: (511)6309000 Fax: (511) 6309239

REGULATION FOR THE PAYMENT OF PREMIUMS OF INSURANCE POLICIES

Article 1°.- Scope

The provisions of this norm are applicable to the insurance companies referred to in literal D of article 16° of the General Law, hereinafter the companies.

Article 2°.- Definitions

The provisions established in this Resolution shall be subject to the following definitions:

a) Insured: Holder of the insurable interest object of the insurance contract, may also be the policyholder.

b) Policyholder: Natural or legal person who contracts the insurance and undertakes to pay the premium. In the case of an individual insurance, may also have the status of insured

c) Payment agreement: Document stating the commitment by the policyholder to pay the premium in the manner and terms agreed with the insurance company. The formality of its issuance corresponds to the companies.

d) Days: Calendar days.

e) Premium installment: Constitutes the payment facility granted by the company, through which the policyholder is allowed to pay the premium corresponding to the term of the insurance contract, in periodic installments, according to the terms agreed in the payment agreement.

f) General Law: General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banking and Insurance, Law N° 26702, and its amendments.

g) Deferred payment of the premium: Corresponds to the installment that is deferred to be paid later according to the terms contained in the payment agreement.

h) Accrued premium: Is the fraction of the premium corresponding to the period in which the insurance company has provided coverage, according to the conditions established in the insurance contract.

i) State Entities: Those entities included in Article 3° of the State Contracting Law, approved by Legislative Decree N°1017.1

j) Mass insurance: Standardized insurance that does not require special underwriting requirements in relation to the persons and/or insurable goods, the simple acceptance of the policyholder being sufficient for the consent of the insurance, and are offered directly by the companies, or through insurance promoters or marketers. 2

Article 3°.- Insurance coverage

The insurance contract is concluded by the consent of the parties even if the policy has not been issued nor the premium paid.

Without prejudice to the foregoing, the premium is due from the celebration of the contract, whose payment may be in full, agreed in installments, or deferred, subject to the terms agreed in the payment agreement signed by the policyholder.

The policy or the payment agreement must indicate the place of payment of the premium.

Article 4°.- Renewals of policies

Insurance policies automatically renewed, by virtue of the automatic renewal clause agreed, as well as those that have been renewed by mutual agreement of the parties

[1] Literal incorporated by SBS Resolution N° 4008-2015 of 08/07/2015.

[2] Literal incorporated by SBS Resolution N° 4008-2015 of 08/07/2015.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

with different conditions proposed by the company and that have been accepted by the policyholder, will begin their coverage immediately upon expiration of the validity of the policy or renewal that precedes it.

Article 5°.- Installment and deferral of premium payment

The facilities for the payment of the premium, granted by the companies, must be subject to the following:

a) The installment payments must be periodic and consecutive, and the term for the payment of the last installment of the premium may not exceed the validity of the policy. The amounts of such installment payments shall not be less than those resulting from calculating pro rata the premium agreed for the coverage period.

b) Only the installments agreed with deferral in payment may exceed the coverage term of the policy, for a maximum term of thirty (30) days, without prejudice to the provisions required according to article 17° of this norm.

Article 6.- Payment of premiums

The policyholders must pay the premiums, subject to the following provisions:

a) When the parties agree to deferred payment, the companies may grant a payment term of up to thirty (30) days counted from the start of the policy's effective date, an aspect that must be specified in the payment agreement signed by the policyholder. In the event of non-payment of the premium and provided that no additional term for payment has been agreed, Articles 7, 8, 9 and 11 of this Regulation shall apply, as applicable.3

b) In the case of premium installment payments, within the first thirty (30) days of the insurance's effective date, the policyholder must make an initial payment that cannot be less than the proportion corresponding to thirty (30) days of coverage calculated pro rata on the agreed premium. The remaining installments shall be paid in accordance with the facilities granted by the companies in the payment agreement. In the event of non-payment of the initial payment or any of the installments, and provided that no additional term for payment has been agreed in accordance with the following paragraph, Articles 7, 8, 9 and 11 of this Regulation shall apply, as applicable.4

c) In the case of installment payments with deferral, the maximum deferral term shall be thirty (30) days with respect to the end of the coverage granted.

d) The companies may modify the payment schedule originally agreed in the payment agreement, with prior agreement from the insurance policyholder, and the endorsement containing the new payment agreement must form part of the policy. While the new agreement is in force and payments are up to date, the insurance company may not reject claims alleging non-payment of premiums.

Article 7.- Suspension of coverage for non-payment5

Non-payment as established in the payment agreement causes the automatic suspension of the insurance coverage, once thirty (30) days have elapsed from the due date of the obligation, provided that no additional term for payment has been agreed.

[3] Subparagraph replaced by Resolution SBS No. 2378-2024, effective from 05.07.2024

[4] Subparagraph replaced by Resolution SBS No. 2378-2024, effective from 05.07.2024

[5] Article replaced by Resolution SBS No. 2378-2024, effective from 05.07.2024

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

For this purpose, before the expiration of the thirty (30) day term indicated in the preceding paragraph, the insurance company must communicate the suspension of coverage as a consequence of non-payment of the premium. Likewise, it shall indicate the term available to the policyholder to pay the premium before the suspension of the insurance coverage.

The communication must be made in accordance with the provisions of Articles 35 and 36 of the Regulation on Market Conduct Management of the Insurance System and must comply with the content indicated in Article 8 of this Regulation.

The suspension of coverage is not applicable in cases where the policyholder has paid, proportionally, a premium equal to or greater than the elapsed period of the contract; or when the communication for suspension has not occurred within thirty (30) days counted from the due date of the obligation.

Article 8.- Requirements of the communication of non-payment

The reliable communication must comply with informing the insured, at a minimum, of the following:

a) Due date for payment of the premium.

b) Maximum term for payment of the outstanding premium, before the suspension of coverage occurs.

c) Indicate that the suspension of coverage is a consequence of keeping the premium unpaid, which implies that the insurer will not be obligated to cover claims occurring while the coverage is suspended.

Article 9.- Termination of the contract for non-payment6

In the event that the insurance coverage is suspended due to non-payment of premiums, the companies may opt for the termination of the contracts, and shall not be liable for claims occurring during the period in which the coverage is suspended.

The insurance contract shall be considered terminated within thirty (30) days counted from the day the policyholder receives a written communication from the company informing it of this decision, in accordance with Articles 35 and 36 of the Regulation on Market Conduct Management of the Insurance System and must comply with the content indicated in Article 10 of this Regulation.

Article 10.- Requirements of the communication of contract termination

In the event the insurance company opts for termination of the contract, the communication referred to in the previous article that must be sent to the policyholder shall contain, at a minimum, the following information:

a) Date of suspension of coverage.

b) Specification that within thirty (30) days counted from the day the policyholder receives the communication, the contract shall be considered terminated.

The termination decision communicated to the policyholder determines that the corresponding coverage cannot be reinstated.

[6] Article replaced by Resolution SBS No. 2378-2024, effective from 05.07.2024

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Article 11.- Extinction of the contract7

When the insured has not paid the premium within ninety (90) days following the expiration of the term established in the contract or payment agreement, and the company does not claim it, the insurance contract is extinguished without requiring prior suspension.

The termination of the insurance contract referred to in the preceding paragraph is equally applicable when the company has suspended the insurance coverage, in accordance with the provisions of article 7 of this Regulation and furthermore has not claimed payment of the premium.

The termination does not require communication by the company, and the right to collect the accrued premium remains through the corresponding claim.

A claim is understood as the initiation of a judicial or arbitral process for the collection of premium payments by the company.

Article 12.-Temporary coverages

Companies may grant temporary coverages, valid for thirty (30) days, extendable, while the respective insurance policy is issued.

For the issuance of temporary coverages referred to in article 36 of Law No. 29946, Law of the Insurance Contract, companies may use as a reference the model indicated in Annex 1 of this Regulation. However, the aforementioned document must contain the minimum information set forth in said annex. Likewise, companies must establish an adequate registration system that allows them to be aware of the scope of the temporary coverages granted by the companies. Said registry must be permanently updated and available to this Superintendency when required.

Article 13.-Modifications of insurance policies

In the event modifications are made to insurance policies after their issuance, the premiums resulting from endorsements may be paid in advance, or in the manner established in article 6, within the term of the respective policy.

Article 14.-Insurances with special characteristics

The insurances indicated below that, due to their special characteristics, cannot be subject to any of the provisions referring to the payment of premiums set forth in this Regulation, must observe the following:

a) Life, surety and export credit insurances shall be governed by the conditions established in the respective policies.

b) Insurances issued under the framework of the Private Pension System that have disability, survival and funeral expense coverages, as well as retirement, disability and survival pensions, shall be governed by their respective regulations.

c) Mandatory insurances shall be subject to the provisions established in their creation laws.

d) Microinsurances shall be governed by their respective regulations.

[7] Article replaced by Resolution SBS No. 2378-2024, effective as of 05.07.2024

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Without prejudice to the foregoing, both the accounting record of the premium and the provisions for non-payment of the premium shall be subject to the provisions of articles 16 and 17 of this Regulation.

The exercise of the right of reduction of life insurances, referred to in literal "a" of art. 126 of the Law of the Insurance Contract, due to non-payment of the premium, refers to the reduction of the contracted term (extended insurance) or the reduction of the insured sum (paid-up insurance).

Article 15.- Compensation of premiums

Companies may offset pending premiums owed by the policyholder and/or insured, corresponding to the elapsed coverage, against the indemnity owed to the insured or beneficiary of the insurance in the event of a loss. Without prejudice to the provisions of subsection h) of article 2 of this Regulation, in the event of a total loss that must be indemnified under the insurance contract, the premium shall be deemed fully accrued, and the company must apply it to the payment of the corresponding indemnity.

In the case of insurances whose terms are multi-year, it is understood that the premium shall be considered fully accrued only for the term in force at the time the loss occurs. 8

Article 16.-Accounting record

Companies must record in their accounts the premium corresponding to the contracted period when the insurance application is accepted, without considering for these purposes the payment status of the premium, that is, whether, being deferred or installment-based, it is pending payment, considering the following:

1. In the case of general lines insurance policies, the record must correspond to the entire period contracted in the policy. If the contracted period is greater than one year, the provisions issued by this Superintendency shall apply.

2. In the case of life, accident and health insurances, mandatory insurances and other specific cases, the record of the premium shall be subject to the provisions issued by the Superintendency through a general rule.

In the case of policy renewals, the record must be made when they enter a policy issuance system.

Article 17.- Provisions for impairment9

In general terms, in the event there are non-payments of the premium with respect to the date agreed in the corresponding payment agreement, which extends for sixty (60) days or more, companies must constitute the provisions for impairment established in the pertinent accounting rules.

Likewise, in the case of installments of premiums receivable that remain in collection after the term of the policies has ended, companies must provide one hundred percent (100%) of the corresponding amounts.

In addition to the foregoing, companies must consider the following specific provisions:

[8] Paragraph modified by Resolution SBS No. 7044-2013

[9] Article modified by Resolution SBS No. 4008-2015 of 08/07/2015.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

a) In the case of life insurances, the policy benefits may be used to settle or extend the coverage, in the event of non-payment of the premium.

b) In the case of State Entities, the impairment provision for premiums pending collection shall be applicable once the validity of the insurance policy has ended. The provision corresponds to one hundred percent (100%) of the premium pending collection.

c) In the case of products whose final premium is determined after the validity of the policy, companies shall establish a provision of one hundred percent (100%) of the premium adjustment calculated at the end of the validity of the policy, starting from the day after the payment deadline stated in the collection document for said premium has expired. This treatment is applicable to insurance receivables with deposit premiums, to those that are adjusted based on claims experience, to transport policies, among other insurances of similar characteristics.

d) In the case of mass insurance marketed through bancassurance and marketer channels, impairment provisions shall be established as follows: unpaid premiums with an age equal to or greater than seventy-five (75) days shall be provided for by applying a coefficient of fifty percent (50%) as a minimum, while unpaid premiums with an age equal to or greater than one hundred five (105) days shall be subject to a provision for their full amount.

e) In the case of microinsurance, the establishment of impairment provisions for non-payment of the premium shall be governed by its respective regulation.10

Article 18°.- Payment by delivery of securities

The payment of premiums by the delivery of securities in favor of the companies shall only be understood as effected when the full amount stated in said document is paid within the agreed term; otherwise, the provisions of Article 7° of this Regulation shall apply.

Article 19°.- Information to the Superintendency

The companies shall send to this Superintendency, on a quarterly basis, through the "Sub-Module for External Capture and Validation" (SUCAVE) software, within the submission deadlines for the corresponding financial statements, the following information:

• Annex No. ES-9: "Impairment provisions for accumulated insurance receivables". 11

The first information to be sent shall correspond to that of the third quarter of 2013.

Article 20°.- Minimum information to be maintained by the companies

The companies shall permanently keep updated and at the disposal of this Superintendency the files of the insurance contracts entered into, with all information that allows verifying compliance with the provisions of this Regulation, in particular, the documents related to the commencement of the validity of the coverages.

Article Second.- To amend the third paragraph and incorporate a fourth paragraph to letter C of the heading "IAS 39 – Financial Instruments – Recognition and Measurement" of Annex B of SBS Resolution No. 7037-2012, in the terms indicated below:

[10] Letter incorporated by SBS Resolution No. 2829-2016, published on 24-05-2016.

[11] Annex ES-9 eliminated by SBS Resolution No. 976-2021, published on 01.04.2021.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

"C) ACCOUNTS RECEIVABLE FROM INSURANCE CONTRACTS

(…) Non-compliance with the payment schedule established in the payment agreement that supports the payment of premiums results in the suspension of the insurance coverage, provided that the conditions of the relevant regulations are met. During the suspension period, the companies must maintain the corresponding technical reserves established. The termination of the contract prior to the end of the validity determines the reversal of the unpaid premiums not yet earned as well as the corresponding technical reserves.

The establishment of impairment provisions shall be subject to the following provisions:

Insurance receivables:

1) The calculation base is made up of the amount of the commercial premium, which does not include the corresponding tax. The date from which the impairment is determined is the one that initiates the non-compliance according to the SBS regulations. Those premiums resulting from mass marketing that are in the collection process are also considered, even though the validity of the policy has ended. Other specific cases are regulated by the SBS

(…)."

Article Third.- To amend the third and fourth paragraphs of letter J of the heading "IFRS 4 – Insurance Contract" of Annex B of SBS Resolution No. 7037-2012, in the terms indicated below:

l) Income from direct insurance premiums, reinsurance premiums and coinsurance premiums

"(…..)

In general terms, the companies must record the premium corresponding to the contracted period in their accounts when the insurance application is accepted, without considering for these purposes the payment status of the premium, that is, whether it is deferred or in installments and is pending payment. For such purposes, the specific provisions issued by the SBS in the corresponding regulations are considered:

Cancellations and refunds of premiums, commissions and claims must affect the results of the financial year.

(…)."

Article Fourth.- The annex referred to in Article 19° of the Regulation approved by this resolution shall be published on the electronic Portal of this Superintendency (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Fifth.- This Resolution shall enter into force on the day following its publication in the Official Gazette El Peruano, and shall repeal SBS Resolution No. 225-2006 which approved the Regulation on the Payment of Insurance Policy Premiums.

Register, communicate and publish

SUPERINTENDENCY OF BANKING, INSURANCE AND PENSION FUND MANAGEMENT COMPANIES Republic of Peru

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance and
Private Pension Fund Management Companies

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX No. 1

PROVISIONAL COVERAGE Registration Code No.12……

By means of this document, whether it concerns new insurance or renewal, respectively, the indicated coverages are insured while the issuance of the respective policy is formalized, in accordance with the following stipulations:

a) The insurance company accepts to grant this provisional coverage, within the conditions of the policy it will issue as soon as the contract is formalized, and declares that any claim occurring during its provisional validity will be covered by the insurance.

b) The policyholder, for its part, declares that it is aware of the general conditions of the policy. It also declares that, regarding the insured subject matter of this provisional coverage, there is no fact or circumstance that, had it been known by the insurance company, would have influenced its assessment of the risk and/or its decision to grant the coverage. It likewise undertakes to pay the premium required by the insurance company.

c) Details of the provisional coverage:

1. Insurance branch ....................................................................................................................................

2. Validity From ..................................... To ...............................................................

4. Policyholder.............................................................................................................................................

5. Insured.....................................................................................................................................................

6. Subject matter of insurance ...................................................................................................................

7. Location .................................................................................................................................................

8. Description of covered risks .................................................................................................................

9. Insured amount ......................................................................................................................................

10. Provisional deposit premium....................................................................................

11. Agreed deductible ...............................................................................................................................

12. Remarks .................................................................................................................................................

Date ............................................................

Insurance Company
Policyholder*

[12] Registration Code granted by the Superintendent to the insurance policy corresponding to the contracted coverage.

ANNEX No. ES-9
PROVISIONS FOR ACCUMULATED DETERIORATION OF PREMIUMS RECEIVABLE13

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

[13] Annex ES-9 eliminated by Resolution SBS No. 976-2021, published on 01.04.2021.