Lima, 8 July 2015

S.B.S. Resolution No. 4008-2015

The Superintendent of Banking, Insurance and
Private Administrators of Pension Funds

WHEREAS:

That, by SBS Resolution No. 7037-2012, the Chart of Accounts of the Insurance System was amended, incorporating the provisions of the International Financial Reporting Standards (IFRS);

That, by SBS Resolution No. 3198-2013, the Regulation for the Payment of Premiums of Insurance Policies was approved, which is adapted to the new criteria established by Law No. 29946, Law of the Insurance Contract, to be considered regarding the commencement of the policy's validity, effects of non-payment of the premium, reinstatement and termination of the insurance contract, among others;

That, it is convenient to establish in the aforementioned Regulation a differentiation in the accounting record of the impairment of premiums receivable from policyholders and/or insured parties, depending on the type of insurance concerned;

That, furthermore, it is necessary for supervised companies to recognize the requirements for impairment provisions in accounts receivable from insurance operations in accordance with the possibility of non-payment they face;

That, in order to gather the opinions of the general public regarding the proposed amendment to the regulations, the draft resolution on the matter was pre-published on the Superintendency's electronic portal, under the provisions of Supreme Decree No. 001-2009-JUS;

With the opinion of the Deputy Superintendencies of Insurance and Legal Counsel; and,

In use of the powers conferred by numerals 7 and 9 of article 349 of Law No. 26702, General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance;

RESOLVES:

Article One.- To amend the Regulation for the Payment of Premiums of Insurance Policies, approved by SBS Resolution No. 3198-2013, in accordance with the following:

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

1. Incorporate as literals i), j) of Article 2 Definitions, the following:

"i) State Entities: Those entities included in Article 3 of the State Contracting Law, approved by Legislative Decree No. 1017.

j) Mass insurance: Standardized insurance that does not require special underwriting requirements in relation to the persons and/or insurable property, with 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. Amend Article 17 Impairment provisions, as indicated below:

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

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

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

a) In the case of life insurance, the policy benefits may be used to settle or extend the coverage, in the event of a breach in the 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, the companies shall constitute a provision of one hundred percent (100%) of the premium adjustment calculated at the end of the policy's validity, from the day following the expiration of the payment term appearing in the collection document for said premium. This treatment is applicable to premiums receivable from insurance with deposit premiums, to those adjusted based on claims experience, to transport policies, among other insurance of similar characteristics.

d) In the case of mass insurance marketed through bancassurance channels and marketers, impairment provisions shall be constituted in accordance with the following: unpaid premiums with an age equal to or greater than seventy-five (75) days shall be provided 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 provision for their full amount."

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

Article Two.- This Resolution shall enter into force as of the preparation of the Financial Statements corresponding to the month of August 2015.

Register, communicate and publish.

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance and
Private Administrators of Pension Funds