Technical Standards for the Modification of Social Agreements of Insurance Companies

CNBCR-06/2024
Approval: 15/08/2024
Validity: 30/08/2024

NRP-78
TECHNICAL STANDARDS FOR THE MODIFICATION OF SOCIAL AGREEMENTS OF INSURANCE COMPANIES

CENTRAL BANK OF RESERVE
OF EL SALVADOR
GOVERNMENT OF
EL SALVADOR

THE COMMITTEE OF STANDARDS OF THE CENTRAL BANK OF RESERVE OF EL SALVADOR,

CONSIDERING:

I. That Article 4 of the Insurance Companies Law establishes that insurance companies constituted in El Salvador must be organized and operate as anonymous companies of indeterminate term, with fixed capital divided into registered shares, and may adopt any name they deem convenient, which must be distinct from that of any other existing company. They may operate as general insurance companies, life insurance companies, or specialized exclusively in surety bonds.

II. That Article 8 of the Insurance Companies Law establishes that the certification of the deed of incorporation must be presented to the Superintendency of the Financial System to verify whether the terms stipulated in the social agreement comply with the previously authorized projects and whether the social capital has been effectively paid in accordance with the authorization.

III. That Article 16 of the Insurance Companies Law establishes that insurance companies may increase their social capital at any time, as established in Article 89 of the aforementioned law.

IV. That Article 89 of the Insurance Companies Law establishes the procedure that an insurance company must follow to modify its social agreement.

V. That Article 3, letter b) of the Law of Supervision and Regulation of the Financial System, establishes that it is the competence of the Superintendency of the Financial System to authorize the constitution, operation, start of operations, suspension of operations, modification, revocation of authorization, closure, and other acts of the members of the financial system, in accordance with the legal, regulatory, or technical standards established regarding the matter.

VI. That Article 4, letter d) of the Law of Supervision and Regulation of the Financial System, establishes that the Superintendency shall have the power to authorize the public promotion, constitution, operation, and start of operations, modification of social agreements and bylaws, and, where applicable, merger of the members of the financial system, in accordance with what is provided in the special laws on the matter.

VII. That Article 7, letter e) of the Law of Supervision and Regulation of the Financial System, establishes that insurance companies, their branches abroad, and the branches of foreign insurance companies established in the country are subject to the supervision of the Superintendency of the Financial System.

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv