On December 27, 2023, the President of the Nation sent to the Chamber of Deputies the bill to be debated in extraordinary sessions. Among other points, it incorporates amendments to the Law of Insurance Entities and their Control (“Law No. 20091”).
Amendments to the Law of Insurance Entities and its Control
The bill incorporates the following amendments to Law No. 20091:
- Authorized insurers may open or close branches in the country, without prior authorization, except for branches or agencies abroad, which must request authorization.
- The possibility that the delegation may be appealed before the National Executive Power in accordance with the provisions of Article 85 of Law No. 20091 is eliminated.
- Authorizes Insurers to operate in all branches of insurance without prior authorization if they comply with the requirements of the regulation.
- Insurance plans, as well as their technical and contractual elements, must be reported to the supervisory authority prior to their application.
Conversely, in accordance with the legislation in force, insurance plans must be approved by the supervisory authority prior to their implementation. - It is proposed to repeal Article 24 of Law 20091 which establishes the content that insurance plans must contain.
- Commissions may be freely established by the insurers and in compliance with the regulations, whereas at present they may be freely established, but within the minimum and maximum limits authorized by the controlling authority.
- The supervisory authority may not observe premiums that are insufficient, abusive, or arbitrarily discriminatory.
- Uniform minimum premiums net of commissions may not be approved when market stability is affected.
- It is proposed to repeal the approval of plans, amendments, and premiums.
