INSURANCE AND OPEN SUPPLEMENTARY SOCIAL SECURITY
1) National Monetary Council - CMN RESOLUTION No. 4670, OF 6/14/2018
Amends Resolution no. 4444, of November 13, 2015, which sets the rules for investment of the funds in the technical reserves, provisions and funds of insurers, capitalization companies, open supplementary social security entities, and local reinsurers, the rules for investments of funds required in Brazil to guarantee the obligations of the admitted reinsurers, and the rules for the portfolio of the Individual Retirement Fund Program (Fapi).
CMN Resolution no. 4444, of 2015, amended by CMN Resolution no. 4633, of February 22, 2018, established a schedule for the reduction of the minimum average term for renegotiation (PRC) that would begin at the end of September 2018, until March 2010, when it will no longer be required.
Before CMN Resolution no. 4633, of 2018, the Open Supplementary Social Security Entities (EAPCs) and the insurers, to avoid the transfer of the interest rate risk to the insureds/participants, purchased long-term fixed-rate bonds (to comply with the PRC) with hedging via derivative, synthesizing post-fixed bonds, which contributed to the slope of the yield curve, negatively distorting the premiums of these papers.
The Resolution may be checked here.
2) National Council of Private Insurance - CNSP RESOLUTION No. 361, OF 6/21/2018
Amends CNSP Resolution no. 219, of 2010, which provides for the Compulsory Civil Liability Insurance of Land Transportation Companies – Cargo (RCTR-C). Under this new rule, the insured is liable to the Insurer for recording at the margin of the police the entries related to the covered shipments, before the exit of the vehicle and based on the bills of lading issued, in rigorous numeral sequence, via electronic transmission of the file of the Electronic Bill of Lading (CT-e), according to the standard established in the legislation, or via transmission of an equivalent tax document.
After the entry recording at the margin of the insurance policy, in the cases the issuance of the Electronic Statement of Tax Documents (MDF-e) is compulsory, the insured will deliver, via electronic transmission, the full file of the document, according to the standard established in the legislation, also in rigorous numeral sequence and before the trip.
The Resolution may be checked here.
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