1) National Private System Council - CNSP RESOLUTION No. 402, OF 1/8/2021

CNSP Resolution 402/2021 approved the amount of R$ 4,127,768,723.96 as the difference between the amounts of technical provision of DPVAT (Compulsory Insurance against Personal Injury caused by Land Vehicles) Insurance Consortium and the amount for the payment of its obligations related to losses occurred until 12/31/2020.

2) National Private System Council - CNSP RESOLUTION No. 403, OF 1/8/2021

Approves the regulation of the Fund for Compulsory Personal Injury insurance (FDPVAT) caused by Land Automotive Vehicles, or their cargo, to transported or non-transported persons, with the CNSP as the highest instance of the fund governance.

FDPVAT will fund the indemnities for accidents that occurred from January 2021.

FDPVAT's managing institution will be the Federal Savings Bank (CEF), already appointed by the Private Insurance Superintendence (SUSEP), which will monitor and inspect the fund management.

The Managing Institution will follow the procedures described in the agreement executed with SUSEP; the payments comprise indemnity for death, permanent disability (total or partial), expenses with medical assistance, and similar ones in the amounts set in items I, II, and III of article 3 of Law no. 6194, of 1974.

The FDPVAT dissolution will be contingent on prior payment of all guaranteed debts, limited to its equity.

It is worth noting that the DPVAT became insurance without insurer since SUSEP only appointed the FDPVAT manager, and the Federal Savings Bank takes no responsibility for the insurance management.

3) Prosecution Office of the State of Rio de Janeiro - – PGE (RJ) RESOLUTION No. 4682, of 3/15/2021

PGE (RJ) Resolution no. 4682 lays down the requirements for acceptance of the performance bonds submitted by taxpayers, among others.

In conformity with the Resolution, the PGE (RJ) consolidated the understanding that the performance bond is an appropriate instrument to guarantee state tax liabilities, whether or not registered as overdue state tax liability, both in tax foreclosure proceedings and administrative proceedings not filed with a court for the exclusive purpose of obtaining a tax compliance certificate.

4) National Private Insurance Council - CNSP RESOLUTION No. 404, OF 3/26/2021

CNSP Resolution no. 404 provides for the Rural Insurance and Rural Insurance Stability Fund (FESR).

It revoked CNSP Resolutions no. 21/1987, 339/2016, and no. 372/2018.

5) National Private System Council - CNSP RESOLUTION No. 407, OF 3/29/2021

CNSP Resolution no. 407 establishes the general characteristics of damage insurance contracts covering great risks and the principles for their preparation and sale.

A simplified regulation on coverage of great risks will allow market business freedom, eliminating the need for SUSEP's prior approval of the insurance's contractual conditions, which was required in practice.

It will stimulate innovation and competition among the insurers, also in regard to the development of products

6) SUSEP CIRCULAR No. 621, OF 2/12/2021

SUSEP Circular no. 621 lays down the rules and criteria for the operation of the damage insurance coverage to simplify damage insurance contracts and make their structure more flexible

This is a new paradigm for damage insurance regulation with fewer rules on clauses and fewer intervening rules. Certainly, this ruling will change the reality of damage insurance in Brazil.

The few rules imposed apply compulsorily to mass insurance and optionally to damage insurance with coverage for great risks.

7) SUSEP CIRCULAR No. 623, OF 3/5/2021

USEP Circular no. 623 provides for the updating of the BR-EMS biometric tables and the impossibility of using the updated BR-EMS mortality tables if their updating is not approved by SUSEP.

8) SUSEP CIRCULAR No. 624, OF 3/22/2021

SUSEP Circular no. 624 provides for the conditions for the optional registration and compulsory registration of the operations of damage insurance and person insurance structured according to the financial regime of simple division in registration systems homologated and managed by registering entities accredited by SUSEP.

The regulation defines the information necessary for the registration of damage insurance operations and a significant part of the lines of person insurance. In most operations, the registration may be optional for the supervised entities, meeting the minimum content of information defined in annex I to the regulation.

The registration in the Operation Registration System (SRO) became compulsory on 8/2/2021 for operations involving policies, certificates, and cover notes of insurance classified in the finance risk group, except for the lines of internal credit and export credit, whose registration will be compulsory from 12/1/2021.

Under the Regulation of the National Private Insurance Council, all sector operations must be part of the system until 2023.

9) SUSEP CIRCULAR No. 625, OF 4/6/2021

SUSEP Circular no. 625 revokes SUSEP Circular no. 291/2005, 470/2013, 525/2016, 559/2017, and 565/2017, on the grounds of articles 1, 7, and 8 of Decree no. 10139/2019.

The revoked circulars dealt with rules, criteria, and contractual conditions of the standard comprehensive insurance for port operators, oil risk insurance, aviation (body) insurance plans, insurance covering civil liability of hangars and airport operations, and insurance of the named-perils and operational risks - RNO line.

10) SUSEP CIRCULAR No. 626, OF 4/7/2021

SUSEP Circular no. 626 provides for documents addressed to insurance companies, capitalization companies, local, admitted, and occasional reinsurance companies, open supplementary social security entities, reinsurance brokers, special regime companies, and registering companies and issued by SUSEP exclusively through its website in sub-section "Documents for the Market," section "Market" and revokes SUSEP Circulars no. 473/2013 and 482/2013.

The main change introduced by the Circular refers to the initial date of the period for examination of the documents available on the portal "Documents for the Market." Now, the initial date will be the date the document was made available by SUSEP, as registered in the system of the portal "Documents for the Market," whether or not the supervised entity had read it.

To view newsletters, please click here

To read the full article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.