On 15 September 2017, the National Insurance Superintendence issued Resolution 40834-E / 2017, modifying the approval of new insurance plans, or modifications to plans already approved, by the former Resolution No. 38.708 / 2014.
Under Argentinean law, insurers can only operate with plans that have been previously approved by the SSN, including the acceptance of the complete policy wordings, technical notes signed by an actuary, and the explanation of underwriting policies, as well as risk retention, etc.
The SSN had a period of 90 days from the presentation of all contractual elements to check every aspect of the plan for anything that could delay approval, or, in the case of administrative silence, the plan would be considered approved (“Particular Approval System”). Under the former Resolution and through the “Approval by Adherence System”, any insurer could adhere to a preapproved plan from another insurance company as its own. A third option was the approval of “Great Risks” with a value of at least $1.047.987.600 (USD) ($60,000,000 ARS) that, with the presentation of the plan, the insurer would be authorised for its immediate use.
The new Resolution retains the three aforementioned approval systems but has identified a new one known as “Minimum Standards”, by establishing an automatic approval by depositing the aforementioned Conditions, alongside the opinion of an attorney certifying the compliance of the “Minimum Standards”, as well as a Resolution from the Board of Directors.
This article was co-authored by Diego Lopez Saavedra at López Saavedra & Villarroel in partnership with DAC Beachcroft LLP.