Law Of Insurance Of Deposits For Entities And Public Enterprises And Fund For The Protection Of The Insured.


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LAW Nº 365 law of 23 April 2013 EVO MORALES AYMA President constitutional of the PLURINATIONAL State of BOLIVIA, by how much, the plurinational Legislative Assembly, has sanctioned the following law: the Assembly Legislative PLURINATIONAL, D E C R E T A: law of insurance bonding for entities and companies public and background of protection article 1 insured. (OBJECT). This law aims to establish the characteristics of insurance policies of bonding, involving beneficiary entities and public enterprises and societies where the State has a majority shareholding; create the protection fund of the insured as well as to amend the law No. 1883 of 25 June 1998, insurance law, and the code of Commerce.
Article 2. (SCOPE OF APPLICATION). The scope of this law, reaches to the insurance entities legally established and authorized to operate in general, and in particular to the bond insurance policies, whether bond or credit, issued by insurance companies legally established in the plurinational State of Bolivia, which are intended to guarantee contracts for purchase of goods and services purchased by public entities public companies and societies where the State has majority shareholding, on public sector entities.
I is safe mode, recognized in the law of insurance, which includes surety and credit insurance, applied to public sector entities, in whose policy signed by an approved insurance entity to manage general insurance or created for this sole purpose, this acts as a guarantor of a natural or legal person, to the effect known as entrenched to comply with the provision stipulated in the insurance contract in favour of public sector entities, which constitute the recipient party, in case of default of the secured obligation.
II. insurance of bonds for public sector entities are irrevocable, run to first requirement, renewable, unique and uniform texts, elaborated and approved by the authority of control and Control of pension and insurance, whose terms and conditions may not be modified by any of the parties involved. The entities insurance authorized to operate with this mode of safe, must issue them policies corresponding with the backing of counter guarantees following criteria of prudence.
In case of extension of the contract for which was issued the bond insurance policy as collateral, or other situation that involves the need to extend the period initially agreed, the validity of the bond insurance policy shall be extended automatically by the insurance company.
Article 4. (EXECUTION).
I. implementation of insurance policies of bonding involving beneficiary entities of the public sector, is a right of the private beneficiary entities that will be exercised with the sole and exclusive presentation of the original copy or copies notarized note of Declaration of non-compliance, issued and signed by the corresponding responsible or the maximum authority Executive - MAE , of the beneficiary.
II. in the case of insurance of bonds that guarantee the correct investment of advance, the execution will be held for the part not reversed or unduly inverted and not null by the entrenched, and must in this case the beneficiary present in addition to the document referred to in the previous paragraph, the? Report of balances in favour and against?, made by the same beneficiary.
III. the entity insurance must make effective it compensation of them policies of safe of bail in which participating entities of the sector public, in the term maximum of fifteen (15) days calendar Computable starting from the reception of the (them) document (s) designated (s) in them paragraphs preceding of the present article. No circumstances, request information or documentation other than that established in the present law, or controversy between the parties involved in a bond insurance policy, in which participate as beneficiary a public sector entity, condition or causal will delay or suspension of payment of appropriate compensation.
IV. determination and documents supporting the implementation of policies of insurance of deposits, subject to this Act, is the responsibility of the server or server and the servants and public servants to the guarantor and the competent authorities. Them acts or acts that derived of the execution inconsistent or incorrect of these policies, will be subject to the responsibilities legal respective.

I. Cumplidas formalities referred to in this law, for the execution of insurance policies of bail, denial or breach of payment of compensation by the insurance company in due time, will determine the operation log as? sinister in arrears? and the creation of special reserves to control and Control of pensions and Insurance Authority established by regulation, without prejudice to other measures that apply.
II. the authority of control and Control of pension and insurance, to denunciation of the beneficiary or own request, verify the facts and in his case start the sanctioning process for non-compliance in the payment of compensation. This process will not accept deliberation concerning the main between entrenched and beneficiary contract.

I. the insurance company who requested the execution of a bond insurance policy in which participate as beneficiary a public sector entity, will have access without any restriction, to the information of the process which gave rise to the request for execution. The public servant who denies this access will be subject to the penalties corresponding process, and may be punished by the removal from office, without prejudice to prosecution for breach of duties also.
II. in any case the execution of policies, may be delayed or conditioned the delivery of any information or document which are not those specifically named in this Act.
I. the insurance company that as a result of the execution of the bond insurance policy compensation to the beneficiary and considers in his view that there are controversial issues in fact or in law unresolved, may have recourse to the dispute resolution process regulated by Act No. 1770 of 10 March 1997, arbitration and Conciliation Act , pursuant to the arbitration clause which shall stipulate the bond insurance policy.
II. the existence of any dispute, shall not be affected or delayed at any time or for any circumstances the payment of compensation to the beneficiary at the time stipulated in the present law.
III. in the event that the arbitration award was favorable to the insurance company, this has enabled the appropriate legal channels so that by that instance you pursue the respective compensation.

Article 8. (SUBROGATION OF RIGHTS TO THE INSURANCE INSTITUTION). The payment made by the emerging guarantor of the implementation of the deposit insurance policy for entities of the public sector, active in its favour the subrogation rights of the beneficiary against the entrenched as probative document signed, without prejudice to actions that can continue to run the counter guarantees incorporated in their favor.
I created the protection fund of the insured - FPA, as a legal entity of a public character, of indefinite duration, not subject to the law N ° 1178 of July 20, 1990, in order to financially support assignment of direct portfolio operations and payable of insurance companies in process of intervention for their compulsory liquidation by the authority of control and Control of pension and insurance , according to the law No. 1883 of 25 June 1998, insurance law, and other related regulations.
II. the FPA may financially support operations of transfer of portfolio and payable of insurance companies taken over by the authority of control and Control of pension and insurance, to cover the deficit of passive technicians, provided that the amount of financial support does not exceed thirty percent (30%) of the investment resources required of the insurance entity operated , according to the final financial statements of intervention, carry the duties against the insurance company? in liquidation?.
III. the FPA may financially support operations of transfer and direct portfolio payable of insurance companies taken over by the authority of control and Control of pension and insurance, from January 1, 2018.
IV. the resources of the FPA will be through contributions of insurance entities, legally authorized to operate in Bolivia. The contributions of the General insurance or surety insurance entities, shall be made at the rate of five per thousand (5?) quarterly of the value of the direct production net of cancellations. Insurance institutions of insurance contributions, will be made at the rate of two point five per thousand (2.5?) quarterly, calculated on the value of the direct production net of cancellations.
V. In all cases contributions will be considered as an expense by the insurance companies.

VI. contributions shall be credited to an account of the Central Bank of Bolivia - BCB, up to the 15th day of each month following the expired quarter or the next business day, under the Declaration of cessation of payments in the event of non-compliance.

VII. the FPA will authority in management and decision to a directory made up of three (3) representatives unpaid, appointed one by the Ministry of economy and finance, one by the BCB and one by the authority of control and Control of pensions and insurance. In addition, it will have two unpaid Trustees, one of them appointed by the insurance entities of general insurance and the other by insurance institutions in insurance of persons. They may not be appointed as members of the Board or trustees, high-risk by operation of law, to exercise the trade; those who have auto processing or conviction for the Commission of criminal offences; borrowers in arrears to the financial system having credits in execution or punished credits; those who had been declared, in accordance with procedures legal, economic crimes in public office, against the financial order or in the administration of financial institutions; responsible for bankruptcy, by negligence or willful misconduct, in societies in general and the financial system entities; those who have been disabled to be holders of current accounts; ((and those who are expressly prohibited by article 47 of the law N ° 1670 of 31 October 1995, law of the Banco Central of Bolivia, with the exception of paragraphs b) and (c)). The mandate of the Trustees shall be two (2) years.
VIII. the resources of the FPA will be administered by the BCB, investing analogous to those carried out by the Fund of liquid assets - background RAL requirement. Yields will be capitalized. The administration fee will be paid to the BCB with resources of the FPA, via automatic debits.
IX. when the contributions made by an insurance company had reached the sum equal to twenty percent (20%) of the total number of permissible and impermissible investments registered in their respective financial statements, the directory of the FPA may temporarily exempt to the insurance company for the payment of contributions, whereas the conditions prevailing in the sector and the economy in general provided that the FPA resources not be they found committed to intervention processes.
ADDITIONAL PROVISIONS FIRST. Is modifies the law No. 1883 of 25 of June of 1998, law of safe, according to it established in the following paragraphs: I. is modifies the definition of safe of bond established in the article 5, with the following text:? SURETY INSURANCE. It is that whereby the insurer undertakes in case of default by the policyholder's legal or contractual obligations (clamped) to compensate the beneficiary by way of redress or penalty, the patrimonial damage suffered within the limits laid down in the law or the contract. All payment made by the insurer should be reimbursed by the policyholder to which end the insurer must obtain sufficient counter guarantees. The surety insurance guarantee contractual obligations characterized by make, make, build, supply or provide a service. ?
II. amending the definition of credit insurance in article 5 with the following text:? CREDIT INSURANCE. Is that by which, the insurance is forced to pay to the creditor a compensation by them losses NET final that suffer as consequence of the insolvency of the debtor (entrenched), whose features is defined in them articles 1106 to the 1108 of the code of trade. All payment made by the insurer grants you the right to repeat against the debtor. Do credit insurance guarantee contractual payment or financial obligations in general by the entrenched.?
III. is incorporated to the article 18 as last paragraph the following:? Is granted the company register of actuarial mathematical foreign, international renowned, according to regulation.?
IV. amending article 24, with the following text:? Article 24. BAN. Them brokers of insurance and reinsurance are prohibited of assume risk by has own or collect raw. May charge premiums only when they are authorized by the express provision of the insurer or the reinsurer if.?
V. Is incorporated immediately before the last paragraph of article 30, the following:? The special technical reserve is established by technical rate risk, to be constituted by the insurance companies that administer the pension insurance, equivalent to eight percent (8%) of the capital invested in housing construction and funded by profits from such investments. This technical reserve should be invested in securities publicly offered securities, will be permanent until the extinction of the pension, cumulative portfolio and exceptionally may be released in part with authorization authority control and Control of pension and insurance, when the risk which is present material deviations.?
VI. is embodied in article 34 as the last paragraph, the following:? Investments concerning this chapter, from the margin of solvency, technical reserves and retention to reinsurers, are unattachable, except that they were at the request of the authority of control and Control of pension and insurance, in application of the provisions in articles 47, 48, 49, 50 and 51 of this Act.?
VII. was incorporated following the last paragraph of article 35, the following:? Authorizing insurance institutions of insurance of persons who administer the pension insurance, invest in not Sumptuary housing construction up to a maximum equivalent to twenty five percent (25%) of the value of their technical reservations made to these risks.?
VIII. is incorporated into article 39 as the last paragraph, the following:? Control and Control of pensions and Insurance Authority may serve as instance of conciliation, for all claim whose amount does not exceed the amount of UFV100.000, 00.-(one hundred thousand 00/100 Unidades de Fomento of housing). If there was no agreement in this way, the authority of control and Control of pension and insurance, may meet and resolve the dispute by duly motivated administrative decision?
(IX. are embodied in article 43 the following subsections:? v) acting as a conciliation in claims not greater than UFV100.000, 00.-(one hundred thousand 00/100 Unidades de Fomento of housing). and in his case, resolve the dispute by a motivated administrative resolution.
(w) by court order and where appropriate with the help of the security forces, taking physical possession and seal all the facilities of the natural or legal persons who commit the prohibition of article 2 of this law. ?
THE SECOND. Amending the commercial code according to the provisions of the following paragraphs: i. replaced the text of the article 1018, with the following:? Article 1018. (Premiums in damage insurance). In the damage insurance, if the delivery of the policy or interim certificate of coverage is carried out without the levying of the premium, the granting of credit is presumed with interest on the amount.
If the payment of the premium is partial, the granting of credit is presumed with interest on the balance.
Unless otherwise agreed, the non-compliance in the payment of the premium more interests, within the set deadlines, suspended the validity of the contract.
Is suspended the validity of the policy, the insurer entitled enforceable to the premium corresponding to the period run, calculated pro-rata.?
II. replaced the text of the article 1033, with the following:? Article 1033. (Deadline to pronounce). The insurer must rule on the right of the insured or beneficiary within thirty (30) days of received information and evidence cited in the article 1031. Written record of the date of receipt of the information and evidence to effect of the computation of the time limit will be.
The term of thirty (30) days mentioned, – it concluded with the acceptance or rejection of the claim or the request of the insurer to the insured that will complement the requirements referred to in article 1031 and does not run until the insured complied with such requirements.
The application set forth in article 1031 accessories, by the insurer not can be extended by more than two times from the first request for reports and evidence, must decide within the deadline established and permanently on the right of the insured, after delivery by the insured of the last request.
The silence of the insurer, expired the term to pronounce or expired requests for complementation, matter of claim acceptance.?

FINAL PROVISIONS FIRST. All text of the law No. 1883 of 25 June 1998, insurance law, where indicates? Superintendency of pensions securities and insurance?, is changed by? Authority of control and Control of pension and insurance? Is in the same way, the acronym changed? SPVS? for? APS?.
THE SECOND. This law will be regulated by the executive body or the authority of control and Control of pensions and insurance.
SOLE REPEAL PROVISION. Repealing section 46 of the Act No. 1883 of 25 June 1998, insurance law.
SOLE ABROGATION PROVISION. They abrogate and repealing all provisions contrary to this law.

Refer to the Executive Body for constitutional purposes.
Two thousand thirteen is given in the room of sessions the Assembly Legislative plurinational, eighteen days after the month of April of the year.
FDO. Lilly Gabriela MONTAÑO Viana, Betty Asunta Tejada Soruco, Andres Agustin Villca Daza, Claudia Jimena Torres Chavez, Marcelo William Elio Chavez, Angel David Cortez Villegas.

I therefore enacted it is and meets as a law of the plurinational State of Bolivia.
Government Palace of the city of La Paz, at twenty-three days of the month of April of the year two thousand thirteen.
FDO. EVO MORALES AYMA, Juan Ramón Quintana Taborga, Ana Teresa Morales Olivera, Luis Alberto Arce Catacora, Amanda Davila Torres.