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law n ° 1883 law of June 25, 1998
HUGO BANZER SUAREZ PRESIDENT OF THE REPUBLIC
For the Honorable National Congress, it has sanctioned the following Law: THE HONORABLE NATIONAL CONGRESS, D E C R E T A: LAW OF INSURANCE OF THE REPUBLIC OF BOLIVIA TITLE I
GENERAL PROVISIONS CHAPTER I
SCOPE OF APPLICATION ARTICLE 1.-SCOPE OF APPLICATION.-The scope of this Law shall include the
activities to take risks from third parties and to grant hedges, the hiring of insurance in general, the prepayment of services of a similar nature to the insurance, as well as the services of intermediation and auxiliaries of such activities, by societies (a) expressly constituted and authorized for such purposes by the Superintendence of Pensions, Securities and Insurance. It also rules the functioning and supervision of the entities that carry out the activities mentioned above, the protection of the insured, policyholders and beneficiaries of insurance and the privileges of the Superintendence. The rules relating to insurance are equally applicable to any modality of the insurance and reinsurance business. ARTICLE 2.-BAN. No natural or legal person may carry out the activities referred to in the previous article without prior authorization of incorporation and operation granted by the Superintendence, with the formalities and requirements established by the This Law, its regulations and without prejudice to the provisions of Article 55.
ARTICLE 3.-OBLIGATION TO HIRE INSURANCE AND RETENTIONS IN BOLIVIA.-Natural or legal persons who contract insurance, domiciled in Bolivia are forced to take insurance in the country with insurance companies
...]Likewise, the insurance institutions must carry out the maximum retention of 15% (15%) of the solvency margin for individual and minimum risk. Thirty per cent (30 per cent) on total premiums underwritten. ARTICLE 4.-GOALS. This Law and its regulations aim to regulate the insurance, reinsurance, intermediary, auxiliary and prepaid entities activity so that they have sufficient credibility, solvency and transparency, guaranteeing a competitive market. It also determines the rights and duties of insurance companies and establishes the principles of equity and legal certainty for the protection of policyholders, policyholders and beneficiaries of insurance. ARTICLE 5.-DEFINITIONS.-For the purposes of this Law, the following definitions are set forth with an enunciative and non-limiting character:
INSURANCE activity: Comprises the granting of hedges and the assumption of risks of natural or legal persons, including the insurance entities themselves and any other service that involves covering risks and the prepayment of services of a similar nature to the insurance.
ACCIDENT: Act or event that derives from a violent, sudden, external and involuntary cause, causing damage to people or things. SECURE AGENT: Is the natural person linked to an insurance entity, by means of a contract, which engages in the intermediation and commercial management of insurance contracts. VENTURE CAPITAL: It is the sum of the amounts secured directly in life, plus the reinsurance amounts accepted by this same concept, minus the respective mathematical reserves.
INSURANCE BROKER: You are the legal person who performs the business activity of intermediary in private insurance without maintaining a contractual relationship with any insurance entity. REINSURANCE BROKER: Is the legal person acting as an intermediary in the recruitment of reinsurance hedges without maintaining a contractual relationship with any insurance or reinsurance undertaking. INSURER ENTITY: It is the exclusive, exclusive spin company in the insurance administration, authorized by the Superintendence. It includes direct insurance institutions, reinsurers and prepaid entities. REINSURER ENTITY: Is the entity that accepts from another insurance entity risks or a set of them, assuming liability to the transferor for the same.
PREPAID ENTITY: Is the entity that commits the provision of a service in favor of people who are randomly required to do so, against the payment of an advance fee.
CALCULATION FACTOR: It is the numerical index from an estimate of the risk level of the insurance institutions, which limits that level of risk for the purposes of the property increases. SOLVENCY MARGIN: It is the equity of the Insurance Institution calculated for the long-term insurance in relation to the mathematical and capital reserves at risk and for the short-term insurance, in relation to the annual volume of premiums or claims coverage.
SOLVENCY MARGIN BASED ON MATHEMATICAL RESERVES: It is the result of multiplying the calculation factor of the mathematical reserves by the total mathematical reserve, by the mathematical retention factor. SOLVENCY MARGIN BASED ON RISK CAPITAL: It is the result of multiplying the risk capital calculation factor, by risk capital, by the risk capital retention factor.
INSURANCE POLICY: Document which implements the insurance contract, in which the rules are laid down which, in general and in particular, govern the contractual relations between the insured and the insurer, in accordance with the provisions of the Trade Code.
OF TOTAL CLAIMS: Sum of the value of claims incurred by direct insurance, plus the value of claims incurred by reinsurance accepted from the last three (3) years of an insurance undertaking, divided between three (3). REINSURANCE: Financial technical instrument of which an insurance institution is entitled to diversify the risks of its portfolio of insured assets by divesting some or all of them to another or other insurance entities or reinsurers, through a contract regulated by Arts 1015 and 1016 of the Commercial Code.
INVESTMENT RESOURCES: They are the representative resources of the technical reserves, the solvency margins and the withholding tax. reinsurers. TOTAL MATHEMATICAL RESERVE: It is the sum of the mathematical reserves of the direct insurance, plus the accepted reinsurance mathematical reserves of an insurance entity.
TECHNICAL RESERVES: It is the value corresponding to liabilities emerging from insurance and reinsurance operations that entities are required to constitute and maintain permanently through pre-established calculation procedures.
INSURANCE: It is the contract for which the The insurer is obliged to compensate for damage or to fulfil the agreed benefit, at the time of Planned eventuality, and the insured or taker to pay the premium. DIRECT INSURANCE: They are the ones agreed by an insurance institution with a natural or legal person. ACCIDENT INSURANCE: It is the one that protects natural persons against the risks that affect their physical integrity, emerging from haphazard, sudden and violent events that do not include those from diseases. INSURANCE: It is the one for which the insurer is obliged, in the event of non-compliance by the policyholder (entrenado) of its legal or contractual obligations to indemnify the insured for damages or penalties, damages property suffered within the limits established in the law or in the contract. Any payment made by the insurer must be reimbursed by the policyholder to whose effect the insurer must obtain sufficient guarantees.
SHORT TERM INSURANCE: They are understood as such to insurance agreed by a Specific period of time. For the purposes of this Law, it is the insurance of personal accidents, general insurance, health insurance, and insurance insurance.
LONG-TERM INSURANCE: For the purposes of this Law, it is life insurance in general. PEOPLE ' S INSURANCE: These are those that are intended for the natural person to be insured, making it dependent upon payment of the agreed benefit of their existence, their health or their integrity. For the purposes of this Law, life insurance, life income, accident and health insurance are understood. HEALTH INSURANCE: Son those covering medical, surgical, pharmaceutical and inpatient services in healthcare facilities. LIFE INSURANCE: These are the ones that protect the risks that affect the existence of natural persons. GENERAL INSURANCE: These are those that protect the risks that directly or indirectly affect the assets or assets of natural or legal persons. It is understood by such persons, all those who are not safe from persons or bonds.
COMPULSORY INSURANCE: They are those established by the State by means of legal provisions, with mandatory character. PENSION INSURANCE: For the purposes of this Law, it is understood as such for the insurance of lifetime income, invalidity insurance and death by common and professional risk, established by Law 1732 of 29 November 1996 (Social Security Mandatory).
VOLUNTARY INSURANCE: These are those contracted by a voluntary decision of natural or legal persons. SINISTER: It occurs when the expected eventuality and covered by the insurance contract occurs and gives rise to the indemnity, obliging the insurer to fully or partially satisfy, to the insured or its beneficiaries, the guaranteed capital in the contract.
PREMIUM-BASED SOLVENCY: It is the result of multiplying the premium calculation factor by the total premiums underwritten by an insurance entity and this result by the retention factor. CLAIMS-BASED SOLVENCY: It is the result of multiplying the casualty-based calculation factor by the average of the total claims of an insurance entity by the retention factor. SUPERINTENDENCE: The Superintendence of Pensions, Securities and Insurance, of the Republic of Bolivia. TECHNICAL RATE: Is the sufficient premium for coverage of expected claims.
TOTAL OF PRIMAS: This is the sum of premiums subscribed directly by an insurance or reinsurance entity plus the premiums subscribed by Reinsurance accepted in the last twelve (12) months ARTICLE 6.-MODALITIES OF INSURANCE.- The modalities of insurance permitted by this Law are three: the Insurance of Persons, the General Insurance and the Insurance of Bonding. The operation of the Insurance of Persons is exclusive with respect to the General Insurance and of the Fianzas. Insurance entities with general insurance can manage health insurance, and accidents.
Visionary insurance will be administered exclusively by insurance entities that administer Insurance. Prepaid entities will only be able to perform the services established by this Law for this activity, prior to the authorization of the Superintendence. This service may be operated by the insurance insurance entities of persons or by public limited companies incorporated with this exclusive object.
The Insurance of the Securities may be administered by entities that administer Insurance General, or by entities created with that single object. Bail insurance will be subject to special regulation as to its operating mechanism.
Bail insurance is divided into security and credit insurance. Guarantees required by public or private institutions for the fulfilment of the emerging obligations of their operations, may be used through the insurance of bail. The insurance entities will have as the only limitation for the subscription of this type of
insurance, having sufficient collateral and adequate reinsurance support. TITLE II
OF THE INSURER CHAPTER I
INSURANCE AND REINSURANCE ENTITIES ARTICLE 7.-GENERAL PROVISIONS.-The insurance and reinsurance activity, as set by the This Law can only be carried out by limited companies incorporated and regulated in accordance with Chapter V, Title III, First Book of the Commercial Code. Insurers and reinsurers shall have a unique and specific social object, the Insurance of Persons or General Insurance, and comply with the solvency and investment requirements set out in this Law and its regulations.
The transformation, merger and liquidation of insurance and reinsurance entities, as well as the transfer of portfolios and their acceptance, requires the express authorization of the Superintendence. ARTICLE 8.-REQUIREMENTS FOR THE FORMATION OF INSURANCE AND REINSURANCE ENTITIES.- The legal persons, national or foreign who wish to constitute an insurance or reinsurer entity, must present to the Superintendence the The following minimum requirements:
Economic and financial technical feasibility study, or business plan.
Anonymous company constitution writing project and statutes.
Personal background document issued by a public, national or foreign authority, where appropriate, certify the fiscal solvency and estate declaration of goods.
Public documents of social constitution, registration in the trade register or corresponding, audited balance of opening, payroll of its directory or organ of the equivalent address of the legal persons involved, which shall also be subject to the provisions of Title III, Chapter V of the Trade Code and regulatory provisions.
Individual subscription contracts actions.
Foreign companies may constitute insurance entities in the national territory, having to comply with the same requirements as national entities, as well as the provisions of Articles 413 to 423 of the Trade Code.
The manner in which the above requirements are presented shall be established by the Superintendence, by means of express regulation. The Superintendence may approve or reject the application for a constitution by a resolution founded within a period not exceeding ninety (90) days, counted from the date of the filing of all the requirements referred to in the present Article, it is obligatory to publish in a national circulation journal the application for a constitution for at least three discontinuous days, giving a period of thirty (30) days to present oppositions if any. ARTICLE 9.-LIMITATIONS ON CORPORATE PARTICIPATION.-They may not be partners of insurance or reinsurance entities, natural persons who:
Are disabled according to the Commercial Code, to engage in activities
Tengan conviction sentence executed by the commission of crimes.
Were found responsible for bankruptcy by fault or dolo.
Be held as directors or administrators of state financial entities.
Hube had a bond as shareholders in companies contemplated in the
ARTICLE 10.-REQUIREMENTS FOR OBTAINING AUTHORIZATION TO OPERATE.-
the Resolution of Authorization of the Constitution, in order to obtain the authorization of operation, the public limited liability company comply with the following requirements:
Subscribe and pay in legal tender currency one hundred percent (100%) of the minimum capital.
Protocolize the constitution documents and statutes before a public faith notary.
Register the company in the Trade Registry.
Submit the operating manuals.
Appropriate local point of view.
The Superintendence of Pensions, Securities and Insurance, shall issue its pronouncement granting, postponing or denying the operating authorisation within a period not longer than sixty (60) days, counted from the date of the date of the submission of the application. If the pronouncement is due to the postponement, the Superintendence will set a deadline for the deficiencies to be remedied. Upon delivery, the Superintendency may order the inspections it deems relevant and may determine the operating restrictions it deems prudent.
In any case, the Superintendence may order the Inspections that you consider relevant. The operating authorization will automatically expire if the entity does not initiate its operations in the term
of one hundred and twenty (120) days of being notified with the respective resolution. ARTICLE 11.-UNIQUE SOCIAL OBJECT OF THE INSURANCE ENTITIES AND
REINSURERS.- According to this Law, insurance and reinsurance entities shall have as their sole social object one of the following:
Grant risk coverage exclusively in General Insurance.
Grant risk coverage exclusively in Insurance for Persons and Pre-paid Services of a similar nature to Insurance.
Exclusively grant prepaid services of Insurance-like nature.
Insurance entities for persons, may grant savings and capitalization services according to Title VIII of the Third Book of Commerce Code.
Insurance companies specializing in General Insurance as well as those who wish to do so may be exclusively engaged in Insurance of sureties. ARTICLE 12.-OBLIGATIONS OF INSURANCE AND REINSURANCE ENTITIES.- Insurance and reinsurance entities must comply with the following obligations, according to the insurance modality that they administer:
Indemnify the damages and losses or fulfill the agreed benefit upon occurrence of the expected eventuality.
Grant the prepaid services of a similar nature to the insurance, where applicable.
Maintaining the minimum capital and constitute and maintain technical reserves.
Maintain the solvency margins established by this Law.
Establish an investment policy and invest its resources in accordance with this Law.
Superintendence all service, insurance, or insurance plan.
Issue insurance policies, certificates, or coverage notes, clear and easily readable.
Pay the monitoring contribution in favor of the Superintendence.
Refrain from performing acts that generate conflicts of interest or unfair competition.
Present to the Superintendence on the basis of the same, any information that is requested by this institution, without restriction of any nature in Bolivia and abroad.
Present monthly financial statements and annually. The latter with an independent auditor's opinion; in addition, the entities specializing in Life Insurance must accompany the opinion of an independent mathematical actuary. Both opinions must be issued by persons registered with the Superintendence.
Communicate to the Superintendence, within the following 48 working hours, any transfer of shares made by the shareholders, as well as any another situation altering your property, nature or social obligations.
Carry and permanently maintain accounts, accounts, capital and assets of each individual insurance separate from accounts, accounts, capital and assets of the other insurance that you administer.
Meet other obligations and activities established by this Law or by its regulations.
The insurance entities shall be responsible for the contracts made on their behalf by the insurance intermediaries with the insured, policyholders and beneficiaries of the
ARTICLE 13.-ACTIVITIES ALLOWED TO INSURANCE ENTITIES.- The Insurance Entities will be able to:
freely determine their rates, and must comply with their technical bases.
Require compliance with the payment of premiums on the contractual terms and conditions.
Require evidence that can reasonably be provided for the verification of the occurrence and circumstances of the disaster, according to the Code of Commerce.
Free reinsurance in Bolivia or abroad, according to regulatory standards.
Issue bonds obligatorily convertible into shares representative of the capital of the entity, after approval of the Superintendence.
Establish or delete branches, agencies or offices in the national territory, prior to Superintendency authorization, according to the Regulation.
Establish subsidiaries or branches abroad.
Make loans to the insured of the voluntary life insurance that do not exceed the value of the rescue of the reserves
Register with the Stock Market Registry and perform operations securities, in the terms and conditions set forth in this Law and the Securities Market Act.
Contreat securities market and banking and non-bank financial sector entities for the management of investments. permitted.
Other activities that are necessary for the fulfillment of their social activity, provided that it is within their social turn and are not expressly prohibited in this Law.
ARTICLE 14.-PROHIBITIONS ON INSURANCE ENTITIES.- The Insurance Entities are prohibited from:
Advertise and deliver inaccurate or false information that misleads to the situation of the entity and its products, or the conditions of marketing thereof.
Invest the resources determined by Title III of the This law is governed by a law in non-profit entities, regardless of their legal status or in debt or equity securities issued by the same insurance institution.
Constitutions of any nature on the resources that determine the Titles III and IV of this Law.
Issue bonds or misadventures other than those authorized by this Law.
Having a wealth or management relationship with the Pension Fund Administrators to whom they provide insurance services in the Mandatory Social Security.
Perform insurance management operations in general with its directors or persons remunerated by the insurance entity itself.
Investing in other insurance entities that manage the same insurance mode.
Perform activities other than its turn.
ARTICLE 15.- ACTIVITIES PERMITTED TO REINSURERS. Reinsurance Entities may:
freely determine its rates, and must comply with its technical bases.
Require compliance with premium payments within contractually established time and time.
Require evidence that can reasonably be provided for the verification of the occurrence and circumstances of the claim.
" Ensuring risks assumed by domestic or foreign insurance entities, according to regulatory standards.
Issue bonds obligatorily convertible into representative shares of the capital of the entity, prior approval of the Superintendence.
Set or delete branches, agencies or offices in the national territory, subject to the authorization of the Superintendence, according to a Regulation.
Establish subsidiaries or branches abroad.
Register with the Registry of the Securities Market and perform stock exchange operations, in the terms and conditions set out in this Law and the Securities Market Act.
Hire securities and banking and non-bank financial sector entities for administration of the allowed investments.
Other activities that are required for compliance with their social activity, provided that it is within their social turn and are not expressly prohibited in this Law.
ARTICLE 16.-PROHIBITIONS ON REINSURANCE ENTITIES.- Reinsurance Entities are prohibited from:
Publicate and deliver inaccurate or false information that misleads to the situation of the entity and its products, or the conditions of marketing thereof.
Invest the resources determined by Title III of the Law on non-profit entities, regardless of their legal status or debt securities, or capital issued by the same insurer.
Constituents of any nature on the resources that determine Titles III and IV of this Law.
Issue bonds or misadventures other than those authorized by the
Issue insurance policies and hire direct insurance.
Invest in other reinsurer entities that manage the same reinsurance mode.
Perform operations other than those of your spin.
Having direct or indirect equity or administration ties with fund managers pensions to which they provide insurance services in compulsory social insurance.
ARTICLE 17.-AUDITS.-The insurance and reinsurance entities, through their directory, must contract independent external audit services, through natural or legal persons registered in the Superintendence, under the following minimum conditions:
Your service period will not be greater than three (3) continuous years, nor less than the management of one (1) year.
The realization of the opinion will be imperative and attach comments on compliance by the insurance entity with regulatory requirements.
the opinion will be communicated simultaneously to the Superintendence and to the General Shareholders ' Meeting.
Any change or termination of the contract of audit services must be communicated to the Superintendence with the
less (30) days of prior to the effectiveness of such a change or termination. The Superintendence may rely on the following: i The removal of any auditor or person involved with the audit, as well as establish the appointment of
another person to replace the one observed. ii Complementation of the scope of the audit, duly justified. Such orders shall be undeclinably complied with by the insurance or reinsurance undertaking. ARTICLE 18.-ACTUARIES.-The insurance entities that administer Long Term Life Insurance
must contract services from a mathematical Actuary of the payroll of natural or legal persons duly registered with the Superintendence.
The actuary must report on the calculation of the mathematical reserves that will accompany each financial state. The report shall establish with accuracy whether the mathematical reserves and the premiums received in the future are sufficient for the payment of the committed benefits without reduction or deduction at maturity. The Superintendence will have direct access and at all times to the working documents of the auditors and actuaries, without any restriction. CHAPTER II
OF THE INSURANCE AND REINSURANCE INTERMEDIARIES ARTICLE 19.-INTERMEDIARIES.- They are exclusively the following natural or legal persons:
The insurance agents.
The brokers insurance
Reinsurance brokers. Natural or legal persons interested in operating as insurance intermediaries shall be authorised by the Superintendence in only one of the activities set out in the preceding points and shall comply with the obligations which lay down regulatory standards. Reinsurance brokers shall be established as separate and separate companies independent of insurance brokers. Brokers will be able to act alternately as advisers on insurance. Natural persons to provide these services, except for agents, must be established as single-person companies and declare a separate equity for these purposes.
ARTICLE 20.-INSURANCE AGENTS.- insurance agent, any natural person not prevented from exercising the trade, who will normally manage insurance placements for the insurance institution with whom he has a contractual relationship, has changed a commission.
The insurance entity shall be responsible for the acts of its agents in the framework of the privileges granted in the contracts that they subscribe with. They will not be able to act as agents:
Directors, administrators, managers, officials and employees of banking institutions, financial institutions or auxiliaries of banks.
Public servants and employees of companies and decentralized entities that are dependent on the State or its agencies.
The directors, administrators and executives of the insurance companies, as well as the employees who are paid for them who do not have quality of agents.
Insurance auxiliaries.
Foreigners who do not have permanent residence in the country.
In general, any other person who for his position or position may exert pressure, influence or coercion on the insured or reinsurer.
Insurance agents are prohibited from taking risks on their own account or collecting premiums from insurance, except
express authorization of the insurance entity with whom you are engaged. Insurance agents may not enter into a contract with more than one insurance institution. Failure to comply with
this prohibition will result in your definitive disabling as agents. ARTICLE 21.-INSURANCE AND REINSURANCE BROKERS. REQUIREMENTS FOR THE
CONSTITUTION AND OPERATION.-Insurance and reinsurance brokerage activity, is the intermediation performed in insurance and reinsurance contracts, in exchange for a consistent consideration in a commission. Legal persons, nationals or foreign nationals who wish to constitute an entity engaged exclusively in insurance or reinsurance brokerage, shall be constituted as limited liability companies or limited liability companies in the case of brokers insurance and exclusively as a public limited liability company for reinsurance brokers, having to comply with all the requirements laid down for the constitution, operation and limitation of the corporate participation of the insurance companies and reinsurers provided for in this Law.
In addition, they must have a policy of "mistakes and omissions" that support its operations, which must be deposited in the Superintendence of Pensions, Securities and Insurance. ARTICLE 22.-SINGLE SOCIAL OBJECT.- The insurance brokers must have a single social object consisting in the conduct of intermediary in private insurance without maintaining an agency contract or a link that involves a condition with no entity insurer.
Insurance brokers may also be an insurance advisor, but they will not be able to hold both of these qualities in the same operation. Reinsurance brokers shall have a single social object consisting of the intermediation between the insurance undertaking and the accepting reinsurers, without maintaining an agency contract or a link that involves a condition with any insurance institution or reinsurer.
ARTICLE 23.-INSURANCE AND REINSURANCE BROKERS ' OBLIGATIONS.- Are Insurance Broker Obligations:
Report to the insurer about the conditions under which the risk is encountered and advise the insurance policyholder or policyholder for the purposes of hiring the most appropriate cover his interests.
Report to the insurance entity on the suitability of natural or legal persons who are hiring for their intermediate.
lustrate the insured or policyholder in a detailed and precise manner on the terms of the contract insurance, its interpretation and its extension, verifying that the policy contains the stipulations and conditions under which the insurance was contracted.
Communicate to the insurer any modification of the risk that it would have had knowledge or information, within 24 hours.
Advising the insured during the the insurance contract shall be in force for its rights and obligations, in particular for claims and premiums.
Save the largest professional reserve on the negotiations in which it intervenes, with civil liability and in its Case, criminally, of the damages occasioning.
2. These are the obligations of the reinsurance broker:
Report to the insurer on the solvency and capacity of the reinsurers with which it will mediate the reinsurance.
Illustrate the transferor in a detailed and precise manner on the terms of the contract reinsurance, its interpretation and its extension, verifying that the cover note contains the stipulations and conditions under which the reinsurance was contracted.
Communicating to the reinsurer entity any modification of the risk that had knowledge or information, within 24 hours.
Communicate to the Superintendence any event that might modify the conditions of its operating authorization.
Save the largest professional reservation on the negotiations in which he intervenes, with civil liability and, where appropriate,
ARTICLE 24.-PROHIBITION
ARTICLE 24.-BAN.-Insurance and reinsurance brokers are prohibited from taking risks for their own account or charging premiums, except express authorisation of the insurer or the reinsurer, where applicable.
CHAPTER III OF THE INSURANCE AUXILIARIES
ARTICLE 25.-INSURANCE AUXILIARIES.- For the purposes of the insurance activity, they shall be read by insurance auxiliaries the following categories of natural or legal persons, in the latter case constituted as limited liability companies or limited liability companies. a) Claims adjusters and liquidators.
b) The breakdown inspectors. c) Claims investigators. d) Insurance advisors.
Natural or legal persons, to operate as insurance auxiliaries, shall be authorized by the
Superintendence, in one or more of the activities set out in the preceding incits and comply with the obligations
to set regulatory standards. Insurance auxiliaries referred to in points (a), (b) and (c) may not act as insurance intermediaries. Insurance advisors will not be able to be brokers in insurance.
ARTICLE 26.-PROHIBITIONS AND INCOMPENANCES FOR INSURANCE AUXILIARIES.-Insurance auxiliaries are prohibited from:
Taking risks and granting hedges.
Perform those activities that expressly prohibit them from this Law and the regulation.
Insurance auxiliaries may not be directors or employees of insurers, reinsurers, or insurance and reinsurance brokers. CHAPTER IV
OF PREPAID ENTITIES ARTICLE 27.-PREPAID ENTITIES.- Insurance entities specializing in persons ' insurance or any other public limited liability company incorporated with this exclusive object may provide services similar to insurance, charging an advance fee, and must be expressly authorized by the Superintendence for that purpose.
The requirements for constitution and operation shall be established by means of a regulation. TITLE III
OF THE FINANCIAL ECONOMIC SOLVENCY REQUIREMENTS CHAPTER I
OF SOLVENCY AND SOLVENCY MARGINS ARTICLE 28.-GENERAL PROVISIONS.- All insurance, reinsurance or reinsurance prepaid services, shall constitute and maintain the minimum capital referred to in this Law, or the solvency margins and technical reserves set out in this Title, corresponding to the Insurance of Persons or General administering.
ARTICLE 29.-MINIMUM CAPITAL.- All insurance entities, reinsurer or prepaid services must constitute and maintain a minimum subscribed and paid share capital of at least the equivalent of seven hundred and fifty thousand Special Drawing Rights. (750,000 D.E.G.), which must be accredited at all times. The minimum capital may be provided only in cash and in legal tender, except for entities of prepaid services similar to the insurance, which may also make contributions to real estate and equipment and machinery. valued, not taxed, or given in garment or for rent and up to a limit established by regulation and corresponding to the nature of the service provided. Insurance brokers should constitute and maintain a minimum subscribed and paid capital of at least the equivalent of two and a half per cent (2.5%) of the minimum share capital established for insurance institutions. Reinsurance brokers should constitute and maintain a minimum subscribed and paid capital of at least the equivalent of 5% (5%) of the minimum share capital established for reinsurer entities. ARTICLE 30.-TECHNICAL RESERVES.-The insurance and reinsurance entities shall constitute and maintain permanently, at least, the following reserves:
Mathematical Reserve exclusively for Life Insurance in the long term.
The mortality table used for the calculation of this reserve will be approved by the Superintendence. The technical interest rate used for the calculation of this reserve may not be higher than the market interest of
the National Treasury Securities for the longest term, minus two percentage points (2%). Reserve for ongoing risks.
Reserve for outstanding claims.
Reserve for receivables
The above reserves will be determined regulatively and the calculation parameters will be set by the Superintendency. The reserves of any Life Insurance Policy cannot be negative, but at least equivalent to the rescue value of the policy coverage.
The Superintendence may establish, by regulation, the constitution of reserves. for catastrophic or extraordinary risks where the experience of a certain type of risk so advises. ARTICLE 31.-GUARANTEE FUND.-Each insurance or reinsurance entity shall maintain a Guarantee Fund corresponding to 30% of the Solvency Margin, which shall be in deposit with an authorized financial institution. This solvency margin may not be lower than the minimum capital laid down in Article 1. 29 of the present normative body. ARTICLE 32.-SOLVENCY MARGINS FOR LONG-TERM INSURANCE.-The insurance or reinsurance entities that manage Long-Term Insurance, Professional Risk and Common Risk, must credit and maintain at all times, a margin of creditworthiness that will be the largest amount, between:
The sum of the Solvency Margin Based on the Mathematical Reserves and the Solvency Margin Based on the Risk Capital.
The calculation factor for the mathematical reserves shall be that laid down in the Regulation of this Law and shall not exceed 7% (7%). The average mathematical retention factor is the result of dividing the retained mathematical reserves among the total mathematical reserves and will not be less than zero point eighty-five (0.85%) The calculation factor for venture capital will be zero coma three percent (0.3%). The risk capital retention factor is the result of dividing the risk capital held between the total risk capital and cannot be less than zero point five (0.5%).
The minimum paid share capital established in this Law
ARTICLE 33.-SOLVENCY MARGIN FOR SHORT-TERM INSURANCE.-The insurance and reinsurance entities that administer Short Term Insurance shall be required to credit and maintain at all times, a solvency margin corresponding to the larger amount of the Primate-Based Solvency, the Claims-Based Solvency and the Minimum Social Capital.
The premium calculation factor for the margin of Premium-based solvency shall be established by regulation and shall not exceed 30% (30%). The calculation factor for claims shall be determined by regulation and shall not exceed 40% and 9% (49%). The retention factor is the result of dividing the value of claims incurred net of reinsurance from the last twelve (12) months, between the value of the total claims incurred for the last twelve (12) months and may not be less than zero Point 5 (0.5).
Insurance insurers and insurance reinsurers of persons operating on personal accident insurance, with health insurance and supplementary life insurance, whose calculation of premiums does not require actuarial calculation, they shall calculate for these insurances the short-term solvency margin. In this case the solvency margin shall correspond to the sum of the short-term solvency margin and the long-term solvency margin. CHAPTER II
INVESTMENT REGIME
Investment resources must be invested through stock exchange mechanisms, in securities of public supply and other goods permitted by this Law. Investments in public offering securities are subject to limits by generic type of investment, to limits per issuer and to limits by risk categories. All public offering securities invested must be qualified by risk-rating entities, prior to their acquisition, as determined by the Securities Market Act. The categories and their equivalences in the international classifications for the rating of the securities shall be those laid down in the Securities Market Act risk rating regulation. Transactions in public offering securities corresponding to investment resources must be made on local or foreign primary or secondary stock markets, authorized by the Superintendence of Pensions, Securities and Insurance, or the foreign supervisory institution of the relevant securities market. All securities conforming to investment resources should be maintained in institutions of national or foreign securities deposits that comply with the Securities Market Act or the specific securities market rules. of the country concerned.
The valuation of the financial investments established in this Chapter shall be carried out on a regular basis, in accordance with the provisions of the Superintendence, considering all the assets that make up the market prices. The percentage of technical reserves that can be invested in real estate, will be limited to real income and own use not taxed or subject to restrictions of any kind and which cannot be dwellings, nor intended for housing. Insurance institutions may invest in loans on the Voluntary Life Insurance Policy in accordance with the values approved in the technical plans. Prepaid entities similar to insurance, may also invest in equipment and machinery that correspond exclusively to the nature of the service provided. For the acquisition and sale of real estate and equipment and machinery, specialized entities in valuation of such assets, registered in the Superintendence, must intervene.
ARTICLE 35.-INVESTMENT LIMITS.- Investments in public offering securities referred to in the preceding article shall be subject to the following limits.
Not more than five percent (5%) in securities of issuers linked to the insurer or its parent.
Not more than ten percent (10%) in fixed income securities of a company or a group of companies linked to each other but not linked to the insurer or its parent.
Not more than twenty percent (20%) of investments in a single issuer.
Not more than twenty percent (20%) of the same Issuer's Heritage
Investment in short securities and long term issued by the General Treasury of the Nation or the Central Bank of Bolivia, will not be subject to the limits set forth in this Law.
The Central Bank of Bolivia will periodically fix the maximum limit for investments in securities of issuers constituted abroad, which may not be greater than 50% (50%) of the resources for investment. Investment in non-representative debt securities is permitted, according to regulation and prior authorisation of the Superintendence. The maximum limits of investment by generic type of securities, within the investment ranges established by the regulation of this Law, shall be set by the Superintendent of Pensions, Securities and Insurance.
Real estate investments will not exceed thirty percent (30%) of total investments in entities that manage general insurance and ten percent (10%) of total investments in entities that manage insurance of persons. In addition, such investments will not be able to concentrate on a single asset or groups of goods, according to a regulation.
The entities that manage general and insurance insurance of persons must adapt their investments to the precept in the paragraph within a period not greater than five (5) years, counted from the date of enactment of this Law.
The investments that represent the mathematical reserves of the pre-viewing insurance are inembargable. The reinsurance contracted abroad will not be deducted from the reserves in the life insurance of the compulsory Social Security. TITLE IV
MANDATORY SINGLE CHAPTER INSURANCE
ARTICLE 36.-MANDATORY INSURANCE.-Mandatory insurance can only be established by Law. They must be administered in separate funds, their policies will be uniform and the variations in the amounts of the premiums must be expressly authorized by the Superintendence, considering the conditions and terms of the contracts that the established. The defense of human capital, protecting the health of the population, the continuity of their means of subsistence and the rehabilitation of the inused persons, is carried out by the State through the establishment of compulsory insurance that make up social security schemes. Likewise, the guarantee of the social function of private property, the use of natural resources for the development of the country and the pursuit of the welfare of the Bolivian people is concrete through the establishment of insurance mandatory. The insurance activity established in Law 1732 of 29 November 1996 is governed by this Law and its regulations. ARTICLE 37.-ESTABLISHMENT OF THE MANDATORY TRAFFIC ACCIDENT INSURANCE.-It is established as mandatory that any owner of a motor vehicle in the territory of the Republic, whatever its type, has an accident insurance of transit. Such insurance shall be undisputable, of a uniform benefit, irreversible and its action shall be direct against the insurance undertaking. The purpose of the compulsory insurance is to provide uniform and uniform coverage of medical expenses for accidents and the compensation for the death of any individual, who suffers from accident or death events caused by vehicles motor vehicles in the territory of the Republic. The maximum insured capital for the eventualities of death, permanent total incapacity and medical expenses is two thousand three hundred (2,300) DEGs per person affected by each event and without any limit of persons covered by it. Vehicles of all types that circulate in national territory shall be required to carry the certificate of insurance, which is valid for this insurance, on a permanent basis. Failure to comply with this provision will be sanctioned according to Law. The qualification of the degree of invalidity, must be carried out with the same Manual as the collective insurance of the compulsory Social Security. TITLE V
OF PROTECTION TO POLICYHOLDERS, POLICYHOLDERS, AND BENEFICIARIES
ARTICLE 38.-GENERAL PROVISIONS.- Equity in relationships between policyholders,
policyholders and insurance beneficiaries and insurance companies, will be concretized in the regulation of the insurance contract by the Superintendence, being null the clauses or stipulations that:
Limiting or supposing the exercise of the sinalagmatic rights that policyholders and beneficiaries have recognized by the Civil, Trade, Procedural and Law of the Republic codes.
Allow to modify unilaterally the price or conditions of coverage of insurance policies, contracts or insurance plans by the insurance institution.
Impose discriminatory conditions or cause the insured, taker or beneficiary of insurance to be defenseless.
Legal protection for policyholders, policyholders and beneficiaries of insurance In the following aspects:
The supply of products and services shall be in accordance with the nature, conditions, price and modalities to be advertised, either on the premises of the insurance undertaking or through advertisements, prospectuses,
The scope of the insurance contract, in case of discrepancy, ambiguity or doubt will always be interpreted in the most favorable way for the insured, taker or beneficiary.
subordinate the effectiveness of the payment or service to the acceptance of other benefits or Additional services by the same or other insurer are ineffective.
All insured, taker or beneficiary of insurance, is entitled to clear, truthful and sufficient information about
the products and services offered by insurance institutions. The advertising of the products offered by the insurance companies, will not be able to induce confusion or deception and
will highlight the characteristics of the insurance or plan offered in an easily understandable way for the general public. Insurance companies should promote the development of greater capacity, rationality and transparency in decisions for the purchase of insurance and insurance plans by the general public, facilitating the choice based on the price and the quality of the products.
They will spread the knowledge of the norms, actions and procedures and institutions of the sector and will caution the risks arising from the supply of products that could harm the insured, the policyholders and the beneficiaries of insurance. Policyholders, life insurance policyholders and their beneficiaries enjoy the character of creditors with privilege and will be paid with preference to other creditors.
ARTICLE 39.-ARBITRATION.-The de facto controversies over the technical characteristics of insurance, will be resolved through the expertise, according to what is established in the insurance policy. If by this means no agreement is reached on such disputes, they must be defined by the way of arbitration. The disputes of law raised between the parties on the nature and scope of the insurance contract, reinsurance or insurance plans, shall be resolved in a single and unappealable instance, by way of arbitration, according to the provisions of the Law 1770 (Law of Conciliation and Arbitration). TITLE VI
CHAPTER I CONTROL AND FISCATION
SUPERINTENDENCE OF PENSIONS, SECURITIES AND INSURANCE, ARTICLE 40.-JURISDICTION AND DOMICILE.-The Superintendence of Pensions, Securities and Insurance, is a autarquic institution of public law, of indefinite duration with national jurisdiction and exclusive and exclusive jurisdiction that is part of the System of Financial Regulation (SIREFI). It has its main residence in the city of La Paz, and can establish offices or trends in other parts of the national territory. It is governed by the provisions of this Law and its regulations.
Persons and entities that perform the activities under this Law are subject to the jurisdiction of the Superintendence. ARTICLE 41.-FUNCTIONS AND OBJECTIVES.-The Superintendence of Pensions, Securities and Insurance, as an organ that fiscales and controls the persons, entities and activities of the insurance sector of the Republic, has the following objectives:
To ensure the safety, solvency and liquidity of insurance companies, reinsurers, prepaid entities, intermediaries and insurance auxiliaries.
periodically inform the public about the activities of the sector and the Superintendence itself.
Protecting policyholders, policyholders and beneficiaries from
Velar for the proper publicity and transparency of operations in the insurance market.
Fulfilling and enforcing this Law and its regulations, ensuring the correct application of its principles, policies and objectives.
ARTICLE 42.-SUPERINTENDENCE FINANCING.-The activities of the Superintendence will be financed by a contribution that must be deducted from the total amount of the gross premiums produced by the entities insurance or gross income of persons subject to supervision. The annual budget must be approved according to the Rules of Procedure.
The contribution may not exceed two percent (2%) of the net premiums produced for General Ramos and one percent (1%). Compulsory, pre-and life insurance, percentages calculated on the net premiums produced. ARTICLE 43.-PRIVILEGES OF THE SUPERINTENDENCE OF PENSIONS, VALUES AND INSURANCE.- The Superintendence has the following attributions:
Grant, modify and revoke the operating authorizations and records of the persons subject to their jurisdiction, in accordance with this Law and its regulations.
Authorize the operation, merger and modification of the statutes of the entities under its jurisdiction.
Monitor, inspect and punish the entities under your jurisdiction.
Monitor activities, insurance policies, and contracts in general carried out by the entities under its jurisdiction.
Monitor the formation of solvency margins and technical reserves, as well as the application of the investment rules established by this Law.
restrictions on the issuance of policies or renewal of previous policies, where the increases for solvency margins or maintenance of technical reserves have not been met.
Establish and update methods of calculation of insurance factors and technical parameters.
Order the periodic reconciliation of the reinsurance accounts.
Establish the registry of brokers and reinsurers operating in the domestic market.
Determine accounting standards and establish unique account plans for insurance and reinsurance entities for each mode and for intermediaries and insurance auxiliaries.
Order inspections or audits, entities and persons under your jurisdiction.
If necessary, arrange for the intervention and dissolution of the entities under your jurisdiction and in case of necessary, audit the voluntary or forced liquidation of the same.
Authorize the transfer of a voluntary portfolio between insurance and reinsurance entities and to be available when required.
Develop technical and biometric statistics and require their publication.
Authorising audit firms The insurance market is enabled for the insurance market, as well as to set its terms of reference.
Take a risk central, linked to the Sectoral Association and the Risk Central of the Banking System.
Post monthly financial institutions under their jurisdiction.
Propose rules to the Executive Branch.
Issue operational provisions for compliance with this Law and its regulations.
All privileges that are necessary for the performance of their duties.
Apply the sanctions contained herein. Law.
ARTICLE 44.-PRIVILEGES ON CONTRACTS ENTERED INTO WITH FOREIGN BROKERS AND REINSURERS.-The Superintendence shall prohibit the acceptance of reinsurer entities on the market, when:
Reinsurer Entity does not meet a minimum risk rating level per regulation, based on the disaster payment capacity, according to an international rating by risk rating entity.
Not adequately supervised by the supervisory institution that corresponds to its jurisdiction, according to monitoring criteria.
When there is a history of non-compliance with the Reinsurance Entity.
ARTICLE 45.-PRIVILEGES ON INSURANCE AND REINSURANCE BROKERS.- The Superintendence will not authorize the operation of Insurance and Reinsurance Sliding Entities when:
When any of them have a history of non-compliance and/or professional misconduct.
When they do not credit the Superintendence of Pensions, Securities and Insurance, any of the rules required by this Law and an insurance policy of Errors and Omissions, of agreement to terms, conditions and limits established by regulation.
ARTICLE 46.-SUPERINTENDENT OF PENSIONS, SECURITIES AND INSURANCE.-The Superintendence of Pensions, Securities and Insurance, will be directed, organized and represented in accordance with Chapter II of the Law on People's Property and Credit.
The Intendente de Seguros, must have Bolivian nationality, have a university degree in national provision and have at least ten (10) years of professional experience, of which he must credit at least five (5) years of experience in the insurance cover. CHAPTER II
REGULARISATION OF INSURANCE AND REINSURANCE ENTITIES.
PROCEDURES AND RESOURCES ARTICLE 47.-PRECAUTIONARY MEASURES AND VOLUNTARY LIQUIDATION.- When any insurer or reinsurer does not comply with any of the obligations laid down in Article 12 of the present Law, to prevent the aggravation of the economic damage or injury caused, the Superintendence is entitled to determine:
The suspension of the issue and the renewal of policies and the acceptance of risk.
The session of the another insurer or reinsurer in a definitive or temporary form, including the transfer of all or part of the insurance or reinsurance contracts that make up the portfolio of the transferor. For these purposes, the entity would automatically subdue all the obligations and emerging rights of the contracts in force at the date of the obligation.
Order the Board of the entity, the accounting record of the losses, Penalties, forecasts and other adjustments against the assets and reserves, to proceed to the exchange and resealing of shares according to the residual proportional value.
Preemptively register the securities, real estate and other assets before the relevant authorities.
The voluntary liquidation of the entities insurers will be regulated by art. 116 of the Law of Banks and Financial Entities, replacing however the actions foreseen for the Superintendent of Banks in the aforementioned Law, for the intervention of the Superintendent of Pensions, Values and Insurance. ARTICLE 48.-INTERVENTION CAUSES FOR FORCED LIQUIDATION. The Superintendence may intervene to liquidate an insurance or reinsurance entity as soon as it incurs one of the following causes:
non-compliant non-compliance with any of the obligations set out in Article 12 and according to the provisions of article 53 of this Law.
Incurra in any of the causal cases of bankruptcy provided for in Article 1489 of the Commercial Code.
Keep a capital less than the legal minimum, do not perform the capital increases for the solvency margin or the technical reserves are insufficient for a period exceeding ninety (90) calendar days from the date on which such a deficiency occurred.
Incompliance with the rules on investments established in this Law and its regulations, according to the provisions of the arts.34 and 35.
Do not provide your services for ten (10) continuous calendar days, except for force majeure. ARTICLE 49.-INTERVENTION, REVOCATION OF LICENSE AND TRANSFER OF PORTFOLIO.- The intervention of an insurance or reinsurer entity shall proceed by administrative resolution of the Superintendence, duly substantiated. The interposition of resources against the administrative resolution of
intervention, will not prevent the measure from being executed. During the intervention, the Superintendence assumes the powers of the General Meeting of Shareholders and the Board and will appoint financial controller with administrative powers for the liquidation, which will be specified in its designation. At any time, the Superintendent may revoke the operating authorisation of the insurance institution. In such a case, the Superintendent shall have the portfolio session of the entity being brought to another or other entities and, where appropriate, the suspension of general insurance coverage. The interposition of resources against the administrative resolution of the license recall will not suspend this session of the portfolio.
At all times, the Superintendence will also be able to have the fulfillment of specific tasks for the employees and executives of the insurance undertaking involved or whose operating authorisation has been revoked. The intervention or revocation of the entity's operating authorisation does not interrupt the obligations and rights incurred by the entity in the insurance and reinsurance administration and does not affect the validity of the contracted policies. ARTICLE 50.-DISSOLUTION.- The dissolution of an insurance or reinsurer entity shall only proceed with the authorization of the Superintendence, due to the causes established in the Code of Commerce for public limited companies. If necessary, the administrative resolution of the Superintendence shall have the recall of the operating authorization and the holding session in accordance with the provisions of this Law, or the integration of portfolios administered by entities that are merged.
ARTICLE 51.-JURISDICTIONAL MEASURES.- Constitute jurisdiction of the judges in administrative and tax matters, to grant the jurisdictional measures that the Superintendence requests for the due application of the rules of this Chapter, including preparatory measures for demand and precautionary measures of all kinds. The jurisdictional measures requested by the Superintendence do not require a prior tax or a contract. In accordance with article 48 of this Law, the Superintendence has the power to take physical possession and to seal all the facilities of the entities involved, with the help of the public force. The criminal actions initiated by the Superintendence will be made substantial before the competent judicial authorities and with the intervention of the prosecutors in criminal matters. ARTICLE 52.-VIOLATIONS AND PENALTIES.-The following types of violations and penalties applicable to the Superintendence are established:
MINOR INFRACTIONS VIOLATIONS. Corresponding to the amendable or subsanable breach of the legal rules as a result of negligence or recklessness not attributable to the legal representatives of the entity and that do not cause economic damage or harm to the same or the insured, policyholders, beneficiaries or other third parties. SERIOUS VIOLATIONS. Correspond to the amendable or subsanable breach of the legal norms as a result of fault or dolo imputable to the legal representatives of the entity and that cause economic damage or injury to the same or the insured, insurance, beneficiaries, or other third parties.
INSUBSANABLE VIOLATIONS. They shall correspond to the non-compliance, non-amendable or subsanable of the legal norms as a result of fault or dolo imputable to the legal representatives of the entity and that cause economic damage or injury to the same or the policyholders, insurance, beneficiaries or other third parties. CRIMINAL OFFENCES. Corresponding to the criminalisation of the Penal Code. SANTIONS According to the nature of the violation and the regulatory forecasts, the Superintendence is enabled to apply the following administrative penalties:
ADMONITION. Corresponding to the a minor infringement. FINES. Corresponding to the commission of a minor or serious infringement. TEMPORARY SUSPENSION OF CERTAIN ACTIVITIES AND OPERATIONS. It will be up to the commission for a serious infringement.
REVOKING OF THE OPERATING AUTHORIZATION. Corresponding to the commission of insubsanable violations. Administrative penalties will be applied in the lower or higher ranks or limits that are established by regulation.
ARTICLE 53.-PROCEDURES AND RESOURCES.-The applicable procedures in the insurance sector are the established for the financial regulation system.
TITLE VII FINAL AND TRANSIENT PROVISIONS
ARTICLE 54.-TAX EXEMPTION.-Life insurance premiums do not constitute a tax-generating event. Life insurance allowances are exempt from inheritance tax. ARTICLE 55.-ADEQUACY OF THIS LAW.-Legal persons, entities or groups of persons, regardless of their nature or the rule that would have created them to be operating in the activities regulated by the present Law, in the Bolivian territory, to the promulgation of the same, must conform to the requirements that are established, according to the following procedure.
The social conversion of the specified entities or persons, must be carried out in a (1) the term of a year, counted from the date of the current law, in accordance with statutory, constituent or regulatory provisions applicable to it. Insurance cooperatives must conform to the requirements set out in this law within a period of no more than three years.
Conversion shall not require authorization to set up the Superintendence. Once the company has been established, the Superintendence must be applied for authorization, which will only be granted once the requirements established by this Law have been met.
presentation of an adequacy commitment to an accompanying schedule within ninety (90) days of the enactment of this Law.
Financial and technical adequacy shall be within a maximum period of one (1) year.
If for reasons of number, geographical dispersion or other difficulties in fact, entities or legal persons cannot comply with the legal or contractual requirements to agree the conversion, its administrators are authorized to make a second call to Assembly or meeting, whose decisions will be valid with the number of members or members that are found present. Contractual impediments to conversion must be modified, using mechanisms to ensure the transparency of the process and the interests of the partners or members.
If by the legal nature of the entities or persons are required to intervene or assist authorities or public entities, they shall provide the necessary contest, in compliance with the corresponding provisions. As long as the conversion is carried out and until the emission of the operating authorisation, the Superintendence shall have the power to authorise the provision of services on a provisional basis. The specified entities or persons, which do not comply with the conversion within the prescribed period, or with the legal requirements to obtain the operating authorisation within the time limit specified by the Superintendence, shall be intervened and subject to the the dissolution and liquidation measures provided for in this Law. ARTICLE 56.-CATEGORIES AND EQUIVALENCES.-The categories and equivalences for the classification of securities shall be that set out in D.S. 24469 of 22 January 1997, as long as the regulation corresponding to the Law on the Market is not issued Values.
Categories and equivalences for insurers and reinsurers will be established regulatively.
ARTICLE 57.-REGULATIONS.-The Executive Branch will regulate this Law by Decree Supreme.
ARTICLE 58.-MODIFICATIONS, CLARIFICATIONS, ABROGATIONS, AND DEROGATIONS.-
The following Articles of the Trade Code are amended:
The last paragraph of Article 979 is deleted which states: " This Title is not
text of Article 1006 is replaced by the following: " The insurance contract is written in writing, using the insurance policy. However, the most means are allowed, provided there is a written test principle. The General Conditions, the Particular Conditions and the Annexes are understood to be safe. It must be clearly and easily legible in Spanish language and be extended to the appropriate copies, with the original to the insured. "
The text of Article 1017 of the Trade Code is replaced by the next: " The premium is due from the moment of the conclusion of the contract, but it is not payable but with the delivery of the policy or provisional certificate of coverage. The successive premiums will be paid at the beginning of each period, unless another form of payment is stipulated, in which case the corresponding interest will be charged according to your account. "
The text of Article 1018 of the Trade Code is replaces the following:
" In damage insurance, if the delivery of the policy or interim cover certificate is performed if the premium is perceived, the interest is presumed to be granted with interest for its amount.
If the payment is made of the premium is partial, it is presumed the granting of interest credit for the balance. Non-compliance with the payment of the premium plus interest, within the time limits set, suspends the term of the contract. Suspended the validity of the policy, the insurer is entitled with executive force to the premium corresponding to the run-time, calculated pro rata ".
The text of Article 1024 of the Trade Code is amended as follows:
" If the termination is by the insurer's will, the insurer shall return the portion of the insurance premium for the non-run time, except that during the term of the insurance subject to the termination, it has paid the insured, claims for a value of at least eighty-five percent (85%) of the amount of the annual net premium agreed. If it is by the insured's will, the insurer shall be entitled to the premium for the time taken, according to the short term fee. "
The text of Article 1033 of the Trade Code is amended as follows:
Thirty (30) days mentioned, fenece with the acceptance or rejection of the claim or with the request of the insurer to the insured that the requirements referred to in Article 1031 are supplemented and does not run again until the insured has met with such requirements. "
The following articles of Law 1732 of 29 December 1996 (Pensions Act) are amended:
The first paragraph of Article 8 of the same Law is amended as follows: " The invalidity benefit by common risk consists of a pension which is paid to the affiliate in the event of a total and final incapacity to carry out a reasonably remunerated job, not due to professional risk and illness ".
In the same article, the following paragraph is added: "For the invalidity benefits by common risk, caused by accident, the requirements set out in points (a), (b) and (c) of this article apply."
In Articles 37 and 38 of Law 1732, "Superintendence of Pensions" is replaced by "Superintendence of Pensions, Securities and Insurance,".
Article 49 (p) of the Pensions Act is repealed
3. insurance contracts listed in Title III of D.S. 14379 of 25 February 1977 are numerals and do not restrict the freedom of recruitment by insurance policy holders and the freedom to provide services by insurance companies.
4. The Law of September 27, 1904 is abrogated. 5. Decree Law 15516 of 2 June 1978 is repealed. 6. All provisions contrary to this Law shall be repealed. I went to the Executive Branch for constitutional purposes. It is given in the Session Room of the Honorable National Congress, at twenty-three days of the month of June of a thousand nine hundred and ninety-eight years.
Fdo. Walter Guiberas Denis, Hormando Vaca Ten Cow Ten, Gonzalo Molina Ossio, Edgar Lazo Loayza, Guido Roca Villavicencio, Jhonny Plata Chalar. Therefore, it was enacted so that it has and will comply with the law of the Republic. Palace of Government of the city of La Paz, at the twenty-five days of the month of June of a thousand nine hundred and ninety-eight years. FDO. HUGO BANZER SUAREZ, Carlos Iturralde Ballivian, Guido Nayar Parada, Edgar Thousands ardaya, Jorge Pacheco Franco, ACTING MINISTER OF ECONOMIC DEVELOPMENT, Tonchy Marinkovic Uzeda.
