Modernizes And Promotes Competition In The Financial System

Original Language Title: MODERNIZA Y FOMENTA LA COMPETENCIA DEL SISTEMA FINANCIERO

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Replaced the second paragraph of item 4 °, by the following: ' without prejudice to the foregoing, the foreign insurance companies established abroad may be marketed in Chile international shipping insurance " , international commercial aviation, goods in international transit and satellites, and the burden that they carry. "."

(2) replaced article 12 by the following: ' article 12.-the SVS, subject to law No. 19,628, the regulations and other applicable regulations, give information about insurance who prove to have the quality of insured. " In case of legally declared incapacity or death of an insured person, such information will be delivered to those who prove to have the quality of spouse, children, parents, beneficiaries or other legitimate stakeholders.

In case of inquiry duly notified by the Superintendent to the insurance companies, they will be required to provide the Superintendent information indicated in the following paragraph.

The specific content of the information that insurers must provide will be determined by regulation. Features associated with that information, such as the format, means of shipping, terms and others, shall be determined by instructions or rules of a general nature that is providing the Superintendency. Designated information shall contain at least the indication of the contracting insurance companies, the validity and type of insurance, according to the code in the deposit of the respective, being banned, if necessary, report history associated with the identity of the beneficiary or the conditions laid down for this purpose in the insurance policies. Such information must be provided as long as the company's obligations are current.

The Superintendent must protect the private nature of the information provided and must remove from their databases within 60 days from their reception information received by insurers pursuant to this article. "."

((3) modify the N ° 4 of article 21, in the following way: to) delete the expression "non-residential".

(b) add the following second paragraph: "Notwithstanding the foregoing, no housing estate subject to subscribed with or without an option to purchase lease agreements with people related to the company will be accepted as representative, or whose use or enjoyment has been ceded to them for any reason.".

((4) replace the letter l) No. 1 of article 23, with the following: "l) 25% of the total in those assets of the N ° 4, for companies of the second group, and 30% only of the heritage of risk, for the first group companies." However, for goods roots not housing subject to contracts of lease with or without an option to purchase which agreed the second group companies with related parties, the limit shall be 5% and 5% of the total only heritage of risk for companies in the first group. "In addition, for real estate housing, applies a limit of 5% of the total for the second group companies and 5% only of the heritage of risk for companies in the first group, and".

((5) incorporated in the letter d) n ° 2 of article 23, between the expressions "real estate n ° 4," e "and bonds" the phrase "included in the N ° 7 real estate-related assets".

((6) replace, in) (c) of article 24, the term "10 and 20%" by "20% and 40%".

(7) delete the third paragraph of article 39, the following sentence: "If it is not rejected within that period, the application shall be rejected.".

(8) incorporate, as article 40, which follows: "article 40. mortgage administrators of mutual banks, cooperatives, agents endorsable, boxes of family allowances compensation, and any other entity that has in its turn give mortgage loans, on lenders, who under mortgage operations with individuals hire insurance desgravamen by death or disability and fire and complementary coverages such as earthquake and sea outlet" at the expense of their customers, in order to protect the collateral guarantee or payment of the debt against certain events affecting the debtor, shall comply with the following rules, in the bidding process that is this article: 1. insurance shall be hired collectively by the lender for your debtors by means of public tender based preset. In such tender offer you will receive and be publicly announced bids in one act.

2. companies whose lower rating is equal to or less than BBB, may not participate in the bidding.

3. the insurance shall be assigned by the lender to the Tenderer submitting the lowest price, including the insurance broker's Commission, if appropriate, except that, after started bidding and before adjudication, had deteriorated markedly the solvency of that offeror by an impending made. In such a case, the directory, or maximum management organ of the lender, public and founded, prior qualification of that fact by a sorting of risk indicated previously in the bases, may award the tender at the second-lowest prices.

The lender may replace the corridor included in the offer allocated, keeping the same Commission of intermediation considered in this offer, provided it is intended on the bases.

4. the insurance shall agree solely on the basis of a premium expressed as a percentage of the amount insured in each risk. The premium will include the insurance broker's Commission, if so, that will be expressed only as a percentage of the premium.

5. not may stipulated commissions or payments in favour of the lender partners to the contracting or management of these insurance, to the collection of premiums, or for any other reason, except the right of the creditor to repay their credit compensation in case of accident.

6 will correspond to the secured debtor any sum that return or reimburse the insurer for best loss ratio, premiums, insured number or other similar concepts.

7. a joint standard, which will dictate the Superintendence of securities and insurance and banks and financial institutions, will regulate the bidding process and the minimum conditions that contemplate the bidding rules. This standard may consider, among others, the following aspects: a. insurance coverage to tender.

b. duration of the contracts and coverages.

c. technical and economic requirements of the insurance brokers.

d. aggregate statistical information on the portfolio to tender that the lender must deliver to the insurers for the completion of the offer.

e portfolio segmentation criteria to tender.

f services which shall be charged to the insurance providers and the insurance brokers.

g measures that the lender may provide for the protection of your database.

h. minimum information that the lender shall provide to the insurer during the term of the insurance policy.

The cited standard will also regulate the minimum information to lenders, brokers of insurance and insurance companies must provide debtors secured regarding the contracted insurance coverage and its operation in case of disaster, including the criteria and deadlines to be considered for transfer to the debtor for allowances that apply.

The foregoing is without prejudice to the right of the debtor to contract individually and directly the insurance referred to in this article, with an insurer of his choice. In any case, the lender shall not require the debtor to coverage or conditions other than those referred to in the insurance bid, or may accept an individual policy with lower coverage than the licensed insurance.

These provisions shall also apply to insurance associated with mortgage loans granted to legal persons, showing characteristics similar to the operations of natural persons that trafficking in this article, as to object and purpose of mortgage credit, according to what is established in formerly designated joint standard.

Without prejudice to provisions of the letter g., insurers and insurance brokers who are awarded tenders shall maintain reservation on databases that receive credit under the letter h. entities, unless that entity dispensare them. Who report them or use to the detriment of the credit institution, must respond in damages that cause, however any other sanctions that the violation warrants.

The Superintendency of securities and insurance will establish, by General, conditions and minimum coverage standard that should contemplate insurance associated with mortgage loans to which this article refers, both for those directly hired by the debtor as to those hired by the lender on behalf of this. The aforementioned norm must be sent in consultation to the Superintendency of banks and financial institutions.
The provisions of this article will be also applicable to insurance which you must hire under the contracts of rental housing with promise of sale, real estate companies in compliance with the provisions of the law N ° 19.281. "."