Law on the Insurance Contract

INSURANCE CONTRACT LAW

New Law published in the Official Journal of the Federation on 31 August 1935

Latest reform published DOF 04-04-2013

Note addition of the second paragraph to Article 111 and the additions of Articles 151 to 161, published in DOF 04-04-2013, shall enter into force on 4 April 2015

On the sidelines is a stamp that says: Federal Executive Branch.-United Mexican States.-Mexico.-Secretariat of the Interior.

The Constitutional President of the United Mexican States has served to address the following Law:

"LÁZARO CÁRDENAS, Constitutional President of the United Mexican States, to its inhabitants known:

That in use of the powers granted to the Executive of the Union by Decrees of December 29, 1934 and 1o. January, 1935, I have had to issue the following:

INSURANCE CONTRACT LAW

TITLE I

General Provisions

CHAPTER I

Contract Definition and Celebration

Article 1 °.- By the insurance contract, the insurance company is obliged, by a premium, to pay damages or to pay a sum of money when the expected eventuality is verified. in the contract.

Article 2 °.- Insurance companies may only organize and operate in accordance with the General Law of Insurance Institutions.

Article 3 °.- The maritime insurance is governed by the provisions of the Code of Commerce and by this law in what is compatible with them.

Article 4 °.- Social insurance will be subject to the laws and regulations on the subject.

Article 5 °.- The offers of celebration, extension, modification or restoration of a suspended contract, will oblige the proposer during the term of fifteen days, or the If a medical examination is necessary, a shorter period of time for acceptance is not fixed.

Article 6.- The offers of extension, modification or restoration of a suspended contract, made in registered letter with acknowledgement of receipt, if the Insurance company does not answer within a period of 15 days, counted from the following date of receipt of the offer, but subject to the suspension condition of the approval of the Secretariat of Finance and Public Credit.

The provision contained in this article is not applicable to offers to increase the sum insured and in no case to persons insurance.

Article 7 °.- The general insurance conditions must appear on the same offer form provided by the insurance company, or refer to the proposer for inclusion in the offer of the contract to be signed and delivered to the undertaking. The proposer shall not be bound by his offer if the undertaking does not comply with this provision. Statements signed by the insured will be the basis for the contract.

Article 8 °.- The proposer shall be obliged to declare in writing to the insurance undertaking, in accordance with the relevant questionnaire, all the facts important for the assessment the risk that they may have an influence on the agreed conditions, such as they are known to or must be known at the time of the conclusion of the contract.

Article 9 °.- If the contract is concluded by a representative of the insured person, all important facts that are or must be known to the representative and the represented.

Article 10.- When insurance is proposed on behalf of another, the proposer shall declare all important facts that are or must be known to the insured third party or to his or her intermediary.

Article 11.- The insurance may be contracted on its own account or on behalf of another, with or without the designation of the person of the insured third party. In case of doubt, the contractor shall be presumed to be self-employed.

Article 12.- Insurance on behalf of a third party forces the insurance company, even if the insured third party ratifies the contract after the accident.

Article 13.- Unless otherwise expressed in the terms of the mandate or the policy, the president who contracts insurance on behalf of his or her mandant may claim the payment of the insured amount.

Article 14.- Agents who are authorized by an insurance company to enter into contracts, may receive the offers, reject the written statements of the proposers, collect the expired premiums, extend receipts, as well as proceed with the verification of the claims that are made.

Article 15.- With respect to the insured person, it shall be deemed that the agent may perform all acts which are customary as the functions of an agent of his or her category and those of done normally with company authorization.

Article 16.- In any case, the agent will need special authorization to modify the general conditions of the policies, either for the benefit or to the detriment of the insured.

Article 17.- The tacit renewal of the contract will in no case exceed one year.

Article 18.- Even if the company reassures itself against the risks it has secured, it will remain solely responsible for the insured.

CHAPTER II

The Policy

Article 19.- For testing purposes, the insurance contract, as well as its additions and reforms, will be entered in writing. No other evidence, except the confessional, shall be admissible to prove its existence, as well as that of the fact of the knowledge of acceptance, as referred to in the first part of Article 21 (I

.

Article 20.- The insurance company shall be required to provide the insurance contractor with a policy containing the rights and obligations of the parties. The policy must contain:

I.- The names, addresses of the contractors, and signature of the insurance company;

II.- The designation of the thing or the insured person;

III.- The nature of the guaranteed risks;

IV.- The time from which the risk is guaranteed and the duration of this warranty;

V.- The amount of the warranty;

VI.- The insurance fee or premium;

VII.- Where applicable, the specific mention that this is a mandatory insurance referred to in Article 150 Bis of this Act, and

VIII.- The other clauses to be included in the policy, in accordance with the legal provisions, as well as those agreed lawfully by the contractors.

Article 20 Bis.- Dealing with the adherence insurance contracts referred to in Article 56 of the Protection and Defense Act to the User Financial services, when there is doubt about the interpretation of a clause, the judge, taking into account the opinion that the effect requests to the National Commission for Protection and Defense of the Users of Financial Services, will resolve the the meaning of the clause for the purposes of the litis. In cases where the interpretation of a clause involves aspects of a technical-actuarial nature, the National Commission for the Protection and Defense of the Users of Financial Services may request opinion from the National Insurance Commission and Sureties.

Article 21.- The insurance contract:

I.- It is perfected from the moment the proposer has knowledge of the acceptance of the offer. In mutual insurance, it will also be necessary to comply with the requirements that the law or the statutes of the company establish for the admission of new members.

II.- You cannot be subject to the suspension condition of the delivery of the policy or any other document in which the acceptance is recorded, nor the condition of the payment of the premium;

III.- May be held subject to a time limit, at the expiration of which shall be effective for the parties, but in the case of life insurance, the period to be fixed may not exceed 30 days from the medical examination, if this is necessary, and if it is not necessary, on the basis of the offer.

Article 22.- The insurance undertaking shall have the right to require, in accordance with the respective tariff, or in its absence, in accordance with an expert estimate, the amount of the the issue of the policy or its reforms, as well as the reimbursement of taxes that are caused by this.

Article 23.- The insurance undertaking shall have the obligation to issue, at the request and expense of the insured or beneficiary, copy or duplicate of the policy, as of the statements made in the offer. In the case of beneficiaries, only the copy or duplicate referred to in this Article shall be issued, where the event of which the right provided for in the insurance contract has been presented.

Article 24.- In order to enable probative effects against the insured, it will be indispensable for them to be written or printed in easily readable characters, both the policy and documents containing additional clauses of the same, individual group insurance certificates, open policy certificates, provisional certificates of policy, cover notes, insurance applications, (a) the form of tenders supplied by the undertakings and, in general, all documents used in the insurance procurement.

Article 25.- If the content of the policy or its modifications are not consistent with the offer, the policyholder may request the corresponding rectification within thirty days. follow the day you receive the policy. After this period, the terms of the policy or its amendments shall be deemed to have been accepted.

Article 26.- The previous article should be inserted verbatim into the policy.

Article 27.- When a policy, order or bearer is lost or destroyed, the cancellation and replacement of the policy may be requested following a procedure equal to that of establishes the respective law for the cancellation and replacement of lost or stolen credit titles. The new policy that will be obtained will produce the same legal effects as the one missing.

When in a policy to the order, any holder of it has entered into the respective endorsement the expression "not transferable", and makes it known to the insurance company, will not be the procedure of the preceding paragraph is necessary, but the provisions of Article 23 shall apply.

Article 28.- The insurance company shall not be entitled to compensate the claims against the contractor who obtained the policy with the insured sums, except for the Article 33 of this Law.

Article 29.- Policies may be nominative, ordered or bearer, except as provided in this law for the life insurance contract.

Article 30.- The insurance company may oppose the policy holder or the third parties who invoke the benefit, all exceptions that are applicable to the originating subscriber, without the damage to which he or she has against the claimant.

CHAPTER III

The Prima

Article 31.- The insurance contractor will be required to pay the premium at home, if there is no express provision to the contrary.

Article 32.- In the insurance on behalf of the third party, the insurance company may claim the payment of the premium when the contractor who obtained the policy is insolvent.

Article 33.- The insurance company will have the right to compensate premiums and loans on policies due to it, with the benefit due to the beneficiary.

Article 34.- Unless otherwise agreed, the premium shall expire at the time of the conclusion of the contract, in respect of the first period of the insurance; of the insurance period for which the unit of the premium is calculated. In case of doubt, the period of insurance shall be understood to be one year.

Article 35.- The insurance company will not be able to avoid liability for the realization of the risk, by means of clauses in which it agrees that the insurance will not enter into force but after payment of the first premium or fraction of it.

Article 36.- In case of doubt, the subsequent premiums to that of the first insurance period shall be deemed to be due at the beginning and not at the end of each new period.

Article 37.- In life insurance, in accidents and diseases, as well as in damages, the premium may be split into partial or partial damages. periods of equal duration. If the policyholder chooses to cover the premium in particions, each of these shall expire at the beginning of the period covered by it.

Article 38.- In case the payment of the premium is required in fractional form, each of the periods must be of equal duration.

Article 39.- Insurance for a single trip, dealing with maritime, land or air transport and personal accidents, as well as insurance professional risks and in the compulsory insurance referred to in Article 150 Bis of this Law, the fractional payment of the premium cannot be agreed.

Article 40.- If the corresponding premium or fraction has not been paid, in the case of partial payment, within the agreed term, the Contract effects shall automatically cease at 12 hours on the last day of that period. Where the term has not been agreed, a period of 30 calendar days following the date of its expiration shall apply.

Unless otherwise agreed, the term provided for in the preceding paragraph shall not apply to the compulsory insurance referred to in Article 150 Bis of this Law.

Article 41.- Any convention that intends to deprive the provisions of the previous article will be null.

Article 42.- The insurance company may not refuse payment of the premium offered by privileged, mortgage or loan creditors, insured third parties, beneficiaries or any other that has an interest in the continuation of insurance.

Article 43.- If the premium has been fixed in consideration of certain facts that aggravate the risk and these facts disappear or lose their importance in the course of insurance, the The insured party shall be entitled to require that the premium be reduced in the subsequent periods, in accordance with the respective tariff, and if this is the case, the refund of the corresponding part for the current period.

Article 44.- Unless otherwise stipulated, the premium agreed for the current period shall be due in full even if the insurance undertaking has not covered the risk but for a part of that time.

CHAPTER IV

The risk and realization of the disaster

Article 45.- The insurance contract will be void if at the time of its conclusion, the risk has disappeared or the claim has already been made. However, the effects of the contract may be made retroactive to the express agreement of the contracting parties. In the case of retroactivity, the insurance undertaking which is aware of the non-existence of the risk shall not be entitled to the premiums or the reimbursement of its costs; the contractor who knows that circumstance shall lose the right to the refund of the premiums and be obliged to pay the costs.

Article 46.- If the risk ceases to exist after the conclusion of the contract, the contract shall be settled in full and the premium shall be for the current year only, unless the effects of the insurance must start at a time after the conclusion of the contract and the risk shall disappear in the interval, in which case the undertaking may only require reimbursement of the costs.

Article 47.- Any omission or inaccurate statement of the facts referred to in Articles 8, 9 and 10 of this Act shall empower the insurance undertaking to consider the contract was terminated in full, even if they did not have an impact on the performance of the claim.

Article 48.- The insurance undertaking shall inform the insured or its beneficiaries in an authentic manner, the termination of the contract within 30 calendar days. following the date on which the company itself is aware of the omission or inaccurate statement.

Article 49.- When the insurance contract comprises several things or several persons and the omission or inaccurate statement does not refer to but some of those things or those persons, insurance will be in force for the others, if it is found that the insurance company would have insured them on the same terms.

Article 50.- Despite the omission or inaccurate statement of facts, the insurance company may not terminate the contract in the following cases:

I.- If the company caused the omission or inaccurate declaration;

II.- If the company knew or should know the fact that it has not been declared;

III.- If the company knew or should know exactly the fact that it has been inaccurately declared;

IV.- If the company waived the contract termination right for that cause;

V.- If the declarant does not answer one of the proposed issues and however the company celebrates the contract. This rule shall not apply if, in accordance with the other indications of the declarant, the question must be considered to be answered in a given sense and this reply appears as an omission or inaccurate statement of the facts.

Article 51.- In the event of unilateral termination of the contract for the reasons referred to in Article 47 of this Law, the insurance undertaking shall retain its right to the premium for the period of insurance in progress at the time of termination; but if it takes place before the risk has started to run for the company, the right will be reduced to the reimbursement of the costs incurred.

If the premium has been paid in advance for several periods of insurance, the company will return three-quarters of the premiums for the future periods of insurance.

Article 52.- The insured must inform the insurance undertaking of the essential aggravations of the risk during the course of the insurance, within 24 hours the time you know them. If the policyholder omitted the notice or if he causes an essential aggravation of the risk, the obligations of the undertaking shall cease in full.

Article 53.- For the purposes of the previous article you will always be presumed:

I.- That the aggravation is essential, when it relates to an important fact for the assessment of a risk of such luck that the company would have contracted under different conditions when the contract was concluded, it would have known an analogous aggravation;

II.- The insured person knows or must know any aggravation that emanates from acts or omissions of his tenants, spouse, descendants or any other person who, with the the insured person's consent to the building or to be able to hold the piece of furniture which is subject to the insurance.

Article 54.- The provisions of the two preceding articles shall not prevent the contract from expressly agreeing to certain obligations under the policyholder in order to mitigate the risk or prevent its aggravation

Article 55.- If the insured does not meet those obligations, the insurance undertaking may not make use of the clause that releases it from its obligations, where the non-compliance is not has influence over the claim or the extent of its benefits.

Article 56.- When the insurance company terminates the contract for essential risk aggravation, its liability shall end 15 days after the date on which the contract is terminated. communicate your resolution to the policyholder.

Article 57.- If the contract includes several things or several people, and the risk is not aggravated but in terms of a part of the things or the people, the insurance it shall remain in force for the others, provided that the insured person pays for them the premium corresponding to the respective tariffs.

Article 58.- Risk aggravation will not produce its effects:

I.- If you did not influence the disaster or the extent of the insurance company's performance;

II.- If it was intended to safeguard the interests of the insurance company or to fulfill a duty of humanity;

III.- If the company expressly or tacitly renounced the right to terminate the contract for that cause. If the company receives written notice of the aggravation of the risk, it does not communicate to the insured within the next fifteen days, its willingness to terminate the contract.

Article 59.- The insurance company will respond to all events that present the character of the risk whose consequences have been secured, unless the contract The Commission has already taken the necessary measures.

Article 60.- In cases of dolo or bad faith in risk aggravation, the insured will lose advance premiums.

Article 61.- When several risks are secured, the contract shall remain in force for those not affected by the omission or inaccurate declaration or by the aggravation provided that it is established that the insurance undertaking would have separately insured those risks under conditions identical to those agreed.

Article 62.- In the case of the previous article, the contract will also remain if the policyholder pays the insurance company the higher premiums that it eventually owes to the insurer. the respective tariff.

Article 63.- The insurance undertaking shall be entitled to terminate the contract, when, by facts of the insured, it is aggravated by essential circumstances which by its nature, They should change the risk, even if they are practically not transformed.

Article 64.- In the case of the previous article, the insurance company must notify the termination within 15 days from the date of the change of the circumstances.

Article 65.- If during the insurance period the general conditions in contracts of the same gender are modified, the insured person will have the right to be applied to the new conditions; but if they bring higher benefits for the company, the contractor will be obliged to cover the corresponding equivalent.

Article 66.- As soon as the insured or the beneficiary is aware of the performance of the claim and the right constituted in its favor by the contract of insurance, they must be brought to the attention of the insurance undertaking.

Unless otherwise provided in this law, the insured person or the beneficiary shall have a maximum period of five days for the notice which must be in writing if the contract does not stipulates something else.

Article 67.- When the insured or the beneficiary does not comply with the obligation imposed on them by the previous article, the insurance undertaking may reduce the benefit due to the sum that would have been imported if the notice was given in due time.

Article 68.- The company will be detached from all obligations under the contract, if the insured or the beneficiary omit the immediate notice with the intention of preventing it from being timely check the circumstances of the disaster.

Article 69.- The insurance undertaking shall have the right to require from the insured or the beneficiary any information on the facts relating to the accident and the the circumstances of its implementation and the consequences of its implementation can be determined.

Article 70.- The obligations of the company shall be extinguished if it proves that the insured, the beneficiary or the representatives of both, in order to make it mistake, dissemble or declare inaccurately facts that would exclude or could restrict those obligations. The same will be observed if, for the same purpose, the documentation referred to in the previous article does not refer to it in time.

Article 71.- The credit resulting from the insurance contract shall expire thirty days after the date on which the company has received the documents and information it permits. know the basis of the complaint.

The clause in which it is agreed shall be null and void that the credit may not be required but after it has been recognized by the company or proven in judgment.

Article 72.- In all cases where the address of the offices of the insurance institutions will be different from that of the issued policy, they must communicate to the insured the new address in the Republic for all the information and notices to be sent to the insurance company and for any other legal effect.

The requirements and communications that the insurance undertaking must make to the insured or its successors shall be valid if they are made in the last address known to the insurer. insurer.

Article 73.- If the company does not comply with the obligation under which it deals with the previous article, it may not make use of the rights that the contract or this law establishes for the case of the lack of warning or late warning.

Article 74.- The insured person or his or her successors may direct the communications to the indicated address, the insurer directly, or any of its agents, except the parties have agreed not to give them powers to the latter for the purpose indicated.

Article 75.- The penalties established for the case that the insured person or his or her successors are no longer fulfilling any of their obligations shall not apply if There was no fault on his part.

Article 76.- When the contract or this law makes it dependent upon the existence of a right of observance of a given period of time, the insured to his or her successors in title The default or force majeure event, may fulfill the delayed act as soon as the impediment disappears.

Article 77.- In no case shall the company be obliged, if it proves that the claim was caused by the insured, the beneficiary or their respective successors in bad faith.

Article 78.- The insurance company will respond to the claim even if it has been caused by the insured person, and only the clause that releases the insurance will be accepted in the contract. company in case of serious fault.

Article 79.- The company will respond to the losses and damages caused by the persons in respect of which the insured is civilly responsible; but the contract will be accepted clause in the above article.

Article 80.- You will also respond whenever the disaster is caused in compliance with a duty of humanity.

CHAPTER V

Prescription

Article 81.- All actions that are derived from an insurance contract will be prescribed:

I.- In five years, dealing with death coverage in life insurance.

II.- In two years, in other cases.

In all cases, the deadlines will be counted from the date of the event that gave them origin.

Article 82.- The time limit in which the previous article deals with it shall not be provided in the event of omission, false or inaccurate statements about the risk involved, but from the day on which the company has been aware of it; and whether it is the conduct of the disaster, from the day on which it has come to the attention of the persons concerned, who shall demonstrate that they have not until then been unaware of such performance.

It will also be necessary for third party beneficiaries to have knowledge of the right constituted in their favour.

Article 83.- The pact that abridged or extends the limitation period fixed in the previous articles is null.

Article 84.- In addition to the ordinary causes of interruption of the prescription, this will be interrupted by the appointment of experts on the occasion of the performance of the claim, and in the case of the action in payment of the premium, for the payment order.

TITLE II

Damage insurance contract

CHAPTER I

General provisions

Article 85.- Any economic interest that a person has in the event of a disaster may be the subject of an insurance contract against damages.

Article 86.- In insurance against damages, the insurance company responds only for the damage caused up to the limit of the sum and the actual value insured. The company shall be liable for any loss of profit or interest which is obtained from the insured thing, if it is expressly agreed.

Article 87.- When the insured interest consists of a thing not being destroyed or impaired, the insured interest is presumed to be equivalent to the interest of an owner in the conservation of the thing.

When an alien is insured for the interest in it, the contract shall be deemed to be held in the interest of the owner, but the owner may not benefit from the insurance. after the interest of the contractor has been covered and the premiums paid have been restored.

Article 88.- The contract will be null if at the time of its conclusion, the insured thing has perished or cannot continue to be exposed to the risks.

The premiums paid will be returned to the insured with deduction of the expenses incurred by the company.

The intent or bad faith of either party will impose the obligation to pay the other an amount equal to the double of the one-year premium.

Article 89.- In the event of total loss of the item insured for risk, the effects of the contract will be extinguished in full, but the insurance company may require premiums up to the time when the loss is known.

Article 90.- If the insured value suffers an essential decrease during the course of the contract, each of the contractors will have the right to demand the corresponding reduction of the sum insured, in which case the premium will suffer the proportional reduction for the subsequent periods of insurance.

Article 91.- To fix the insurance indemnity, the value of the insured interest at the time of completion of the claim will be taken into account.

Article 92.- Unless otherwise agreed, if the insured sum is less than the insured interest, the insurance undertaking will respond in proportion to the damage caused.

Article 93.- As an exception to the provisions of Article 86 of this Law, considering the difficulty of valuing the insured thing, the parties may fix expressly in the contract an agreed value for the compensation effects of their total loss or theft.

Article 94.- If the insured thing has been designated by its gender, all objects of the same gender existing at the time of the disaster are considered to be insured.

Article 95.- When a insurance contract is concluded for a sum greater than the actual value of the insured thing and there has been either doling or bad faith of one of the parties, the other will have the right to sue or oppose the invalidity and to require compensation for damages.

If there was no dolo or bad faith, the contract will be valid, but only up to the actual value of the insured thing, with both parties having the power to ask for the reduction of the sum insured. The insurance undertaking shall not be entitled to the premiums for the surplus; but it shall be the premiums and premiums for the current period, at the time of the insured's notice.

Article 96.- In the event of partial damage for which compensation is claimed, the insurance undertaking and the insured shall be entitled to terminate the contract at the latest in the the time of payment of the compensation, then the following rules apply:

I.- If the company makes use of the right of termination, its liability shall end 15 days after it has communicated the right to the insured, and shall reimburse the premium corresponding to the the non-elapsed portion of the current insurance period and the rest of the sum insured;

II.- If the policyholder exercises that right, the company may require the premium for the current insurance period. Where the premium has been covered in advance for several periods of insurance, the company shall reimburse the amount corresponding to future periods.

Article 97.- In the case of the previous article, if the contract is not terminated, the company shall not be obliged to do so but for the remainder of the sum insured.

Article 98.- Unless otherwise agreed by the insurance company, the insurance company will not be liable for losses and damages caused by the intrinsic vice of the thing.

Article 99.- The insurance company will not respond to losses and damages caused by foreign war, civil war, popular movements, earthquake or hurricane. The contraa's contraa.

Article 100.- When a number of companies are engaged in insurance against the same risk and for the same interest, the insured will have the obligation to bring to the attention of each of the insurers, the existence of the other insurances.

The notice must be given in writing and indicate the name of the insurers, as well as the insured sums.

Article 101.- If the policyholder intentionally omits the notice that it deals with the previous article, or if it hires the various insurance to obtain an unlawful profit, the Insurers will be released from their obligations.

Article 102.- The insurance contracts referred to in Article 100, concluded in good faith, in the same or different dates, for a total sum greater than the value of the interest insured, shall be valid and shall require each of the insurance undertakings up to the full value of the damage suffered, within the limits of the sum which they have insured.

Will also operate insurance concurrency in the case of liability insurance where the value of the insured interest is undetermined.

Article 103.- The company that pays in the case of the previous article, may repeat against all the others in proportion of the sums respectively insured.

Dealing with insurance against liability, insurance companies will participate in equal amounts in the payment of the claim. If the limit or sum of any of the policies is exhausted, the excess amount will be compensated in equal amounts by the companies with higher insured amounts or limits, up to the maximum limit of responsibility for each of them.

Article 104.- The insured who holds new contracts, ignoring the existence of previous insurance, will have the right to terminate or reduce the new ones, provided that does not do so within 15 days of the date on which he became aware of the other insurance.

The termination or reduction will not produce effects but from the expiration of the insurance period in which they are requested.

Article 105.- If, when the new insurance is contracted, the risk has already begun to run for some of the previous insurers, the reduction will not produce effect but from the the time when it is claimed.

Article 106.- If the secured object changes ownership, the rights and obligations arising out of the insurance contract will pass to the acquirer. The previous owner and the new acquirer will be jointly and severally liable to pay the premiums due and outstanding at the time of the transfer of ownership.

Article 107.- The insurance undertaking shall have the right to terminate the contract within 15 days of the date on which it becomes aware of the change in ownership of the contract. secured object. Their obligations shall be completed 15 days after the notification of this written decision to the new acquirer, but shall reimburse the new acquirer for the part of the premium corresponding to the non-elapsed time.

Article 108.- Notwithstanding the two preceding articles, the rights and obligations of the insurance contract shall not pass to the new acquirer:

I.- When the change of owner has the effect of an essential risk aggravation in the terms of this law; and

II.- If within fifteen days of the acquisition, the new owner notifies the company in writing of its willingness to not continue with the insurance.

Article 109.- On the insurance of things taxed with privileges, mortgages or garments, the privileged, mortgage or prendor creditors will be subrogated in full in the compensation up to the amount of the credit secured by such charges.

However, the payment made to another person will be valid when it is made unopposed by the creditors and the mortgage, garment or privilege, or these, is not mentioned in the policy. charges have been communicated to the insured undertaking.

Article 110.- If the liens are indicated in the policy or have been written in the company's knowledge, the privileged, mortgage or prying creditors, have the right to have the undertaking communicate to them any decision which is intended to terminate, revoke or nullify the contract, so that, where appropriate, they may be subrogated to the rights of the insured person.

Article 111.- The insurance company that pays the compensation will be subrogated to the amount paid, in all rights and actions against third parties that because of the damage suffered from the insured.

In the course of the insurance, the insurer shall be subrogated, up to the limit of the compensation paid, in the rights and actions which the insured person has for reason of the claim to the insurance contractor and, where appropriate, to other persons responsible for the insurance.

The company may be free of all or part of its obligations, if the subrogation is prevented by facts or omissions from the insured.

If the damage was compensated only in part, the insured and the insurance company will compete to assert their rights in the corresponding proportion.

The right to subrogation shall not proceed in the event that the insured has a conjugal or kinship relationship for consanguinity or affinity to the second degree or civil, with the person who caused the damage, or if it is civilly responsible for the damage.

Article 112.- In case of bankruptcy or contest of the insured, the mass will happen to him in the contract, being applicable the provisions regarding the change of owner.

Article 113.- When the disaster occurs, the insured will have the obligation to execute all acts that tend to avoid or diminish the damage. If there is no danger in the delay, you will ask the insurance company for instructions, and you must follow them.

The expenses incurred by the insured person who are not manifestly imparted will be covered by the insurance company and if the insurance company gives instructions in advance.

Article 114.- Without the consent of the company, the insured will be prevented from changing the state of affairs, except for reasons of public interest or to avoid or diminish the damage, but the insurance undertaking must cooperate so that they can be restored to their place in the shortest possible time.

Article 115.- If the insured violates the obligation to prevent or lessen the damage or to preserve the invariability of things, the insurance company will have the right to reduce the compensation up to the value to which it would be paid if such an obligation was fulfilled. If this obligation is violated by the insured person with fraudulent intent, the insured person will be deprived of his rights against the company.

Article 116.- The company may acquire the saved effects, provided it pays the insured its actual value according to the expert estimate. It may also replace or repair the insured thing to the satisfaction of the insured person, thereby freeing himself from compensation.

Article 117.- The insurer and the insured may require that the damage be assessed without delay. In the case of partial destruction of agricultural products, in particular by hail, the valuation of the damage shall be deferred until the harvest, if one of the parties so requests.

Article 118.- When either party refuses to appoint its expert for the recovery of the damage, or if the parties do not agree on the importance of the damage, the recovery shall be carried out by experts appointed by the judicial authority at the request of either of them, or by a third party so designated, if necessary.

Article 119.- The fact that the insurance company intervenes in the recovery of the damage shall not deprive it of the exceptions it may oppose against the shares of the insured person or its causative.

Article 120.- The convention that prohibits the parties or their successors from making expert intervention in the recovery of the damage shall be null and void.

Article 121.- Valorization expenses will be borne by the contractors by equal parties.

CHAPTER II

Fire insurance

Article 122.- In the fire insurance, the insurance company contracts the obligation to indemnify the damages and losses caused by fire, explosion, fulmination or accidents of a similar nature.

Article 123.- The insurance company, unless otherwise agreed, will not respond to losses or damages caused by the single action of the heat or by direct and immediate contact of the fire or of an incandescent substance, if there is no fire or fire principle.

Article 124.- If there is no agreement in another sense, the company will only respond to material damage directly resulting from the fire or the fire principle.

Article 125.- They are treated as material and direct damages, material damage caused to the objects covered by the rescue measures.

Article 126.- Despite any stipulations to the contrary, the company will respond to the loss or disappearance of the insured objects over the fire, unless it proves that they are derived from a theft.

Article 127.- After the disaster, either party may terminate the contract with a prior notice of one month; but if the termination comes from the insured, the the company will be entitled to the premium for the current period.

Article 128.- In fire insurance, compensation shall be understood as:

I.- For goods and natural products, the current price in place;

II.- For buildings, the local construction value, deducting decreases that have occurred after construction; but if the building is not rebuilt, the compensation value shall not exceed the sales value of the building;

III.- For furniture, usual objects, work instruments and machines, the sum that would require the acquisition of new objects, taking into account when making the estimate of the Compensation value changes of value that have actually had the objects secured.

CHAPTER III

Expected and earned provet insurance

Article 129.- It is lawful for the expected outcome insurance within the limits of a legitimate interest.

Article 130.- In the probable yield insurance, the value of the interest shall be that of the performance that has been obtained from not exceeding the claim; but shall be deducted from the (a) the value of the costs which have not yet been incurred or have already been incurred as a result of the accident.

Article 131.- In insurance against damage caused by hail, the notice of the casualty must be given within twenty-four hours of its completion. In this class of insurance, the provision of Article 114 shall not apply, and the insured person shall have the power to vary the state of affairs in accordance with the requirements of the case.

Article 132.- In insurance against sickness or death of cattle, the company is obliged to indemnify the damages that are derived from those facts. The value of the interest in death is the value of the sale of the livestock at the time of the disaster; in case of illness, the value will be that of the damage that is directly carried out.

Article 133.- In the insurance referred to in the previous article, the notice of the claim must be given within twenty-four hours.

Article 134.- When the lack of care to be taken with livestock, the insurance company will be free from its obligations.

Article 135.- The insurance company will respond to the death of the livestock even if the death is verified within the month following the date of termination of the insurance, provided that has a disease contracted in the period of duration of the contract.

Article 136.- The insurance will not comprise the livestock that is uniquely enaged.

Article 137.- The insurance contract may not be terminated because of the death or illness of a single animal of the insured livestock.

CHAPTER IV

Land transport insurance.

Article 138.- They may be subject to the contract of insurance against the risks of transport, all the effects transportable by the means of the terrestrial locomotion.

Article 139.- Transport insurance shall comprise the costs necessary for the rescue of the insured objects.

Article 140.- They may ensure, not only the owners of the goods transported, but all those who have an interest or responsibility in their conservation, expressing in the contract the concept by which they hire insurance.

Article 141.- In addition to the requirements of Article 20 of this Act, the transport insurance policy shall designate:

I.- The company or person to be in charge of the transport;

II.- The specific qualities of the insured effects, with the expression of the number of packages and the marks they have;

III.- The point where you would have received the insured genders, and the extent to which they should be delivered.

Article 142.- In cases of impairment for the purpose or course of time, the insurance company will justify judicially the state of the insured effects, within the 24 hours following the notice of arrival at the place where the insured person is to be delivered. Without this justification, the exception which he proposes to exempt from his liability as an insurer shall not be admissible.

Article 143.- The insurance company, will be subrogated in the actions that are responsible for the insured to repeat against the porters for the damages that they are responsible.

Article 144.- The insured will have no obligation to notify the sale of the insured thing or to report to the company the aggravation of the risk.

CHAPTER V

Insurance against liability

Article 145.- In insurance against liability, the company is forced to the limit of the sum insured to pay the compensation that the insured owed to a third as a result of a fact causing damage to the insurance contract.

Dealing with the compulsory insurance referred to in Article 150 Bis of this Law, the company will be obliged to cover the insured risks up to the amounts compensation or sums insured per person or, as the case may be, those accumulated by event, which are laid down in the respective legal provisions or administrative provisions of a general nature resulting from them, in force when the contract is concluded.

For the risks in respect of which the provisions referred to in the preceding paragraph do not determine the amount of compensation or the insured sum, shall be in accordance with Article 86 of this Law to determine the limit of the sum insured.

Article 145 Bis.- In insurance against liability, it may be agreed that the insurance company is responsible for the compensation to be paid by the insured person to a third party in any of the following ways:

a).- For events that occurred during the respective policy or in the previous year, provided that the claim is first made and in writing to the insured or to the company for the duration of that policy, or

b).- For events occurring during the policy period, provided the claim is first made and in writing to the insured or the company in the the course of that term or within the year following its termination.

Other forms of temporary limitation of coverage shall not be admissible, but shall be admissible if the extension of any given time limit.

The temporary limitation of the coverage will be against both the insured and the damaged third party, even if they do not know the right constituted in their favor by the existence insurance, the occurrence of the operative event or the materialization of the damage.

If the accumulation of insured sums is given, the provisions of Articles 102 and 103 of this Law shall apply.

Article 146.- The costs resulting from the procedures followed against the insured person shall be borne by the undertaking, unless otherwise agreed.

Article 147.- Liability insurance attributes the right to compensation directly to the damaged third party, who will be considered as a beneficiary of insurance from the time of the disaster.

In the event of death, your right to the amount of insurance will be transferred by the successor, except where the law or the contract that establishes for the insured the obligation of indemnify, point out the relatives of the extinct to whom the compensation must be paid directly without the need for a succession judgment.

Article 148.- No recognition of debit, transaction or any other legal act of a similar nature, made or concluded without the consent of the insurance undertaking, shall be enforceable. The confession of the materiality of a fact cannot be assimilated to the recognition of a responsibility.

Article 149.- If the third party is indemnified in whole or in part by the insured, it shall be reimbursed proportionally by the company.

Article 150.- The notice on the realization of the fact that the liability amount must be given as soon as the indemnity is required. In the event of a civil or criminal trial, the insured will provide the insurance company with all the necessary data and evidence for the defence.

Article 150 Bis.- The liability insurance that is legally binding, shall not cease in its effects, to be rescinded, or to be given terminated prior to the date of termination of its validity.

When the company pays for the insured person's compensation to a third party because of the damage provided for in the contract and verify that the contractor incurred in omissions or inaccurate statements of the facts referred to in Articles 8, 9, 10 and 70 of this Law, or in essential aggravation of the risk in the terms of Articles 52 and 53 thereof, shall be entitled to require directly to the contractor the reimbursement of the paid.

CHAPTER VI

INSURANCE

Article 151.- By the insurance insurance contract the insurance undertaking is required to indemnify the insured person for compensation or penalty payments. property damage suffered, within the limits laid down in that contract, when the circumstances agreed upon in the contract arise in relation to the breach by the contractor of the insurance of his legal or contractual obligations, excluding obligations relating to contracts of a financial nature.

Any payment made by the insurer must be reimbursed by the insurance contractor.

Article 152.- The caution insurance policy will be issued in duplicate, retaining one copy of the contractor and the other the insurer. In addition to the requirements of Article 20 of this Law, the policy shall contain the signature of the insurance contractor and a clause stating that the insurance undertaking shall bear the risk to the insured by issuing a certificate. security insurance, which the insurance contractor recognizes the same strength and validity as the policy.

Item 153.- The caution certificate will be entered:

I.           The name and address of the insurance undertaking, the insurance contractor and the insured person;

II.          The legal or contractual obligations of the insurance contractor for the insured risk;

III.         The sum insured or, where applicable, the agreed amount of the compensation;

IV.         The vouchers that the insured person must provide to the insurer to prove that the agreed circumstances have occurred in order to make the amount of the compensation payable. In the case of insurance in favour of the Federal Government, the Federal District, the States and the Municipalities, the provisions of the applicable laws, regulations and administrative provisions must be observed;

V.          The time to start the insurance and its duration;

VI.         The transcript of articles 154, 155 and 156 of this Law;

VII.        The other clauses to govern the contract in accordance with applicable legal provisions;

VIII.       The number and date of the policy under which the certificate is issued, and

IX.         The firm of the insurance company.

Article 154.- The lack of full or partial payment of the premium will not result in the cessation or suspension of the effects of the caution. Nor will it be cause for termination of the contract.

The insurance company will not be able to compensate the premiums owed to the insured person, or to claim the premium payment.

Article 155.- The exceptions and defenses that the insurance undertaking has for acts or omissions attributable to the contracting party shall not be oponnable to the insured person. Security of caution. The provisions of Articles 52 to 57 and 60 to 64 of this Law shall also not apply to the insured person.

Article 156.- The validity of the insurance contract will be determined in the policy, which will not be able to set a time limit of more than ten years. However, it may be established that it is extended one or more times for a period not exceeding one year each time.

The express agreement of the insured will be necessary to terminate the insurance contract for reasons other than the only course of the deadline set for the validity of their coverage.

Article 157.- The caution certificate will be executed to collect compensation and related accessories, when they are met the following requirements:

I.           Be accompanied by the vouchers established in the certificate itself, in order to prove to the insurer that the agreed circumstances have occurred in order to make the liquid amount of the compensation provided for in the certificate and its accessories, and

II.          The course of a term provided for in the certificate, which may not be greater than 30 calendar days, counted from the day following the date on which the insurance undertaking has received the insured person's claim with those vouchers.

To the commandments of embargo which are dictated in accordance with the provisions of this article shall not be liable to the inembargability of the goods in which the investments to support the coverage of the technical reserves, provided for in the final part of the second paragraph of Article 122 of the Law on Insurance and Fiance Institutions. In this case, the insurance company will be deposited.

Article 158.- The caution insurance policy will have running, in effect for the insurer to obtain from the insurance contractor or its obligated solidarity, the advance of the liquid amount of the indemnity that the insured has required to the insurance undertaking or the reimbursement of its payment to the insured person, when the following requirements are met:

I.           The sum for which the execution is required shall not exceed the agreed amount of the compensation provided for in the policy, its accessories and the premiums due;

II.          The policy shall be accompanied, as appropriate, by the order or receipt of payment of the compensation subscribed by the insured person or by his legal representative, or the certification in respect of the payment of the compensation covered to the insured person who make the insurance company in terms of the Insurance and Insurance Institutions Act, and

III.         The course of ten or more calendar days from the day following the day on which the insurer requires the advance or reimbursement to the insurance contractor.

Article 159.- When the certificate of caution is not running, the claim for the compensation shall be presumed to be proof to the contrary, if the insurer does not object to it duly justified and founded within thirty calendar days after the date on which it receives it together with the agreed vouchers to make the compensation payable.

Article 160.- The security insurance contracted to guarantee obligations to the Federal Government, the Federal District, the States and the Municipalities, be effective in accordance with the provisions of the Insurance and Insurance Institutions Act.

Article 161.- Once the insurance contractor has reimbursed the insurer for the amount of compensation, on its own account it may claim the insured for the refund of the amounts which it considers to be unduly paid.

TITLE III

Special provisions of the insurance contract on people

Article 162.- The insurance contract on persons comprises all risks that may affect the person of the insured person in their existence, personal integrity, health or vital vigor.

Item 163.- People's insurance may cover an economic interest of any kind, resulting from the risks of this Title, or the right to separate benefits at all from any loss of property arising from the claim.

In the case of persons, the insurance undertaking may not be subrogated to the rights of the insured person or the beneficiary against third parties by reason of the claim, except in the case of insurance contracts covering medical expenses or health.

The right to subrogation will not proceed in case the insured or the beneficiary has a conjugal or kinship relationship for consanguinity or affinity until the second grade or civil, with the person who caused the damage, or if they are civilly responsible for the damage.

Article 164.- The insurance policy on persons, in addition to the requirements of Article 20 of this law, shall contain the following:

I.- The full name and date of birth of the person or persons on whom the insurance will fall.

II.- The full name of the payee if any one is determined;

III.- The event or the term of which the enforceability of the insured sums depends, and

IV.- Where applicable, the guaranteed values.

Article 165.- The Person Insurance Contract policy cannot be the carrier. The nomination shall be transmitted by a declaration from both parties, notified to the insurance undertaking. The policy for the order will be transmitted by means of endorsement that will contain, invariably, the date, the name and the address of the endorser and the signature of the endorser. No evidence of another species shall be permitted in this form of transmission.

In the event of an irrevocable designation of a beneficiary, the beneficiary may give up his right by way of a declaration which, as provided for in Article 19, must be stated in writing and, in addition, be notified to the insurer.

Article 166.- In person insurance, if the contract gives the policyholder the ability to change the insurance plan, the obligation it has to satisfy the insured by the conversion shall not be less than the difference between the existing mathematical reserve and the one that must be constituted for the new plan at the time of the operation of the change.

Article 167.- The insurance for the death case of a third party will be null if the third party does not consent, which must be entered in writing before the conclusion of the contract, with indication of the sum insured.

The consent of the insured third party must also be entered in writing for any designation of the beneficiary, as well as for the transfer of the benefit of the contract, for the assignment of rights or for the establishment of a garment, except where these last three operations are held with the insurance undertaking.

Article 168.- The insurance contract for the death case, on the person of a minor who has not completed the twelve years, or on the subject to interdiction, is null. The insurance company will be obliged to return the premiums, but it will be entitled to the expenses if it has proceeded in good faith.

In the survival insurance on the persons referred to in this article, the return of the premiums for the case of death may be agreed.

Article 169.- When the minor is twelve years old or older, his or her legal representative's personal consent will be required; otherwise, the contract will be null.

Article 170.- Reciprocal insurance may be held in a single act. Insurance on the life of the spouse or oldest child shall be valid without the consent referred to in Article 167.

Article 171.- When it is found that there was inaccuracy in the indication of the age of the insured, the company may not terminate the contract unless the actual age at the time of its conclusion, is outside the admission limits set by the company, but in this case the mathematical reserve of the contract will be returned to the insured on the date of its termination.

Article 172.- If the age of the insured is understood within the admission limits set by the insurance undertaking, the following rules:

I. When as a result of the inaccurate indication of age, a lower premium than the actual age, the obligation of the insurance undertaking to be reduced by the proportion between the premium stipulated and the rate premium for the actual age at the date of conclusion of the contract;

II.     If the insurance undertaking has already satisfied the amount of the insurance when the indication of the age of the insured is found to be inaccuracy, it shall be entitled to repeat what it would have paid more in accordance with the calculation of the previous fraction, including the respective interests;

III. If as a result of the inaccurate age indication, you are paying a higher premium than that corresponding to the actual age, the undertaking shall be obliged to reimburse the difference between the existing reserve and that which would have been necessary for the actual age of the insured person at the time of the conclusion of the contract. Subsequent premiums shall be reduced according to this age, and

IV. If after the death of the insured it was discovered that it was incorrect the age stated in the application, and it is within the permitted admission limits, the insurance undertaking will be obliged to pay the sum insured that the premiums covered would have been able to pay according to age real.

For the calculations required by this Article, the tariffs that have been in force at the time of the conclusion of the contract shall apply.

Article 173.- If at the time of the insurance contract, or later, the insured presents the company with evidence of its age, the institution will enter the policy or issue another voucher and will not be able to require further evidence when the insured person has to pay the death claim.

Where, by the loss of the minutes of the Civil Registry, the insured person or the beneficiaries where appropriate, they cannot verify their age with such constances or with others documents, may give evidence to the competent judge, with a summons from the insurance undertaking, to verify that fact. The same procedure must be followed by the beneficiaries of the policy if they are not able to check their parentage by the normal means laid down by the relevant civil legislation.

Article 174.- The insured will have the right to designate a third party as a beneficiary without the need for the insurance company's consent. The benefit clause may comprise all or part of the rights deriving from the insurance.

Article 175.- The policyholder, even if he has designated a third party as a policyholder in the policy, may freely dispose of the the right derived from it, by act either alive or by cause of death.

In any event, the insurer will be released from its obligations if it pays on the basis of the most recent beneficiary designation, as provided for in the respective insurance contract.

If only one beneficiary has been designated and is dead before or at the same time as the insured person and no new beneficiary is designated, the amount of the insurance shall be paid to the succession of the insured person, unless otherwise agreed or who disclaims the right to revoke the designation made in the terms of the following article.

Article 176.- The right to revoke the designation of the beneficiary will cease only when the insured makes his/her resignation and, in addition, the the beneficiary and the insurance undertaking. The waiver shall be enforced on the policy and shall be the only means of admissible evidence.

Article 177.- Except as provided for in Article 175 of this Law, the benefit clause provides for the beneficiary's own right on the credit that this clause attributes to you, which you may require directly from the insurance company.

Article 178.- The legal effects of the beneficiary's designation shall be suspended when the insured person is declared to be in a state of competition or bankruptcy; or their rights to the insurance are taken up; but they shall be restored in full if the contest, bankruptcy or sequestration is without effect.

Article 179.- When the insured renounces in the policy the ability to revoke the designation of the beneficiary, the right to the insurance that is derived from it Designation may not be taken on board or be subject to execution for the benefit of the creditors of the insured person, in the event of competition or bankruptcy.

Article 180.- If the insured designates as a beneficiary to his or her spouse, the right arising from the designation of the beneficiary and the insured persons shall not be liable for the seizure or execution by contest or bankruptcy of the insured person.

Article 181.- Declared the status of bankruptcy or open the contest of an insured, their spouse or descendant beneficiaries of a life insurance, replace the insured person in the contract, unless they expressly refuse this replacement.

The beneficiaries shall notify the insurance undertaking of the transmission of the insurance and shall provide it with authentic proof of the existence of the bankruptcy or contest of the policyholder.

If there are multiple beneficiaries, they will designate a common representative who receives the company's communications. You may send them to any of them, as long as the representative's name and address are not known to you.

Article 182.- When the children of a given person are listed as beneficiaries without the express mention of their names, the descendants that should be succeeded in case of legitimate inheritance.

Article 183.- By the spouse designated as a beneficiary, the surviving spouse will be understood.

Article 184.- By heirs or causeholders designated as beneficiaries, the descendants who must succeed the insured person must first be understood the case of a legitimate inheritance and the surviving spouse, if there are no descendants or spouses, the other persons entitled to the succession.

Article 185.- If the right of insurance is jointly attributed as beneficiaries, to the descendants that happen to the insured and to the spouse who survive, one half shall be attributed to it and the other shall be assigned to the former according to their right of succession.

Article 186.- When miscellaneous heirs referred to in the previous article, are designated as beneficiaries, they shall be entitled to the insurance according to their right of succession.

This provision and that of the previous article shall apply provided that the insured has not established the form of insurance distribution.

Article 187.- If the policyholder omitted to express the degree of kinship or designate as beneficiaries of his policy to persons who must not succeed as heirs and the precise indication of the portion corresponding to each one, the insurance will be distributed among all of them equally.

Article 188.- When any of the beneficiaries disappear, their portion will be equal to that of the others.

Article 189.- Even when descendants, surviving spouse, parents, grandparents, or siblings of the insured, who are beneficiaries, give up the inheritance, acquire the insurance rights.

Article 190.- If the right of insurance on the life contracted by the debtor as insured and beneficiary should be rekilled as a result an embargo, contest or bankruptcy, their spouse or descendants may require with the consent of the debtor that the insurance is transferred to them by payment of the ransom value.

Article 191.- The insurance company will not take action to require payment of the premiums, except for the right to compensation for the non-payment of the premium for the first year, which shall not exceed 15% of the amount of the annual premium stipulated in the contract.

The automatic cessation of the effects of the contract shall not occur where the benefit of the automatic premium loan has been agreed upon in the policy.

Article 192.- If after covering three consecutive annuities, the premiums are stopped, the insurance will be reduced in full, according to the technical standards laid down for the case, which shall be included in the policy.

Article 193.- The insured who has covered three consecutive annuities, shall be entitled to the immediate reimbursement of a portion of the mathematical reserve, also the technical standards laid down for the case, which must be included in the policy.

Article 194.- The reduced policies will also confer the rights to the rescue that the previous article treats.

Article 195.- Temporary insurance whose duration is less than ten years, will not force the company to grant guaranteed securities, for death.

Article 196.- The payee will lose all of its rights if it unfairly attacks the insured person. If the insured person's death is unfairly caused by the person who held the contract, the insurance will be ineffective, but the insured's heirs will be entitled to the mathematical reserve.

Article 197.- The insurance company will be obliged, even in the case of the insured's suicide, whatever the mental state of the suicide or the mobile of the suicide, if it is verified after two years of the conclusion of the contract. If suicide occurs before two years, the company will only refund the mathematical reserve.

Article 198.- The insurance may be constituted in favor of a third person, expressing in the policy the name, surname and conditions of the person Secured, or otherwise indubitably determined.

Article 199.- Collective insurance against accidents will give the beneficiary an own right against the insurance company, since the accident occurs.

Article 200.- Insurance against accidents and except where it is expressly stipulated that the agreed benefit is covered in the form of income, must be paid in the form of capital, provided that the accident causes the insured person to decrease in his capacity for the work to be estimated as permanent.

Article 201.- In popular insurance the company is forced to die or the life of the insured, by paying periodic premiums, without need for compulsory medical examination. The insured capital shall not exceed $5,000.00 in capital or the equivalent in rent.

Article 202.- In group or company insurance, the insurer is forced to die or the life span of a given person, by reason simply to belong to the same group or company, through the payment of periodic premiums, without the need for compulsory medical examination.

Article 203.- In the cases referred to in the previous two items, the insured will have the obligation to pay the premiums corresponding to the first year; and the suspension of the effects of the insurance or the full termination may be agreed for the case where the payment of the premiums is not made in due time.

TITLE V

Final Provisions

Article 204.- All the provisions of this law shall have the character of imperative, unless they expressly admit the covenant to the contrary.

Article 205.- This law will take effect on the date of its publication.

Article 206.- They shall be applicable to contracts previously concluded, Articles 14 to 18, 23, 27, 32, 37 to 42, 55, 65, 72 to 76, 94, 106 to 108, 112, 174 to 176, 180 to 185, 187, 188, 190, 192 to 194 and 199, as well as other provisions whose application is not retroactive.

Article 207.- Title VII, Book II of the Trade Code of September 15, 1889 and all legal provisions opposing the present law.

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, the This decree at the residence of the Federal Executive Branch, in Mexico City, at the twenty-six days of the month of August of a thousand nine hundred and thirty-five.- Lazaro Cardenas.-Heading.-The Secretary of State of the Treasury and Public Credit, Eduardo Suarez.-Heading.-The Secretary of State and the Office of the National Economy, Rafael Sánchez Tapia.-Heading.-Al C. Secretary of Government.-Present. "

What I communicate to you for publication and other purposes.

Effective Suffrage. No Re-election.

Mexico, D. F., at 30 August 1935.-The Secretary of the Interior, Silvano Barba González.-Rubrica.

Al C. ...

TRANSITIONAL ITEMS OF REFORM DECREES

LAW ERRATA ON THE INSURANCE CONTRACT PUBLISHED IN THE NUMBER CORRESPONDING TO THE NEXT DAY OF AUGUST 31.

Published in the Official Journal of the Federation on September 13, 1935

valgign=top style='width: 49.48%; padding: 0cm 3.5pt 0cm 3.5pt ' >

from the day following the day that the

DICE:		MUST DECIR:
___		___
Law Header: Powers granted to the Executive of the Union by Decree		powers granted to the Union Executive by Decrees
. 2nd.-conformity		in compliance
Art. 5th.-of a contract understood,		from suspended contract,
Art. 8th.-such as know and need to know		such as know or need to know
Art. 15.-and those that in fact affect		and those in fact done
Art. 19.-must be stated in writing,		must be in writing,
Art. 22.-The security company		The insurance company
Art. 27.-and get a new policy that will produce the same ofects		and get a new policy that will produce the same effects
Art. 33.-policies due to you		policies due to you,
Art. 39.-from the day following the day when the
Rubro to Chapter IV.- The risk and realization of the sinister		The hazard and performance of the disaster
Art 47.-will empower the company		will empower the enterprise
Art. 49.-understand multiple things to multiple people and the omission or inaccurate statement does not refer to		understand multiple things or multiple people and the default or inaccurate declaration does not refer to
Art. 53.- Frac. II.-another person who, with the consent of the insured, has the building on its power		another person who, with the consent of the insured, has the building or has in its power
Art. 57.-the insurance will be in effect for the other		the insurance will be in effect for the other
Art. 62.-the largest premiums that will eventually need you		the higher premiums that you might need
Art. 63.-when by facts of the insured are aggravated circumstances		when by facts of the policyholder, circumstances are aggravated
Art. 76.-the insured person or his or her successors who incurred		the insured to its causeholders who incur
Art. 82.-but from the day the company has become aware of the, .. .. .. .. .. .. ... ... who should demonstrate		but from the day the company was aware of it; .. .. .. .. .. .. .. who will need to demonstrate
Art. 88.-with deduction of expenses		with deduction of expenses
Art. 96.-the insurance company and the insured will be entitled		the insurer and the insured, will be entitled
Art. 98.-except pact in conrtarian		except pact to the contrary
Art.126.- the disappearance of the secured objects that come over		the disappearance of secured objects over
Art. 132.-the value will be the year		the value will be the value of the damage
Art. 144.-the insured will have no obligation to see		the policyholder will have no obligation to warn
Art. 156.- The consent of the third insured		Assured third party consent
Art. 161.-the following rules apply;		the following rules apply:
Art. 168.-may not be foreclosed		cannot be loaded
Art. 177.-increases equally to others.		will increase by equal parts of others.
Art. 181.-according to technical standards		according to the technical rules

Mexico, D. F., 10 September 1935.

THE ADDRESS.

DECREE that reform and add several articles of the Law on the Insurance Contract.

Published in the Official Journal of the Federation on April 15, 1946

ONLY ARTICLE.- Reforms or add, in the terms below, the following articles of the Insurance Contract Act:

..........

Note: Items 6o, 14, are reformed or added 19, 21, 24, 27, 31, 35, 72, 147, 148, 152, 154, 155, 156, 157, 159, 161, 162, 164, 165, 175, 176, 186, 190, 191.

Benito Coquet, D. P.- Jose Castillo Torre, S. P.- Juan Fernandez Albarran, D. S.- Arturo Martinez Adame, S. S.-Rubicas. "

In compliance with the provisions of Article 89 (I) of the Political Constitution of the United Mexican States and for their proper publication and observance, I request the present Decree at the residence of the Federal Executive Branch, in Mexico City, D. F., at the eleven days of the month of February of a thousand nine hundred and forty-six.- Manuel Avila Camacho.-Heading.-The Assistant Secretary of Finance and Public Credit The Secretary of State and of the Ministry Foreign Affairs of the National Economy Office, Gustavo P. Serrano.-Heading.-Al C. Lic. Primo Villa Michel, Secretary of Government.-Present.

FE OF ERRATA TO THE DECREE THAT REFORM AND ADD SEVERAL ARTICLES OF THE LAW ON THE INSURANCE CONTRACT.

Published in the Official Journal of the Federation on August 2, 1946

In the publication of the aforementioned document, inserted in the number corresponding to the 15th day of last April, the following error was made:

Pag.

Art.	Fracc.	Parr.	Line	Says:	You must say:
__	__	__	__	__	__	__
9th	165			5th ...........	this circumstance	this constancy
9th	156		1st	3rd ...........	written consent	consent, which must be entered in

Mexico, D. F., on May 13, 1946.-Secretary, Eduardo Suarez.-Heading.

REFORMS to the Insurance Contract Act.

Published in the Official Journal of the Federation on January 5, 1966

ARTICLE FIRST.- Reformation is 35 of the Insurance Contract Act to be in the following terms:

..........

ARTICLE SECOND.- Reformation is Reformation to be left in the following terms:

..........

ARTICLE THIRD.- Reformation is Reformation to be redacted in the following terms:

..........

ARTICLE FOURTH.- modifies Article 39 of the Insurance Contract Act to be in the following terms:

..........

ARTICLE QUINTO.- Reformation is Reformation to be redacted in the following terms:

..........

ARTICLE SIXTH.- reform is reformation to be redacted in the following terms:

..........

ARTICLE SEVENTH.- Reformation is 180 of the Insurance Contract Act to be drafted in the following terms:

..........

TRANSIENT

ARTICLE FIRST.- The provisions of the Insurance Contract Law are repealed in what they oppose to these reforms.

ARTICLE SECOND.- The provisions currently in force will continue to be governed for insurance contracts concluded prior to these reforms.

ARTICLE THIRD.- This Decree shall enter into force on the day following its publication in the "Official Journal" of the Federation.

Mexico, D. F., on December 24, 1965.-Lic. Manuel Orijel Salazar, D. P.-Lic. Maria Lavalle Urbina, S. P.- Rodolfo Velázquez Grijalva, D. S.- Carlos Loret de Mola, S. S.-Rubicas.

In compliance with the provisions of Article 89 (I) of the Political Constitution of the United Mexican States and for their proper publication and observance, I request the present Decree at the residence of the Federal Executive Branch, in Mexico City, Federal District, at the twenty-seven days of the month of December of a thousand nine hundred and sixty-five.- Gustavo Díaz Ordaz.-Heading.-The Secretary of Finance and Credit Public, Antonio Ortiz Mena.-Heading.-The Secretary of Industry and Commerce, Octaviano Campos Salas.-Heading.-The Secretary of Government, Luis Echeverria.-Heading.

DECREE by which various provisions of the Insurance Contract Act are reformed and added.

Published in the Official Journal of the Federation on January 2, 2002

ONLY ARTICLE.- REFORM the items 40 paragraph 1, 48, 145 first paragraph, and 152 second paragraph and ADDITIONAL items 40 with a second paragraph, 111 with a fourth paragraph, 145 with a second paragraph, 145 Bis, 150 Bis and 152 with a third paragraph, of the Law on the Insurance Contract to remain as follows:

.........

TRANSIENT

ONLY.- This Decree shall enter into force on the day following its publication in the Official Journal of the Federation.

Mexico, D.F., at December 20, 2001.-Sen. Diego Fernandez de Cevallos Ramos, President.-Dip. Beatriz Paredes Rangel, President.-Sen. Maria Lucero Saldana Perez, Secretary.-Dip. Martha Silvia Sánchez González, Secretary.-Rubicas".

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I request this Decree in the Federal Executive Branch, in Mexico City, Federal District, at the twenty-eight days of December of two thousand one.- Vicente Fox Quesada.-Rubrias.-The Secretary of the Interior, Santiago Creel Miranda.-Heading.

DECREE by which various provisions of the General Law of Mutual Institutions and Societies of Insurance, of the Law, are amended and added Federal Fiance Institutions and the Insurance Contract Act.

Published in the Official Journal of the Federation on April 24, 2006

ARTICLE THIRD.- Articles 145, second paragraph, and 145 Bis are AMENDED; and Article 145 with a third paragraph of the Law on the Contract of Sure, to stay as follows:

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TRANSIENT

FIRST.- This Decree shall enter into force on the day following its publication in the Official Journal of the Federation.

SECOND.- To the insurance institutions that the entry into force of this Decree has the authorization referred to in Article 7o. of the General Law of Mutual Institutions and Societies of Insurance, in order to practice the branch of credit insurance and other operations or classes, the limitation provided for in the penultimate paragraph which is added to Article 7o shall not apply to them. cited. The insurance institutions which are in this case shall not be allowed to operate the classes of credit insurance to housing or financial guarantee insurance.

THIRD.- As long as the rules and general provisions in force are not repealed or modified, they will continue to apply in what they do not oppose to the present Decree.

FOURTH.- To persons who have committed offences prior to the entry into force of this Decree, the provisions shall apply to them. in force at the time of such conduct, unless the provisions of this Decree are favourable to them, in which case they shall apply.

QUINTO.- Insurance institutions must adapt their insurance products, as well as service delivery contracts, as appropriate, to the expected in section I of Article 41 of the General Law of Mutual Insurance Institutions and Societies, within a period of ninety calendar days from the entry into force of this Decree in the Official Journal of the Federation.

Mexico, D.F., as of March 7, 2006.-Dip. Marcela González Salas P., President.-Sen. Enrique Jackson Ramírez, President.-Dip. Marcos Morales Torres, Secretary.-Sen. Sara I. Castellanos Cortes, Secretariat.-Rubicas."

In compliance with the provisions of Section 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I request the present Decree at the Federal Executive Branch, in Mexico City, Federal District, at the nineteenth day of April of two thousand six.- Vicente Fox Quesada.-Heading.-The Secretary of the Interior, Carlos Maria Abascal Carranza.-Heading.

DECREE to reform and add various provisions of the Law on the Contract of Insurance and the Law of Protection and Defense to the User of Financial Services.

Published in the Official Journal of the Federation on May 6, 2009

ARTICLE FIRST.- Article 81 is reformed; fractions I and II are added to the same article of the Law on the Insurance Contract, to remain as follows:

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TRANSIENT

ARTICLE FIRST.- This Decree shall enter into force on the day following its publication in the Official Journal of the Federation.

ARTICLE SECOND.- The National Commission for the Protection and Defense of Financial Services Users, will be the responsible authority for the effects legal drivers, derived from the Second Article of this Decree.

Mexico, D. F., as at 31 March 2009.-Sen. Gustavo E. Madero Muñoz, President.-Dip. Cesar Horacio Duarte Jaquez, President.-Sen. Gabino Cue Monteagudo, Secretary.-Dip. Margarita Arenas Guzman, Secretary.-Rubicas."

In compliance with the provisions of Section 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I ask for this Decree in the Federal Executive Branch, in Mexico City, Federal District, twenty-seven in April of two thousand nine.- Felipe de Jesús Calderón Hinojosa.-Rubrica.-The Secretary of the Interior, Lic. Fernando Francisco Gomez Mont Urueta.-Heading.

DECREE reforming various Federal Laws, in order to update all those articles that refer to the Secretariats of State whose name was modified and to the Federal District Government on the conduct; as well as remove the mention of the administrative departments that are no longer valid.

Published in the Official Journal of the Federation on April 9, 2012

ARTICLE SEPTUENTIETH seventh. The first paragraph of the Law on the Insurance Contract is amended to remain as follows:

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TRANSIENT

First. This decree shall enter into force the day after its publication in the Official Journal of the Federation.

Second. As of the date this Decree enters into force, the provisions that contravene or oppose it are left without effect.

Mexico, D.F., on February 21, 2012.-Dip. Guadalupe Acosta Naranjo, President.-Sen. José González Morfin, President.-Dip. Laura Arizmendi Campos, Secretary.-Sen. Renan Cleominio Zoreda Novelo, Secretary.-Rubicas."

In compliance with the provisions of Section 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I ask for this Decree in the Federal Executive Branch, in Mexico City, Federal District, at thirty March of two thousand twelve.- Felipe de Jesús Calderón Hinojosa.-Heading.-The Secretary of the Interior, Alejandro Alfonso Poire Romero.-Heading.

DECREE issuing the Law of Insurance and Bonding Institutions and reforming and adding various provisions of the Law on the Insurance Contract.

Published in the Official Journal of the Federation on April 4, 2013

ARTICLE SECOND.- REFORM is FORMAT, 23, 38, 39, 40 first paragraph, 84, and 93, and items 20 with a fraction VII are ADDED (ii) the existing in his order; 20 Bis; 102 with a second paragraph; 103 with a second paragraph; 111 with a second paragraph, with the existing in his order; 151 to 161, which are the same as Chapter VI of Title II, the following items are assigned a new number in their order of 162 to 196; becomes the 173 a second paragraph, and to which it becomes 175 a second paragraph, by remembering the paragraphs existing in his order, all of the Law on the Insurance Contract, to remain as follows:

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TRANSIENT ITEMS

FIRST.- This Decree shall enter into force on the day following that of its publication in the Official Journal of the Federation.

SECOND.- The reforms and additions to the Insurance Contract Act, contained in this Decree, shall enter into force on the following working day of their publication in the Official Journal of the Federation, with the exception of the provisions of the following Article.

THIRD.- The amendment to the second paragraph of Article 111 and the addition of Articles 151 to 161 of the Insurance Contract Act contained herein Decree, shall enter into force on the seven hundred and thirty calendar days following its publication in the Official Journal of the Federation.

Mexico, D.F., as of February 28, 2013.-Sen. Ernesto Cordero Arroyo, President.-Dip. Francisco Arroyo Vieyra, President.-Sen. Maria Elena Barrera Tapia, Secretary.-Dip. Magdalena del Socorro Núñez Monreal, Secretariat.-Rubicas."

In compliance with the provisions of Section 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I request the present Decree in the Federal Executive Branch, in Mexico City, Federal District, to twenty-seven March of two thousand thirteen.- Enrique Peña Nieto.-Heading.-The Secretary of the Interior, Miguel Angel Osorio Chong.-Heading.