Regulation Of Insurance And Bonding Agents

Original Language Title: Reglamento de Agentes de Seguros y de Fianzas

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REGULATION OF INSURANCE AND INSURANCE AGENTS

INSURANCE AND BAIL AGENT REGULATIONS

Published in the DOF on May 18, 2001

Last reform published DOF 4 June 2002

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

VICENTE FOX QUESADA, Constitutional President of the United Mexican States, exercising the power conferred on me by Article 89, fraction I of the Constitution of the United Mexican States, and based on the provisions of the provisions of the Articles 31, fraction VIII, of the Organic Law of the Federal Public Administration, 1o., 23, 24, 41, 42, 138, 139,139 Bis and other relative of the General Law of Institutions and Mutual insurance companies and 1o., 87, 88, 89, 89 Bis, 90, 110, 111 and other relating to the Federal Law on the Institutions of Fiances, I have had to issue the following

INSURANCE AND TRUST AGENT REGULATIONS

FIRST CHAPTER

GENERAL PROVISIONS

ARTICLE 1o.- For the purposes of this Regulation:

I.-Insurance Law, the General Law of Insurance Institutions and Mutual Societies;

II.- Law of Bonding, the Federal Law of the Institutions of Fiances;

III.- Secretariat, the Secretariat of Finance and Public Credit;

IV.- Commission, National Insurance and Fiance Commission;

V.- Insurers, the insurance institution authorized under the General Law of Insurance Institutions and Mutual Societies;

VI.- Afianzadora, the institution of securities authorized in accordance with the Federal Law on the Institutions of Securities;

VII.- Institution, Assured or Afianzadora or both, as applicable;

VIII.- Agent, the natural or moral person authorized by the Commission to carry out activities of intermediation in the hiring of insurance or bonding, being able to be:

a).- Natural persons linked to the institutions by a working relationship, in the terms of Articles 20 and 285 of the Federal Labor Law, authorized to promote in the name and on behalf of the institutions, the hiring of insurance or sureties;

b).- Independent natural persons without working relationship with the Institutions, operating on the basis of commercial contracts, and

c).- Moral persons who are constituted as anonymous societies to perform such activities;

IX.- The agent, the agent designated by the Institutions, to give his name and his account acting with express faculties;

X.- Proxy, who having entered into a mandate contract with moral agents, is expressly empowered to carry out its name intermediation, and

XI.- Intermediation activities, which are performed by agents or proxies in insurance or bail procurement.

ARTICLE 2o.- The intermediation activities that agents and proxies can perform, will consist of the exchange of proposals and acceptance of the same, marketing and advice for the conclusion of insurance or bonding contracts, their preservation or modification, renewal or cancellation.

ARTICLE 3o.- Agents, proxies and intermediation activities shall be subject to the provisions of the Insurance and Bonding Laws, the other applicable laws, the general provisions of this Regulation and the guidelines of general policy as regards insurance or insurance matters, as appropriate, the Secretariat shall state by means of rules of a general nature; and and monitoring by the Commission.

Agents and proxies will be obliged to receive the Commission's inspection visits, to provide the Commission and the Secretariat with the information in the form and terms that are given to them. request and address your requirements.

The accounts to be carried by the moral agents shall be strictly in accordance with the catalogue which the Commission may authorise, which shall indicate the registration and ancillary models. corresponding.

ARTICLE 4.- The Secretariat shall be the body responsible for interpreting and resolving for administrative purposes the provisions of this Regulation and its implementation shall correspond to the Commission.

ARTICLE 5o.- Insurance agents and proxies must inform anyone who intends to take out insurance at least the following:

I.- Your full name, type of authorization, number and validity of your ID, as well as the address where you perform your activities and, in the case of insurance proxies, the denomination of the moral person they represent;

II.- The actual scope of the coverage and how to preserve it or give it over, in a comprehensive and detailed manner;

III.- That lacks the ability to represent the insurer, to accept risks and to subscribe or modify policies, except in the case of an agent;

IV.-You may only charge premiums against the official receipt issued by the Insurance and that the premiums so charged will be understood to be received by the insurer, and

V.- That when filling out the questionnaire required by the insurer, point out all the important facts for the risk assessment that may influence the conditions that are convingan.

ARTICLE 6o.- Insurance agents and proxies, in the exercise of intermediation activities, shall adhere to the rates, policies, endorsements, insurance plans and other technical circumstances used by the Insurers in insurance contracts.

Insurance agents and proxies shall provide to the Insurers the authentic information that is of their knowledge, relating to the risk whose coverage is proposed, in order to they can form a judgment on their characteristics and set the appropriate rules, conditions and premiums in accordance with their respective rules.

ARTICLE 7o.- Agents and surety proxies must inform anyone who intends to post a bond, at least the following:

I.- Your full name, type of authorization, number and validity of your license, as well as the address where you are performing your activities and, in the case of the bail-in, the denomination of the moral person to represent;

II.- That lacks the powers of representation of the Afianzadora, to accept obligations and to subscribe or modify policies, except in the case of a representative agent;

III.- The approximate cost of the premium and that the bond can be extinguished when the guaranteed principal obligation or for reasons applicable to the bond is extinguished; as well as pay annual premiums for the duration of the bail;

IV.- That the information and documentation that you provide in the contract request or contract request is true and authentic, and that both the request and the contract contract application, are subject to acceptance by the Afianzadora;

V.- You will submit the contract application or the contract application to the Afianzadora within a period of no more than three working days from which you are returned, duly filled and signed by the proposer;

VI.- That will keep you informed about the processing that follows your application within the Afianzadora, if the policy is not issued within ten working days of the entry of the contract request or contract request;

VII.- That in the event of acceptance by the Afianzadora, the document will be presented to the proposer where the acceptance is recorded and in case of non-acceptance by the Afianzadora, the agent or surety agent shall be informed in writing, at the latest, on the working day following the day on which the agent or guarantor has such knowledge, and

VIII.- That agents or surety proxies may only charge premiums against official receipts issued by the Afianzadoras.

ARTICLE 8o.- Agents and proxies, in the exercise of intermediation activities, shall adhere to the fees, policies, endorsements, and other circumstances techniques used by the Afianzadoras in the contracts of bonds.

The agents and proxies of bonds, will provide to the Afianzadoras the authentic information that is of their knowledge, relative to the obligation that is guaranteed, to the situation (a) the economic and financial situation of the fiado and the obligor; and the guarantees of recovery which are offered, so as to enable the Afianzadoras to form a judgment on the characteristics of the obligation to entrench and the fiado and, in its (a) the obligation of the Member State to pay the duties of the person concerned; appropriate conditions and premiums.

CHAPTER SECOND

OF AUTHORIZATIONS

ARTICLE 9o.- To act as an agent or proxy, the Commission's authorization will be required, which will have the character of non-transferable and can be granted for activities (a) in the case of insurance, and in the classes and subheadings, in the case of bonds, determined by the Commission itself.

The authorisations to be granted by the Commission to moral persons shall be made on the initiative of the Commission and in cedula, which shall grant to agents natural or proxy persons.

ARTICLE 10.- To obtain the physical or proxy person agent authorization will be required:

I.- Being older;

II.- If you are a foreigner, you must have the documentation that checks the migratory quality that allows you to act in the country as an agent;

III.- Do not have any of the impediments referred to in Article 13 of this Regulation;

IV.- Haber completed high school or equivalent studies, and

V.- Credit to the Commission that the technical capacity to carry out the intermediation activities referred to in this Regulation is available.

The Commission shall have the power to assess the technical capacity of persons applying for the authorisation or endorsement as natural or proxy persons who establish this Regulation, through the application of examinations before the same or the moral persons designated for this purpose.

The Commission shall identify the documents and information to be provided with the application for authorisation or endorsement to carry out the intermediation activities.

ARTICLE 11.- Dealing with natural persons linked to the institutions by a working relationship, who intend to carry out the activities of intermediation, the authorization it must be requested through the institutions themselves.

In the case of proxies, the corresponding authorization must be requested through the legal persons agents.

ARTICLE 12.- To obtain the respective authorization, the moral agents must be constituted as public limited companies, in accordance with the provisions of the General Law of Companies, as soon as they are not provided for in this Regulation, and in particular the following bases:

I.- They shall have the object of exercising the activities of intermediation, as well as those acts that are necessary for the realization of their social object and those that the Secretariat authorizes to consider that they are compatible, analogous or related, to which they are of their own.

Intermediation activities can only be performed through proxies;

II.- Your name must be followed by the expression "Insurance Agent", "Fiance Agent" or "Insurance and Bonding Agent", as appropriate;

III.- The minimum capital to be paid by the Commission shall be fully paid by means of general provisions, which may take account of its volume of operations or other criteria to be determined by adopting;

IV.- The constitutive writing and any modification thereto must be submitted to the approval of the Commission, in order to assess whether the requirements are met established by the applicable laws and by this Regulation. Given such approval, the deed or its reforms may be entered in the Public Registry of Commerce;

V.- In your social statutes you must establish that at no time will you be able to participate in your paid capital directly or through an interposite person:

a).- Credit institutions, insurance institutions and mutual societies, insurance institutions, exchange houses, stock exchange specialists, ancillary organizations credit, investment companies, investment company operating companies, exchange houses, financial agents, retirement fund managers, investment companies specializing in retirement funds, as well as any another financial intermediary, subject to authorisation by the appropriate authority;

b).- Foreign official governments or dependencies, or financial institutions outside;

c).-controlling societies referred to in the Law for Regular Financial Pools;

(d).- The natural or moral persons who own shares of an insurance or trust institution, unless they invest through investment or trust companies constituted for that single purpose;

e).- Persons who are located in one of the alleged impediments to be an agent established in the sections IV, V, X and XI of Article 13 of this Regulation, and

f).- The agents, proxies or shareholders of moral agents, authorized to mediate in pension insurance derived from the laws of social security, with a Insurer other than the one providing these services to the company itself;

VI.- In its social statutes, the operations and classes must be specified in the case of insurance, and the classes and subheadings, in the case of bonds, which they intend to mediate and for the Case of pension insurance arising from the social security laws, it shall be established that they shall only be able to mediate with an insurer;

VII.- The number of its administrators will not be less than three, and

VIII.- They must have proxies that have the authorization of the Commission to carry out jointly or individually, all the activities of intermediation, in the operations and classes, in the case of insurance, and in the classes and subheadings, in the case of bonds, which the company has authorized.

In cases where the company establishes offices in other locations other than its registered office, it must have at least one proxy in each of these locations.

The Commission may agree that the removal or suspension of the members of the Board of Directors, Commissioners, Directors, Managers, Legal Representatives and Officials may be appropriate. they may compel their firm to the company, when it considers that such designations do not correspond to persons with sufficient moral or technical quality for the proper administration and supervision of the society, hearing before it, through its legal representative, as well as the person concerned.

ARTICLE 13.-No authorization to operate as an agent or proxy is granted to:

I.- Who does not meet the requirements of this Regulation;

II.-Who has been convicted of an intentional or health estate offense;

III.- Who has been declared subject to a commercial contest, suspension of payments or bankruptcy, without having been rehabilitated;

IV.- The public servants of the Federation, of the Federal District Government, of the States or Municipalities, unless they perform exclusively academic work.

Except for the provisions of the preceding paragraph to public servants of national insurance institutions or bonds carrying out activities of insurance or bonding agents, as natural persons subject to a working relationship with those institutions;

V.- Officials and employees of credit institutions, insurance institutions and mutual societies, insurance institutions, exchange houses, stock exchange specialists, (a) credit ancillary organisations, investment firms, investment companies operating companies, exchange houses, financial agents, managers of the retirement fund, investment companies specialised in the fund for the withdrawal, as well as companies which in turn control the ten by or more than the representative shares of the paid capital of such undertakings.

Other than expected in this fraction are the physical persons linked to the institutions by a working relationship, to develop activities of intermediation, according to the authorisation provided for in this Regulation;

VI.- The financial intermediaries ' controllers and liquidators, referred to in the preceding fraction;

VII.- The legal representatives of Reafianzas or Reinsurers; Reinsurance or Reafirenchment Intermediaries, whether domestic or foreign;

VIII.- Administrators, stewards, officials or employees of the fiadas, obligors or beneficiaries of the bail policies, as well as the customs agents, officials or employees of customs agencies, in the case of authorisation to operate as a bonding agent;

IX.- Insurance adjusters, fault stewards, and those acting on their behalf;

X.- People who have been sanctioned with the revocation to exercise the intermediation activities;

XI.- People who are vetted, removed or sanctioned with revocation or cancelled their authorization, as well as those that have not been authorized in the exercise of any financial activity for serious or repeated infringements or for affectably affecting third parties when carrying out its activities, by the Secretariat, by the Commission or by the National Banking and Securities Commissions or the Savings System for the Retreat, and

XII.- Who by their position or by any circumstance, in the judgment of the Commission, may influence or exercise coercion for the hiring of insurance or sureties.

ARTICLE 14.- The authorization to act as an agent, physical or proxy, shall be entered in a cedula which shall contain: its name; the indication, in the case of the agents, whether they act on their own behalf or through a working relationship with an institution and in the case of the proxies the denomination of the moral person they represent; the operations, classes and subheadings authorized to mediate; the date of their issue; photograph; the term of its validity, and any other data determined by the Commission.

The authorization to act as a moral agent shall be recorded in a trade which shall contain its name or social reason, the date of its issue and the term of its validity, thus as the operations, classes and subheadings that are authorized to broker.

In the authorizations to broker pension insurance derived from the social security laws, the name of the insurer for which they lend must be included in the transfer. services, physical or proxy agents.

In no case will the same agent or proxy be granted authorization to broker pension insurance derived from the social security laws, with more than one insurer.

Nor may the same person be granted authorisation to act with more than one of the qualities referred to in Article 1 (1), (b) and (b) of this Regulation.

In the event of loss or theft of the cedula, natural persons and proxies shall be obliged, at their expense, to request the Commission to issue a duplicate within a No longer than 30 calendar days of occurrence of the event.

ARTICLE 15.- The authorization referred to in the previous article, in the case of agents, natural persons and proxies shall be valid for three years and the Commission may to endorse it for equal periods, provided that the person concerned is not in one of the cases provided for in Article 13 of this Regulation.

Dealing with moral agents, the validity of the authorization may be indefinite. In the event that it is granted for a defined time, it may be endorsed for equal periods provided that the person concerned is not in one of the cases provided for in Article 13 of this Regulation.

The approval procedure of the authorization must be completed before the expiration of the authorization, within the last sixty calendar days of its validity.

ARTICLE 16.- The institutions shall respond to the acts performed by persons who, with the consent of those persons, carry out the activities of intermediation, without having the authorisation required by this Regulation. The above, without prejudice to the application of the relevant administrative penalties.

ARTICLE 17.- The agents will respond to the acts performed by the persons who, with the consent of those, carry out the activities of intermediation, without having the authorisation required by this Regulation. The above, without prejudice to the application of the relevant administrative penalties.

THIRD CHAPTER

OF THE OPERATION

ARTICLE 18.- The physical agents linked to an institution by a working relationship, will not be able to provide their services for other institutions. They shall also perform their work in the form, schedule and place agreed with the Institution and shall be subject to the guidelines, instructions or rules thereof.

ARTICLE 19.- Agents may mediate in the hiring of insurance or securities for one or more institutions, except in the case of pension insurance derived from the laws of social security, provided that the commercial contracts of intermediation in the hiring of insurance or corresponding bonds have been concluded and are in force.

In the performance of their activities, the persons referred to in the preceding paragraph shall act freely, without subjection to guidelines, instructions or rules of the institutions and not have an obligation to mediate in a certain number of insurance or bonds, or to devote a certain amount of time to their intermediation activities. They shall have no more restrictions than those laid down in the respective commercial contract, in the Insurance and in-law Laws, in this Regulation and the other administrative provisions laid down by the Secretariat and the Commission.

ARTICLE 20.- The Commission may provisionally authorize, for the only time and for a maximum period of eighteen months, to act as agents, to the natural persons who find training on the part of the institutions, as long as the institutions so request, taking responsibility for the damages they cause to third parties in the performance of the intermediation activities they perform. To this end, these persons shall meet the requirements referred to in Article 10 (I) to (IV) of this Regulation, and the corresponding authorisation shall be made on their own initiative of the Commission. The applicant institution shall have the obligation to issue to the staff member a provisional identification which shall contain, as appropriate, the requirements referred to in Article 14 of this Regulation, with the reference to Article 13 of this Regulation. same.

The authorisations referred to in this Article may be limited to one or more of the operations or classes and subheadings, as appropriate, and within them, to hedges or plans, and only empower persons authorised to act for the institution to which they are trained.

Where the conduct of such persons is found in any of the grounds referred to in Articles 30 and 31 of this Regulation, the Commission shall revoke the authorisation. provisional granted.

ARTICLE 21.- The Commission may authorize the institutions to appoint agents, with express powers to issue policies, to modify them by means of endorsements, receive notices and complaints, collect premiums and issue receipts; as well as, in the case of the Insurers, carry out the verification of claims and, in the case of Afianzadoras, of the non-compliance with obligations.

The authorization referred to in the preceding paragraph, in the case of natural persons, shall be entered in a document issued by the Commission and shall contain its name; act as agents; the operations, classes and subheadings authorized to them, the date of their issue; recent photograph and other information to be determined by the Commission.

In the case of moral agents, it shall be recorded in a trade which shall contain its name or social reason and the date of its issue, as well as the operations, classes and subheadings which are authorizes them.

When the mandate is granted in favor of natural or moral persons with residence in the national territory to be exercised in this territory, they must have the necessary authorization to act as an insurance or bonding agent under this Regulation.

When the mandate is granted in favour of persons residing abroad, it may only be placed on persons who are authorised in the country concerned to carry out the activities of intermediation referred to in this Regulation.

The Commission shall, by way of general provisions, lay down the conditions and requirements to be met by these agents for the purposes of this Article.

In their dealings with the public, as well as in their stationery, correspondence, propaganda and publicity, the agents must make mention of such a character after their name, the name or social reason and shall require the sending institutions to sign them with their signature for the purposes of the acceptance and issuance of policies.

ARTICLE 22.- When the Institutions surrender to the agents or contracts without requisitioning, signed by official, legal representative or person to whom you have authorized for this purpose, shall be obliged to take responsibility for the acts which those agents have carried out.

ARTICLE 23.- Agents must contract and maintain in force a liability insurance for errors and omissions, for the amounts, terms and conditions that the Commission shall establish by means of general provisions, in order to ensure the fulfilment of the responsibilities in which they may incur in front of the public, due to the activities of intermediation that they carry out.

Agents must accredit to the Commission the hiring or renewal of the insurance policy referred to in this article.

For the purposes of the first and second paragraph of this Article, the Commission shall consider the total of the premiums that the agents generate or are able to generate with their intermediation, the amount of the insured or guaranteed sums and, where applicable, the capital paid to them.

The Commission may exempt agents from complying with this obligation, acting exclusively for operations, classes and subheadings, which by its nature or characteristics it considers which does not require this protection.

Without prejudice to the provisions of this Article, the institutions, agents and proxies may agree to the guarantees that they determine for the fulfilment of the obligations that contract with each other.

ARTICLE 24.- Agents may only charge premiums against the delivery of the official receipt issued by the Institutions. The premiums so charged shall be deemed to be received directly by the Institutions.

Agents are obliged to enter the institutions within a period which may not exceed ten working days from the day following their receipt, the checks and the a number that they have received for any concept corresponding to the policies contracted with their intermediation, as well as any document or recovery that they have given them in relation to these policies.

In cases where insurance contractors or policyholders, beneficiaries or interested third parties, omit to pay, within the time limit laid down in Article 40 of the Law on the Insurance contract, premiums and other benefits that you have assumed, the agents are obliged to return to the Insurers the receipts, policies and, in general, all the documents in their possession corresponding to the contracted insurance with their intermediation, not later than the third working day following the day on which the referred to.

The checks received by the agents for these concepts must be nominative and in favour of the institutions that assume the risk or responsibility, except that the institutions authorize the agents to receive the checks in their own name. This authorisation must be expressly and in writing in a contract of mandate which the institutions are entitled to give to the agents for that purpose.

ARTICLE 25.- The institutions shall cover to the agents the commissions to which they are entitled during the time when the policies contracted with their intermediation are in force. after the termination of their relationship with those institutions.

The institutions will only be able to pay commissions and any other compensation for the hiring of insurance or bonding agents, on the premiums that have actually entered the Institutions.

The commissions that come from the renewal or modification of a policy with respect to the same risk or assumed responsibility shall correspond to the agents who have placed the policy (a) prior to the termination of the contract, unless they leave the business, that their intermediary contract has been terminated without responsibility for the institutions, the deceased or the contractor shall express in writing to the institutions that he no longer wishes to brokering those agents or revoking their designation by appointing a different one.

In the event of the death of the natural person, the right to charge the commissions will pass on to their legitimate causes, during the time the policies of the person are in force. insurance or respective bonding.

ARTICLE 26.- Agents operating on the basis of commercial contracts, as well as their successors, may assign to other agents the rights that may be derived from them. policy portfolio. This should be done with the knowledge of the respective institutions.

The institutions shall have preference over the rights referred to in the preceding paragraph, except in the case of the transfer of such rights as the agents of the natural person to the agents moral persons of whom they are members or on the occasion of the merger of two or more moral agents. The right of preference shall be exercised within a period of 15 working days following notification by the institutions themselves to the agents or their successors in title.

CHAPTER FOURTH

SANTIONS

ARTICLE 27.- The administrative penalties for the violations provided for in the Insurance and Bonding Laws, in this Regulation and in the other applicable provisions, shall be imposed by the Commission and shall consist of:

I.- Amonstation;

II.- Multa;

III.- Suspension;

IV.- Disable, or

V.- Revocation.

The aforementioned sanctions will not be of successive application, as they will be imposed independently, considering the importance of the infringement and the conditions of the infringer.

By imposing the appropriate sanction, the Commission must first hear the person concerned in order to provide evidence and to take account of the importance of the right and to take into account the importance of the the infringement, the conditions of the infringer and the desirability of avoiding practices that are intended to contravene the legal provisions, those of this Regulation and those of other applicable provisions.

The application of the sanctions referred to in this Article shall be made regardless of the criminal law which shall be determined by the competent authorities and the responsibilities of the competent authorities. of a civil character in which the offender has incurred.

ARTICLE 28.- Written admonition will be sanctioned:

I.- To agents, natural persons or proxies who fail to comply with the provisions of Part I and III of Article 5o. and fractions I and II of Article 7o. of this Regulation, as appropriate, and

II.- To the agents who for the first time omit to inform the Commission and the policyholders of the establishment, change of location or closure of their offices in terms of the Article 23 last paragraph of the Insurance Act and 88 of the Law on the Law of Bonding, or, omit to comply with the provisions of Article 23 of this Regulation.

The imposition of three written admonitions in a period of three hundred and sixty calendar days will result in the suspension of the physical or proxy agents, Thirty to sixty calendar days to perform intermediation activities.

ARTICLE 29.- The fines referred to in the Insurance and Bonding Laws and other provisions of which they emanate shall be imposed administratively by the Commission, prior to the hearing of the interested parties, based on the general minimum wage in force in the Federal District at the time of the infringement, and will be effective by the Secretariat.

The penalties referred to in the preceding paragraph shall be imposed in accordance with the provisions of this Regulation and in the terms of the forecasts and fines provided for in Articles 139, fractions VII, VIII, X, XI and XXI and 139 Bis anteppenlast paragraph of the Insurance Act and 111, fractions VI, VII, IX, X, XI and XXI of the Law of Fiances.

The fines imposed must be paid within fifteen working days of the date of their notification and when the offender promotes any legal means of defence against of the fine which has been applied to it, if it is confirmed, in whole or in part, that its amount must be immediately covered once the relevant decision has been notified to the infringer.

The recidivism may be punishable by a fine of up to twice the maximum expected for the infringement.

ARTICLE 30.- The Commission, after hearing the agents, natural persons or proxies, taking into account, where appropriate, the elements provided by the institutions, as well as the other persons concerned, it shall suspend natural or proxy persons for a period of 30 calendar days to two years, in order to carry out Intermediation activities, where:

I.- falsely declare any data of those entered in the submitted application to obtain authorization or endorsement to act as a physical or proxy person agent;

II.- Require of the applicant, contractor, insured, trusted, obligor or beneficiary, any benefit that is not legally justified, even if not gets to receive;

III.- Omitan inform the proposers in accordance with the provisions of Articles 5o. and 7o. of this Regulation, as appropriate;

IV.- Incompliance with the provisions of any of the Sections II, IV or V, of Article 5o., or III to VIII, of Article 7o of this Regulation;

V.- Act to the detriment of applicants, contractors, policyholders, fiados or beneficiaries by obtaining the cancellation, termination or modification of a policy that involves loss or reduction of rights, or major consideration;

VI.- Provide false data to the Institutions about the person of the applicant, contractor, insured, trusted, obligor or beneficiary, or disvirtud the nature of the risk or liability that is proposed to be secured or secured or assumed, and

VII.- Hide the institutions the existence of facts whose knowledge would have prevented the conclusion of the insurance or bond contract, as the case may be, or has changed the conditions of the respective procurement.

Declared the suspension, the agent, natural person or proxy, must surrender the cedula to the Commission, which will return it to the interested party after the end of the period of suspension.

The suspension declaration will prevent the agent from being physically or proxy, intervening in the intermediation of insurance contracts or sureties, as the case may be.

ARTICLE 31.- The Commission, after hearing the agents or the persons concerned, taking into account, where appropriate, the elements provided by the institutions, as well as the other persons concerned, it shall revoke the authorisation granted to the natural or proxy agents to carry out intermediation activities, where:

I.- Stop handing over to the institutions or agents moral persons, if any, the premiums collected or the documents and goods they receive on their behalf in accordance with the provisions by Article 24 of this Regulation.

In the event that the natural or proxy agent incurs this infringement for the first time and the proposer is not affected or the damage is damaged, his or her authorization of thirty years shall be suspended. 60 calendar days to carry out intermediation activities;

II.- Act within the national territory in the conclusion of direct insurance or bond contracts, as a representative or intermediary of any company not authorized to operate in the country as an insurance or bonding institution, in accordance with the provisions of the Insurance and Insurance Laws;

III.- Stop satisfying the requirements that this Regulation requires for the granting of the authorization to act as a physical or proxy agent or to be placed in any of the the impediments to which the assumptions set out in Article 13 of this Regulation relate;

IV.- Act as a physical or proxy agent, being suspended by sanction applied by competent authority;

V.- Entrain in commercial competition or bankruptcy, unless the respective procedure ends with rehabilitation, and

VI.- Cometan five infractions for the concepts outlined in section II, of article 139 Bis of the Law of Insurance, for a period of two hundred calendar days.

Revocation will take effect with respect to all authorizations granted to the infringer, to engage in intermediation activities.

Declared the revocation, the sanctioned person must surrender the cedula to the Commission, which shall proceed to its cancellation in accordance with the provisions of Article 37 of this Regulation, in addition that you will not be able to continue performing brokering activities.

ARTICLE 32.- The Commission, after hearing the official person, taking into account, where appropriate, the elements which the institutions have contributed, as well as the other persons affected, will revoke the authorisation given to the moral agents to carry out intermediation activities, when:

I.- Stop giving the institutions the premiums entered or the documents and goods they receive on their own, in accordance with the provisions of Article 24 of this Regulation.

In the event that the agent is committed to this infringement for the first time and the proposer is not affected or the damage is damaged, the authorization of thirty to sixty will be suspended. natural days to perform intermediation activities;

II.- Celebrate contracts or agreements to broker insurance or bonding contracts within the national territory, with institutions not legally authorized to operate in the country;

III.- Act as a moral person agent, being suspended by sanction applied by competent authority;

IV.- Entrain in dissolution, liquidation, mercantile competition or bankruptcy, unless in the bankruptcy procedure the rehabilitation is determined;

V.- Cometan five infractions for the concepts outlined in section II, of article 139 Bis of the Insurance Act, for a period of two hundred calendar days, and

VI.- Three of its proxies have been sanctioned with the revocation of their authorization to engage in brokering activities, in a period of three hundred calendar days.

Declared the revocation, the moral person will not be able to continue carrying out activities of intermediation, in addition to that the revocation will be published in the Official Journal of the Federation and order their registration in the Public Registry of Commerce.

ARTICLE 33.- Insurance agents and proxies who commit any of the infractions provided for in Section II of the Insurance Act, Article 139 Bis, individually or together with the Insurers, they will be sanctioned with disqualification to mediate, at any time, with the persons who under the "Rules of Operation for the Insurance of Pensions, derived from the Social Security Laws", appear listed on the one day listing of the prospecting base that distribute the Mexican Social Security Institute. This disablement shall not be less than two or more than five days from the listings for each of the days of the penalty.

ARTICLE 34.- The determination of the penalties referred to in this Chapter shall be made in accordance with the following procedure:

I.- It shall be initiated on its own initiative or by complaint filed by any affected person having legal interest in respect of the infringement;

II.- The complaints that are made must be supported by documentary evidence or sufficient evidence to make the agent or agent infraction probable.

In case the complaint does not comply with the provisions of the preceding paragraph, it will be dismissed for lack of elements;

III.- The agent or proxy shall be notified of the initiation of the procedure, by way of the Commission's trade and, where appropriate, a copy of the complaint and its annexes, so that in a term of ten In the case of a person who is not present, the person concerned shall have the right to take the necessary measures. The answer must refer to each and every one of the facts by asserting them, denying them, expressing those who ignore for not being proper or referring to them as they believe they took place. The facts on which the agent or proxy shall not be explicitly disputed shall be presumed, unless otherwise proved;

IV.- In the event that the agent or proxy omits to formulate the response referred to in the previous fraction, within the term established therein, it will preclues its right, no statement is required and the procedure will continue;

V.- After the end of the term set out in section III of this article, the proof of evidence, which has been provided and the analysis of the case, shall be carried out. respective.

The Commission shall have the power to lay down all the elements of judgment which it considers necessary to ascertain precisely the facts which have prompted the proceedings. For this purpose, it may be valid for any person or document, whether it belongs to the complaint, the likely offender or the person outside the proceedings, without further limitations than that the evidence is not prohibited by law and is related immediate with the controversial facts.

Drowned out the evidence and with the elements which, if any, the Commission would have been close, will be resolved on the non-existence of the infringement or by imposing on the agent or appropriate sanction, and the resolution shall be notified to the data subject;

VI.-If new elements that involve other violations by agent or proxy or other persons are warned, the initiation of another will be agreed upon. procedure and, where appropriate, the practice of investigations may be previously available, and

VII.- In the event that during the procedure provided for in this article the validity of the agent's authorization or the proxy or the transfer of his or her cedula is terminated, the procedure is suspend and must be resumed when the agent or proxy gets new authority.

ARTICLE 35.-The notifications referred to in this Chapter shall be made in the last address communicated to the Commission, except that a specific one has been designated for such effects, as set out in the Insurance and Bonding Laws.

Dealing with the agents referred to in Articles 1 (2), (VIII) (a) and 20 of this Regulation, as well as the proxies, such notifications shall be made of the knowledge of the Institution or the moral person agent, as appropriate.

ARTICLE 36.- The agents or proxies may use in writing the penalties imposed on them, on the basis and in accordance, as appropriate, with Articles 108, Section III of the Law on Insurance and 68, fraction V, of the Law on Fiances.

ARTICLE 37.- The Commission shall proceed to the cancellation of the cedula, when the corresponding authorization is extinguished for the purpose of:

I.- Revocation of the authorization;

II.- Death;

III.- Renunciation to engage in brokering activities;

IV.- Termination of the employment relationship in the case of physical agents linked to the institutions by a working relationship;

V.- Being declared in an interdiction state;

VI.- Dissolution and liquidation, merchant contest or bankruptcy of moral agents, and

VII.- Merge, in which case the merged one will be canceled.

TRANSIENT

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

ARTICLE SECOND.-The Insurance and Bonding Agents Regulation of May 14, 1993, published in the Official Journal of the Federation of 17 of the same month and year, is hereby repealed. as well as the administrative provisions which are contrary to this Regulation.

ARTICLE THIRD.- The authorizations and other administrative measures laid down in the Regulation that are repealed shall continue in force until their validity is concluded, are revoked or modified by competent authority.

ARTICLE FOURTH.- The pending procedures and procedures for resolution prior to the validity of this Regulation will be resolved in accordance with the provisions of the Rules of Procedure. that is opened.

ARTICLE QUINTO.- The provisions of Article 10 (IV) of this Regulation shall enter into force at the three hundred and sixty-five calendar days following the day of the publication of this Regulation in the Official Journal of the Federation, a period in which secondary or equivalent studies are required to be completed.

To persons who have been authorised as a natural person or agent prior to the entry into force of this Regulation, the level of studies shall not be required set out in Article 10, fraction IV, for the purpose of obtaining a new authorisation.

ARTICLE SIXTH.- To evaluate the technical capacity of persons applying for authorization or their endorsement as physical or proxy persons and to comply with Article 10 (V) of this Regulation provides that the Commission shall accept the constances provided for in Article 7o (II) of the Rules of Procedure which are repealed, which have been granted until 31 May 2003.

ARTICLE SEVENTH.- To obtain the endorsements provided for in Article 15 of this Regulation, agents and proxies may comply with the provisions of the second paragraph Article 10 (V), in the form and terms laid down in the administrative provisions issued by the Commission for this purpose on the basis of the Regulation which is repealed, when they prove to the Commission that they have three endorsements have been interrupted or show that they have taken at least 35% of the hours training, before the entry into force of this Regulation.

ARTICLE EIGHTH.- The moral agents must request the authorization of the Commission to modify their social statutes, in order to adjust them to the provisions of the Article 12, fractions V and VI of this Regulation, within one hundred and eighty calendar days, counted from the entry into force of this Regulation.

ARTICLE NINTH.- The moral agents must adapt their operation, in the terms established by Article 12, fraction VIII, of this Regulation, within a period of one hundred 80 calendar days from the entry into force of this Regulation.

ARTICLE DECIMAL.- The provisions of Article 13 (X) of this Regulation shall not apply to persons who have been sanctioned with revocation of the authorization. to carry out the activities of intermediation, for infringements of the provisions of Articles 30 and 31, Part I, second paragraph, of this Regulation.

ARTICLE FIFTEENTH.- For the purposes of ensuring compliance with the responsibilities incurred by the public in the exercise of intermediation activities, Article 23 of this Regulation shall continue to be considered until the date of its expiry, as provided for in Article 20 of the Regulation, which is contracted by the servants.

ARTICLE TWELFTH.- The violations committed during the duration of the Regulation that is repealed will be sanctioned in accordance with the provisions most favorable to the offenders, from those in force in the event of such infringements and those of this Regulation.

Given at the residence of the Federal Executive Branch, in Mexico City, Federal District, on the fifteenth day of May of two thousand one.- Vicente Fox Quesada.-Heading.-The Secretary of Finance and Public Credit, José Francisco Gil Díaz.-Heading.