New SUSEP Circulars

SUSEP CIRCULAR NO. 670, DATED 01.08.2022

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Article 1 Establish the minimum criteria that must be observed by insurance companies for the operation of Stop Loss insurance.

Art. 2 For the purpose of this Circular, the following are defined:

I - Stop Loss insurance: insurance that seeks to guarantee the operational stability of the insured in the face of the commitments made by them to the users, upon the assumption of the part of the risk (s) that exceeds the contractually established franchise (s);

II - insured: a legal entity, legally constituted, that offers a promise to guarantee rights or provision of services, as a result of uncertain and future events, upon payment of monetary consideration;

III - user: an individual who establishes a contractual relationship with the insured, directly or through a legal entity; and

IV - deductible: percentage or amount from which the liability of the insurance company is determined.

Single paragraph. For all purposes of this standard, insurance companies do not fall under the concept of insured.

Art. 3 All insurance companies regularly authorized by SUSEP to operate in insurance for damages are authorized to operate under the insurance referred to in this Circular.

Art. 4 The risks, assumed by the insured, covered by Stop Loss insurance, calculated from the contractually established deductible, may be determined, individually or jointly, depending on:

I - each user;

II - a certain event; or

III - the insured's entire portfolio.

§ 1 The insurance company must make clear in the insurance contractual conditions the characterization of the covered event.

§ 2 The insurance company may provide coverage for part of the insured's portfolio.

§ 3 In the products that provide coverage, as provided in paragraph 2 of this article, the sale will depend on prior approval by SUSEP.

Art. 5 The insurance contract must include a deductible for insurable risk.

Art. 6 The inclusion of a maximum compensation limit in the contract conditions is mandatory.

Single paragraph. The criteria for establishing the maximum compensation limits must be set out in the insurance plan's actuarial technical note, according to the insurable risks.

Art. 7 The policy must include a perfectly specified term of validity, and the establishment of automatic renewal is prohibited.

Art. 8 The reversal of technical excess at the end of the term of the policy is allowed, provided that it is contractually provided for.

Single paragraph. The technical surplus reversion criterion must be included in the actuarial technical note.

Art. 9 In the event of a corporate connection between the insured and the insurance company, in accordance with the rules set out in specific regulations that deal with corporate relations, the formalization of the policy will depend on prior approval by SUSEP.

Art. 10. SUSEP Circular No. 215, dated December 13, 2002, is repealed.

Art. 11. This Circular takes effect on September 1, 2022.

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SUSEP CIRCULAR NO. 671, DATED 01.08.2022

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Article 1 Establish rules and criteria for the preparation and sale of plans for insurance from the Tenancy Bond branch.

Art. 2 Rental security insurance is intended to guarantee the payment of compensation to the insured for the losses they may suffer as a result of the default of the tenant's contractual obligations provided for in the property rental agreement, in accordance with the contracted coverage and policy limits.

§ 1 The coverage for non-payment of rents is the basic coverage of the rental security insurance plan and is mandatory.

§ 2 The rental security insurance plan may provide other coverage to guarantee the tenant's other obligations under the rental agreement, which will be voluntary, subject to the provisions of paragraphs 1 and 2 of art. 3, upon payment of an additional premium.

Art. 3 Rental security insurance is an ancillary contract to the rental agreement.

§ 1 The rental guarantee insurance must respect the clauses of the rental agreement and its specific legislation, especially with regard to the tenant's obligations that must be guaranteed.

§ 2 The tenant's obligations will be guaranteed by contracting the basic coverage, mentioned in paragraph 1 of article 2, together with the additional coverage, mentioned in paragraph 2 of article 2, necessary to comply with the provisions of paragraph 1 of this article.

§ 3 Compliance with the provisions of paragraph 1 of this article is the responsibility of the insurance company and the insurance broker, if any.

Art. 4 For the purposes of this Circular, it is defined as:

I - insured: landlord of the property, as defined in the rental agreement covered by the rental guarantee agreement;

II - guaranteed: tenant of the property, as defined in the rental agreement covered by the rental guarantee agreement;

III - expectation of a claim: period between the first (first) default of the guaranteed and the characterization of a claim; and

IV - claim: default of the guaranteed obligations, covered by insurance, characterized under the terms of this Circular.

Art. 5 Rental security insurance applies only to the coverage of risks arising from property rental contracts in Brazilian territory.

Art. 6 Rental security insurance can be contracted through an individual policy or a collective policy.

Single paragraph. For the purposes of this standard, when it comes to a collective policy, all provisions related to the policy apply to the individual certificate.

Art. 7 The insurer and insurance broker, if any, must be defined by agreement between the insured and the insured.

Art. 8 The policy must contain on its frontispiece, in addition to the minimum information required by specific regulations, the identification of the insured, the percentage and the amount of the stipulator's remuneration, if any.

Art. 9 The insurance company and insurance broker, if any, must inform the percentage and amount of the brokerage commission applied to the policy, whenever these are requested by the guarantor or the insured.

Art. 10. The insurance company must send a copy of the policy to the insured and to the insured, through permitted legal means.

Art. 11. It is forbidden to take out more than one rental guarantee insurance covering the same rental agreement.

Art. 12. The proposal and contractual conditions of the rental security insurance plan must include, in particular, the following information:

I - “Rental security insurance is intended to guarantee the losses suffered by the landlord as a result of the tenant's default”;

II - “The rental guarantee insurance does not exempt the renter from any obligation provided for in the rental agreement”;

III - “The premium is the consideration paid to the insurance company to assume the risks of default on the insured, which will not be returned to the lessee at the end of the term of the policy”;

IV - “Failure to pay premiums may result in the adjustment of the term of the policy, the suspension of coverage, or even the cancellation of the policy. The insured seeking to maintain the original coverage of the policy may pay delinquent premiums”; and

V - “The insured or the insured may request, at any time, that the insurance company or insurance broker, if any, enter the percentage and amount of the brokerage commission applied to the policy”.

Art. 13. The term of the rental guarantee insurance contract is the same as that of the respective rental agreement.

§ 1 In the event of an extension of the rental contract for an indefinite period, or by virtue of a regulatory act, insurance coverage will only persist upon risk analysis and acceptance of a new proposal by the insurance company.

§ 2 If the insurance company accepts the proposal mentioned in paragraph 1 of this article, the policy will be renewed for the period stipulated between the insured and the guaranteed, with the possibility of subsequent renewals, in accordance with current legislation.

§ 3 The subsequent renewals mentioned in paragraph 2 of this article will also depend on risk analysis and acceptance of a new proposal by the insurance company.

Art. 14. If the rental agreement terminates early, the policy will be canceled, as of that date.

§ 1 Except in the case of a claim, the amount of the prize paid in proportion to the current deadline must be returned to the person responsible for paying the prize.

§ 2 If the insured and the guaranteed have paid installments of the prize, the return of the prize must take place in proportion to the premium paid by each of the parties.

§ 3 Both the insured and the insured may notify the insurance company of the early termination of the rental agreement, provided that they submit supporting document.

Art. 15. The policy limits correspond to the maximum amount of liability assumed by the insurance company, the policy (Maximum Guarantee Limit - LMG) and the contracted coverage (Maximum Coverage Limit - LMI).

Single paragraph. The policy limits will be defined upon agreement between the insured and the insured and in accordance with the rental agreement.

Art. 16. The index and the frequency of updating the policy amounts must be the same as those defined in the rental agreement.

Single paragraph. The criteria for updating values must be objectively fixed in the contractual conditions and justified in the Actuarial Technical Note.

Art. 17. The insurance company must make clear, in the contractual conditions, the rules and procedures to be adopted in the event of changes made to the rental agreement.

§ 1 The policy must accompany all changes previously established in the rental agreement, and the respective endorsement must be issued.

§ 2 The policy may accompany the subsequent changes made to the rental agreement, provided that it is accepted by the insurance company, and the respective endorsement must be issued.

§ 3 The criteria for recalculating the premium must be objectively fixed in the contractual conditions and justified in the Actuarial Technical Note.

Art. 18. The policy may only be amended with the express agreement of the insured and the insured, subject to the situations described in art. 16 and in paragraph 1 of art. 17 of this Circular.

Art. 19. The form of contracting rental security insurance is first and foremost an absolute risk.

Art. 20. The insured person is responsible for paying the insurance premium.

§ 1 The insurance company must inform the insured of the non-payment of any portion of the premium.

§ 2 The insured may pay premiums, in the event of default on the insured, to maintain insurance coverage.

§ 3 The insurance company must make clear, under the contractual conditions, the criteria and procedures to be adopted by the insured to maintain the coverage mentioned in paragraph 2 of this article.

Art. 21. Once the expectation of a claim has begun, the insurance company may provide for the payment of advances to the insured, corresponding to the delinquent amounts, until the claim is characterized.

Paragraph 1 The insurance company must clearly define the criteria for granting the advance payment.

§ 2 The insured is obliged to return to the insurance company any amount of advance received improperly or in excess.

§ 3 The granting of advances does not mean recognition by the insurance company of the existence of coverage.

Art. 22. In the event that the insured does not pay the rent and/or legal charges within the period set in the rental agreement, the insurance company may not establish a maximum period for the insured to take the competent judicial measure.

Art. 23. The claim will be characterized by:

I - by the decree of eviction;

II - for the abandonment of the property; or

III - for the friendly handover of the keys.

§ 1 Characterized by a claim, the date of the claim is considered to be the date of the beginning of the period of expectation of a claim, which corresponds to the first default of the insured.

§ 2 The characterization or communication of the claim that occurred outside the term of the policy are not facts that justify the denial of the claim.

Art. 24. The compensation will be calculated based on the losses verified to date:

I - determined in the decree for the voluntary vacancy of the property, or the date of the voluntary vacancy of the property, whichever occurs first, in the event of an eviction decree;

II - in which the insured was dismissed from possession of the property, in the event of the abandonment of the property; or

III - of the receipt for the delivery of the keys, in the case of an amicable delivery of the keys.

Art. 25. When coverage is contracted for physical damage to the property and in the event of differences regarding the assessment of the damage to the property, the insurance company must propose to the insured, by written correspondence or other permitted legal means, within a maximum period of 15 (fifteen) days from the date of the dispute by the interested party, the appointment of an independent expert.

Single paragraph. The independent expert will be paid, in equal parts, by the insured and the insurance company.

Art. 26. In addition to the provisions of this Circular, rental security insurance contracts, plans, and other transactions must comply with the laws and regulations in force, when they do not conflict with this standard.

Art. 27. The following are revoked:

I - Susep Circular No. 587, dated June 10, 2019; and

II - Susep Circular No. 594, dated November 26, 2019.

Art. 28. This Circular takes effect on September 1, 2022.

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