In order to obtain regulatory authorization to conduct insurance and reinsurance business in many countries in Latin America and elsewhere, companies must file, among other things, a certified copy of their financial strength rating. In addition, to remain in compliance with registration requirements, many countries require companies to periodically or continuously update such filings to reflect any change in financial strength rating. For those countries requiring continuous updates, such as Honduras, the company is often required to provide an update within three months of the downgrade or face penalties, including potential deregistration.
It is therefore of great importance for companies facing downgrades to review the regulatory requirements of their jurisdictions of registration to ensure that any necessary updates have been properly filed. If you would be interested in learning more about this issue, please click the “Email the Editor” button and provide your contact information for follow-up by an EAPD attorney.