SUSEP confirmed that foreign insurance may not be purchased by a Brazilian company unless it has previously received ten (10) declinations from Brazilian insurance companies. In the case of lines of lines of business in which fewer than ten Brazilian insurers offer cover, the Brazilian company must obtain declinations from each of the Brazilian insurers offering such cover. SUSEP also reiterated that the proposal rejected by the local insurers must mirror the proposal presented to the foreign insurer.
Circular No. 392 also confirms that certain lines of insurance may be purchased with foreign currency, including the following: export credit; aviation; satellite; international transport; marine hull (with some limitation); petroleum risks; certain engineering risks concerning public projects; and certain types of civil responsibility, including Directors and Officers liability insurance, “green card” (obligatory insurance of owners and drivers of vehicles), international transport liability, product liability and recall insurance concerning foreign products and hangar cover.
For a copy of Circular No. 392, please click here.
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