The Superintendence of Private Insurance (SUSEP) has published on July 7, 2021, the Circular No. 637/2021 providing new rules for all the lines of Liability Insurance.
Among other changes, we highlight the most relevant below:
- Regulation of the Claims Made Liability Insurance based on first statement or discovery, which was not previously provided by the Brazilian regulatory rules;
- Creation of a new cover trigger: in addition to court and arbitral decisions, the administrative decision issued by Public Authorities may be used as a trigger to determine the payment of compensation by the insurer. Furthermore, the new rule waives the prior need of a final decision for the payment of the insurance indemnification;
- Express possibility of coverage for fines and penalties in all kinds of civil liability insurance.
- Additional Term: the previously called Complementary and Supplementary Periods were replaced by the definition Additional Term, which corresponds to the extraordinary period in which the claims submitted to the insured by third parties will be covered; and
- Possibility to offer network of professionals referred by the insurer in the coverage for defence costs.
The new Circular also revokes previous norms that regulated the General Civil Liability Insurance and the D&O Insurance in Brazil, being part of the SUSEP’s goal of simplifying regulations in order to provide a more favorable environment for the development of competition and innovation in the sector.
