Lucas Fajardo Saturday, September 25, 2021
Through Decree 1084 of September 10, 2021, the Ministry of Finance and Public Credit modified some provisions of Decree 2555 of 2010 in order to strengthen the mechanisms currently provided for contracting insurance on behalf of debtors of financial institutions.
What does this new decree contemplate?
Unlike the previous regulation, the new rules contemplate general rules for contracting insurance on behalf of debtors, which must be complied with by financial institutions that act as insurance takers, regardless of the type of insurance and the type of credit. . These general rules are included in chapter 1, title 2 of book 36, which has adopted a new name: “General Conditions for Contracting Insurance on behalf of Debtors”. The second chapter continues to have the special rules applicable to the contracting of insurance associated with loans with a mortgage guarantee or housing leasing contracts.
What are the most significant changes that the decree incorporates?
1. Financial institutions that act as insurance takers on behalf of their debtors must guarantee the free concurrence of bidders and the transparency of information with the debtor, regardless of whether or not it is insurance associated with loans with mortgage guarantee or leasing. housing.
2. The provisions that guarantee the right to free choice of insurer that debtors have to contract, on their own account, an insurance with the same conditions and coverage as that taken by the financial institution were strengthened. For this reason, financial institutions must (i) indicate to their debtors the conditions and minimum coverage that the insurance must contain and (ii) provide them, at the time of granting the loan or leasing, complete information on the conditions required for the individual contracting of the insurance, including the amount insured, coverage and costs.
3. The insurance premium collection rate that the financial institution would charge the insurer that was awarded the bid will no longer depend on the factors that the standard originally brought (number of debtors, channels used by debtors to make payments and the cost associated with each of these channels); however, the rate may not be higher than those charged under market conditions by the financial institution, which must be announced on its website and in the bidding documents.
4. The bidding documents must state whether or not an insurance broker participates in the business and the list of the services it would provide. In that case, the broker will be selected by the financial institution prior to the bidding process. In addition, their remuneration must be assumed exclusively by the financial institution and may not be part of the premium paid by the debtor.
Since when does this decree come into force?
The decree is effective as of September 10, but its provisions will apply to the selection or bidding procedures for insurers that begin after 120 calendar days from that date.
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