MEXICO Law and Practice Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
1. Basis of Insurance and Reinsurance Law 1.1 Sources of Insurance and Reinsurance Law The Constitution is the basis of the Mexican legal sys- tem. Article 73, Section XVII, grants the Congress of the Union the power to legislate in matters of com- merce, which includes insurance and reinsurance operations. The Law on Insurance and Surety Institutions ( Ley de Instituciones de Seguros y Fianzas ) regulates the operations of insurance institutions and their constitu- tion, functioning, supervision and liquidation. It also establishes the powers of the National Insurance and Bonding Commission as the regulatory body. This regulation is largely supplemented by the Sole Insurance and Bonding Circular and its Annexes ( Circular Única de Seguros y Fianzas y sus Anexos ), issued by the National Insurance and Bonding Com- mission ( Comisión Nacional de Seguros y Fianzas ), which replaced multiple rules that were dispersed across various administrative circulars, thereby unify- ing the regulation. It is important to consider that Mexico has been a member of the International Association of Insurance Supervisors, an international association that brings together various supervisory authorities in the field of insurance from around 160 countries, since 1994. This association is responsible for developing support material for the supervision of the insurance sector and assessing the compliance of its members. Furthermore, the substantive regulatory framework relating to the insurance contract can be found in the following legislation: • the Law on the Insurance Contract ( Ley Sobre el Contrato de Seguro ); • the Commercial Code ( Código de Comercio ); • the Federal Civil Code ( Código Civil Federal ); • the Law on Navigation and Maritime Commerce ( Ley de Navegación y Comercio Marítimos ), regard- ing maritime insurance contracts; and
• the Civil Aviation Law ( Ley de Aviación Civil ), regarding aerial insurance contracts. There are also other secondary legal instruments, such as regulations, which are relevant to the field of insurance, including: • Internal Regulations of the National Insurance and Bonding Commission ( Reglamento Interior de la Comisión Nacional de Seguros ); • Regulations of Insurance and Bonding Agents ( Reglamento de Agentes de Seguros y Fianzas ); • Inspection and Surveillance Regulations of the National Insurance and Bonding Commission ( Reglamento de Inspección y Vigilancia de la Comisión Nacional de Seguros y Fianzas ); and • Regulations on Group Insurance for Life Operations and Collective Insurance for Accident and Sickness Operations ( Reglamento del Seguro de Grupo para la Operación de Vida y del Seguro Colectivo para la Operación de Accidentes y Enfermedades ). There is no specialised international treaty applicable to the field of insurance or reinsurance; however, the content of some existing treaties may be relevant in certain matters, such as the USMCA ( Tratado entre México, Estados Unidos y Canadá , or United States- Mexico-Canada Agreement), which establishes cer- tain provisions on financial services, including insur- ance conflicts related to international maritime or air transport, and international treaties on contracts. In the Mexican legal system, common law plays a lim- ited role, as written law predominates. However, com- mercial practice and mercantile customs and usage are recognised as a source of law that can influence the interpretation of insurance contracts in specific cases. Regarding precedents, Mexico is not a common law country, but the decisions of the Mexican Supreme Court and Collegiate Circuit Courts can become bind- ing jurisprudence under certain conditions. These decisions are relevant in the interpretation of insur- ance regulations, especially in controversial or novel matters.
332 CHAMBERS.COM
Powered by FlippingBook