CHILE Law and Practice Contributed by: Ricardo Rozas, Max Morgan and Stefano Perretta, JJR Abogados
JJR Abogados Isidora Goyenechea 3250 Piso 4 Las Condes Santiago, RM Chile
Tel: +562 2580 9300 Email: rrozas@jjr.cl Web: www.jjr.cl
1. Basis of Insurance and Reinsurance Law 1.1 Sources of Insurance and Reinsurance Law The insurance and reinsurance legal framework is constructed from various regulations and laws, as follows. • Title VIII of Book II of the Code of Commerce, About Insurance in General and in Particular about Non-marine Insurance (Article 512 et seq). • Title VII of Book III of the Code of Commerce, About Marine Insurance (Article 1158 et seq). • The Insurance Companies Act (DFL 251), which regulates insurance companies. • Supreme Decree 1055-2013, which establishes regulation of auxiliaries to the trading of insurance and procedures for loss adjustment. • Resolutions issued by the Chilean regulator, the Commission for the Financial Market (CMF). This also includes the previous resolutions issued by its predecessor, the Securities and Insurance Superin- tendency (SVS). • General provisions relating to the interpretation of contracts found in the Civil Code (Articles 1560 et seq). Since Chilean law and practice follows a civil law system, precedent and court rulings are generally not mandatory. Strictly speaking, each ruling or award only relates to the subject matter of the case. None- theless, the criteria established by Chilean higher courts (the Courts of Appeal and the Supreme Court) and their judgments are usually followed.
2. Regulation of Insurance and Reinsurance 2.1 Insurance and Reinsurance Regulatory Bodies and Legislative Guidance In Chile, insurance and reinsurance companies, local insurance and reinsurance brokers, and loss adjusters are mainly regulated by the CMF. 2.2 Writing of Insurance and Reinsurance Who Is Entitled to Write Insurance and Reinsurance Business? Insurance and reinsurance companies can be stock corporations incorporated in Chile, as long as they provide only these services and complementary activities as authorised by the CMF through rules of general application, and provided they comply with the special regulations established in Title XIII of the Chilean Corporations Act (companies subject to spe- cial regulations). The selling of insurance in Chile can be undertaken by a general insurance company (first group) or a life insurance company (second group). The former cov- ers the risk of loss or damage of goods, or patrimony. Life insurance companies, on the other hand, cover risks of persons or guarantee them within or on ter- mination of a certain term, capital, paid-off policy or rent for the insured party or its beneficiaries. Excep- tionally, personal risk and health may be covered by both types of company. Risks related to credit can be insured only by general insurance companies having the sole purpose of covering this type of risk, which could also cover surety and fidelity.
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