Alert

Insurance Alert - July 2024

For more information, contact:

July 5, 2024

The changes consist mainly of:

Modification of payment terms: new specific terms are established for the payment of premiums, which will depend on what has been agreed by the parties:

When a deferred payment is agreed, insurers may grant as payment term up to 30 days counted from the beginning of the policy term.
When a premium installment is agreed upon, there must be an initial payment within the first 30 days of the policy term, which may not be less than the proportion corresponding to 30 days of coverage calculated pro rata on the agreed premium. The remaining installments shall be paid in accordance with the facilities granted by the insurers in the payment agreement.

Suspension of coverage: It is regulated that after 30 days from the due date of the premium payment obligation, the insurance coverage will be automatically suspended. Prior to this, the insurer must inform the insured that the suspension is a consequence of the non-payment, indicating the period within which he has to comply with his obligation.
Termination of the contract: Insurers may terminate insurance contracts with suspended coverage 30 days after the insured has received a communication from the insurer informing them of such decision.
Termination of the contract: Termination will proceed when the insured does not pay the premium within 90 days after the expiration of the agreed term, and the company does not claim it. Prior suspension is not necessary. Extinction does not require communication from the insurer, and the insurer will maintain the right to the collection of the accrued premium.