The fines imposed by the Brazilian Superintendence of Private
Insurance will be capped at three million reais (R$3,000,000.00).
The new cap created by Law No. 13.195/2015 will become into force
on November 25, 2016, one year after the law was published, in
attendance to an appeal to avoid excessive and unenforceable fines,
as the ones applied based on the previous legislation.
The law changes Articles 108 and 113 of the Decree-Law No.
73/1966, which determined the rules for imposition of fines by
SUSEP to companies that operate insurance, coinsurance,
reinsurance, retrocession and capitalization operations without the
proper authorization in Brazil, based on the value of the insured
assets, the operations′ amount and the agreement′s
duration, has been amended, without imposing any threshold or
cap.
