Law of Insurance Societies

This Law regulates the constitution and operation of insurance societies, as well as the participation of insurance intermediaries. 

Title I refers to the constitution and organization of insurance companies. They should all be established with a fixed capital amount. All insurance societies should have a minimum of seven million colones in capital stock, but may be required to hold additional funds depending on the types of services they wish to extend. These funds should be paid in full to the Central Bank before the beginning of operations.

These insurance societies will only be able to operate as life and health insurers, and may not engage in lending practices. Similarly, chapters under Title II outline the technical reserves which each company should maintain, and establish a general set of fair competition guidelines for the entire industry.

 

Document Details

Title (Non-English): 
Ley de Sociedades de Seguros
Document Type: 
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Doument Author (Entity): 
Authoring Country: 
Originating Country or Trade Block: 
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Year of Document: 
2012
Date of Document: 
Sunday, January 1, 2012
Document Authors: 
Legislative Assembly of El Salvador

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