On February 18, 2025, Resolution JM-24-2025, issued by the Monetary Board, was published in the Diario de Centro América, approving the Regulation on the Registration of Insurance, Reinsurance, and Independent Adjuster Intermediaries (hereinafter, the “Regulation”), included in the annex of said resolution. This new regulation replaces Resolution JM-13-2011, which previously governed the registration of insurance and reinsurance intermediaries, as well as independent adjusters. The Regulation entered into force on July 1, 2025.
Below are the main differences between the previous regulation and the new Regulation, as well as an analysis of its updated provisions and new obligations for regulated parties.
Professional liability insurance
Resolution JM-13-2011, in Article 8, required independent insurance agents and insurance brokers to obtain a policy that covered their professional liability for errors and omissions, as well as fidelity, with an insurer authorized to operate in the country. It also established a scale for calculating the minimum sum insured based on commissions received during the previous year.
The Regulation maintains the obligation to obtain an insurance policy that covers professional liability for errors or omissions. However, it introduces a substantial change regarding the sum insured, which will no longer be defined by a scale based on commissions received, but instead will be established by the insurer or insurers with whom a contractual relationship exists, allowing for the insurers’ discretion in this regard.
Renewal of registration
Unlike Resolution JM-13-2011, the new Regulation no longer includes a specific article on the general renewal of intermediary registrations. Instead, the deadlines, requirements, and renewal procedures must be followed according to the type of registration in question (for example, registration of dependent agents, independent agents, insurance brokers, etc.).
Registration
The Regulation eliminates the 30-day period established in the previous regulation to correct errors, omissions, or inconsistencies, or to provide additional information requested by the Superintendency of Banks (SIB) after reviewing the application. This allows applicants to comply with the requirements without a fixed time limit. It also changes the validity period of the registration, which will now be one year from its approval, unlike the previous two or three years, and renewable for periods of two years.
Suspension of registration
Article 15 of Resolution JM-13-2011 empowered the SIB to suspend the registration of an intermediary for a minimum period of six months if they engaged in any of the following conduct:
- Offering terms or coverage not included in the insurance plans and policies registered with the Superintendency of Banks.
- Fully or partially transferring their commission to policyholders, clients, or unregistered individuals acting as intermediaries.
- Any other offense of similar seriousness to the above, as determined by the Superintendency of Banks, under due process and the right to defense.
The Regulation eliminates the minimum period and redefines the grounds for suspension, which now include:
- Presenting themselves to policyholders as an insurer or using titles or powers other than those agreed upon with the insurers with whom they have signed an intermediation contract.
- In the case of independent agents, operating without a valid contract.
- Any other offense of similar seriousness to the above, as determined by the SIB.
- During a suspension or period of inactivity, the intermediary may not place new insurance policies; however, it may continue to collect commissions earned from policies placed before the suspension.
Other relevant aspects
The Regulation also introduces changes to the documentation that must be submitted with registration applications, which must now be filed electronically. It is important to note that the required documentation will vary depending on the type of application being submitted (i.e., registration of dependent insurance agents, independent insurance agents, insurance brokers, etc.). Likewise, it adds a new requirement to the list of criteria for demonstrating technical knowledge of the insurance business. Applicants must now submit a diploma or certification attesting to their knowledge in insurance matters, issued by an insurance company or an association specialized in the field and offering a training program.
Finally, the Regulation establishes that individuals or legal entities with a valid registration with the SIB as of the date of publication of the Regulation must comply with the renewal requirements set forth in the new regulation upon the expiration of their registration.
In conclusion, the Regulation maintains the principles and spirit of Resolution JM-13-2011 while incorporating changes that adapt to the new realities of insurers, reinsurers, and insurance and reinsurance intermediaries. These modifications facilitate contract negotiation as well as the registration process before the SIB, providing greater clarity and precision to the provisions.