Insurance and Reinsurance

Amendments to the Consumer Protection Law affect Insurance regulations

The recent amendment to the Consumer Protection Law (CPL), enacted on March 12, 2008, entails several changes to the relationship between the insurance companies and the insured.

Applicable Law: The CPL will supersede any other specific law which govern the insurance activity, mainly, laws 17,418 and 20,091.

Application Authority: The amendment establishes the concurrent power to apply the law of the Federal (i.e. the Domestic Trade Secretariat) and the local authorities, besides the Insurance Superintendence.

Right of Termination: The Amendment incorporates in section 10 ter, the consumer’s right to terminate the agreement by the same means used to enter into it, and the obligation of the company receiving such termination of the contract to send, free of any charge, a written evidence within the subsequent 72 hours after the termination request.

Statute-of-limitations: With regard to the statute of limitations of the judicial, and administrative actions provided in the CPL, the amendment modified section 50, providing a 3-year statute-of-limitations, unless other laws establishing more favorable periods for the consumer are applicable.

For further information on this topic please contact Martín G. Argañaraz Luque