COSTA RICA BUSINESS NEWS – Insurers are limited to selling insurance policies and are not allowed to sell commercial bonds.
After the Insurance Superintendence requested clarification on whether or not insurers were authorized to sell bonds, the Attorney General’s Office concluded that “… insurance companies should be limited to its insurance business, therefore they are not allowed to sell commercial bonds. ”
The resolution says that “… in the absence of a guarantee for insurers to perform non-insurance activities, these entities must be subject to the specialty of law, making sure that everything that is issued must be filed with the Superintendent of insurance. ”
Elfinancierocr.com reports that “… The document states that the term “bond” in Articles 5 and 8 of Act 40 refers to the role of surety guarantor.” … from these paragraphs, it can not be inferred that authorization has been given to issue guarantees which do not technically constitute insurance policies. Specifically, commercial bonds. ”