The Central Bank backtracks on the regulation of insurance sale

On January 6, 2017 the Central Bank of Argentina replaced, through Communiqué “A” 6145, section 2.3.1.3. from the Rules on Protection of Users of Financial Services in force until that moment, with the following: “Whichever mode is used (telephone, correspondence, electronic means, promotion through third parties, etc.) the financial service user will be provided with a copy of the contract with the authorized signature of the obligated subject, within ten (10) working days from the contracting or the effective availability of the product or service, whichever is the later.

The usual documentation that the obligated subject uses in face-to-face contracts should be used.

In the case of insurance, the contracting will be considered finalized once it has the express acceptance by the user –prior revision of the contractual conditions, which must be recorded at the time of acceptance-  made through mobile banking, Internet banking, e-mail or on paper ” (see The Central Bank Regulates Insurance Sale in Insurance News # 1).

This rule was severely criticized by many sectors because, as it obliges the companies to receive express evidence of the acceptance by the user, by mobile banking, Internet banking, e-mail or paper to consider the contract concluded, virtually eliminated the call centers’ business. Actually, the Communiqué motivated a joint presentation by the Association of Banks of Argentina (ABA) and the Association of Argentine Banks (ADEBA) before the BCRA requesting for its reviewing.

Echoing the criticism, on February 24, 2017the BCRA issued Communiqué “A” 6188 which modifies again section 2.3.1.3 removing the last paragraph and clarifying that the obligation to provide a copy of the contract with the authorized signature of the obligated subject may be fulfilled simply by making the mentioned copy available to the user.

Thus, section 2.3.1.3 is worded as follows: “Whichever mode is used (telephone, correspondence, electronic means, promotion through third parties, etc.) the financial service user will be provided or made available with a copy of the contract with the authorized signature of the obligated subject, within ten (10) working days from the contracting or the effective availability of the product or service, whichever is the later.

The usual documentation that the obligated subject uses in face-to-face contracts should be used.”