The Central Bank Regulates Insurance Sale

On December 23, 2016, the Central Bank of Argentina issued Communiqué "A" 6123 which, among other things, incorporated to article 2.3.1.3. Distance trading of products and services, from the Rules on Protection of Users of Financial Services, the following paragraph: "The contracting will be considered finalized once it has the express acceptance by the user -previous revision of the contractual conditions, which must be recorded at the moment of acceptance- made through mobile banking, Internet banking, e-mail or paper support".

On January 6, 2017, the Central Bank amended the aforementioned article 2.3.1.3. by means of Communiqué "A" 6145, replacing it with the following text: "Whichever the mode used is (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 perfected once it has the express acceptance by the user -previous revision of the contractual conditions, which must be recorded at the time of acceptance-  made through mobile banking, Internet banking, e-mail or paper support ".

Thus, from January 7, 2017, financial entities trading insurance contracts at a distance will have to receive express evidence of the user’s acceptance through mobile banking, internet banking, electronic mail or paper support, to consider the contract concluded.