Insurances in Brazil will now be regulated by the Brazilian Insurance Act, which is how the Federal Law No. 15,040/2024 is being called after replacing (although only as of 10 December 2025) the previous regulation on the matter, so far provided in the Brazilian Civil Code and in the Federal Decree-Law No. 73/1966.
The Brazilian Insurance Act gathers and modifies various aspects of this activity and of the contracts structuring them. Matters such as governing law, jurisdiction, seat and time-bar, which used to be scattered though legal statutes, have now been placed on a systematic arrangement.
It provides, for instance, that Brazilian law shall govern contracts entered into by insurance companies licenced by SUSEP (the Brazilian insurance authority), insured or proposer party resident in Brazil, as well as those contracts guaranteed by assets located in Brazil. In these cases, Brazilian courts will have full jurisdiction, notwithstanding the possibility of the parties reverting disputes to arbitration, where Brazilian law would still apply. The seat, on the other hand, will be preferably that of the insured or beneficiary, which, however, may file a claim where the insurance company or its agent are located.
As for the time-bar, the Brazilian Insurance Act revokes the provisions of the Brazilian Civil Code, stablishing that the one-year period for filing a claim against the insurance company shall start from the date it refuses the insured’s request, not from the triggering event.
The law also regulates all kinds of insurance contracts, approaching issues such as the proposal, construction, assignment and termination.
Upon receipt of a proposal, for example, the insurance company will now have 25 days to reply to it, provided that its silence will be construed as a tacit approval, which reflects the rules of the SUSEP’s Ordinance No. 251/2004 (that accounted for a 15-days period), replaced by SUSEP’s Ordinance No. 642/2021 (that provided for a tacit rejection).
Moreover, the contracts and advertising campaigns made by the insurance company shall always be construed in favour of the insured party, beneficiary or harmed third party. In addition, the provisions limiting risks, guarantees or rights shall be restrictively construed.
With regard to the assignment of the insurable interest by the insured in damage insurances, the Brazilian Insurance Act provides that it may only occur upon approval by the insurance company when the assignee’s business increases the risk or it does comply with the applicable requirements. In these cases, the insurance company shall be notified within thirty days, then having fifteen days to accept the assignment or terminate the contract.
The act also forbids the contract’s termination without cause by the insurance company, which shall also not compromise the effects of the contract other than provided by applicable law.
On the other hand, the contract may be terminated by the insurance company when the insured defaults the payment of the first or sole instalment of the insurance premium, whilst the delay in other payments may be cured by the insured within fifteen days, reflecting the Brazilian Superior Court of Justice’s understanding on the matter.
At last, the Brazilian Insurance Act has a whole section dedicated to reinsurance, covering matters such as tacit approval by the reinsurance company of proposals received from an insurance company for more than twenty days (hence, a shorter deadline than that of the insurance contracts); and the coverage, as a rule. of all of insurance company’s insurable interest, including the defaulting effects and salvage costs.
It also provides that the reinsurance company shall not be directly claimed by the insured party, beneficiary or harmed third parties, unless the insurance company is bankrupt. Moreover, the reinsurance company shall be notified of the claims against the insurance company regarding the insurance contract that caused the reinsurance, having the option of taking part of the proceedings as a third party assistant.
The Brazilian Insurance Act covers many insurance subjects other than those highlighted above, setting an expectation for the review of SUSEP’s regulation until it takes effect in the end of 2025.
It goes without saying that insurance and reinsurance companies licenced in Brazil should take advantage of this period to adjust their contract and policies to the new rules.
Our team is available for additional clarifications, as well as to assist in matters related to insurance in Brazil.
Gustavo Flausino Coelho – gustavo@bastilhocoelho.com.br
Thales Castanheira – thales@bastilhocoelho.com.br