Compulsory Vehicle Insurance Opened Up to Competition

Rules have been published in Costa Rica which must be followed by any private insurance company willing to sell mandatory vehicle insurance, which until now could only be issued by the state run insurance company.

Thursday, November 19, 2015

MOPT regulation number 39.303 published in the Official Newspaper, La Gaceta, establishes maximum profit margins, the conditions to be met by insurance companies who sell Compulsory Vehicle Insurance (SOA by its initials in Spanish) and other considerations.

"... The executive order provides that any company authorized by the Superintendent of Insurance (SUG) may sell the SOA directly or through authorized agents. The Sugese will be responsible for authorizing the SOA rate for each of the insurance companies. "

Nacion.com reports that "... In no case will the Superintendency endorse rates whose profit margin is higher than 6%, as established in the rules. "





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