The National Court of Appeals upheld the measures taken by the National Insurance Superintendency against a company that failed to comply with its obligations without justification.
The National Chamber of Commercial Appeals recognized the power of the National Insurance Superintendency (SSN) to restrict the activity of insurance companies that fail to comply with the Insurance Entities Law.
The appellate court rejected the appeal filed by Boston Compañía Argentina de Seguros SA, whose assets were restricted and it was prohibited from entering into new insurance contracts by the Insurance Superintendency through two administrative resolutions.
The reason was that Boston had not complied on time with its payment obligations under final judgments and approved agreements, thus harming the insured and victims.The Chamber found that the company had not been able to justify the delay in many of the payments it was required to make, despite having, according to the insurer, sufficient liquidity to make them, which led to the agency’s decision to restrict its activity.
The fundamentals of the measure
“If the company is, as it claims, solvent and has liquidity, it is not clear why there have been such significant delays in making payments, some of which have led to court decisions to order the seizure of its bank accounts or even a general restriction on its assets,” the ruling stated.
The role of insurers in SMEs
According to the SSN, the insurance company failed to comply with its obligation to indemnify its policyholders by failing to pay the amounts established in various lawsuits within the agreed period. Faced with this repeated and prolonged misconduct – coupled with countless rejected checks and requests for bankruptcy in the Commercial Court-, decided first to inhibit his assets and then prohibit him from entering into new contracts, powers granted to him by the same regulations.
In this regard, the Chamber states that if the insurer fails to comply with its basic obligations, it would be defrauding the insured, highlighting the control role of the National Insurance Superintendency.
The magistrates Hector Chomer and Alfredo Kölliker Frers They understood that the SSN had not exceeded its powers in making that decision, stating that the police power it has is not a faculty but an obligation.
“It is clear that the public interest is at stake in the insurance industry, and the State must therefore exercise particularly heightened police powers,” they conclude in the ruling.
Source: Ambito
