The The National Insurance Superintendency (SSN) revoked Boston Seguros’ operating authorization in the market. This was arranged by means of the SSN Resolution 335/2024which was issued after a long series of sanctions and warnings that The regulatory body had repeatedly made the company upon detection of irregularities in accounting and reported information.
Boston Insurance is An Argentine company with almost 100 years of experiencewhich began operating in the country in 1925. “Our Company is known for its seriousness and the fulfillment of the commitments assumed,” maintains a trajectory that was tarnished by the conduct of recent years. Many voices had been warning about solvency problems and poor administrative management. On social networks and web forums, several users denounced non-compliance by the company.
The SSN had already prohibited the insurer from entering into new insurance contracts and its assets were restrained, so the new rule issued ratified the general inhibition of assets which had previously been blocked to the company and that prevents it from operating with any of its bank accounts. Likewise, it may not keep in cash an amount greater than the approved fixed fund and any balance that exceeds it must be deposited into a bank account in its name, within 24 business hours.
The revocation of the authorization to operate implies the Automatic dissolution of the company and its immediate forced liquidationas provided for in the Civil and Commercial Code of the Nation and Law 19,550, and therefore must refrain from entering into acts of disposition of its assets, under penalty of incurring the responsibilities that may apply to it according to the criminal regulations and those corresponding to its corporate regime.
Boston Insurance: the irregularities detected by the SSN
The body observed severe irregularities in registration, accounting, movement of funds, administrative management and internal control. And he claims that “it has been placed in a situation of normative marginality with the consequent impossibility of determining its real position in relation to the technical relations that are required of it.”
Among other faults, Boston recorded delays in meeting its obligations to pay amounts resulting from the sentencewhich caused serious damage to its policyholders and recorded a large number of checks rejected due to lack of funds and requests for bankruptcy and/or forced liquidation within the framework of the National Commercial Court of First Instance.
In addition, the concealment of liabilities and an undervaluation of that variable by the company. And serious irregularities were observed in the areas of registration, accounting, movement of funds, administration and internal control that affect the integrity and reliability of the accounting records.
“The conduct displayed by Boston Insurance “their failure to comply with the obligations of their insured parties in the settlement and payment of claims is unacceptable since a pattern of systematic, repeated and prolonged non-compliance was demonstrated,” the SSN sanctioned.
Source: Ambito
