Brazil Rewrites the Fine Print on Insurance

Brazil just overhauled its insurance laws. Now, health and other insurance contracts are no longer governed by the general rules of the Civil Code. Instead, Law 15.040/2024 (known as the Marco Legal dos Seguros) controls and sets clear legal standards for how insurers must operate.

The new law requires insurance contracts to include basic information, like coverage dates, risks, premiums, and beneficiaries. It also creates specific rules for how insurers handle proposals, issue policies, process claims, and cancel coverage.

For instance, insurers have 25 days to accept or reject a proposal. If they don’t respond by the deadline, the proposal is considered accepted. Once accepted, the insurance company has 30 days to issue and deliver the policy to the customer.

The law also sets firm deadlines for claims. After a customer submits the required documents, the insurer has 30 days to accept a claim. After they accept it, they have another 30 days to pay it. These rules are designed to prevent processing delays and reduce potential surprises.

Cancellations are now more tightly regulated. For example, insurers must provide prior written notice before cancelling a policy. The only exception applies when the first or only premium payment is missed. In that case, cancellation takes effect immediately.

The new insurance law is a significant development. It makes insurance coverage in Brazil more transparent, predictable, and balanced for consumers. Whether it involves healthcare coverage or insuring a car, a home, or a business, policyholders now have clearer protections and stronger rights.