Insurance laws El Salvador
In El Salvador, the insurance sector is regulated and supervised by the Superintendencia del Sistema Financiero (SSF), or the Superintendence of the Financial System. The SSF is responsible for ensuring the stability and transparency of the financial system, including insurance companies, for the benefit of consumers and the overall economy.
Key aspects of El Salvador's insurance laws and regulations include:
Regulation of Insurance Companies: The SSF is responsible for licensing, supervising, and regulating the operations of insurance and reinsurance companies. It sets requirements for corporate organization, minimum capital, solvency, and reserves.
Mandatory Insurance: While general travel insurance is not a requirement for entry into the country, health insurance is mandatory for all foreign residents applying for residency. This can be either international or local private insurance.
Social Security: El Salvador has a social security system managed by the Salvadoran Social Security Institute (ISSS). This system provides mandatory insurance for public- and private-sector employees and covers various benefits, including old-age, disability, and survivor pensions.
Financial Reporting and Accounting Standards: The SSF establishes the accounting standards for the financial institutions it regulates, including insurance companies.
Taxation: There is an ad valorem tax on insurance companies that applies to most types of insurance policies sold in the country.
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