REGULATORY LAW

General Law of Institutions and insurance mutualist societies

CHARACTERISTICS

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CONSTITUTION PROCESS

•  public writing and protocolization

•  authorization of SHCP and National Commission of Insurance and Bails

•  inscription in public record of Trade

NAME

Denomination limited in words, like insurance, coinsurance, reinsurance and assurance

SHARE CAPITAL

Amount in units of investment that will be fixed by SHCP according to the branch or branches that authorizes, being able to be modified by agreement of the same Secretariat during the first trimester of every year. It can be fixed or changeable, but if it is changeable, the obligatory minimum will be without right to retirement.

RESERVES

•  Ordinary Fund of Reserve: 10 % per year of the utilities up to reaching 75 % of the amount of the full share capital;

•  Technical reserves: Of risk, of hanging obligations about to expire and other foreseen ones in the Law.

NUMBER OF ASSOCIATES

Minimum: 2 associates, maximum: unlimited

DOCUMENTS THAT ACCREDIT THE ASSOCIATES

- Ordinary actions, limited vote in insurance for the most part Mexicans

- Actions series "E" and "M" in insurance for the most part foreigners or subsidiaries of financial institutions of the exterior.

ASSOCIATES' RESPONSABILITIES

Up to for the amout of his/her contribution

FOREIGNERS' PARTICIPATION

Capital for the most part foreigner or subsidiaries of financial institutions of the exterior

SOCIAL ORGANS AND FOR ALERTNESS

-associate's assembly

-council of administration with express approval of the SHCP

-General manager with express approval of the S.H.C.P.

-commissioners