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measures. However, this is not mandatory, thus the payment
may be made to the beneficiary without an answer or confirma-
tion from the insurant.
• Afterwards, the insurance company shall seek recourse from
the insurant for all the compensation and legal, administrative
and additional costs it paid.
Conclusion
Surety insurance is an essential novelty brought to our current leg-
islation. The main purpose of this regulation is to remove insurance
problems in big projects and tenders that require financing. Yet, pur-
suant to the General Conditions regulation provided by the
Undersecretariat of Treasury, insurance companies can now grant secu-
rity by acting as surety. In case the surety risk defined in the policy
occurs, the insurance company pays the beneficiary and seeks reim-
bursement of the paid amount from the insurant.
LAW OF OBLIGATIONS
265