Comments on the Precedent No. 465 of the Brazilian Higher Court of Justice

Abstract

The present paper describes the origin, reach and actuality of precedent n. 465 of Brazilian Higher Court of Justice (Superior Tribunal de Justiça). Dealing with losses related insured vehicles, the Court concluded that “except when there is increasement of risks, the insurer must perform payment nonetheless insured party had previously transferred automobile without prior notice”. The paper puts in perspective effects of time over the insurance agreement, either when there is increase or diminishment of risks. It evaluates, then, insurance assignment rules and their consequences. The broad view over these issues allow us to critically evaluate the mentioned Court precedent, confront it with alien legislation and proposed statute law. We concluded that such precedent should be overruled.