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RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of April 27, 2018 No. 75

About establishment of the factors influencing deterioration in financial position of the insurance (reinsurance) organization and insurance group and also approval of Rules of approval of the actions plan providing measures of early reaction, and the Technique of determination of the factors influencing deterioration in financial position of the insurance (reinsurance) organization (insurance group)

(as amended of the Resolution of Board of National Bank of the Republic of Kazakhstan of 29.10.2018 No. 246)

According to the Law of the Republic of Kazakhstan of December 18, 2000 "About insurance activity" the Board of National Bank of the Republic of Kazakhstan" DECIDES:

1. Establish the following factors influencing deterioration in financial position of the insurance (reinsurance) organization:

1) decrease in the standard rate of sufficiency of margin of solvency of the insurance (reinsurance) organization;

2) decrease in the standard rate of sufficiency of highly liquid assets of the insurance (reinsurance) organization;

3) lack of assets taking into account their classification by quality and liquidity for covering of total amount of insurance reserves;

4) sufficiency of the amount of the required capital for covering of currency risk;

5) increase in general total placement in securities (taking into account transactions "the return repo"), deposits and money (less doubtful debt allowance) in the banks of the second level having long-term credit rating "In -" and below on the international scale of the Standard & Poor agency "s or rating of similar level of the Moody agencies" of s Investors Service or Fitch (further - other rating agencies), and affiliirovanny persons of data of banks;

6) total increase in placement in securities (taking into account transactions "the return repo"), deposits and money (less doubtful debt allowance) in one bank of the second level having long-term credit rating "In -" and below on the international scale of the Standard & Poor agency "s or the rating of similar level of one of other rating agencies, and affiliirovanny persons of this bank;

7) unprofitable activities of the insurance (reinsurance) organization;

8) increase in the combined coefficient without the overcautious person's share;

9) excess of ratio of the amount of total and administrative expenses, expenses on payment of commission fee for insurance activity and the other expenses to the amount of the income of the insurance (reinsurance) organization reduced by expense amount connected with agreement cancelation of insurance (reinsurance);

10) excess of ratio of total amount of overdue receivables according to insurance contracts and reinsurance (less reserves on impairment) to the amount of assets of the insurance (reinsurance) organization minus reinsurance assets.

2. Establish the following factors influencing deterioration in financial position of insurance group:

1) decrease in the standard rate of sufficiency of margin of solvency of insurance group;

2) decrease in equity on balance of the participant (participants) of insurance group is lower than the size of their authorized capital on balance;

3) excess of amount of transactions between members of insurance group.

3. Approve:

1) Rules of approval of the actions plan providing measures of early reaction according to appendix 1 to this resolution;

2) the Technique of determination of the factors influencing deterioration in financial position of the insurance (reinsurance) organization (insurance group) according to appendix 2 to this resolution.

4. Recognize invalid:

1) the resolution of Board of National Bank of the Republic of Kazakhstan of August 27, 2013 No. 233 "About approval of Rules of application of measures of early reaction and technique of determination of the factors influencing deterioration in financial position of the insurance (reinsurance) organization (insurance group)" (it is registered in the Register of state registration of regulatory legal acts at No. 8804, it is published on November 14, 2013 in the Yuridicheskaya Gazeta newspaper No. 171 (2546);

2) Item 21 of the List of regulatory legal acts of the Republic of Kazakhstan concerning regulation of insurance activity to which changes are made the Board of National Bank of the Republic of Kazakhstan approved by the resolution of May 30, 2016 No. 127 "About modification of some regulatory legal acts of the Republic of Kazakhstan concerning regulation of insurance activity" (it is registered in the Register of state registration of regulatory legal acts at No. 14277, it is published on October 24, 2016 in information system of law of Ad_let).

5. To department of regulation of the non-bank financial organizations (Shaykakova G. Zh.) in the procedure established by the legislation of the Republic of Kazakhstan to provide:

1) together with Legal department (Sarsenov N. V.) state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this resolution the direction it the copy in paper and electronic type in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) placement of this resolution on official Internet resource of National Bank of the Republic of Kazakhstan after its official publication;

4) within ten working days after state registration of this resolution submission to Legal department of data on execution of the actions provided by subitems 2), 3) of this Item and Item 6 of this resolution.

6. To management on consumer protection of financial services and external communications (Terentyev A. L.) provide within ten calendar days after state registration of this resolution the direction it to the copy on official publication in periodic printing editions.

7. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Kurmanov Zh. B.

8. This resolution becomes effective after ten calendar days after day of its first official publication.

Chairman of National Bank

D. Akishev

Appendix 1

to the Resolution of Board of National Bank of the Republic of Kazakhstan of April 27, 2018 No. 75

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