Document from CIS Legislation database © 2003-2019 SojuzPravoInform LLC

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)

(In edition 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:

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;

Full text available with active License only!

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 38000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.