Document from CIS Legislation database © 2003-2021 SojuzPravoInform LLC

RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of October 29, 2018 No. 258

About some questions of establishment of prohibition on provision of preferential terms to the faces tied with the insurance (reinsurance) organization, branch of the insurance (reinsurance) organization – the nonresident of the Republic of Kazakhstan, the special relations

(as amended on 12-02-2021)

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

1. For the purposes of the subitem 2) of Item 2 of article 15-1 of the Law the cost of the transaction or set of transactions of the insurance (reinsurance) organization (within the last twelve months) with the face tied with the insurance (reinsurance) organization the special relations exceeds 0,1 (zero whole one tenth) percent from equity of the insurance (reinsurance) organization on acceptance date the insurance (reinsurance) organization of the decision on transaction or set of transactions or 2 (two) one million tenges. For the purposes of this Item the smallest of the specified values is applied. Calculation of cost of set of transactions is perfromed for date of making of the last transaction taking into account the cost of earlier made transactions.

2. For the purposes of part two of Item 2 of article 15-1 of the Law to establish the following additional criteria of reference of transactions to transactions with preferential terms:

1) the conclusion of the insurance contract (reinsurance) with the face tied with the insurance (reinsurance) organization the special relations, or in its interests, providing return of part of the got insurance premium to the insurer (reinsurer) in the absence of insured events;

2) numerous prolongation of payment due date of insurance premium or its part according to the insurance contract (reinsurance) signed with the face tied with the insurance (reinsurance) organization the special relations;

3) remuneration payment to the insurance agent or insurance broker connected with the insurance (reinsurance) organization the special relations in the amount of above, than to other insurance agents or insurance brokers;

4) transfer of risks on reinsurance to the face tied with the insurance (reinsurance) organization the special relations under the agreement of reinsurance using reinsurance rate above, than for other overcautious persons;

5) the conclusion of the contract of reinsurance with the face tied with the insurance (reinsurance) organization the special relations under the terms of which the amount of reinsurance payment does not exceed reinsurance award.

3. For the purposes of the subitem 5) of part one of Item 2-1 of article 15-1 of the Law to establish the following signs of coherence of physical person or legal entity with the insurance (reinsurance) organization the special relations:

1) person which was earlier the affiliate of the insurance (reinsurance) organization.

The requirement of this subitem is effective within consecutive twelve months after loss by person of signs of the affiliate of the insurance (reinsurance) organization;

2) officials, leading employees and large members of the legal entity, and also this legal entity whose workers jointly (directly or indirectly) own twenty and more percent (less exclusive) shares of the insurance (reinsurance) organization;

3) insurance broker which more than 30 (thirty) percent of comprehensive income for the last twelve months make receipts from the insurance (reinsurance) organization and (or) persons, related the special relations;

4) person, the amount of transaction or sets of transactions (within the last twelve months) with which exceeds 50 (fifty) percent from equity of the insurance (reinsurance) organization.

For the purposes of this subitem insurance contracts (reinsurance) are not considered;

5) the legal entity and his affiliates if the amount of insurance (reinsurance) premiums according to the insurance contracts (reinsurance) concluded with them within the last twelve months constitutes 20 (twenty) and more percent from the total volume of the insurance premiums added by the insurance (reinsurance) organization according to insurance contracts (reinsurance) within the last twelve months.

The requirement of this subitem extends to insurance contracts (reinsurance) in voluntary form of insurance.

Calculation of the amount of insurance (reinsurance) premiums is perfromed for date of the conclusion of the last insurance contract (reinsurance) taking into account earlier signed insurance contracts (reinsurance);

6) insurance insurance agent (reinsurance) organization or insurance broker if the amount of the arrived insurance (reinsurance) premiums according to the insurance contracts (reinsurance) within the last twelve months signed with mediation of specified persons constitutes 30 (thirty) and more percent from the total volume of the insurance premiums added according to the insurance contracts (reinsurance) which became effective within the last twelve months.

The requirement of this subitem extends to insurance contracts (reinsurance) in voluntary form of insurance.

Calculation of total volume of insurance premiums is perfromed for date of the conclusion of the last insurance contract (reinsurance) taking into account earlier signed insurance contracts (reinsurance).

For the purposes of recognition of faces tied with branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan the special relations:

the insurance (reinsurance) organization in the subitem 2) of part one of this Item is understood as the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan;

the insurance (reinsurance) organization in subitems 1), 3), 5) and 6) of part one of this Item is understood as branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan;

in the subitem 4) parts one of this Item are understood as equity of the insurance (reinsurance) organization the assets accepted as reserve for providing with the insurance (reinsurance) organization – the nonresident of the Republic of Kazakhstan of financial stability of branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan.

4. For the purposes of part three of Item 2-1 of article 15-1 of the Law to determine the following other persons who are not recognized by the faces tied with the insurance (reinsurance) organization the special relations:

1) National chamber of entrepreneurs of the Republic of Kazakhstan;

2) State Credit Bureau Joint-stock company;

3) "Single Accumulation Pension Fund" Joint-stock company;

4) Public association "Society of Actuaries of Kazakhstan";

5) public institutions;

6) associations of the legal entities performing activities in the financial market;

7) persons who are not recognized affiliates according to the international treaties ratified by the Republic of Kazakhstan.

5. Requirements of this resolution extend to insurance holdings, except as specified, stipulated in Item the 6th article 15-1 of the Law.

6. To department of regulation of the non-bank financial organizations (Kosherbayeva A. M.) in the procedure established by the legislation of the Republic of Kazakhstan to provide:

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

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 50000 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.
More about search system

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.