Document from CIS Legislation database © 2003-2021 SojuzPravoInform LLC

LAW OF THE REPUBLIC OF KAZAKHSTAN

of December 18, 2000 No. 126-II

About insurance activity

(as amended on 29-06-2020)

Chapter 1. General provisions

Article 1. Legislation of the Republic of Kazakhstan on insurance and insurance activity

1. The legislation of the Republic of Kazakhstan on insurance and insurance activity is based on the Constitution of the Republic of Kazakhstan and consists of the Civil code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. The relations arising from insurance and relating to coverage of other legal acts of the Republic of Kazakhstan are regulated by these acts, except for the relations which are directly settled by this Law.

2-1. This Law does not govern the relations connected with compulsory social medical insurance, compulsory social insurance.

3. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

Article 2. The relations regulated by this Law

1. This Law determines basic provisions by insurance implementation as type of business activity, feature of creation, licensing, regulation, termination of activities of the insurance (reinsurance) organizations, insurance brokers, feature of opening, licensing, regulation, the termination of activities of branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan, branches of insurance nonresident brokers of the Republic of Kazakhstan, activities condition in the insurance market of other physical persons and legal entities, tasks of state regulation of the insurance market and the principles of ensuring control and supervision of insurance activity.

2. Regulatory legal acts of authorized body on regulation, control and supervision of the financial market and financial institutions (further - authorized body) and National Bank of the Republic of Kazakhstan (further - National Bank), accepted according to this Law, are obligatory for all participants of the insurance market.

3. On the insurance (reinsurance) organizations, insurance brokers and other legal entities performing activities within the specific mode of regulation, regulation of this Law and regulatory legal acts of authorized body, National Bank accepted according to this Law entered according to the Law of the Republic of Kazakhstan "About state regulation, control and supervision of the financial market and financial institutions" extend in the limits provided by conditions of specific mode of regulation.

4. The provisions of this Law applied in relation to the insurance (reinsurance) organizations, insurance brokers (except for Articles 10-1, 10-2, 10-3, 16-2, 16-3, 21, of 24, of 25, 25-1, 26, 26-1, 27, of 28, of 30, of 31, of 32, of 35, of 40, of 48, of 49, of 50, of 51, of 52, 53-4, 54-1, 55-1, 55-2, 55-3, 55-4, 55-5, 55-6, 56, of 59, of 60, of 61, of 62, of 63, of 65, of 66, of 69, 69-1, 71, 74-1) extend to branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan, branches of insurance nonresident brokers of the Republic of Kazakhstan taking into account the features established by this Law.

Powers of authorized body and National Bank of the Republic of Kazakhstan in the field of regulation of the legal relationship connected with the insurance (reinsurance) organizations and insurance brokers, including powers on acceptance of the regulatory legal acts for the purpose of implementation of this Law provided by Articles 6, of 9, 11-1, 12, 15-1, 15-2, 16, of 17, of 20, 31-1, 34, 36-2, 36-3, 37, 37-1, 46, of 47, 52-1, 53, 53-1, 75, 75-1, 77, of 79, of 81, 82 presents of the Law extend to the legal relationship connected with branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan, branches of insurance nonresident brokers of the Republic of Kazakhstan.

Article 3. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) adzhaster - the employee of the insurance (reinsurance) organization as whom enter consideration of the application on insurance payment and damage assessment from insured event;

1-1) actuaries - the physical person who passed examinations in the minimum obligatory training program of actuaries installed by regulatory legal act of authorized body;

1-2) consolidation of actuaries - the self-regulatory organization based on voluntary membership of actuaries, created for ensuring protection of interests of the members, creation of conditions of professional activity and accomplishment of other functions;

1-3) underwriters - the employee of the insurance (reinsurance) organization as whom enter assessment of the insurance risks accepted on insurance, and determination of conditions of insurance contracts (reinsurance);

2) assistans - provision by insurance companies, legal entities of the help to the insurer (insured, to the beneficiary) who got into difficulties during its travel or its stay in the distance from the residence in the form of money and (or) in natural and material form through technical, medical assistance owing to loss occurrence;

3) control - opportunity to determine decisions of the legal entity, arising in the presence of one of the following conditions:

immediate or indirect possession by one person independently or together with one or several persons in more than fifty percent of shares in the authorized capital or placed (less exclusive and redeemed by society) shares of the legal entity or opportunity availability to vote independently in more than fifty percent of shares of the legal entity;

opportunity availability at one person independently to choose at least a half of structure of governing body or executive body of the legal entity;

inclusion of the financial reporting of the legal entity, except for the financial reporting of the special finance company created according to the legislation of the Republic of Kazakhstan on project financing and securitization in the financial reporting of other legal entity according to the audit report;

availability of possibility of one person independently or together with one or several persons to determine decisions of the legal entity owing to the agreement (supporting documents) or otherwise in the cases provided by regulatory legal act of authorized body;

4) the parent organization - the legal entity who has control over other legal entity;

5) the affiliated organization - the legal entity in relation to whom other legal entity has control;

6) indirect possession by shares in the authorized capital or ownership (vote) of shares of the legal entity - opportunity to determine decisions of the legal entity, the large member of the legal entity or persons who jointly are the large member of the legal entity through ownership (vote) of shares (shares in the authorized capital) other legal entities;

7) the large member of the legal entity - physical person or legal entity which owns directly or indirectly ten or more percent of shares in the authorized capital or voting (less exclusive) shares of the legal entity (except as specified when such owner is the state or national managing holding);

7-1) Islamic insurance (reinsurance) organization - the insurance (reinsurance) organization performing Islamic insurance activity taking into account the features established by the legislation of the Republic of Kazakhstan on insurance and insurance activity based on the corresponding license of authorized body;

8) considerable equity participation - ownership directly or indirectly, independently or together with one or several persons in twenty and more percent voting (less exclusive) shares (shares in the authorized capital) or availability of opportunity to vote in twenty and more percent of shares;

8-1) branch of the insurance nonresident broker of the Republic of Kazakhstan - separate division of the insurance nonresident broker of the Republic of Kazakhstan, not being the legal entity, located in the territory of the Republic of Kazakhstan and performing activities of insurance broker based on the license of authorized body;

8-2) branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan - separate division of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan, not being the legal entity, located in the territory of the Republic of Kazakhstan and performing insurance activity (activities for reinsurance) based on the license of authorized body;

9) reinsurance - the activities and the related relations arising in connection with transfer by the reinsurer of all or parts of insurance risks in reinsurance, on the one hand, and acceptance of these risks by the reinsurance organization, on the other hand, according to the agreement of reinsurance signed between them;

10) the reinsurance organization (overcautious person) - the legal entity performing activities for the conclusion and execution of agreements of reinsurance based on the corresponding license of authorized body;

11) the reinsurer (assignor) - the insurance or reinsurance organization performing transfer of the insurance risks accepted by it to reinsurance;

12) faultless goodwill - availability of the facts confirming professionalism, conscientiousness, lack of not removed or unspent conviction, including lack of the judgment which took legal effect about application of criminal penalty in the form of deprivation of the right to hold leading employee position of financial institution, bank and (or) insurance holding and to be large participant (large shareholder) of financial institution for life;

13) joint insurance (joint reinsurance) - the activities and the related relations arising in connection with acceptance of insurance risks under the agreement of joint insurance (joint reinsurance) at the same time by several insurance (reinsurance) organizations with distribution of their responsibility according to the cooperation agreement signed between them;

13-1) agreement of joint insurance (joint reinsurance) - the insurance contract (reinsurance) signed between participants of insurance (reinsurance) pool and the insurer (assignor) within cooperation agreement of participants of insurance (reinsurance) pool;

14) own deduction - part of scope of responsibility within which the insurer or the reinsurer (assignor) bears responsibility on own account according to the insurance contract or reinsurance;

15) prudential standard rates - the standard rates established by authorized body and obligatory for observance by the insurance (reinsurance) organizations;

16) insurance agent - the physical person or legal entity included in the register of insurance agents and performing intermediary activities for the conclusion of insurance contracts for and on behalf of one or several insurance companies based on the agreement of the order;

17) insurance broker - the legal entity representing the insurer in the relations connected with the conclusion and execution of insurance contracts with the insurer at the request of the insurer, or performing on its own behalf intermediary activities for the conclusion of insurance contracts at the request of the insurer and (or) agreements of reinsurance at the request of the reinsurer (assignor);

18) rules of insurance - the document of insurance company determining conditions of implementation of insurance on certain type of insurance;

18-1) insurance report - form of complete or partial issue of information containing in the database;

18-2) single database on insurance (further - the database) set of information (including electronically) about the insurer, the insurer, insured and the beneficiary;

18-3) insurance (reinsurance) pool - consolidation of the insurance (reinsurance) organizations jointly performing insurance activity on separate classes (types) of insurance or certain insurance risks based on the cooperation agreement signed for certain term between his participants;

19) subjects of insurance activity - the insurance and reinsurance organizations;

20) professional participants of the insurance market - the insurance (reinsurance) organization, insurance broker, branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan, branch of the insurance nonresident broker of the Republic of Kazakhstan, the actuary performing the activities based on the corresponding licenses of authorized body;

21)  No. 166-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 02.07.2018;

22) insurance portfolio - set of insurance contracts (reinsurance), and also the insurance premiums (insurance premiums) accepted according to them;

23) insurance reserves - the obligations of the insurance (reinsurance) organization according to insurance contracts (reinsurance) estimated on the basis of actuarial calculations;

23-1) insurance risk - probability of loss occurrence;

23-2) insurance group - the group of legal entities, not being banking conglomerate, insurance holding and (or) its affiliated organizations and (or) the insurance (reinsurance) organization consisting of insurance holding (in the presence) and the insurance (reinsurance) organization, and also the affiliated organizations of insurance holding and (or) the affiliated organizations of the insurance (reinsurance) organization and (or) the organizations, in which have considerable equity participation.

The national managing holding, insurance nonresident holding of the Republic of Kazakhstan, and also the affiliated organizations and the organizations in which the insurance nonresident holding of the Republic of Kazakhstan has considerable equity participation, being nonresidents of the Republic of Kazakhstan are not part of insurance group;

24) insurance company - the legal entity performing activities for the conclusion and execution of insurance contracts based on the corresponding license of authorized body;

25) indirect possession (vote) by shares of the insurance (reinsurance) organization - opportunity to determine decisions of the insurance (reinsurance) organization, the large member of the insurance (reinsurance) organization, insurance holding or persons who jointly are the large member of the insurance (reinsurance) organization, insurance holding through shareholding (shares in the authorized capital) legal entities;

25-1) consolidation of the insurance (reinsurance) organizations, insurance brokers - the non-profit organization created in the form of association (union) for ensuring protection of interests of the members and coordination of their professional activity;

26) the large participant insurance (reinsurance) the organizatsiifizichesky or legal entity (except as specified when such owner is the state or national managing holding, and also the cases provided by this Law) who according to written consent of authorized body can own directly or indirectly ten or more percent placed (less exclusive and redeemed by the insurance (reinsurance) organization) shares of the insurance (reinsurance) organization or to have opportunity:

vote directly or indirectly in ten or more percent voting (less exclusive) shares of the insurance (reinsurance) organization;

exert impact on the decisions made by the insurance (reinsurance) organization owing to the agreement or otherwise according to the procedure, determined by regulatory legal acts of authorized body;

26-1) insurance holding - the legal entity (except as specified when such owner is the state or national managing holding, and also the cases provided by this Law) who according to written consent of authorized body can own directly or indirectly twenty five or more percent placed (less exclusive and redeemed by the insurance (reinsurance) organization) shares of the insurance (reinsurance) organization or to have opportunity:

vote directly or indirectly in twenty five or more percent of voting shares of the insurance (reinsurance) organization;

determine the decisions made by the insurance (reinsurance) organization owing to the agreement or otherwise or have control;

27) the redemption amount - amount of money which the insurer has the right to receive in case of early termination of validity of accumulative insurance;

28) the surveyor - the employee of the insurance (reinsurance) organization or the legal entity providing services of the insurance (reinsurance) organization according to the services agreement as which preliminary examination and assessment of object of the insurance accepted on insurance enter;

29) the independent actuary - the physical person conforming to requirements of this Law and attracted to evaluating calculations of the actuary;

29-1) affiliirovanny persons - the physical persons or legal entities (except for the state bodies performing control and supervising functions within the powers conferred to them, and national managing holding) having opportunity directly and (or) indirectly to determine decisions and (or) to exert impact on accepted with each other (one of persons) decisions, including owing to the concluded bargain. Availability of national managing holding in shareholding structure of the insurance (reinsurance) organization is not the basis for determination affiliirovanny on the relation to each other of persons;

30)  No. 166-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 02.07.2018.

Article 4. Insurance and insurance activity

1. Insurance represents complex of the relations on protection of legitimate valuable interests of physical person or legal entity in case of loss occurrence or other event defined by the insurance contract by means of the insurance payment performed by insurance company.

2. Insurance activity are the activities of the insurance (reinsurance) organization, branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan connected with the conclusion and execution of insurance contracts (reinsurance), performed based on the license of authorized body according to requirements of the legislation of the Republic of Kazakhstan and also the activities of societies of mutual insurance connected with the conclusion and execution of insurance contracts, performed without license according to the Law of the Republic of Kazakhstan "About mutual insurance".

3. Islamic insurance activity are the activities of the Islamic insurance (reinsurance) organization, branch of the Islamic insurance (reinsurance) nonresident organization of the Republic of Kazakhstan connected with the conclusion and execution of agreements of Islamic insurance (reinsurance), performed based on the license of authorized body according to requirements of the legislation of the Republic of Kazakhstan.

Article 5. Insurance of foreign physical persons and legal entities and stateless persons

1. The foreign citizens, stateless persons, foreign legal entities including performing the activities in the territory of the Republic of Kazakhstan have the right to insurance protection on an equal basis with citizens and legal entities of the Republic of Kazakhstan.

2. it is excluded

Article 5-1. Insurance by the insurance nonresident organizations of the Republic of Kazakhstan

1. Insurance of the valuable interests of the legal entity or his separate divisions and valuable interests of the physical person which is resident of the Republic of Kazakhstan located in the territory of the Republic of Kazakhstan can be performed only by insurance company - resident of the Republic of Kazakhstan, branch of the insurance (reinsurance) organization - the nonresident of the Republic of Kazakhstan.

2. The conclusion and execution of insurance contracts with insurance companies - nonresidents of the Republic of Kazakhstan in the following cases are allowed:

1) physical persons - the residents of the Republic of Kazakhstan who are temporarily outside the Republic of Kazakhstan for the purpose of work, study, treatment or rest only for temporary stay of these persons outside the Republic of Kazakhstan;

2) residents of the Republic of Kazakhstan regarding the risks connected with services of sea transport (except for the courts providing services of cabotage), commercial aircraft, services of start and the freight of space flights (including satellites), and the related services (transportation of goods, insurance of the vehicles transporting goods and any responsibility following from this).

3. The banks of the Republic of Kazakhstan, branches of nonresident banks of the Republic of Kazakhstan and the organizations performing separate types of banking activities are forbidden to make the payments and money transfers, except as specified, stipulated in Item 2 these Articles connected with payment of insurance premiums (fees) for benefit of nonresidents of the Republic of Kazakhstan from physical and legal resident persons of the Republic of Kazakhstan.

4. Requirements of Items 2 and 3 of this Article do not extend to cases of the conclusion of agreements with branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan in the cases established by the laws of the Republic of Kazakhstan.

Chapter 2. Organization of insurance activity

Article 6. Industries, classes and types of insurance

1. For the organization and implementation of state regulation and licensing of insurance activity insurance is subdivided into industries, classes and types. The insurance activity of insurance company is performed on industry "life insurance" and industries "general insurance".

2. The industry "life insurance" includes the following classes in voluntary form of insurance:

1) life insurance;

2) annuity insurance.

3) it is excluded

4) it is excluded

3. The industry "general insurance" includes the following classes in voluntary form of insurance:

1) accidents insurance;

2) sickness insurance;

3) insurance of road transport;

4) railway transport insurance;

5) air transport insurance;

6) water transport insurance;

6-1) insurance of space objects;

7) cargo insurance;

8) proprietary insurance from damage, except for the classes specified in subitems of 3)-7) of this Item;

9) insurance of civil responsibility of owners of road transport;

10) insurance of civil responsibility of owners of air transport;

11) insurance of civil responsibility of owners of water transport;

11-1) insurance of civil responsibility of owners of space objects;

11-2) insurance of professional responsibility;

12) insurance of civil responsibility, except for the classes specified in subitems 9), 10), 11), 11-1) and 11-2) these Items;

13) loans insurance;

14) mortgage insurance;

15) insurance of guarantees and guarantees;

15-1) insurance of losses of financial institutions, except for the classes specified in subitems 13), 14), 15) and 16) of this Item;

16) insurance upon other financial losses;

17) insurance of court costs;

18) title insurance.

4. Additional requirements under the terms of carrying out separate class (type) insurance, including prudential standard rates within separate classes (types) of insurance, are established by regulatory legal acts of authorized body.

5. The type of insurance represents the insurance product developed and provided by insurance company to the insurer within one or several classes of insurance by means of the conclusion of the insurance contract.

6. Each type of compulsory insurance, content and which condition are determined by the legal act of the Republic of Kazakhstan regulating obligatory type of insurance is separate class of insurance.

7. Imputed insurance represents type of compulsory insurance in case of which the requirement about compulsory insurance, types and the minimum conditions of insurance (including object of insurance, insurance risks and the minimum sizes of insurance sums) are established by legal acts of the Republic of Kazakhstan, and other conditions and procedure for insurance are determined by the agreement of the parties.

Imputed insurance is performed within one or several classes of insurance specified in Item 3 of article 6 of this Law and is not separate class of insurance.

Article 7. Content of classes of insurance

1. Life insurance represents set of the types of insurance providing implementation of insurance payment in cases of death insured or survival by it before the termination of term of insurance or the age defined by the insurance contract.

2. Annuity insurance represents set of the types of accumulative insurance providing implementation of periodical insurance payments in the form of pension or rent during the term established by the agreement or for life in achievement cases insured certain age, disability (on age, on disability, due to illness), the death of the supporter, unemployment or other cases leading to the decrease or loss insured personal incomes. The condition about implementation of periodical insurance payments on agreements of annuity insurance is not connected with determination, refining and confirmation of the amount of insurance payments.

2-1. It is excluded

2-2. It is excluded

3. Accident insurance represents set of the types of insurance providing implementation of insurance payment in fixed amount and (or) in the amount of partial or total compensation of expenses insured in cases of death, loss (complete or partial) working capacity (general or professional) or other damnification to health of the insured as a result of accident, occupational disease, except for risks insurances, specified in the subitem 2) of Item 3 of article 6 of this Law.

Accident is understood as the sudden, short-term event (incident) which came contrary to will of the person as a result of external mechanical, electric, chemical or thermal impact on organism insured, the entailed harm to health, mutilation or death.

4. Sickness insurance represents set of the types of insurance providing implementation of insurance payment in fixed amount and (or) in the amount of partial or total compensation of expenses of the insurance of the classes specified in the subitem 1) of Item 3 of article 6 of this Law insured in connection with disease and other disorder of health, except for.

5. Insurance of the automobiles listed in subitems of 3)-6) of Item 3 of article 6 of this Law represents set of the types of insurance providing implementation of insurance payments in the amount of partial or total compensation of damage caused to the valuable interests of person connected with ownership, use, the order of the automobile including stealing or theft and also owing to its damage or destruction.

5-1. Insurance of space objects represents set of the types of insurance providing implementation of insurance payments in the amount of partial or total compensation of damage caused to the valuable interests of person connected with ownership, use, the order of space object owing to its damage or destruction.

6. Cargo insurance represents set of the types of insurance providing implementation of insurance payments in the amount of partial or total compensation of damage caused to the valuable interests of person connected with ownership, use, the order of load including including baggage, goods and all other types of products owing to their damage, destruction, loss irrespective of transportation method.

7. Proprietary insurance represents set of the types of insurance providing implementation of insurance payments in the amount of partial or total compensation of damage caused to the valuable interests of person connected with ownership, use, the order of property owing to its damage or destruction, theft, except for the property listed in subitems of 3)-7) of Item 3 of article 6 of this Law.

8. The insurance of civil responsibility of owners of automobiles provided by subitems 9), 10) and 11) of Item 3 of article 6 of this Law represents set of the types of insurance providing implementation of insurance payments to the third parties in the amount of partial or total compensation of damage caused by person obliged to compensate it owing to use of the vehicle by it including civil responsibility of carrier.

8-1. Insurance of civil responsibility of owners of space objects represents set of the types of insurance providing implementation of insurance payments to the third parties in the amount of partial or total compensation of damage caused by person obliged to compensate it in connection with use of space object by it.

8-2. Insurance of professional responsibility represents the type of insurance of civil responsibility providing implementation of insurance payments in the amount of partial or total compensation of damage in connection with damnification to the third parties owing to wrong actions (failure to act) and (or) omissions in process or as a result of the professional activity which is carried out based on special permission (the license, the notification) and (or) requiring special knowledge, experience and (or) qualification.

9. Insurance of civil responsibility represents set of the types of insurance providing implementation of insurance payments to the third parties in the amount of partial or total compensation of damage caused by the insurer obliged to compensate it owing to insurance of all risks except for specified in subitems 9), 10), 11) 11-1) and 11-2) Items 3 of article 6 of this Law.

10. Loans insurance represents set of the types of insurance providing implementation of insurance payments in case of losses of the creditor as a result of non-execution by the insurer (borrower) of obligations to the creditor.

11. Mortgage insurance represents the type of insurance providing implementation of insurance payments in the amount of partial or total compensation of damage caused to valuable interests of the creditor as a result of non-execution by the borrower of agreement obligations of mortgage housing loan after realization of mortgage property on mortgage housing loan.

12. Insurance of guarantees and guarantees represents set of the types of insurance providing implementation of insurance payments in the amount of partial or total compensation of damage caused to valuable interests of person which issued guarantee or the guarantee as a result of its obligation to perform guarantee issued or the guarantee.

13. Insurance upon other financial losses represents set of the types of insurance providing implementation of insurance payments in case of losses as a result of loss of work, loss of the income, the adverse natural phenomena, continuous, contingencies, loss of market value and other losses as a result of implementation of financial and economic activities, except for risks insurances, specified in subitems of 12)-15) of Item 3 of article 6 of this Law.

14. Insurance of court costs represents set of the types of insurance providing implementation of insurance payments in case of losses of the insurer (insured) as a result of the expenses incurred by it in connection with legal proceedings.

15. According to insurance contracts of the risks specified in Items 11-13 of this Article the risk only of the insurer and only in its advantage can be insured.

16. Insurance of losses of financial institutions represents set of the types of insurance providing implementation of insurance payment in the amount of partial or total compensation of losses as a result of rendering by financial institution of financial services, except for the classes specified in subitems 13), 14), 15) and 16) of Item 3 of article 6 of this Law.

17. Title insurance represents set of the types of insurance providing implementation of insurance payment in the amount of partial or total compensation of damage caused to valuable interests of the insurer in case of the termination of the property right to property.

Article 8. Combination of industries and classes of insurance

1. Activities of insurance company in the territory of the Republic of Kazakhstan are performed based on the license on industry "life insurance" or licenses on industry "general insurance" within the corresponding classes of insurance specified in the license.

2. Activities in industry "general insurance" cannot:

1) to be combined with activities in industry "life insurance";

2) to be performed in the form of accumulative insurance.

3. Activities in industry "life insurance" cannot be combined with:

1) activities in industry "general insurance", except for the classes of insurance specified in subitems 1) and 2) of Item 3 of article 6 of this Law;

2) obligatory types of insurance, except for compulsory insurance of the worker from accidents in case of execution by it of labor (office) obligations and compulsory insurance of the tourist.

4. The insurance company has the right to develop the type of insurance combining signs and content of two and more classes of insurance on condition of availability of the license at it with indication of the corresponding classes of insurance and taking into account the restrictions on combination of classes of insurance set by this Law.

5. it is excluded

Article 9. Activities for reinsurance

1. Activities for implementation of reinsurance in the territory of the Republic of Kazakhstan are subject to licensing according to the procedure, provided by this Law.

2. The insurance company performs transfer of insurance risks on reinsurance without license availability on reinsurance.

3. The insurance company has the right to accept insurance risks on reinsurance only in the presence of the license on reinsurance.

4. The insurance company having the license on industry "general insurance", having the right to obtain the license and to perform activities for reinsurance for all classes of insurance specified in its license on industry "general insurance", except for class of compulsory insurance of the worker from accidents in case of execution of labor (office) obligations by it.

5. The insurance company having the license on industry "life insurance", having the right to obtain the license and to perform activities for reinsurance for all classes of insurance specified in its license on industry "life insurance" taking into account combination of classes, stipulated in Item 3 articles 8 of this Law.

6. The requirements established by items 4 and the 5th this Article do not extend to the agreements of reinsurance signed with the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan.

The reinsurance organization performing reinsurance as exclusive type of activity based on the license on the reinsurance having the right to perform reinsurance on all classes of insurance in industries "life insurance" and "general insurance".

7. By transfer by the assignor of insurance risks to reinsurance availability at the assignor of confirmation of the reinsurance organization in writing about acceptance of the last is obligatory it is risk on reinsurance (acceptance) with indication of all conditions of reinsurance.

8. The insurance (reinsurance) organization has no right to transfer insurance risks to reinsurance to the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan included in the register of the prohibited insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan.

The bases of inclusion in the register of the prohibited insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan are:

1) availability of the fact of non-execution by the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan of the requirement of the insurance (reinsurance) resident organization of the Republic of Kazakhstan about implementation of reinsurance payment met by the judgment (in case of refusal in implementation of reinsurance payment or its implementation not in full);

2) non-presentation fact availability, and equally in representation by the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan to authorized body of the false or incomplete information on amount of the accepted risks, awards and essential conditions of the signed agreement of reinsurance.

The register of the prohibited insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan is placed on Internet resource of authorized body.

The procedure for maintaining the register of the prohibited insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan is determined by regulatory legal act of authorized body.

9. Ceased to be valid

10. In case of participation of the insurance broker performing activities based on the license of authorized body National Bank in the course of transfer of insurance risks to reinsurance through mediation of the insurance nonresident broker of the Republic of Kazakhstan the insurance broker performing activities based on the license of authorized body National Bank submits in authorized body the report on conditions of placement by the insurance nonresident broker of the Republic of Kazakhstan of these risks on reinsurance to the reinsurance nonresident organizations of the Republic of Kazakhstan according to regulatory legal act of National Bank in coordination with authorized body.

11. The insurance (reinsurance) organization can transfer insurance risks to reinsurance to the reinsurance nonresident organization of the Republic of Kazakhstan through mediation of branch of the insurance nonresident broker of the Republic of Kazakhstan and the insurance nonresident broker of the Republic of Kazakhstan provided that the insurance nonresident broker of the Republic of Kazakhstan has the affiliated organization performing activities of insurance broker based on the license of authorized body in the Republic of Kazakhstan. The affiliated organization of the insurance nonresident broker of the Republic of Kazakhstan performing activities of insurance broker based on the license of authorized body submits in authorized body the report on the agreements of reinsurance signed by the insurance (reinsurance) organization through mediation of this insurance nonresident broker of the Republic of Kazakhstan according to regulatory legal act of authorized body.

12. Regulations of this Law regarding creation, licensing, regulation and the termination of activities of insurance company are applied to conditions of creation of licensing, regulation and termination of activities of the reinsurance organizations performing reinsurance as exclusive type of activity.

Chapter 3. Insurance market

Article 10. Participants of the insurance market

Participants of the insurance market of the Republic of Kazakhstan are:

1) insurance (reinsurance) organization;

1-1) branches of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan;

2) insurance broker;

2-1) branch of the insurance nonresident broker of the Republic of Kazakhstan;

3) insurance agent;

4) insurer, insured, beneficiary;

5) actuary;

6) independent actuary;

7) appraiser;

8) underwriter;

9) adzhaster;

10) surveyor;

11) insurance ombudsman;

11-1) organization guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of liquidation of insurance companies;

11-2) organization for forming and maintaining database;

12) consolidation of the insurance (reinsurance) organizations and insurance brokers;

13) consolidation of actuaries;

14) other physical persons and legal entities performing the business activity connected with insurance.

Article 10-1. Powers of consolidation of the insurance (reinsurance) organizations and insurance brokers

1. Treat powers of consolidation of the insurance (reinsurance) organizations and insurance brokers:

1) ensuring interaction of the members when implementing of activities by them in the insurance market;

2) development of internal documents;

3) carrying out training of participants of the insurance market;

4) consideration of the disputes arising between members;

5) ensuring protection of interests of the members;

6) the direction to authorized body of data on possible violations by professional participants of the insurance market of the requirements established by legal acts of the Republic of Kazakhstan;

7) implementation of other functions provided by constituent documents.

2. Associations of the insurance (reinsurance) organizations and insurance brokers shall inform the members information provided by authorized body concerning professional activity of their members.

Article 10-2. Internal documents of consolidation of the insurance (reinsurance) organizations and insurance brokers

Associations of the insurance (reinsurance) organizations and insurance brokers accept the following internal documents:

1) standards of activities in the insurance market;

2) code of professional ethics;

3) procedure for the dispute resolution;

4) other documents provided by the charter.

Internal documents affirm the supreme body of management of consolidation of the insurance (reinsurance) organizations and insurance brokers and are obligatory for execution by their members.

Article 10-3. Consolidation of actuaries

1. Consolidation of actuaries is created in the form of non-profit organization which activities are regulated by this Law, the Law of the Republic of Kazakhstan "About self-regulation" and other regulatory legal acts of the Republic of Kazakhstan, constituent documents of consolidation of actuaries.

2. Conditions and procedure for admission to membership and termination of membership in consolidation of actuaries are established by the charter of consolidation of actuaries.

Consolidation of actuaries keeps the list of the members and places it on the Internet resource.

3. Consolidation of actuaries performs the following functions:

1) carrying out actuarial researches in insurance field and insurance activity, including actuarial assessment and examination of insurance rates on insurance classes, content and which conditions are determined by legal acts of the Republic of Kazakhstan;

2) carrying out the analysis and updating of indicators of survival under the agreements of annuity insurance signed within the laws of the Republic of Kazakhstan "About provision of pensions in the Republic of Kazakhstan" and "About compulsory insurance of the worker from accidents in case of execution of labor (office) obligations by it";

3) carrying out training and examinations in the minimum obligatory training program of actuaries;

4) development of internal documents;

5) ensuring interaction of the members when implementing the activities;

6) consideration of the disputes arising between members;

7) ensuring protection of interests of the members;

8) implementation of other functions which are not contradicting requirements of the legislation of the Republic of Kazakhstan about self-regulation and regulatory legal act of authorized body.

4. Workers and members of consolidation of actuaries bear responsibility for disclosure of the data received during implementation by them of the functions, which are office, commercial secrets, the mystery of insurance or other secret protected by the law, according to the laws of the Republic of Kazakhstan.

5. Development and approval of corrective actions, procedure and bases of their application, procedure for hearing of cases about violation by members of consolidation of actuaries of the code of professional ethics and standards of professional practice, qualification and other requirements to membership are within the competence of the supreme body of management of consolidation of actuaries.

Article 11. Activities of the insurance (reinsurance) organization

1. The insurance activity is main type of the business activity performed by the insurance (reinsurance) organization.

2. The insurance (reinsurance) organization, except the insurance activity having the right to perform the following types of activity:

1) investing activities taking into account the restrictions established by this Law;

1-1) activities for management of investment portfolio concerning the assets created at the expense of part of the insurance premiums got from insurers for the purposes of investment and income (losses) gained from their investment based on license for activities on management of investment portfolio in the security market in cases and procedure stipulated by the legislation the Republic of Kazakhstan;

2) issue of loans to the insurers within the redemption amount provided by the relevant agreement of accumulative insurance (for the insurance company performing activities in industry "life insurance");

3) sale of the specialized software used for automation of activities of the insurance (reinsurance) organizations;

4) sale of special literature on insurance and insurance activity on any kinds of data carriers;

5) sale or leasing of the property acquired for own needs (for the insurance (reinsurance) organization) or gone into its disposal in connection with the conclusion of insurance contracts (for insurance company);

6) provision of consulting services in the questions connected with insurance activity;

7) the organization and carrying out training for the purpose of advanced training of specialists in insurance field (reinsurance);

8) insurance mediation as insurance agent;

9) the activities specified in Item 1 of article 52 of this Law;

10) it is excluded

11) assistans, performed based on cooperation agreement between insurance companies or between the insurance companies and other legal entities rendering services of assistans;

12) the activities provided by legal acts of the Republic of Kazakhstan within participation in system of guaranteeing insurance payments.

3. (Reinsurance) organization implementation of transactions and carrying out the transactions as business activity which are not provided by Items 1 and 2 of this Article is forbidden to Strakhova.

Implementation of transactions and carrying out transactions as the business activity which is not relating to insurance (reinsurance) activity are prohibited branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan.

Branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan, except the insurance activity having the right to provide consulting services in the questions connected with insurance activity.

The branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan performing activities in industry "life insurance", except the insurance activity having the right to provide services in issue by the insurance nonresident organization of the Republic of Kazakhstan to the insurers of loans within the redemption amount provided by the relevant agreement of accumulative insurance.

3-1. The insurance company has no right to perform compulsory insurance which types, conditions and procedure are determined by the separate legal acts of the Republic of Kazakhstan regulating obligatory types of insurance in case of absence at it the large participant - physical person or insurance holding.

The requirement of part one of this Item does not extend to insurance companies which more than fifty percent of placed shares directly or indirectly belong or are delivered in trust management to the state or national managing holding.

The branch of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan has the right to perform compulsory insurance which types, conditions and procedure are determined by the laws of the Republic of Kazakhstan.

4. Insurance companies have the right to create the organization guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of involuntary liquidation of insurance companies. The procedure for creation and organization activity, guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of liquidation of insurance companies, are regulated by the legislation of the Republic of Kazakhstan.

Obligatory participation of insurance companies in the organization guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of involuntary liquidation of insurance companies, is provided by this Law and separate legal acts of the Republic of Kazakhstan regulating obligatory types of insurance.

The provision of part one of this Item does not extend to branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan.

5. The branches of the insurance nonresident organizations of the Republic of Kazakhstan performing insurance activity on obligatory types of insurance which are subject to guaranteeing according to the Law of the Republic of Kazakhstan "About Fund of guaranteeing insurance payments" acquire shares or share in the authorized capital of the organization guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of involuntary liquidation of insurance companies.

Article 11-1. General terms of implementation of insurance (reinsurance) activity

1. The insurance (reinsurance) organization has the right to perform insurance activity only in the presence of the license for the right of implementation of insurance activity (activities for reinsurance), rules of insurance determining general terms of implementation of insurance by certain type and internal regulations.

1-1. No. 479-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 29.03.2016.

1-2. The insurance company within thirty calendar days from the date of receipt of the license for the right of implementation of insurance activity shall be part of council of representatives of insurance ombudsman.

2. Internal regulations of the insurance (reinsurance) organization shall determine:

1) structure, tasks, functions and powers of divisions of the insurance (reinsurance) organization;

2) structure, number of members, tasks, functions and powers of service of internal audit and other permanent bodies;

3) the risk management system opening policy of the insurance (reinsurance) organization on management of technical (insurance), investment, credit, operational, market and other risks;

4) rights and obligations of heads of structural divisions;

5) powers of officials and employees of the insurance (reinsurance) organization when implementing of transactions by them from her name and at her expense;

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