LAW OF THE REPUBLIC OF KAZAKHSTAN

2-1. This Law does not govern the relations connected with activities of Export credit agency of Kazakhstan, except for Item 8 of article 9 of this Law and also the relations connected with compulsory social medical insurance, compulsory social insurance.

12) faultless goodwill - professionalism and conscientiousness of person, confirmable including lack of the facts:

making by the specified person of illegal actions (failure to act) which resulted in the insolvency which entailed involuntary liquidation of the financial organization or to application to bank of the mode of settlement;

not removed or unspent conviction of the specified person, including lack of the court resolution which took legal effect about application to person of criminal penalty in the form of deprivation of the right to hold leading employee position of the financial organization, bank and (or) insurance holding and to be the large member (large shareholder) of the financial organization for life;

availability of the relations with the third parties (control and influence of the third parties) whose actions promoted legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction based on data of authorized body on financial monitoring;

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 - physical person or legal entity, bank branch - the nonresident of the Republic of Kazakhstan, the orders 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;

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;

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

19-1) insurance bonds - the obligations of the insurance (reinsurance) organization according to insurance contracts (reinsurance) estimated on the basis of actuarial calculations according to international accounting standards;

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) the insurance portfolio - cumulative obligations of the insurance (reinsurance) organization on the risks accepted according to insurance contracts (reinsurance) including according to insurance contracts (reinsurance) which effective periods expired, according to which the insurance (reinsurance) organization incurs obligations or is available probability of emergence of obligations to insurers (insured, beneficiaries, reinsurers);

23) insurance reserves - the obligations of the insurance (reinsurance) organization according to insurance contracts (reinsurance) estimated on the basis of actuarial calculations for the purposes of calculation of prudential standard rates;

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

23-2) insurance group - the group of the legal entities and the organizations who are not legal entities who are not 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 holding - the nonresident of the Republic of Kazakhstan, and also the affiliated organizations and the organizations in which insurance holding - the nonresident 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 (insurer) - the legal entity performing activities for the conclusion and execution of insurance contracts based on the corresponding license of authorized body;

25) No. 259-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 16.01.2026;

25-1) merging 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 member of the insurance (reinsurance) organization - physical person or legal entity which according to written consent of authorized body has the right:

directly and (or) indirectly to own, use and dispose in total of ten or more percent of voting shares of the insurance (reinsurance) organization, including by means of the derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization;

render directly and (or) indirectly influence on the decisions made by the insurance (reinsurance) organization (to vote) in ten or more percent of voting shares of the insurance (reinsurance) organization owing to the agreement (supporting documents) or otherwise in the cases provided by regulatory legal act of authorized body.

The large member of the insurance (reinsurance) organization are not recognized:

Government of the Republic of Kazakhstan;

national managing holding;

the single accumulation pension fund managing investment portfolio, holding voting shares of the insurance (reinsurance) organization and (or) derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization, at the expense of pension assets;

person performing functions of the nominee holder of voting shares of the insurance (reinsurance) organization and (or) the derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization, and also the issuer of the specified derivative securities;

person having rights only to receipt of dividends and (or) other share yield of the insurance (reinsurance) organization without opportunity to exert impact on the decisions made by the insurance (reinsurance) organization;

the other persons specified in Item 19 of article 9-5 of the Law of the Republic of Kazakhstan "About state regulation, control and supervision of the financial market and the financial organizations";

26-1) insurance holding - the legal entity who according to written consent of authorized body has the right:

directly and (or) indirectly to own, use and dispose in total of twenty five or more percent of voting shares of the insurance (reinsurance) organization, including by means of the derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization;

render directly and (or) indirectly influence on the decisions made by the insurance (reinsurance) organization (to vote) in twenty five or more percent of voting shares of the insurance (reinsurance) organization owing to the agreement (supporting documents) or otherwise in the cases provided by regulatory legal act of authorized body.

Insurance holding are not recognized:

Government of the Republic of Kazakhstan;

national managing holding;

the single accumulation pension fund managing investment portfolio, holding voting shares of the insurance (reinsurance) organization and (or) derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization, at the expense of pension assets;

person performing functions of the nominee holder of voting shares of the insurance (reinsurance) organization and (or) the derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization, and also the issuer of the specified derivative securities;

person having rights only to receipt of dividends and (or) other share yield of the insurance (reinsurance) organization without opportunity to exert impact on the decisions made by the insurance (reinsurance) organization;

the other persons specified in Item 19 of article 9-5 of the Law of the Republic of Kazakhstan "About state regulation, control and supervision of the financial market and the financial organizations";

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;

27-1) service company - the organization for management of stressful assets, the collection agency having within the trust management agreement rights (requirements), powers on trust management of the rights (requirements) for the agreement of bank loan, the agreement on provision of the microcredit including in the relation:

changes of terms of the contract of bank loan, agreement on provision of the microcredit;

representations in court of interests of person with which the trust management agreement of the rights (requirements) is signed;

acceptance from the debtor of money and (or) other property;

other powers provided by the laws of the Republic of Kazakhstan and (or) the trust management agreement of the rights (requirements);

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) affiliates - 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 and also legal entities, hundred percent of voting shares (shares in the authorized capital) which belong to such 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. Do not treat affiliates of the insurance (reinsurance) organization which large shareholder is the national managing holding:

national managing holding, being the large shareholder of the insurance (reinsurance) organization;

legal entities, hundred percent of voting shares (shares in the authorized capital) which belong to the specified national managing holding;

officials of the specified national managing holding and legal entities, hundred percent of voting shares (shares in the authorized capital) which belong to such national managing holding.

29-2) considerable equity participation of the organization - immediate and (or) indirect possession and (or) use, and (or) the order independently or together with one or several persons owing to the agreement (supporting documents) or otherwise in the cases established by authorized body, twenty and more percent of voting shares, shares, shares or other forms of equity in the legal entity or the organization not being the legal entity.

Person having considerable equity participation of the organization are not recognized:

Government of the Republic of Kazakhstan;

national managing holding;

affiliated organizations of National Bank of the Republic of Kazakhstan;

the single accumulation pension fund managing investment portfolio, holding voting shares of the insurance (reinsurance) organization and (or) derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization, at the expense of pension assets;

other persons in the cases provided by this Law;

29-3) large participant - the physical person, the legal entity, the organization, not being the legal entity which directly and (or) indirectly own and (or) use, and (or) dispose of ten or more percent of voting shares, shares, shares or other forms of equity in the legal entity or the organization, not being the legal entity.

The large member of the legal entity or the organization, not being the legal entity, are not recognized:

Government of the Republic of Kazakhstan;

national managing holding;

affiliated organizations of National Bank of the Republic of Kazakhstan;

the single accumulation pension fund managing investment portfolio, holding voting shares of the insurance (reinsurance) organization and (or) derivative securities issued according to the legislation of the Republic of Kazakhstan or foreign state which underlying asset are voting shares of the insurance (reinsurance) organization, at the expense of pension assets;

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. excluded

Article 5-1. Insurance by insurance companies - nonresidents of the Republic of Kazakhstan and the insurance (reinsurance) organizations - members of the International financial center "Astana"

4. Requirements of Items 2 and 3 of this Article do not extend to cases of the conclusion of contracts 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 compulsory insurance of the worker from accidents in case of execution of labor (office) obligations by it and the following classes in voluntary form of insurance:

1) life insurance, except for the class specified in the subitem 3) of this Item;

2) annuity insurance, except for the class specified in the subitem 4) of this Item;

3) life insurance within the state educational accumulative system;

4) pension annuity insurance.

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 of legal entities;

14) mortgage insurance;

15) insurance of guarantees and guarantees;

15-1) insurance of losses of the financial organizations, 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 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 the laws 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 this Article and is not separate class of insurance.

The minimum requirements to standard agreements on imputed insurance are established by regulatory legal act of authorized body.

Standard agreements on imputed insurance are developed and affirm the authorized state body regulating type of activity which is subject to imputed insurance, in coordination with authorized body.

By agreement of the parties standard agreements on imputed insurance can be added with the provisions which are not contradicting requirements of the legislation of the Republic of Kazakhstan.

Article 7. Content of classes of insurance

1. Life insurance represents set of the types of insurance providing implementation of insurance payments in cases of death insured or survival by it before the termination of term of insurance or the age defined by the insurance contract except for of the type of insurance specified in Item 2-3 of this Article.

2. Annuity insurance represents set of the types of accumulative insurance providing implementation of periodical insurance payments in the form of periodical payments for benefit of the beneficiary during the term established by the agreement, except for the type of insurance specified in Item 2-4 of this Article.

2-1. Excluded

2-2. Excluded

2-3. Life insurance within the state educational accumulative system represents the type of insurance providing implementation of insurance payment in cases of death of the insurer or disability for disability of the first or second group or survival by it before the termination of term of insurance according to the Law of the Republic of Kazakhstan "About the State educational accumulative system".

2-4. Pension annuity insurance represents the type of accumulative insurance providing implementation of periodical insurance payments according to the Social code of the Republic of Kazakhstan.

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, connected with disease and (or) other disorder of health.

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 insured in connection with disease and other disorder of health, including the expenses connected with death which was caused disease and (or) other disorder of health.

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 the risks covered by the insurance classes specified in subitems 9), 10), 11), 11-1) and 11-2) Items 3 of article 6 of this Law.

10. Loans insurance of legal entities 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 legal entity) 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 the financial organizations 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 financial services by the financial organization, 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) the obligatory types of insurance which are not relating to industry "life insurance", except for 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. 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".

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 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, Export credit agency of Kazakhstan has no right to transfer insurance risks to reinsurance to the insurance (reinsurance) organizations - the nonresidents of the Republic of Kazakhstan included in the register of the prohibited insurance (reinsurance) organizations - nonresidents 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.

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