ORDER OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF UZBEKISTAN

of April 22, 2008 No. 41

About approval of the Regulations on solvency of insurers and overcautious persons

In pursuance of the resolution of the President of the Republic of Uzbekistan of April 10, 2007 "About measures for further reforming and market development of insurance services" and according to the Regulations on the Ministry of Finance of the Republic of Uzbekistan approved by the resolution of the President of the Republic of Uzbekistan of March 18, 2017 No. PP-2847, I order to No. PP-618:

1. Approve the enclosed Regulations on solvency of insurers and overcautious persons.

2. Declare invalid the order of the Ministry of Finance of the Republic of Uzbekistan of February 8, 2006 No. 10 "About approval of the Regulations on procedure for determination of the maximum permissible size of obligations on separate risks, the cumulative size of obligations and standard rates of solvency of insurers" (reg. No. 1565 of 22.04.2006 - "Collection of the legislation of the Republic of Uzbekistan", 2006, No. 17, the Art. 144).

3. This Order becomes effective after ten days from the moment of its state registration in the Ministry of Justice of the Republic of Uzbekistan.

Approved by the Order of the Ministry of Finance of the Republic of Uzbekistan of April 22, 2008 No. 41

Regulations on solvency of insurers and overcautious persons

This Provision according to the Law of the Republic of Uzbekistan "About insurance activity" and the Resolution of the President of the Republic of Uzbekistan of April 10, 2007 No. PP-618 "About measures for further reforming and market development of insurance services" ("The collection of the legislation of the Republic of Uzbekistan", 2007, No. 15, of the Art. 158) establishes standard rates of solvency of insurers (overcautious persons) and procedure for their determination, the requirement for placement of assets of insurers (overcautious persons), and also requirements for reinsurance transactions.

I. General provisions

1. This Provision does not extend to the organizations of the national social insurance.

2. The basic concepts used for the purpose of this provision:

assets of the insurer (overcautious person) - the economic resources controlled by the insurer (overcautious person), received as a result of prior activities in the future to gain from them income;

The state Insurance Supervision Committee - the State inspectorate for insurance supervision under the Ministry of Finance of the Republic of Uzbekistan;

the agreement of reinsurance - the agreement with which in compliance the overcautious person shall for the payment (reinsurance award) caused by the agreement of reinsurance to compensate to the reinsurer (or to other person specified to them) on terms of the contract of reinsurance all or part of the expenses connected with obligation of the reinsurer to make the payment of insurance indemnity (insurance sum) determined by the insurance contract;

the added insurance premium - insurance premium (reinsurance award) added in the accounting period according to the insurance contract (reinsurance) irrespective of when on it money is received;

the added insurance indemnity - the insurance indemnity added in the accounting period according to the insurance contract (reinsurance) irrespective of when on it money is paid;

reinsurance - complete or partial insurance of risk of payment of the insurance indemnity or insurance sum assumed by the insurer according to the insurance contract at other insurer (insurers) under the agreement of reinsurance signed with the last;

the reinsurer - the insurer (overcautious person) transferring the risks assumed by him to reinsurance;

the overcautious person - the legal entity, being the commercial organization, having license for activities only on reinsurance, or the license for implementation of insurance activity, foreign insurance company which has the right to be engaged in reinsurance activities according to the legislation of the state of its location;

solvency of insurers (overcautious persons) - capability of insurers (overcautious persons) timely and completely to fulfill the financial liabilities. Basis of solvency is availability of the created authorized capital, sufficient insurance reserves, and also systems of reinsurance;

the connected persons - the physical persons or legal entities having special relations with the insurer (overcautious person) namely:

any person from structure of the Supervisory board of the insurer (overcautious person) or other authority of the insurer (overcautious person), and also their close relatives;

any legal entity or the physical person owning share more than 20% of the authorized capital of the insurer (overcautious person), or any of heads and large shareholders (founders) of this legal entity and also their close relatives;

legal entities and their managing directors who according to the legislation control activities of the insurer (overcautious person);

legal entities in relation to whom this insurer (overcautious person) is participant in the amount of more than 20% of the authorized capital, and also officials of the specified legal entities and their close relatives.

The face tied with one of the above-stated persons is recognized the face tied with each of them;

own deduction - the amount of the insurance bonds assumed by the insurer (overcautious person) according to each separate insurance contract (reinsurance), which is not subject to transfer to reinsurance;

insurance premiums - the fees paid by the insurer to the insurer, procedure for calculation and which sizes are established by the insurance contract, brought both in poison ivy, and in foreign currency;

solvency margin - ratio between assets of the insurer (overcautious person) and insurance bonds assumed by it;

the accounting period - calendar year from January 1 to December 31. At the same time the accounting period for which calculations and data according to this Provision are constituted is the period from January 1 of accounting year to the last calendar day of every quarter of accounting year;

reporting date - the last calendar day of the accounting period on which calculations and data according to this Provision are constituted;

obligations on separate risks - the insurance bonds assumed by the insurer (overcautious person) according to each separate insurance contract (reinsurance) and operating on reporting date;

the cumulative size of obligations of the insurer (overcautious person) - amount of the insurance bonds assumed by the insurer (overcautious person) on five largest separate risks (insurance contracts) and operating on reporting date;

the amount of sources of own means - result of the first Section of passive part of balance of the insurer (overcautious person) by the end of the reporting period;

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