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LAW OF THE KYRGYZ REPUBLIC

of July 23, 1998 No. 96

About the organization of insurance in the Kyrgyz Republic

(as amended on 04-07-2022)

Accepted by General Court of Jogorku Kenesh of the Kyrgyz Republic on June 30, 1998

Chapter 1. General provisions

Article 1. Insurance activity

The insurance activity is organization activity, having the license, on rendering to physical persons and legal entities for award of services which subject are the certain obligations of the insurer caused by the agreement in case of approach of unknown event, with distribution of risk among large number of persons. subject to the similar risk estimated on the basis of the principle of calculation of large numbers.

Article 2. The relations regulated by this Law

1. This Law establishes the basic principles of state regulation of insurance activity.

2. This Law does not extend to the national social insurance. Other types of compulsory insurance and mutual insurance, and also the insurance contract which conditions and procedure are regulated by the Civil code of the Kyrgyz Republic and the laws adopted on its basis.

3. In the Kyrgyz Republic the insurance activity according to the Islamic principles of insurance can be performed. Features of legal regulation of insurance activity according to the Islamic principles of insurance are established by the laws and acts of the Cabinet of Ministers of the Kyrgyz Republic adopted according to them.

Article 3. The concepts used in this Law

For the purpose of this Law the following concepts are applied:

the insurer - the citizen or the legal entity who signed the insurance contract with insurance company (insurer);

the insurer - the legal entity (insurance organization), the special permission (license) for implementation of insurance of the corresponding type which is the commercial organization and having;

insurance premium - the payment caused by the agreement which the insurer shall pay to the insurer according to the procedure and the terms established by the insurance contract;

insurance rates - the rates developed by the insurer and applied by him in case of determination of the size of the insurance premium which is subject to payment according to the insurance contract;

insurance sum - the amount within which the insurer shall pay insurance indemnity under the agreement of property insurance or which it shall pay under the agreement of personal insurance;

insurance indemnity - the amount paid by the insurer according to the insurance contract in damage covering in case of loss occurrence;

insured event - the accomplished fact provided by the insurance contract or the law with which approach there is obligation of the insurer to make insurance payment to the insurer, insured person or beneficiary;

insurance risk - expected event on which case of approach insurance is led;

insurance value - the cost of insured property specified in the insurance contract signed between the insurer and the insurer;

insurance premiums - the insurance premium which is periodically brought to the insurer by the insurer in accordance with the terms of the insurance contract;

insurance reserves - the special cash funds created by insurers of the received insurance premiums on types of insurance for the purpose of ensuring accomplishment of the insurance bonds assumed by them;

the beneficiary - person for benefit of whom the insurance contract is signed;

reinsurance - insurance fully or partially risk of payment of insurance indemnity at other insurer under the agreement of reinsurance signed with it. At the same time the insurer according to the insurance contract (basic agreement) who signed the agreement of reinsurance is in the agreement of reinsurance by the insurer;

double insurance - insurance of the same property at two or several insurers;

joint insurance - insurance of one object under one agreement jointly several insurers;

mutual insurance - insurance by citizens and legal entities of the property and other valuable interests on mutual basis by formation of societies of mutual insurance and consolidation in them means necessary for this purpose;

insurance pool - as a rule, form of temporary consolidation of number of independent insurance companies for the solution of any special task based on the agreement (agreement) on joint activities;

participants of the insurance market are insurers, insurers, insurance agents, insurance brokers, reinsurance brokers. reinsurance companies;

insurance agent - the authorized representative of the insurer acting from his name and according to its order;

insurance broker - the legal entity performing intermediary activities for insurance on its own behalf based on orders of the insurer or insurer;

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

the list of the insurance services constituting licensed activity - the insurance product developed by insurance company and provided to the insurer by means of the conclusion of the insurance contract.

the insurance intermediary - insurance agent, insurance broker, the reinsurance broker;

the actuary - the physical person performing actuarial activities;

considerable equity participation of insurance company - individual or together with other persons, immediate or indirect possession or management of ten and more percent of shares of insurance company.

Article 4. Insurers

1. Insurers the legal entities created in the form of business provided by this Law, for the purpose of implementation of insurance activity and obtained in accordance with the established procedure the license for implementation of insurance activity in the territory of the Kyrgyz Republic are recognized.

2. The legal entities who are not meeting the requirements, the stipulated in Item 1 this Article having no right to be engaged in insurance activity.

Article 5. Relations of insurance companies and state

1. Insurance companies do not answer for obligations the state, and the state - for obligations of insurance companies.

2. The state provides observance and protection of property and other rights and legitimate interests of insurance companies, conditions of free competition in implementation of insurance activity.

3. Intervention of executive bodies in insurance activity is forbidden.

Chapter 2. Creation and activities of insurance companies in the Kyrgyz Republic

Article 6. Features of the organization of insurance companies

1. The insurance company in the Kyrgyz Republic can be created and be effective only in the form of joint-stock company.

Insurance companies can create in the territory of the Kyrgyz Republic and abroad:

1) affiliated organizations;

2) branches and representations.

2. Physical persons and/or legal entities - residents and nonresidents of the Kyrgyz Republic taking into account the restrictions set by this Law can be founders and shareholders of insurance company.

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