THE ORDER OF STATE COMMISSION ON REGULATION OF THE MARKETS OF FINANCIAL SERVICES OF UKRAINE

of October 8, 2009 No. 741

About approval of the Regulations on obligatory criteria and standard rates of sufficiency, diversifikovannost and quality of assets which provide insurance reserves on types of insurance, to others, than life insurance

According to articles 28 and 29 of the Law of Ukraine "About financial services and state regulation of the markets of financial services", the subitem 11 of item 4 of the Regulations on State commission after regulation of the markets of financial services of Ukraine approved by the Presidential decree of Ukraine of April 4, 2003 N 292, and for the purpose of ensuring stability of activities of insurers and consumer protection of services in the sphere of insurance State commission on regulation of the markets of financial services of Ukraine by POSTANOVILA:

1. Approve Regulations on obligatory criteria and standard rates of sufficiency, diversifikovannost and quality of assets which provide insurance reserves on types of insurance by another, than life insurance which is applied.

2. To insurers who have the license(s) for implementation of types of insurance, others, than life insurance to bring the assets into accord with requirements of the specified Provision till December 31, 2009.

3. In case of application to the insurer of corrective actions in the form of approval by the National commission performing state regulation in the sphere of the markets of financial services of the plan of recovery of financial stability of the insurer temporary inclusion of the acceptable assets listed in the Section III of the specified Provision in calculation of the amount of acceptable assets in amounts which differ from established in the Section IV of the mentioned Provision can be established.

4. To submit to department of standards of regulation and supervision of financial institutions together with legal support division this order to the Ministry of Justice of Ukraine for state registration.

5. To provide to the sector of public relations and the protocol publication of this order in mass media after its state registration.

6. This order becomes effective from the date of its official publication.

7. Control over the implementation of this order to assign to the First Deputy Chairman according to distribution of obligations.

The Order of State commission on regulation of the markets of financial services of Ukraine of October 8, 2009 is approved No. 741

Regulations on obligatory criteria and standard rates of sufficiency, diversifikovannost and quality of assets which provide insurance reserves on types of insurance, to others, than life insurance

I. General provisions

1. This Provision is developed according to articles 28 and 29 of the Law of Ukraine "About financial services and state regulation of the markets of financial services", articles 30 and 31 of the Law of Ukraine "About insurance", the Law of Ukraine "About securities and the stock market", the subitem 18 of item 4 of the Regulations on the National commission performing state regulation in the sphere of the markets of financial services, No. 1070 approved by the Presidential decree of Ukraine of November 23, 2011.

2. This Provision establishes obligatory criteria and standard rates of sufficiency, diversifikovannost and quality of assets which provide insurance reserves on types of insurance, by another, than life insurance (further - standard rates of sufficiency, diversifikovannost and quality of assets), for the purpose of providing stable financial condition of the insurer which has the license(s) for implementation of types of insurance, others, than life insurance (further - the insurer).

3. In this Provision terms are used in such value:

real estate - the parcels of land which belong on the property right, buildings, constructions which are located on the parcel of land and concerning which the insurer performs state registration of the property rights to such real estate;

acceptable assets - assets of the insurer which answer the criteria of quality of assets of the insurer established in the Section III of this Provision;

insurance reserves - the size which determines money value of obligations of the insurer by insurance contracts (reinsurance), calculated according to requirements of the legislation for the purpose of ensuring future insurance payments depending on types of insurance (reinsurance);

the amount of acceptable assets is aggregate value in national currency of assets of the insurer which is determined at book value such assets if another is not provided to these Provisions which answer the criteria of quality of assets of the insurer established in the Section III of this Provision;

share of overcautious persons in insurance reserves - the amount of shares of overcautious persons in insurance reserves of the insurer calculated according to requirements of the legislation, except for the amounts of shares of resident overcautious persons in insurance reserves which action of the license(s) on the corresponding types of insurance is cancelled for settlement date, and the amounts of shares of nonresident overcautious persons in insurance reserves which at the time of the conclusion of the relevant agreement of reinsurance did not meet the requirements established by the legislation concerning regulation of the markets of financial services.

Other terms which are used in this Provision are used according to the Laws of Ukraine "About insurance", "About financial services and state regulation of the markets of financial services", "About securities and the stock market" and other regulatory legal acts.

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