Document from CIS Legislation database © 2003-2021 SojuzPravoInform LLC

LAW OF THE REPUBLIC OF KAZAKHSTAN

of June 13, 2003 No. 440-II

About compulsory insurance of civil responsibility of auditing organizations

(as amended on 02-01-2021)

This Law governs the public relations arising in connection with compulsory insurance of civil responsibility of auditing organizations and establishes legal, economic and organizational basis of its carrying out.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) civil responsibility of auditing organization - the obligation of auditing organization established by the civil legislation of the Republic of Kazakhstan to compensate the property harm done to the audited subjects when carrying out audit;

2) the audited subject - the legal entity who signed the auditing contract with auditing organization;

3) the beneficiary - person who according to this Law is receiver of insurance payment;

4) insured event - event with which approach the agreement of compulsory insurance of civil responsibility of auditing organization provides implementation of insurance payment to the insurer (beneficiary);

5) insurance ombudsman - the independent physical person in the activities performing settlement of disagreements between participants of the insurance market according to the Law of the Republic of Kazakhstan "About insurance activity";

6) insurance sum - amount of money for which object of insurance is insured and which represents limiting scope of responsibility of the insurer in case of loss occurrence;

7) insurance premium - amount of money which the insurer shall pay to the insurer for adoption by the last of the obligation to make insurance payment to the insurer (beneficiary) in the amount of, determined by the agreement of compulsory insurance of civil responsibility of auditing organization;

8) insurance payment - the amount of money paid by the insurer to the insurer (beneficiary) within insurance sum in case of loss occurrence;

9) the insurer - the legal entity registered as insurance company and having the license for the right of implementation of insurance activity obliged to make in case of loss occurrence insurance payment to the insurer or the other person for benefit of whom the agreement (beneficiary), within the insurance sum determined by the agreement is signed;

10) the insurer - the auditing organization which signed the agreement of compulsory insurance of civil responsibility of auditing organization with the insurer;

11) the franchize - release of the insurer from compensation of the damage which is not exceeding certain size.

Article 2. Legislation of the Republic of Kazakhstan on compulsory insurance of civil responsibility of auditing organizations

1. The legislation of the Republic of Kazakhstan on compulsory insurance of civil responsibility of auditing organizations 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. 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.

3. The provisions of this Law applied in relation to the insurer including insurance company, extend to the branches of the insurance nonresident organizations of the Republic of Kazakhstan opened in the territory of the Republic of Kazakhstan.

Article 3. Object of compulsory insurance of civil responsibility of auditing organizations

Object of compulsory insurance of civil responsibility of auditing organizations (further - compulsory liability insurance of auditing organizations) is the valuable interest of auditing organization connected with its obligation established by the civil legislation of the Republic of Kazakhstan to compensate the property harm done to the audited subjects when carrying out audit.

Article 4. Purpose and basic principles of compulsory liability insurance of auditing organizations

1. The purpose of compulsory liability insurance of auditing organizations is ensuring protection of valuable interests of the audited subjects to which property harm when carrying out audit by auditing organization by means of implementation of insurance payments is done.

2. The basic principles of compulsory liability insurance of auditing organizations are:

implementation of activities of auditing organizations which responsibility is insured under the agreement of compulsory liability insurance of auditing organizations;

ensuring accomplishment by the parties of the agreement obligations of compulsory liability insurance of auditing organizations.

Article 4-1. Features of implementation of compulsory liability insurance of auditing organizations

1.  No. 311-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 27.04.2015

2. The activities directed to restriction or elimination of the competition, provision or receipt of unreasonable benefits on the conclusion of agreements of compulsory liability insurance of auditing organizations by one insurers before others, infringement of the rights and legitimate interests of insurers are not allowed.

Article 5. Persons whose civil responsibility is subject to compulsory insurance

1. Civil responsibility of the auditing organizations which received according to the procedure, established by the legislation of the Republic of Kazakhstan, the license for implementation of auditor activities is subject to compulsory insurance.

2. The conclusion auditing organization of the agreement of voluntary insurance of the civil responsibility connected with implementation of professional activity does not exempt it from obligation according to the conclusion of the agreement of compulsory liability insurance of auditing organizations.

Article 6. Inadmissibility of implementation of activities of auditing organization without the conclusion of the agreement of compulsory liability insurance of auditing organizations

1. The auditing organization has no right to perform auditor activities without the conclusion of the agreement of compulsory liability insurance of auditing organizations.

2. The auditing organization performing activities without the conclusion of the agreement of compulsory liability insurance of auditing organizations bears the responsibility provided by the laws of the Republic of Kazakhstan.

Article 7. The state supervision and control in the field of compulsory liability insurance of auditing organizations

1. The state supervision and control of activities of insurance companies are performed by authorized body on regulation, control and supervision of the financial market and the financial organizations (further - authorized body) according to the legislation of the Republic of Kazakhstan.

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