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THE LETTER OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND SUPERVISION OF THE FINANCIAL MARKET AND THE FINANCIAL ORGANIZATIONS

of January 6, 2011 No. 06-03-12/3/104

To banks of the second level

(according to the list)

Strakhov (reinsurance) organizations

(according to the list)

OYuL "Association of Financiers of Kazakhstan" _______________________________

050000, Almaty, Ulitsa Ayteke bi, 67

The agency of the Republic of Kazakhstan on regulation of the financial market and the financial organizations (further - the Agency) in connection with the arriving requests on explanation of regulations of article 15-1 of the Law of the Republic of Kazakhstan "About insurance activity" (further - the Law), reports the following.

According to Item 3 of article 15-1 of the Law of the Republic of Kazakhstan "About insurance activity" (further - the Law) the insurance (reinsurance) organization cannot enter the transaction with any person for the purpose of provision of the insurance (reinsurance) organization of possibility of payment of the obligation to affiliirovanny person of the insurance (reinsurance) organization.

Follows from the above-stated regulation that the insurance (reinsurance) organization is forbidden to conclude the bargain (contract) with any person, including her affiliirovanny person which gives opportunity of the insurance (reinsurance) organization to pay obligations (the insurance (reinsurance) organization or this person) to affiliirovanny person of the insurance (reinsurance) organization.

Thus, we believe that the insurance (reinsurance) organization is forbidden to sign insurance contracts with affiliirovanny persons of the insurance (reinsurance) organization who provide:

- repayment of obligations of affiliirovanny persons of the insurance (reinsurance) organization by the insurance (reinsurance) organization;

- acceptance of financial risks (credit, currency, market and other risks) of affiliirovanny persons of the insurance (reinsurance) organization, including insurance of financial losses of affiliirovanny persons of the insurance (reinsurance) organization.

At the same time we consider that the insurance company has the right to sign insurance contracts with clients of bank in whom the beneficiary determines bank, by the employees of bank who are affiliirovanny person of the insurance (reinsurance) organization.

Please note that considering regulation of article 45 of the Law of the Republic of Kazakhstan "About regulatory legal acts", this explanation is not official interpretation.

At the same time, we note that the Agency it is planned to initiate introduction of amendments to the specified article for the purpose of refining of edition.

 

Vice-chairman A. Aldambergen

 

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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