RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of January 30, 2012 No. 19

About modification and amendments in the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of August 22, 2008 No. 131 "About approval of the Instruction about normative values and technique of calculations of prudential standard rates of the insurance (reinsurance) organization, the standard rate of sufficiency of margin of solvency of insurance group, forms and terms of submission of reports on accomplishment of prudential standard rates"

For the purpose of enhancement of the regulatory legal acts regulating activities of the insurance (reinsurance) organizations, the Board of National Bank of the Republic of Kazakhstan decides:

1. Bring in the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of August 22, 2008 No. 131 "About approval of the Instruction about normative values and technique of calculations of prudential standard rates of the insurance (reinsurance) organization, the standard rate of sufficiency of margin of solvency of insurance group, forms and terms of submission of reports on accomplishment of prudential standard rates" (registered in the Register of state registration of regulatory legal acts at No. 5331, the following changes and the amendment published on November 15, 2008 in the Collection of acts of the central executive and other central state bodies of the Republic of Kazakhstan No. 11):

in the Instruction about normative values and technique of calculations of prudential standard rates of the insurance (reinsurance) organization, the standard rate of sufficiency of margin of solvency of the insurance group, forms and terms of submission of reports on accomplishment of prudential standard rates approved by the specified resolution:

1, of 2, of 3, of 4, of 5, 6 to state headings of Chapters in the following edition:

"1. Minimum size of the authorized capital of the insurance (reinsurance) organization";

"2. The minimum size of margin of solvency for the insurance company performing insurance activity on industry "general insurance" and the reinsurance organization";

"3. The minimum size of margin of solvency for the insurance company performing insurance activity on industry "life insurance";

"4. Calculation of actual margin of solvency of the insurance (reinsurance) organization";

"5. Minimum size of guarantee fund";

"6. Standard rate of sufficiency of margin of solvency and guarantee fund";

state Item 30 in the following edition:

"30. The minimum size of margin of solvency or guarantee fund of the insurance (reinsurance) organization increases by the amount of the obligations transferred (transferred) to reinsurance to the insurance (reinsurance) organizations to residents and nonresidents of the Republic of Kazakhstan according to current agreements of reinsurance depending on rating assessment of the overcautious person or value of the standard rate of sufficiency of actual margin of solvency of the reinsurance resident organization of the Republic of Kazakhstan according to appendix 1 to this Instruction.

In case of the increase in the minimum size of margin of solvency or guarantee fund of the insurance (reinsurance) organization at the amount transferred (transferred) in reinsurance obligations the minimum rating from the available rating estimates on the international or national scale of the rating agencies specified in Item 35 of this Instruction is used.

Insurance risks can be transferred to reinsurance to reinsurance organizatsiyamnerezidenta of the Republic of Kazakhstan through mediation of insurance broker - the nonresident of the Republic of Kazakhstan:

1) the authorized body of country of incorporation having the corresponding license (registration);

2) registered in the country (territory) which is the member of the International Association of Bodies of Insurance Supervisions (IAIS) which is not entering the list of the offshore zones approved by the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of October 2, 2008 No. 145 "About approval of the List of offshore zones for the purposes of banking and insurance activity, activities of professional participants of the security market and other licensed types of activity in the security market, activities of the accumulation pension funds and joint-stock investment funds" (registered in the Register of state registration of regulatory legal acts at No. 5371);

3) having the insurance contract of the civil responsibility on insurance sum at least 176000 monthly settlement indicators according to each requirement and 263000 monthly settlement indicators according to all requirements in year.";

state Item 33-1 in the following edition:

"33-1. The amount of share of the overcautious person in insurance reserves when calculating the standard rate of sufficiency of highly liquid assets and actual margin of solvency taking into account classification of assets by quality and liquidity according to Item 24 of this Instruction does not join the overcautious person's share in insurance reserves according to the agreements of reinsurance signed with the insurance (reinsurance) resident organizations of the Republic of Kazakhstan and the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan in one of the following cases:

the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan has the international rating assessment of the Standard & Poor's agency below "B-" or the rating of similar level of one of other rating agencies, or has no rating assessment of data of rating agencies;

the reinsurer (assignor) has no information on financial stability of the insurance (reinsurance) nonresident organization of the Republic of Kazakhstan, including the financial reporting for the last three financial years preceding date of the conclusion of the agreement of reinsurance and information on observance of requirements for margin of solvency (equity) of authorized body of the country of its registration during the last accounting period before date of the conclusion of the agreement of reinsurance;

the size of insurance premium under the agreement of optional reinsurance at the time of transfer of insurance risk exceeds bonus level according to the insurance contract, except for exceeding case as a result of change in the exchange rate of currency of obligation fulfillment under the agreement of reinsurance;

the agreement of reinsurance provides transfer less than ten percent of scope of responsibility and more than fifty percent of insurance premium;

the agreement of reinsurance is signed in contradiction to policy of reinsurance of the reinsurer (assignor), and also provisions of the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of February 1, 2010 No. 4 "About approval of the Instruction about requirements for availability of risk management systems and internal control in the insurance (reinsurance) organizations" (registered in the Register of state registration of regulatory legal acts at No. 6113);

the agreement of reinsurance contains condition about receipt of the reinsurer (assignor) by affiliirovanny person and (or) affiliirovanny face of the insurer, except for the reinsurer (assignor) and insured person, part of insurance premium, profit and (or) positive difference between the income and the overcautious person's expenses under the agreement or group of agreements of reinsurance.";

exclude Item 33-3;

state Items 35 and 36 in the following edition:

"35. In addition to rating estimates of the Standard & Poor's agency authorized body rating estimates of the Moody's Investors Service, Fitch and A.M. Best agencies, and also their affiliated rating organizations are also recognized (further - other rating agencies). At the same time rating estimates of the A.M. Best agency are used only for the purposes of appendix 1 to this Instruction.

For the purposes of this Instruction the long-term credit ratings, the ratings of financial stability of the insurance (reinsurance) organization or ratings corresponding to them specified in appendix 7 to this Instruction are used.

36. As highly liquid assets the following assets of the insurance (reinsurance) organization are recognized:

1) money in cash desk in the amount which is not exceeding one percent from the amount of assets of the insurance (reinsurance) organization minus reinsurance assets;

2) deposits in National Bank of the Republic of Kazakhstan;

3) deposits in the banks of the second level of the Republic of Kazakhstan corresponding to one of the following requirements:

have long-term credit rating not below "VV-" of the Standard & Poor's agency or the rating of similar level of one of other rating agencies, or rating assessment not below "kzBB" on national scale of "Standard & Poor's", or the rating of similar level on national scale of one of other rating agencies;

are affiliated resident banks which parent nonresident banks have long-term credit rating in foreign currency not below "And -" the Standard & Poor's agencies or the rating of similar level of one of other rating agencies;

have long-term credit rating from "In +" to "In" on the international scale of the Standard & Poor's agency or the rating of similar level of one of other rating agencies, or rating assessment from "kzBB-" to "kzB+" on national scale of "Standard & Poor's", or the rating of similar level on national scale of one of other rating agencies;

4) the government securities of the Republic of Kazakhstan (including emitted according to the legislation of other states) issued by the Ministry of Finance of the Republic of Kazakhstan and National Bank of the Republic of Kazakhstan;

5) the debt securities issued by local executive bodies of the Republic of Kazakhstan, included in the official listing of the stock exchange performing activities in the territory of the Republic of Kazakhstan;

6) the debt securities issued by joint-stock company "National welfare fund "Samruk-Kazyna";

7) non-state securities of the legal entities of the Republic of Kazakhstan entering the official listing of the stock exchange performing activities in the territory of the Republic of Kazakhstan:

shares of the issuers having the international rating assessment not below "VV-" of the Standard & Poor's agency or the rating of similar level of one of other rating agencies, or rating assessment not below "kzBB" on national scale of "Standard & Poor's" or the rating of similar level on national scale of one of other rating agencies, and depositary receipts which underlying asset are these shares;

the shares issued according to the legislation of the Republic of Kazakhstan, conforming to the requirements of the first (highest) or second (highest) category of the sector of "share" provided by the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of May 26, 2008 No. 77 "About requirements to the issuers and their securities allowed (allowed) to the address on the stock exchange, and also to the separate categories of the list of stock exchange" (registered in the Register of state registration of regulatory legal acts at No. 5251) (daleepostanovleny No. 77), and depositary receipts which underlying asset are these shares;

the debt securities issued according to the legislation of the Republic of Kazakhstan and other states, having the international rating assessment not below "In -" the Standard & Poor's agencies or the rating of similar level of one of other rating agencies, or rating assessment not below "kzB" on national scale of "Standard & Poor's", or the rating of similar level on national scale of one of other rating agencies;

the debt securities issued according to the legislation of the Republic of Kazakhstan and other states, included in the official listing of the stock exchange performing activities in the territory of the Republic of Kazakhstan, conforming the requirements of category "debt securities without rating assessment" provided by the resolution No. 77;

8) the non-state debt securities included in the official listing of stock exchange, except for securities, the specified in paragraphs four and the fifth the subitem 7) of this Item, issued by the organizations - residents of the Republic of Kazakhstan according to the legislation of the Republic of Kazakhstan and other states, conforming to the following requirements:

availability of assessment of the rating agencies recognized by stock exchange;

state registration of the issuer of debt securities is performed at least in two years prior to day of filing of application about inclusion of its securities in the official listing of stock exchange;

the issuer of debt securities constitutes the financial reporting according to international accounting standards (International Financial Reporting StandardsIFRS) (further - IFRS) or the accounting standards operating in the United States of America (General Accepted Accounting Principles - GAAP) (further - the SFD of the USA);

financial records audit of the issuer of debt securities is made by one of the auditing organizations entering the list of the auditing organizations recognized by stock exchange;

the financial reporting of the issuer of debt securities confirmed with the audit report was represented at least, than in two complete financial years;

the equity of the issuer of debt securities constitutes the amount, to the equivalent at least two million fifty thousandfold size of monthly settlement indicator established by the law on the republican budget for the corresponding financial year according to the financial reporting on the last reporting date confirmed with the audit report;

the net profit of the issuer of debt securities for one of two last years constitutes the amount, equivalent at least eighty five thousand to the six hundredfold size of monthly settlement indicator established by the law on the republican budget for the corresponding financial year according to the financial reporting on the last reporting date confirmed with the audit report;

the sales volume of the issuer of debt securities - the non-financial organization, except for the leasing organization and credit partnership, on the main activities for each of two last years according to the financial reporting confirmed with the audit report constitutes the amount, to the equivalent at least two million fifty thousandfold size of monthly settlement indicator established by the law on the republican budget for the corresponding financial year;

availability of the code of corporate governance approved by general meeting of shareholders of the issuer of debt securities;

the market maker's availability on debt valuable papers in the time spent of these securities in the official listing of stock exchange;

constituent documents of the issuer of debt securities and (or) the prospectus of release of issued securities do not contain regulations which infringe or limit the rights of owners of securities to their alienation (transfer);

9) the non-state debt securities included in the official listing of stock exchange, except for securities, the specified in paragraphs four and the fifth the subitem 7), and also in the subitem 8) this Item, issued by the organizations of the Republic of Kazakhstan according to the legislation of the Republic of Kazakhstan and other states, conforming to the following requirements:

availability of assessment of the rating agencies recognized by stock exchange;

state registration of the issuer of debt securities is performed at least in one year prior to day of filing of application about inclusion of its securities in the official listing of stock exchange;

the issuer of debt securities constitutes the financial reporting according to IFRS or the SFD of the USA;

financial records audit of the issuer of debt securities is made by one of the auditing organizations entering the list of the auditing organizations recognized by stock exchange;

the issuer of debt securities represented the financial reporting confirmed with the audit report for the last complete financial year;

the equity of the issuer of debt securities constitutes the amount, to the equivalent at least three hundred forty thousandfold size of monthly settlement indicator established by the law on the republican budget for the corresponding financial year according to the financial reporting on the last reporting date confirmed with the audit report;

availability of net profit of the issuer of debt securities for one of three the completed financial years according to the financial reporting on the last reporting date confirmed with the audit report;

the sales volume of the issuer of debt securities - the non-financial organization, except for the leasing organization and credit partnership, on the main activities for the last financial year according to the financial reporting confirmed with the audit report constitutes the amount, to the equivalent at least three hundred forty thousandfold size of monthly settlement indicator established by the law on the republican budget for the corresponding financial year;

availability of the code of corporate governance approved by general meeting of shareholders of the issuer of debt securities;

constituent documents of the issuer of debt securities and (or) the prospectus of release of issued securities do not contain regulations which infringe or limit the rights of owners of securities to their alienation (transfer);

10) the securities having the status state, issued by the central governments of the foreign states having sovereign rating assessment not below "VVV-" of the Standard & Poor's agency or the rating of similar level of one of other rating agencies;

11) the non-state securities issued by the foreign organizations:

the debt securities having the international rating assessment not below "VVV-" of the Standard & Poor's agency or the rating of similar level of one of other rating agencies;

shares of the issuers having the international rating assessment not below "VVV-" of the Standard & Poor's agency or the rating of similar level of one of other rating agencies, and depositary receipts which underlying asset are these shares;

12) securities of international financial institutions which list is determined by Item 37 of this Instruction;

13) the affined precious metals conforming to the international standards of quality accepted by the London association of the market of precious metals (London billion market association) and designated in documents of this association as the London High-quality Delivery standard ("London good delivery") and metal deposits, including in the bankakhnerezidenta of the Republic of Kazakhstan having the international rating assessment not below "And" the Standard & Poor's agencies or the rating of similar level of one of other rating agencies.

The financial instruments specified in this Item turn on in calculation of highly liquid assets in the amount specified in appendix 6 to this Instruction.";

to state headings of Chapters 6-1, 7 in the following edition:

"6-1. Standard rate of sufficiency of margin of solvency of insurance group";

"7. Standard rates of asset diversification";

8, 8-1 to state Chapters in the following edition:

"8. The cumulative size of the insurance premiums added to the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan. Maximum amount of own deduction and procedure for its calculation

42. The maximum amount of own deduction of the insurance (reinsurance) organization according to the separate insurance contract or reinsurance, and also on each insurance risk is calculated the actuary and does not exceed the following values in relation to the size of actual margin of solvency of the insurance (reinsurance) organization calculated by the end of the reporting period, the conclusion of the insurance contract or reinsurance preceding date:

till January 1, 2013: 100 (hundred) percent;

since January 1, 2013: 80 (eighty) percent;

since January 1, 2014: 50 (fifty) percent;

since January 1, 2015: 30 (thirty) percent.

43. In case of group insurance the calculation specified in Item 42 of this Instruction is performed on everyone insured separately.

In case of joint insurance the calculation specified in Item 42 of this Instruction is performed proceeding from share from insurance sum of each co-insurer.

The cumulative size of the insurance premiums added to obtaining by the reinsurer (assignor) according to insurance contracts and reinsurance less the insurance premiums added to the reinsurance organizations constitutes at least forty percent from the cumulative size of the insurance premiums added to obtaining by the reinsurer (assignor) according to insurance contracts and reinsurance upon completion of financial year.

The cumulative size of the insurance premiums added to reinsurance organizatsiyamnerezidenta of the Republic of Kazakhstan under agreements of reinsurance upon completion of financial year less the commission fees added to obtaining from them the reinsurer (assignor) does not exceed twenty five percent from the cumulative size of the insurance premiums added to obtaining upon completion of financial year.

The restrictions specified in parts three and the fourth this Item do not extend on:

insurance contracts (reinsurance) according to which the insurance sum (amount of obligations) constitutes at least one billion tenges;

insurance contracts (reinsurance) of air transport, water, rail transport and (or) civil responsibility of their owners according to which the insurance sum (amount of obligations) constitutes at least two percent from the size of actual margin of solvency of the insurance (reinsurance) organization calculated by the end of the reporting period, the conclusion of the insurance contract or reinsurance preceding date;

the agreements of reinsurance providing acceptance of insurance risks on reinsurance from the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan.

At the same time the amount of own deduction of the insurance (reinsurance) organization according to one insurance contract or reinsurance constitutes:

according to insurance contracts or reinsurance, to relevant requirements of paragraph two of part five of this Item, at least five percent from the size of actual margin of solvency of the insurance (reinsurance) organization calculated by the end of the reporting period, the conclusion of the insurance contract preceding date;

according to insurance contracts or reinsurance, to relevant requirements of the paragraph of third of part five of this Item, at least two percent from the size of actual margin of solvency of the insurance (reinsurance) organization calculated by the end of the reporting period, the conclusion of the insurance contract preceding date.

If the insurance sum (amount of obligations) according to insurance contracts or reinsurance, to relevant requirements of paragraphs two and third part five of this Item, constitutes less than five percent and two percent from the size of actual margin of solvency of the insurance (reinsurance) organization calculated by the end of the reporting period, the conclusion of the insurance contract or reinsurance preceding date, respectively, that own deduction according to such insurance contracts or reinsurance constitutes insurance sum (amount of obligations).

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