Source: № 126-II453 min read

Law «On Insurance Activity» (No. 126-II)

LegislationGeneral standards

Law of the Republic of Kazakhstan «On Insurance Activity» (No. 126-II)

Reference card for a regulatory legal act. The full text is available in the official «Adilet» legal information system (adilet.zan.kz).

Requisites

Parameter	Value
Type of act	Law of the Republic of Kazakhstan
Number and date	No. 126-II of 18 December 2000
Status	In force (as of June 2026)
Official code	Z000000126_

Subject of the document

The principal sectoral law governing insurance and reinsurance activity in the Republic of Kazakhstan. It establishes the conceptual framework, the forms and classes of insurance, the requirements for insurance (reinsurance) organisations and insurance brokers, the licensing and supervision regime, and the legal foundations of the market infrastructure. All the subordinate acts listed in the catalogue below are based on this Law.

Relevance for actuarial practice

It establishes the institution of the actuary and of the mandatory actuarial opinion for insurance organisations (Articles 20 and 75).
It provides the legal basis for the Unified Insurance Database (USDB / ЕСБД) — the chapter on the database, Article 80.
It sets out the requirements for the formation of insurance reserves and the valuation of liabilities, which are detailed in subordinate acts (see cards No. 84, No. 86, No. 149).
It serves as the point of departure for the Chamber's legislative initiatives (access of the actuaries' association to data, the institution of the independent actuary, reform of professional development).

Official source

Full text in force: adilet.zan.kz/rus/docs/Z000000126_. When relying on it, verify against the current version.

English Translation (Auto-generated)

Official source: Adilet / https://adilet.zan.kz/rus/docs/Z000000126_ The relevance of the editorial office has been verified: 2026-06-20.

Footnote: Attention users! For the convenience of using RCPI, a CONTENTS Footnote has been created. In the text, the words “authorized state body”, “authorized state body”, “authorized state body”, “authorized state body” are replaced with the words “authorized body”, “authorized body”, “authorized body”, “authorized body” - Law of the Republic of Kazakhstan dated July 10, 2003 No. 483 (enters into force on January 1 2004). Footnote. Throughout the text, the words “and financing of terrorism” are respectively replaced by the words “financing terrorism and financing the proliferation of weapons of mass destruction” in accordance with the Law of the Republic of Kazakhstan dated September 19, 2025 No. 219-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication). Note FROM! Throughout the text, the words “electronic government”, “Law of the Republic of Kazakhstan “On Informatization”, “electronic information resources”, “electronic information resources”, “information system”, “information systems”, “information systems”, “information systems”, “information system”, “information technologies”, “information technologies”, “information security” are intended to be replaced accordingly with the words “digital government”, “Digital Code of the Republic of Kazakhstan”, “digital resources”, “digital resources”, “digital system”, “digital systems”, “digital systems”, “digital systems”, “digital system”, “digital technologies”, “digital technologies”, “cybersecurity” in accordance with the Law of the Republic of Kazakhstan dated 01/09/2026 No. 256-VIII (shall be enforced six months after the day of its first official publication).

Chapter 1. General provisions

Article 1. Legislation of the Republic of Kazakhstan on insurance and insurance activities

Footnote: Footnote. Title as amended by the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV.

The legislation of the Republic of Kazakhstan on insurance and insurance activities 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.
Relations arising from insurance and relating to the scope of other legislative acts of the Republic of Kazakhstan are regulated by these acts, with the exception of relations directly regulated by this Law.

2-1. This Law does not regulate relations related to the activities of the Export Credit Agency of Kazakhstan, with the exception of paragraph 8 of Article 9 of this Law, as well as relations related to compulsory social health insurance, compulsory social insurance.

If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those contained in this Law, then the rules of the international treaty apply.

Article 1-1. The main goals of state regulation in the insurance sector

The main goals of state regulation in the insurance industry are to establish the legal basis for the activities of professional participants in the insurance market, create and maintain a stable insurance system in the Republic of Kazakhstan, form the infrastructure of the national insurance market, protect the rights and legitimate interests of policyholders, insured and beneficiaries.

Article 2. Relations regulated by this Law

This Law defines the main provisions for the implementation of insurance as a type of business activity, features of the creation, licensing, regulation, termination of activities of insurance (reinsurance) organizations, insurance brokers, features of opening, licensing, regulation, termination of activities of branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, conditions of activity in the insurance market of other individuals and legal entities, tasks of state regulation of the insurance market and principles of ensuring control and supervision of insurance activities.
Regulatory legal acts of the authorized body for regulation, control and supervision of the financial market and financial organizations (hereinafter referred to as the authorized body) and the National Bank of the Republic of Kazakhstan (hereinafter referred to as the National Bank), adopted in accordance with this Law, are mandatory for all participants in the insurance market.

3. Insurance (reinsurance) organizations, insurance brokers and other legal entities operating within the framework of the special regulatory regime introduced in accordance with the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”, the norms of this Law and the regulatory legal acts of the authorized body, the National Bank, adopted in accordance with this Law, are subject to the limits provided for by the conditions of the special regulatory regime.

4. The provisions of this Law applied to insurance (reinsurance) organizations, insurance brokers (except for Articles 10-1, 10-2, 10-3, 13, 16-2, 16-3, 21, 24, 25, 25-1, 26, 27, 28, 30, 31, 32, 35, 40, 48, 49, 50, 51, 52, 52-3, 53-4, 62, 63, 65, 68, 69, 71, 72, 73, 74-1), apply to branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, taking into account the specifics established by this Law.

The powers of the authorized body and the National Bank in the field of regulation of legal relations related to insurance (reinsurance) organizations and insurance brokers, including the powers to adopt regulatory legal acts for the purpose of implementing this Law, provided for in Articles 6, 9, 11-1, 12, 15-1, 15-2, 16, 17, 18, 18-1, 19, 20, 31-1, 34, 36-2, 36-3, 37, 37-1, 46, 47, 52-1, 53, 53-1, 54-1, 55-2, 56, 72-1, 75, 75-1, 77, 79, 81, 82 of this Law, apply to legal relations related to branches insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan.

Article 3. Basic concepts used in this Law

This Law uses the following basic concepts:

adjuster - an employee of an insurance (reinsurance) company whose functions include consideration of an application for insurance payment and assessment of damage from an insured event;

1-1) actuary - an individual who has passed exams on the minimum mandatory training program for actuaries, established by the regulatory legal act of the authorized body;

1-2) professional judgment of an actuary - the judgment of an actuary based on his professional training, knowledge and experience in carrying out actuarial activities;

1-3) association of actuaries - a self-regulatory organization based on the voluntary membership of actuaries, created to ensure and protect the interests of its members, create conditions for professional activity and perform other functions;

1-4) underwriter - an employee of an insurance (reinsurance) organization whose functions include assessing insurance risks accepted for insurance and determining the terms of insurance (reinsurance) contracts;

2) assistance - provision by insurance organizations, legal entities of assistance to the policyholder (insured, beneficiary) who finds himself in a difficult situation during his travel or his stay far from his place of residence, in the form of money and (or) in kind through technical, medical assistance due to the occurrence of an insured event;

3) control - the ability to determine the decisions of a legal entity or organization that is not a legal entity, arising in the presence of one of the following conditions:

direct and (or) indirect ownership and (or) use and (or) disposal by one person of more than fifty percent of voting shares, participation interests, shares or other forms of equity participation in a legal entity or organization that is not a legal entity;

the ability of one person to directly or indirectly elect at least half of the composition of the management body or executive body of a legal entity or organization that is not a legal entity;

inclusion of the financial statements of a legal entity, with the exception of the financial statements of a special financial company established in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, or an organization that is not a legal entity, in the financial statements of another legal entity or organization that is not a legal entity, in accordance with the audit report;

the ability of one person, independently or jointly with one or more persons, to determine the decisions of a legal entity or organization that is not a legal entity, by virtue of an agreement (supporting documents) or otherwise in cases established by the authorized body;

4) parent organization - a legal entity (an organization that is not a legal entity) exercising (exercising) control over another legal entity or another organization that is not a legal entity;

5) subsidiary organization - a legal entity (an organization that is not a legal entity), in relation to which (which) another legal entity or an organization that is not a legal entity exercises control;

6) indirect ownership - the ability to influence the decision of a legal entity or organization that is not a legal entity, a major participant in a legal entity or organization that is not a legal entity, and (or) persons who are jointly a major participant in a legal entity or organization that is not a legal entity, through ownership of voting shares, participation interests, shares or other forms of equity participation in a legal entity or organization that is not a legal entity;

7) an organization that is not a legal entity - a foundation, partnership, trust, company, partnership, organization or other corporate entity created (registered) in accordance with the laws of a foreign state, considered as independent organizational and legal forms regardless of whether they have the status of a legal entity in a foreign state;

7-1) Islamic insurance (reinsurance) organization - an insurance (reinsurance) organization carrying out Islamic insurance activities, taking into account the features established by the legislation of the Republic of Kazakhstan on insurance and insurance activities, on the basis of an appropriate license from the authorized body;

7-2) indirect participation in capital - the ability to determine the decisions of a legal entity or organization that is not a legal entity, a major participant in a legal entity or organization that is not a legal entity, and (or) persons who are jointly a major participant in a legal entity or organization that is not a legal entity, through ownership and (or) use, and (or) disposal of voting shares, participation interests, shares or other forms of equity participation in another legal entity or other organization that is not a legal entity;

8-1) branch of a non-resident insurance broker of the Republic of Kazakhstan - a separate division of a non-resident insurance broker of the Republic of Kazakhstan, which is not a legal entity, located on the territory of the Republic of Kazakhstan and carrying out the activities of an insurance broker on the basis of a license from the authorized body;

8-2) branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan - a separate division of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, which is not a legal entity, located on the territory of the Republic of Kazakhstan and carrying out insurance activities (reinsurance activities) on the basis of a license from the authorized body;

9) reinsurance - activities and related relations arising in connection with the transfer by the reinsurer of all or part of the insurance risks to reinsurance, on the one hand, and the acceptance of these risks by the reinsurance organization, on the other hand, in accordance with the reinsurance agreement concluded between them;

10) reinsurance organization (reinsurer) - a legal entity engaged in concluding and executing reinsurance contracts on the basis of a relevant license from the authorized body;

11) reinsurer (assignor) - an insurance or reinsurance organization that transfers the insurance risks it has accepted to reinsurance;

11-1) agreement on trust management of rights (requirements) - agreement on trust management of rights (requirements) under a bank loan agreement, an agreement on the provision of a microcredit, concluded between a service company and the person specified in paragraph 1 of Article 63 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”, or the person specified in part one of paragraph 5 of Article 9-1 of the Law of the Republic of Kazakhstan “On Microfinance Activities”, or an insurance company (reinsurance) organization;

12) impeccable business reputation – professionalism and integrity of a person, confirmed, inter alia, by the absence of facts:

commission by the specified person of illegal actions (inaction) that led to insolvency, resulting in the forced liquidation of a financial organization, or to the application of a settlement regime to the bank;

unexpunged or unexpunged criminal record of the specified person, including the absence of a judicial act that has entered into legal force on the application of criminal punishment to the person in the form of deprivation of the right to hold the position of an executive employee of a financial organization, banking and (or) insurance holding company and to be a major participant (major shareholder) of a financial organization for life;

the presence of relationships with third parties (control and influence of third parties), whose actions contributed to the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, based on information from the authorized body for financial monitoring;

13) co-insurance (joint reinsurance) - activities and related relations arising in connection with the acceptance of insurance risks under a co-insurance (joint reinsurance) agreement by several insurance (reinsurance) organizations simultaneously with the distribution of their responsibilities in accordance with the joint activity agreement concluded between them;

13-1) co-insurance agreement (joint reinsurance) - an insurance (reinsurance) agreement concluded between the participants of the insurance (reinsurance) pool and the policyholder (assignor) within the framework of an agreement on joint activities of participants in the insurance (reinsurance) pool;

14) own deduction - part of the volume of liability within which the insurer or reinsurer (assignor) is liable at its own expense in accordance with the insurance or reinsurance agreement;

15) prudential standards - standards established by the authorized body and mandatory for compliance by insurance (reinsurance) organizations;

16) insurance agent - an individual or legal entity, a branch of a non-resident bank of the Republic of Kazakhstan, included in the register of insurance agents and carrying out intermediary activities in concluding insurance contracts on behalf of and on behalf of one or more insurance organizations on the basis of an agency agreement;

17) insurance broker - a legal entity representing the policyholder in relations related to the conclusion and execution of insurance contracts with the insurer on behalf of the policyholder, or carrying out intermediary activities on its own behalf in concluding insurance contracts on behalf of the policyholder and (or) reinsurance contracts on behalf of the reinsurer (assignor);

18) insurance rules - a document of an insurance organization that defines the conditions for the implementation of insurance for a certain type of insurance;

18-1) insurance report - a form of full or partial release of information contained in the database;

18-2) unified insurance database (hereinafter referred to as the database) - a set of information (including in electronic form) about the insurer, policyholder, insured and beneficiary;

18-3) insurance (reinsurance) pool - an association of insurance (reinsurance) organizations jointly carrying out insurance activities in a separate class, type of insurance or a certain insurance risk on the basis of a joint activity agreement concluded for a certain period between its participants or between its participants and an insurance broker;

19) subjects of insurance activities - insurance and reinsurance organizations;

19-1) insurance liabilities - obligations of an insurance (reinsurance) company under insurance (reinsurance) contracts, assessed on the basis of actuarial calculations in accordance with international financial reporting standards;

20) professional participants in the insurance market - an insurance (reinsurance) organization, an insurance broker, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan, an actuary, carrying out their activities on the basis of the relevant licenses of the authorized body;

22) insurance portfolio - the total obligations of an insurance (reinsurance) company for risks accepted under insurance (reinsurance) contracts, including under insurance (reinsurance) contracts that have expired, for which the insurance (reinsurance) company has obligations or there is a likelihood of obligations arising to policyholders (insured, beneficiaries, reinsurers);

23) insurance reserves - obligations of an insurance (reinsurance) company under insurance (reinsurance) contracts, estimated on the basis of actuarial calculations, for the purpose of calculating prudential standards;

23-1) insurance risk - the likelihood of an insured event;

23-2) insurance group - a group of legal entities and organizations that are not legal entities that are not a banking conglomerate, consisting of an insurance holding company (if any) and an insurance (reinsurance) organization, as well as subsidiaries of an insurance holding company and (or) subsidiaries of an insurance (reinsurance) organization, and (or) organizations in which the insurance holding company and (or) its subsidiaries, and (or) insurance (reinsurance) organization have a significant participation in the capital.

The insurance group does not include a national management holding company, an insurance holding company - a non-resident of the Republic of Kazakhstan, as well as subsidiaries and organizations in which the insurance holding company - a non-resident of the Republic of Kazakhstan has a significant participation in the capital, which are non-residents of the Republic of Kazakhstan;

24) insurance organization (insurer) - a legal entity engaged in concluding and executing insurance contracts on the basis of a relevant license from the authorized body;

25-1) association of insurance (reinsurance) organizations, insurance brokers - a non-profit organization created in the form of an association (union) to ensure the protection of the interests of its members and coordination of their professional activities;

26) a major participant in an insurance (reinsurance) organization - an individual or legal entity who, in accordance with the written consent of the authorized body, has the right to:

directly and (or) indirectly own, use and dispose in the aggregate of ten or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the insurance (reinsurance) organization;

directly and (or) indirectly influence decisions made by an insurance (reinsurance) organization (vote) with ten or more percent of the voting shares of the insurance (reinsurance) organization by virtue of an agreement (supporting documents) or otherwise in cases provided for by a regulatory legal act of the authorized body.

The following are not recognized as a major participant in an insurance (reinsurance) company:

Government of the Republic of Kazakhstan;

national management holding;

a unified accumulative pension fund that manages an investment portfolio, owning voting shares of an insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization, at the expense of pension assets;

a person performing the functions of a nominal holder of voting shares of an insurance (reinsurance) company and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) company, as well as the issuer of these derivative securities;

a person who has the right exclusively to receive dividends and (or) other income on shares of an insurance (reinsurance) company without the ability to influence decisions made by the insurance (reinsurance) company;

other persons specified in paragraph 19 of Article 9-5 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”.

26-1) insurance holding - a legal entity that, in accordance with the written consent of the authorized body, has the right to:

directly and (or) indirectly own, use and dispose in the aggregate twenty-five percent or more of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the insurance (reinsurance) organization;

directly and (or) indirectly influence decisions made by an insurance (reinsurance) organization (vote) with twenty-five or more percent of the voting shares of the insurance (reinsurance) organization by virtue of an agreement (supporting documents) or otherwise in cases provided for by a regulatory legal act of the authorized body.

The following are not recognized as an insurance holding company:

Government of the Republic of Kazakhstan;

national management holding;

other persons specified in paragraph 19 of Article 9-5 of the Law of the Republic of Kazakhstan “On state regulation, control and supervision of the financial market and financial organizations;

27) redemption amount - the amount of money that the policyholder has the right to receive upon early termination of the accumulative insurance contract;

27-1) service company - an organization for the management of stressed assets, a collection agency that, within the framework of a trust management agreement, has rights (claims), powers to trust management of rights (claims) under a bank loan agreement, a microcredit agreement, including in relation to:

changes in the terms of a bank loan agreement, microcredit agreement;

representing in court the interests of the person with whom the trust management agreement for rights (claims) has been concluded;

accepting money and (or) other property from the debtor;

other powers provided for by the laws of the Republic of Kazakhstan and (or) the agreement on trust management of rights (requirements);

28) surveyor - an employee of an insurance (reinsurance) company or a legal entity providing services to an insurance (reinsurance) company in accordance with a contract for the provision of paid services, whose functions include a preliminary inspection and assessment of the insurance object accepted for insurance;

29) independent actuary - an individual who meets the requirements of this Law and is involved in assessing the actuary’s calculations;

29-1) affiliated persons - individuals or legal entities (except for state bodies exercising control and supervisory functions within the powers granted to them, and the national management holding company, as well as legal entities, one hundred percent of the voting shares (stakes in the authorized capital) of which belong to such a national management holding company), having the ability to directly and (or) indirectly determine decisions and (or) influence decisions made by each other (one of the persons), including by virtue of a concluded transaction. Affiliates of an insurance (reinsurance) organization whose major shareholder is a national management holding do not include:

national management holding company, which is a major shareholder of an insurance (reinsurance) organization;

legal entities, one hundred percent of voting shares (stakes in the authorized capital) of which belong to the specified national management holding;

officials of the specified national management holding and legal entities, one hundred percent of the voting shares (stakes in the authorized capital) of which belong to such national management holding.

29-2) significant participation in the capital of an organization - direct and (or) indirect ownership and (or) use, and (or) disposal independently or jointly with one or more persons by virtue of an agreement (supporting documents) or otherwise in cases established by the authorized body, twenty or more percent of voting shares, participation interests, shares or other forms of equity participation in a legal entity or organization that is not a legal entity.

The following persons are not recognized as having a significant participation in the capital of an organization:

Government of the Republic of Kazakhstan;

national management holding;

subsidiaries of the National Bank of the Republic of Kazakhstan;

other persons in cases provided for by this Law;

29-3) major participant - an individual, a legal entity, an organization that is not a legal entity, which directly and (or) indirectly owns and (or) uses, and (or) disposes of ten or more percent of voting shares, participation interests, shares or other forms of equity participation in a legal entity or organization that is not a legal entity.

The following are not recognized as a major participant in a legal entity or organization that is not a legal entity:

Government of the Republic of Kazakhstan;

national management holding;

subsidiaries of the National Bank of the Republic of Kazakhstan;

Article 4. Insurance and insurance activities

Insurance is a complex of relations to protect the legitimate property interests of an individual or legal entity upon the occurrence of an insured event or other event specified in the insurance contract, through an insurance payment made by an insurance organization.

2. Insurance activity is the activity of an insurance (reinsurance) organization, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, related to the conclusion and execution of insurance (reinsurance) contracts, carried out on the basis of a license from the authorized body in accordance with the requirements of the legislation of the Republic of Kazakhstan, as well as the activities of mutual insurance companies related to the conclusion and execution of insurance contracts, carried out without a license in accordance with the Law of the Republic of Kazakhstan “On Mutual Insurance”.

Islamic insurance activity is the activity of an Islamic insurance (reinsurance) organization, a branch of a non-resident Islamic insurance (reinsurance) organization of the Republic of Kazakhstan, related to the conclusion and execution of Islamic insurance (reinsurance) contracts, carried out on the basis of a license from an authorized body in accordance with the requirements of the legislation of the Republic of Kazakhstan.

Article 5. Insurance of foreign individuals and legal entities and stateless persons

Foreign citizens, stateless persons, foreign legal entities, including those operating on the territory of the Republic of Kazakhstan, enjoy the right to insurance coverage on an equal basis with citizens and legal entities of the Republic of Kazakhstan.

Article 5-1. Insurance by insurance organizations - non-residents of the Republic of Kazakhstan and insurance (reinsurance) organizations - participants of the Astana International Financial Center

Footnote: Footnote. The title of Article 5-1 is as amended by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be brought into force upon the expiration of sixty calendar days after the day of its first official publication).

Insurance of the property interests of a legal entity or its separate divisions located on the territory of the Republic of Kazakhstan and the property interests of an individual who is a resident of the Republic of Kazakhstan can be carried out only by an insurance organization - a resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan.

2. It is permitted to conclude and execute insurance contracts with insurance organizations - non-residents of the Republic of Kazakhstan and insurance (reinsurance) organizations - participants of the Astana International Financial Center in the following cases:

individuals – residents of the Republic of Kazakhstan, temporarily located outside the Republic of Kazakhstan for the purposes of work, study, treatment or recreation, only for the period of temporary stay of these persons outside the Republic of Kazakhstan;
residents of the Republic of Kazakhstan in terms of risks associated with maritime transport services (except for vessels providing cabotage services), commercial aviation, launch and charter services of space flights (including satellites), and related services (transportation of goods, insurance of the vehicles themselves carrying goods, and any resulting liability), catastrophic risks, climate risks, cyber risks, risks of terrorism, civil unrest and strikes;
residents of the Republic of Kazakhstan in terms of risk insurance in accordance with the principles of Islamic insurance;
residents of the Republic of Kazakhstan in terms of risks covered within the classes of insurance in a voluntary form, provided for in subparagraphs 15), 17) and 18) of paragraph 3 of Article 6 of this Law.

Risk insurance in accordance with subparagraph 4) of part one of this paragraph by an insurance organization that is a non-resident of the Republic of Kazakhstan is allowed only when the insurance object is located outside the territory of the Republic of Kazakhstan.

It is allowed for residents of the Republic of Kazakhstan to conclude (execute) insurance contracts with state insurance organizations - non-residents of the Republic of Kazakhstan in terms of insurance of loans, investments, transactions related to lending to residents of the Republic of Kazakhstan by foreign organizations or banks.

3. Banks of the Republic of Kazakhstan, branches of non-resident banks of the Republic of Kazakhstan and organizations carrying out certain types of banking operations are prohibited from making payments and money transfers, except for the cases provided for in paragraph 2 of this article, related to the payment of insurance premiums (contributions) in favor of non-residents of the Republic of Kazakhstan and participants of the Astana International Financial Center from individuals and legal entities - residents of the Republic of Kazakhstan.

4. The requirements of paragraphs 2 and 3 of this article do not apply to cases of concluding agreements with branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan in cases established by the laws of the Republic of Kazakhstan.

Chapter 2. Organization of insurance activities

Article 6. Industries, classes and types of insurance

For the organization and implementation of state regulation and licensing of insurance activities, insurance is divided into industries, classes and types. The insurance activities of the insurance organization are carried out in the “life insurance” industry and the “general insurance” industry.

2. The “life insurance” industry includes compulsory insurance of an employee against accidents during the performance of his labor (official) duties and the following classes in the voluntary form of insurance:

life insurance, with the exception of the class specified in subparagraph 3) of this paragraph;
annuity insurance, with the exception of the class specified in subparagraph 4) of this paragraph;
life insurance within the framework of the state educational savings system;
pension annuity insurance.

3. The “general insurance” industry includes the following classes in the voluntary form of insurance:

accident insurance;
health insurance;
motor transport insurance;
railway transport insurance;
air transport insurance;
water transport insurance;

6-1) insurance of space objects;

cargo insurance;
insurance of property against damage, with the exception of the classes specified in subparagraphs 3) - 7) of this paragraph;
insurance of civil liability of motor vehicle owners;
insurance of civil liability of air transport owners;
insurance of civil liability of owners of water transport;

11-1) insurance of civil liability of owners of space objects;

11-2) professional liability insurance;

civil liability insurance, with the exception of the classes specified in subparagraphs 9), 10), 11), 11-1) and 11-2) of this paragraph;
insurance of loans to legal entities;
mortgage insurance;
insurance of guarantees and sureties;

15-1) insurance of losses of financial organizations, with the exception of the classes specified in subparagraphs 13), 14), 15) and 16) of this paragraph;

insurance against other financial losses;
insurance of legal expenses;
title insurance.

4. Additional requirements for the conditions of a separate class (type) of insurance, including prudential standards within certain classes (types) of insurance, are established by regulatory legal acts of the authorized body.

5. A type of insurance is an insurance product developed and provided by an insurance organization to the policyholder within one or more classes of insurance through the conclusion of an insurance contract.

6. Each type of compulsory insurance, the content and conditions of which are determined by the legislative act of the Republic of Kazakhstan regulating the compulsory type of insurance, is a separate class of insurance.

7. Imputed insurance is compulsory insurance, in which the requirement for compulsory insurance, types and minimum conditions of insurance (including the object of insurance, insurance risks and minimum amounts of insurance) are established by the laws of the Republic of Kazakhstan, and other conditions and procedures for insurance are determined by agreement of the parties.

Imputed insurance is carried out within one or more classes of insurance specified in paragraph 3 of this article, and is not a separate class of insurance.

Minimum requirements for standard contracts for imputed insurance are established by the regulatory legal act of the authorized body.

Standard contracts for imputed insurance are developed and approved by the authorized state body regulating the type of activity that is subject to imputed insurance, in agreement with the authorized body.

By agreement of the parties, standard contracts on imputed insurance can be supplemented with provisions that do not contradict the requirements of the legislation of the Republic of Kazakhstan.

Article 7. Contents of insurance classes

Life insurance is a set of types of insurance that provide for insurance payments in cases of death of the insured or his survival to the end of the insurance period or the age specified in the insurance contract, with the exception of the type of insurance specified in paragraphs 2-3 of this article.

2. Annuity insurance is a set of types of accumulative insurance that provide for the implementation of periodic insurance payments in the form of periodic payments in favor of the beneficiary within the period established by the contract, with the exception of the type of insurance specified in paragraphs 2-4 of this article.

2-3. Life insurance within the framework of the state educational savings system is a type of insurance that provides for the implementation of insurance payments in cases of death of the policyholder or loss of ability to work due to disability of the first or second group or his survival until the end of the insurance period in accordance with the Law of the Republic of Kazakhstan “On the State Educational Savings System”.

2-4. Pension annuity insurance is a type of savings insurance that provides for periodic insurance payments in accordance with the Social Code of the Republic of Kazakhstan.

3. Accident insurance is a set of types of insurance that provide for an insurance payment in a fixed amount and (or) in the amount of partial or full compensation for the expenses of the insured in cases of death, loss (full or partial) of disability (general or professional) or other harm to the health of the insured as a result of an accident, occupational disease, with the exception of insurance of risks associated with disease and (or) other health disorder.

An accident is understood as a sudden, short-term event (incident) that occurs against the will of a person as a result of an external mechanical, electrical, chemical or thermal effect on the insured’s body, resulting in harm to health, injury or death.

4. Sickness insurance is a set of types of insurance that provide for an insurance payment in a fixed amount and (or) in the amount of partial or full compensation for the insured’s expenses in connection with an illness and other health disorder, including expenses associated with death resulting from a disease and (or) other health disorder.

5. Insurance of vehicles listed in subparagraphs 3) - 6) of paragraph 3 of Article 6 of this Law is a set of types of insurance that provide for insurance payments in the amount of partial or full compensation for damage caused to the property interests of a person associated with the ownership, use, disposal of a vehicle, including theft or theft, as well as due to its damage or destruction.

5-1. Insurance of space objects is a set of types of insurance that provide for insurance payments in the amount of partial or full compensation for damage caused to the property interests of a person associated with the ownership, use, disposal of a space object, as a result of its damage or destruction.

6. Cargo insurance is a set of types of insurance that provide for insurance payments in the amount of partial or full compensation for damage caused to the property interests of a person associated with the ownership, use, and disposal of cargo, including luggage, goods and all other types of products due to their damage, destruction, loss, regardless of the method of transportation.

7. Property insurance is a set of types of insurance that provide for insurance payments in the amount of partial or full compensation for damage caused to the property interests of a person associated with the ownership, use, disposal of property due to its damage or destruction, theft, with the exception of the property listed in subparagraphs 3) - 7) of paragraph 3 of Article 6 of this Law.

8. Civil liability insurance of owners of vehicles, provided for in subparagraphs 9), 10) and 11) of paragraph 3 of Article 6 of this Law, is a set of types of insurance that provide for insurance payments to third parties in the amount of partial or full compensation for damage caused by the person obliged to compensate for it as a result of his use of the vehicle, including the civil liability of the carrier.

8-1. Civil liability insurance for owners of space objects is a set of types of insurance that provide for insurance payments to third parties in the amount of partial or full compensation for damage caused by the person obligated to compensate it in connection with their use of the space object.

8-2. Professional liability insurance is a type of civil liability insurance that provides for insurance payments in the amount of partial or full compensation for damage in connection with harm caused to third parties as a result of erroneous actions (inaction) and (or) omissions in the process or as a result of professional activities carried out on the basis of a special permit (license, notification) and (or) requiring special knowledge, experience and (or) qualifications.

9. Civil liability insurance is a set of types of insurance that provide for insurance payments to third parties in the amount of partial or full compensation for damage caused by the insured who is obliged to compensate it as a result of insurance of all risks, with the exception of risks covered by the classes of insurance specified in subparagraphs 9), 10), 11), 11-1) and 11-2) of paragraph 3 of Article 6 of this Law.

10. Insurance of loans to legal entities is a set of types of insurance that provide for insurance payments in the event of losses to the creditor as a result of failure by the insured (borrower-legal entity) to fulfill obligations to the creditor.

11. Mortgage insurance is a type of insurance that provides for insurance payments in the amount of partial or full compensation for damage caused to the property interests of the lender as a result of the borrower’s failure to fulfill obligations under the residential mortgage loan agreement, after the sale of collateral under the residential mortgage loan.

12. Insurance of guarantees and sureties is a set of types of insurance that provide for insurance payments in the amount of partial or full compensation for damage caused to the property interests of the person who issued the guarantee or surety as a result of his obligation to fulfill the issued guarantee or surety.

13. Insurance against other financial losses is a set of types of insurance that provide for insurance payments in the event of losses resulting from loss of work, loss of income, adverse natural phenomena, continuous, unforeseen expenses, loss of market value and other losses as a result of financial and economic activities, with the exception of insurance of the risks specified in subparagraphs 12) - 15) of paragraph 3 of Article 6 of this Law.

14. Legal expenses insurance is a set of types of insurance that provide for insurance payments in case of losses of the policyholder (insured) as a result of expenses incurred by him in connection with legal proceedings.

15. Under the risk insurance contracts specified in paragraphs 11 - 13 of this article, only the risk of the policyholder himself can be insured and only in his favor.

16. Insurance of losses of financial organizations is a set of types of insurance that provide for an insurance payment in the amount of partial or full compensation for losses as a result of the provision of financial services by a financial organization, with the exception of the classes specified in subparagraphs 13), 14), 15) and 16) of paragraph 3 of Article 6 of this Law.

17. Title insurance is a set of types of insurance that provide for an insurance payment in the amount of partial or full compensation for damage caused to the property interests of the insured in the event of termination of ownership of the property.

Article 8. Combination of industries and classes of insurance

The activities of an insurance organization on the territory of the Republic of Kazakhstan are carried out on the basis of a license for the “life insurance” industry or a license for the “general insurance” industry within the appropriate classes of insurance specified in the license.

2. Activities in the “general insurance” industry cannot:

be combined with activities in the “life insurance” industry;
carried out in the form of endowment insurance.

3. Activities in the life insurance industry cannot be combined with:

activities in the “general insurance” industry, with the exception of the classes of insurance specified in subparagraphs 1) and 2) of paragraph 3 of Article 6 of this Law;
compulsory types of insurance not related to the “life insurance” industry, with the exception of compulsory tourist insurance.

4. An insurance organization has the right to develop a type of insurance that combines the features and content of two or more classes of insurance, provided that it has a license indicating the relevant classes of insurance and taking into account the restrictions on combining classes of insurance established by this Law.

Article 9. Reinsurance activities

Reinsurance activities on the territory of the Republic of Kazakhstan are subject to licensing in the manner prescribed by this Law.

2. An insurance organization transfers insurance risks to reinsurance without a reinsurance license.

3. An insurance organization has the right to accept insurance risks for reinsurance only if it has a reinsurance license.

4. An insurance organization that has a license in the “general insurance” industry has the right to obtain a license and carry out reinsurance activities for all classes of insurance specified in its license for the “general insurance” industry.

5. An insurance organization that has a license in the “life insurance” industry has the right to obtain a license and carry out reinsurance activities in all classes of insurance specified in its license for the “life insurance” industry, taking into account the combination of classes provided for in paragraph 3 of Article 8 of this Law.

6. A reinsurance organization that carries out reinsurance as an exclusive type of activity on the basis of a reinsurance license has the right to carry out reinsurance for all classes of insurance in the “life insurance” and “general insurance” industries.

When the assignor transfers insurance risks to reinsurance, the assignor must have confirmation from the reinsurance organization in writing about the latter’s acceptance of risks for reinsurance (acceptance) indicating all the conditions of reinsurance.

8. An insurance (reinsurance) organization, the Export Credit Agency of Kazakhstan does not have the right to transfer insurance risks for reinsurance to insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, included in the register of prohibited insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan.

The grounds for inclusion in the register of prohibited non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan are:

the existence of a fact of non-fulfillment by an insurance (reinsurance) organization non-resident of the Republic of Kazakhstan of the requirement of an insurance (reinsurance) organization resident of the Republic of Kazakhstan to make a reinsurance payment, satisfied by a court decision (in case of refusal to make a reinsurance payment or making it not in full);

2) the existence of a fact of failure to provide, as well as submission by an insurance (reinsurance) organization non-resident of the Republic of Kazakhstan to the authorized body of unreliable or incomplete information about the volume of accepted risks, premiums and essential terms of the concluded reinsurance agreement.

The register of prohibited non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan is posted on the Internet resource of the authorized body.

The procedure for maintaining the register of prohibited non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan is determined by the regulatory legal act of the authorized body.

8-1. An insurance (reinsurance) organization has the right to transfer insurance risks to reinsurance to a reinsurance organization that is a non-resident of the Republic of Kazakhstan, directly or through intermediary:

insurance broker;

2) an insurance broker - a non-resident of the Republic of Kazakhstan, provided that the insurance broker - a non-resident of the Republic of Kazakhstan has a subsidiary organization on the territory of the Republic of Kazakhstan that carries out the activities of an insurance broker on the basis of a license from an authorized body;

3) a branch of an insurance broker - a non-resident of the Republic of Kazakhstan;

4) insurance broker – participant of the Astana International Financial Center.

An insurance (reinsurance) organization has the right to transfer insurance risks to reinsurance to a reinsurance organization that is a member of the Astana International Financial Center directly or through intermediary:

insurance broker;

3) a branch of an insurance broker - a non-resident of the Republic of Kazakhstan;

4) insurance broker – participant of the Astana International Financial Center.

8-2. An insurance (reinsurance) organization has the right to transfer and accept insurance risks for reinsurance to the Export Credit Agency of Kazakhstan directly or through intermediary:

insurance broker;

3) a branch of an insurance broker - a non-resident of the Republic of Kazakhstan;

4) insurance broker – participant of the Astana International Financial Center.

10. In case of participation of an insurance broker - non-resident of the Republic of Kazakhstan in the process of transferring insurance risks to reinsurance through the mediation of an insurance broker (branch of an insurance broker - non-resident of the Republic of Kazakhstan), the insurance broker (branch of an insurance broker - non-resident of the Republic of Kazakhstan) submits to the National Bank a report on the conditions for placement by an insurance broker - non-resident of the Republic of Kazakhstan of these risks for reinsurance to reinsurance organizations - non-residents of the Republic of Kazakhstan in accordance with the regulatory legal act of the National Bank in agreement with the authorized body.

A subsidiary of an insurance broker - a non-resident of the Republic of Kazakhstan, carrying out the activities of an insurance broker, submits to the National Bank a report on reinsurance contracts concluded by the insurance (reinsurance) organization through the intermediary of this insurance broker - a non-resident of the Republic of Kazakhstan, in accordance with the regulatory legal act of the National Bank in agreement with the authorized body.

The transfer of insurance risks to reinsurance of a reinsurance organization - a participant of the Astana International Financial Center, including through the mediation of an insurance broker - a participant of the Astana International Financial Center, is carried out subject to an agreement on the exchange of information between the authorized body and the legal entity regulating financial services and related activities in the Astana International Financial Center.

The norms of this Law regarding the creation, licensing, regulation and termination of the activities of an insurance organization apply to the conditions for the creation of licensing, regulation and termination of the activities of reinsurance organizations carrying out reinsurance as an exclusive type of activity.

13. An insurance (reinsurance) organization is prohibited from transferring insurance risks to reinsurance to a reinsurance organization that is a non-resident of the Republic of Kazakhstan or a participant in the Astana International Financial Center, with the participation of two or more insurance brokers that are participants in the Astana International Financial Center or insurance brokers who are non-residents of the Republic of Kazakhstan.

Chapter 3. Insurance market

Article 10. Insurance market participants

Participants in the insurance market of the Republic of Kazakhstan are:

insurance (reinsurance) organization;

1-1) branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

insurance broker;

2-1) branch of a non-resident insurance broker of the Republic of Kazakhstan;

insurance agent;
policyholder, insured, beneficiary;
actuary;
independent actuary;
appraiser;
underwriter;
adjuster;
surveyor;
insurance ombudsman;

11-1) an organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations;

11-2) organization for the formation and maintenance of the database;

association of insurance (reinsurance) organizations and insurance brokers;
association of actuaries;
other individuals and legal entities engaged in business activities related to insurance.

Article 10-1. Powers of the association of insurance (reinsurance) organizations and insurance brokers

The powers of the association of insurance (reinsurance) organizations and insurance brokers include:

ensuring the interaction of its members when they carry out activities in the insurance market;

2) development of internal documents;

3) conducting training for participants in the insurance market, including conducting an exam on knowledge of the minimum training program for insurance agents and issuing a document confirming passing the exam on the minimum training program for insurance agents, indicating the final result of the exam;

4) consideration of disputes arising between members;

5) ensuring the protection of the interests of its members;

6) sending to the authorized body information about possible violations by professional participants of the insurance market of the requirements established by the legislative acts of the Republic of Kazakhstan;

7) implementation of other functions provided for by the constituent documents.

2. Associations of insurance (reinsurance) organizations and insurance brokers are obliged to bring to the attention of their members information provided by the authorized body on issues of the professional activities of their members.

Article 10-2. Internal documents of the association of insurance (reinsurance) organizations and insurance brokers

Associations of insurance (reinsurance) organizations and insurance brokers adopt the following internal documents:

standards of activity in the insurance market;

2) code of professional ethics;

3) the procedure for resolving disputes;

4) other documents provided for by the charter.

Internal documents are approved by the supreme governing body of the association of insurance (reinsurance) organizations and insurance brokers and are binding on their members.

Article 10-3. Association of Actuaries

An association of actuaries is created in the form of a non-profit organization, the activities of which are regulated by this Law, the Law of the Republic of Kazakhstan “On Self-Regulation” and other regulatory legal acts of the Republic of Kazakhstan, and the constituent documents of the association of actuaries.

2. The conditions and procedure for admission to membership and termination of membership in the association of actuaries are established by the charter of the association of actuaries.

The Association of Actuaries maintains a list of its members and posts it on its Internet resource.

3. The Association of Actuaries shall perform the following functions:

conducting actuarial research in the field of insurance and insurance activities, including actuarial assessment and examination of insurance rates by insurance class, the content and conditions of which are determined by the legislative acts of the Republic of Kazakhstan;

2) analysis and updating of survival indicators under annuity insurance contracts concluded within the framework of the Social Code of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan “On compulsory insurance of an employee against accidents during the performance of his labor (official) duties”;

3) conducting training and examinations on the minimum mandatory training program for actuaries;

4) development of internal documents;

5) ensuring interaction of its members in carrying out its activities;

6) consideration of disputes arising between members;

7) ensuring the protection of the interests of its members;

8) implementation of other functions that do not contradict the requirements of the legislation of the Republic of Kazakhstan on self-regulation and the regulatory legal act of the authorized body.

4. Employees and members of the association of actuaries are responsible for the disclosure of information received in the course of performing their functions, constituting official, commercial secrets, insurance secrets or other secrets protected by law, in accordance with the laws of the Republic of Kazakhstan.

5. The development and approval of enforcement measures, the procedure and grounds for their application, the procedure for considering cases of violation by members of the association of actuaries of the code of professional ethics and standards of professional practice, qualifications and other requirements for membership fall within the competence of the supreme management body of the association of actuaries.

Article 11. Activities of an insurance (reinsurance) company

Insurance activity is the main type of business activity carried out by an insurance (reinsurance) organization.

2. An insurance (reinsurance) organization, in addition to insurance activities, has the right to carry out the following types of activities:

investment activity subject to the restrictions established by this Law;

1-1) activities for managing an investment portfolio in relation to assets formed at the expense of part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the condition of the insurer’s participation in investments, on the basis of a license to carry out activities for managing an investment portfolio on the securities market in cases and in the manner provided for by the legislation of the Republic of Kazakhstan;

issuing loans to its policyholders within the limits of the redemption amount provided for by the relevant accumulative insurance agreement (for an insurance organization operating in the “life insurance” industry);
development, implementation and support of specialized software used to automate the activities of insurance (reinsurance) organizations, or other software used in the activities of financial organizations;
sale of special literature on insurance and insurance activities on any type of storage media;
sale or lease of property acquired for its own needs (for an insurance (reinsurance) organization) or placed at its disposal in connection with the conclusion of insurance contracts (for an insurance organization);
provision of consulting services on issues related to insurance activities;
organizing and conducting training in order to improve the skills of specialists in the field of insurance (reinsurance);
insurance intermediation as an insurance agent;
activities specified in paragraph 1 of Article 52 of this Law;
assistance provided on the basis of an agreement on joint activities between insurance organizations or between insurance organizations and other legal entities providing assistance services;
activities provided for by the legislative acts of the Republic of Kazakhstan, within the framework of participation in the system of guaranteeing insurance payments.

3. An insurance (reinsurance) company is prohibited from carrying out transactions and conducting operations as a business activity not provided for in paragraphs 1 and 2 of this article.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is prohibited from carrying out transactions and conducting operations as a business activity not related to insurance (reinsurance) activities.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, in addition to insurance activities, has the right to provide consulting services on issues related to insurance activities.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan operating in the “life insurance” industry, in addition to insurance activities, has the right to provide services for the issuance of loans by a non-resident insurance organization of the Republic of Kazakhstan to its policyholders within the limits of the redemption amount provided for by the relevant accumulative insurance agreement.

3-1. An insurance organization does not have the right to carry out insurance activities on types of insurance guaranteed in accordance with the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund” if it does not have a major individual participant or an insurance holding company.

The requirement of part one of this paragraph does not apply to insurance organizations, more than fifty percent of the outstanding shares of which are directly or indirectly owned or transferred in trust to the state or national management holding company.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has the right to carry out compulsory insurance, the types, conditions and procedure of which are determined by the laws of the Republic of Kazakhstan.

3-2. Insurance organizations have the right to collect copies of identification documents of non-residents for the purposes provided for by this Law.

4. Insurance organizations have the right to create an organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations. The procedure for the creation and activities of an organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations are regulated by the legislation of the Republic of Kazakhstan.

Mandatory participation of insurance organizations in the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations is provided for by this Law and certain laws of the Republic of Kazakhstan.

The provisions of part one of this paragraph do not apply to branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan.

Article 11-1. General conditions for carrying out insurance (reinsurance) activities

Footnote: Footnote. The title of Article 11-1 as amended by the Law of the Republic of Kazakhstan dated November 25, 2019 No. 272-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

An insurance (reinsurance) organization has the right to carry out insurance activities only if it has a license for the right to carry out insurance activities (reinsurance activities), insurance rules defining the general conditions for the implementation of insurance for a certain type, and internal rules.

1-2. An insurance organization, within thirty calendar days from the date of receipt of a license to carry out insurance activities, is obliged to join the council of representatives of the insurance ombudsman.

2. The internal rules of the insurance (reinsurance) company must determine:

structure, tasks, functions and powers of divisions of the insurance (reinsurance) company;
the structure, number of members, tasks, functions and powers of the internal audit service and other permanent bodies;
a risk management system that reveals the policy of the insurance (reinsurance) organization for managing technical (insurance), investment, credit, operational, market and other risks;
rights and obligations of heads of structural divisions;
powers of officials and employees of the insurance (reinsurance) company when they carry out transactions on its behalf and at its expense;
the procedure for registering written and oral requests from policyholders (insured), victims (beneficiaries) and their representatives, as well as incoming applications and documents regarding insured events;
the procedure and timing for consideration and submission of responses to policyholders (insured), victims (beneficiaries) and their representatives on applications and documents regarding insured events;
the procedure for making a decision on insurance payment, indicating the timing of its implementation or providing a reasoned justification for the reasons for refusing insurance payment;
the procedure for assessing insurance risks (including property accepted for insurance) and the amount of damage in an insured event;
powers of the underwriter, adjuster and surveyor;
requirements for the assessment procedure when accepting insurance risks for reinsurance (in the case of reinsurance activities);

11-1) the procedure for determining the amount of the insurance agent’s commission;

12) the procedure for passing documents and procedures for making decisions on reinsurance (in the case of reinsurance activities).

3. The insurance rules and internal rules of the insurance (reinsurance) organization are approved by the board of directors, and the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan - by the relevant management body of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

An insurance (reinsurance) company, a branch of an insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan is required to post the insurance rules on its Internet resource. Insurance rules posted on the insurer's Internet resource must be up to date.

In the case of concluding insurance contracts in electronic form using the Internet resources of other organizations that are partners of the insurance organization on the basis of an appropriate agreement, the insurance organization is obliged to ensure that the insurance rules are posted on their Internet resources.

3-1. Insurance rules and internal rules of an Islamic insurance (reinsurance) organization are approved by the board of directors in the presence of a positive conclusion of the council on the principles of Islamic finance, and a branch of an Islamic insurance (reinsurance) organization non-resident of the Republic of Kazakhstan is approved by the relevant management body of an Islamic insurance (reinsurance) organization non-resident of the Republic of Kazakhstan in the presence of a positive conclusion of the council on the principles of Islamic finance.

4. An insurance (reinsurance) organization does not have the right to carry out insurance activities without having an actuary on its staff who has a valid license to carry out actuarial activities in the insurance market.

An actuary on staff of an insurance (reinsurance) organization must not be an affiliate of this insurance (reinsurance) organization and (or) its shareholder and (or) its executive officer.

An actuary who has a license to carry out actuarial activities in the insurance market does not have the right to combine his activities in other insurance (reinsurance) organizations, except in cases of engagement as an independent actuary.

5. An insurance (reinsurance) company engages an independent actuary to verify the activities of an actuary on staff of an insurance (reinsurance) company established by this Law, in the manner and within the time limits established by the regulatory legal act of the authorized body.

The requirements of this paragraph do not apply to an insurance (reinsurance) organization if an independent actuary is engaged by an audit organization when conducting a mandatory audit.

6. An independent actuary must meet the following requirements:

not be an employee of the insurance (reinsurance) company being inspected;
have at least three years of actuarial experience and at least two years in the insurance industry in which the audited insurance (reinsurance) organization operates, and be a member of the association of actuaries;

2-1) not be an affiliate of an insurance (reinsurance) organization, its shareholders and (or) management employees and a relative of a full-time actuary;

have a valid license from the authorized body for actuarial activities or be a member of international associations of actuaries, the list and requirements for which are established by the authorized body, in the case provided for in paragraph 5 of this article.

7. An independent actuary is responsible for the disclosure of information obtained during the audit of the activities of an actuary on staff of an insurance (reinsurance) organization, in accordance with the laws of the Republic of Kazakhstan.

8. Requirements for an insurance company to carry out insurance activities, including in relations with insurance market participants, are established by a regulatory legal act of the authorized body.

9. An insurance (reinsurance) organization, in the case provided for in paragraph 1 of Article 840 of the Civil Code of the Republic of Kazakhstan (Special Part), transfers to the trust management of a service company, within the amount paid, the right (claim) that the policyholder (insured) has to the person responsible for losses compensated as a result of insurance of the borrower’s liability for obligations arising from a bank loan agreement, an agreement to provide a microcredit.

Article 11-2. Consideration of applicants' requests

An insurance organization considers requests from individuals and legal entities related to the implementation of insurance activities, in accordance with the requirements for the implementation of insurance activities by an insurance organization, a branch of an insurance organization - a non-resident of the Republic of Kazakhstan, including in relations with participants in the insurance market, established by the regulatory legal act of the authorized body.

2. The period for consideration of the applicant’s application should not exceed fifteen working days from the date of receipt by the insurance organization.

If it is necessary to establish factual circumstances relevant for the correct consideration of the application, the period for consideration of the application may be extended by fifteen working days, of which the applicant is notified within three working days from the date of extension.

3. Based on the results of consideration of the appeal, the insurance organization is obliged to send the applicant a response (decision) on the merits of his appeal.

4. The applicant’s appeal shall be left without consideration in the following cases:

the appeal does not indicate the address to which the response should be sent;

2) the appeal does not indicate the last name, first name, patronymic (if it is indicated in the identity document) and his individual identification number or the full name of the applicant and his business identification number;

3) the appeal contains obscene or offensive language, threats to the property of the insurance organization, threats to the life, health and property of its employee, as well as members of his family;

4) the appeal cannot be read;

5) the appeal was submitted by an unauthorized person.

In the cases provided for in subparagraphs 2), 3), 4) and 5) of part one of this paragraph, the insurance organization, within five working days from the receipt of the applicant’s application, sends the applicant a response indicating the reasons for leaving the application without consideration.

6. The insurance organization submits to the authorized body reports on received applications from individuals and legal entities, the list, forms, deadlines and procedure for submission of which are established by the regulatory legal act of the authorized body.

7. The provisions of this article apply to branches of an insurance organization that is a non-resident of the Republic of Kazakhstan.

Article 12. Features of carrying out life insurance activities

An insurance organization carrying out accumulative insurance activities, with the exception of an Islamic insurance organization, has the right to provide loans to its policyholders within the redemption amount, taking into account the requirements of regulatory legal acts of the authorized body.

A branch of a non-resident insurance organization of the Republic of Kazakhstan carrying out accumulative insurance activities, with the exception of a branch of a non-resident Islamic insurance organization of the Republic of Kazakhstan, has the right to provide services for the provision of loans by a non-resident insurance organization of the Republic of Kazakhstan to its policyholders within the limits of the redemption amount, taking into account the requirements of regulatory legal acts of the authorized body.

2. The insurance organization has the right to increase the amount of regular insurance payments during the validity period of the annuity insurance contract based on the conclusion of the actuary in the manner prescribed by the regulatory legal acts of the authorized body.

4. An insurance organization has the right to develop types of insurance within the insurance classes specified in paragraph 2 of Article 6 of this Law, providing for insurance payment in the event of the insurer’s participation in investments, as well as the insurer’s profit.

5. The procedure and features of the policyholder’s participation in the investments or profits of the insurer, the conclusion by a branch of an insurance organization - a non-resident of the Republic of Kazakhstan of an insurance contract providing for the condition of the policyholder’s participation in the investments or profits of the insurer, as well as requirements for the content of the insurance contract providing for the condition of the policyholder’s participation in the investments or profits of the insurer, are determined by the regulatory legal act of the authorized body.

When concluding an insurance contract that provides for the condition for the insured to participate in investments, the insurance organization has the right to manage assets formed from part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the condition for the insured to participate in investments, independently if the insurance organization has a license to carry out investment portfolio management activities on the securities market and (or) transfer them to the investment management of an investment portfolio manager who is not an insurance organization.

The conditions and procedure for the transfer by an insurance organization of assets formed at the expense of a part of insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the participation of the policyholder in investments, into investment management of an investment portfolio manager who is not an insurance organization, are determined by a regulatory legal act of the authorized body.

The conditions and procedure for the transfer by a branch of an insurance organization - a non-resident of the Republic of Kazakhstan of assets formed from part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, to the investment management of an insurance organization - a non-resident of the Republic of Kazakhstan, which has a license to carry out investment portfolio management activities in the securities market of the state of which the insurance organization - a non-resident of the Republic of Kazakhstan is a resident, are determined by the regulatory legal act of the authorized body.

Insurance organizations that enter into insurance contracts that provide for the condition of the policyholder's participation in investments, keep accounting records and submit financial statements and primary statistical data separately for their own funds and assets formed from part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the condition of the policyholder's participation in investments, to the National Bank in the manner established by the legislation of the Republic of Kazakhstan.

Investment risks on assets formed at the expense of part of the insurance premium (insurance premiums) received (received) from the policyholder for investment purposes, and income (expenses) received (incurred) from its (their) investment, under an insurance contract providing for the condition of the policyholder's participation in investments, are borne by the policyholder.

5-1. Seizure or foreclosure of assets formed at the expense of part of insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the participation of the insured in investments, for the debts of the insurance organization, custodian bank and investment portfolio manager are not allowed, including in cases of liquidation and (or) bankruptcy of the listed subjects.

5-2. Determination of the value of assets formed at the expense of part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the condition of the insurer's participation in investments, is carried out on the terms, according to the methodology and in the manner determined by the regulatory legal act of the authorized body.

5-3. Features of the distribution of assets formed at the expense of part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts providing for the condition of the insurer's participation in investments, between policyholders, including cases of voluntary, forced liquidation or voluntary reorganization of an insurance organization into a legal entity that does not carry out insurance activities, are established by a regulatory legal act of the authorized organ.

6. Payments in connection with the participation of the policyholder in the investments or profits of the insurer, taking into account the accumulated amounts, are made in the following cases:

the occurrence of an insured event as part of the insurance payment;
the end of the term of accumulative insurance as part of the insurance payment;
early termination of the insurance contract as part of the redemption amount.

It is not allowed to conclude an insurance agreement that provides for the participation of the policyholder in the insurer's profits with shareholders (sole shareholder) and (or) affiliated persons of the insurance organization.

Article 13. Co-insurance and joint reinsurance activities

When insuring (reinsurance) risks by creating an insurance (reinsurance) pool, a co-insurance (reinsurance) agreement may be concluded on the terms of an insurance (reinsurance) organization that assumes the functions and powers of the leading insurance (reinsurance) organization.

2. The joint activity agreement must contain the following information:

the name of the insurance (reinsurance) organization that is leading the activities of the insurance (reinsurance) pool, or the insurance broker engaged to manage the activities of the insurance (reinsurance) pool;

2) classes (types) of insurance and a list of insurance risks that are the subject of the activities of the insurance (reinsurance) pool;

3) the maximum amount of total liabilities of the insurance (reinsurance) pool and its participants, including the maximum amount of obligations under a separate co-insurance (joint reinsurance) agreement, the maximum share of responsibility of each pool participant for the risks assumed;

4) conditions, procedure for concluding and executing coinsurance agreements (joint reinsurance);

4-1) procedures for joining and expelling participants, including redistribution of obligations of a participant in an insurance (reinsurance) pool in the event of deprivation of a license for the class (type) of insurance that is the subject of the activity of the insurance (reinsurance) pool;

5) duration of the contract;

6) rights and obligations of the parties;

6-1) functions and powers of the leading insurance (reinsurance) organization, including the powers to enter into co-insurance (joint reinsurance) agreements;

6-2) the procedure and timing of mutual settlements between the parties to the agreement on joint activities for insurance premiums, insurance payments under co-insurance (joint reinsurance) agreements, as well as remuneration of the leading insurance (reinsurance) organization;

7) procedure for resolving disputes;

8) signatures of the parties.

The insurance (reinsurance) company, within ten calendar days from the date of concluding an agreement on joint activities with the participation of the insurance (reinsurance) company, notifies the authorized body of its conclusion, attaching a copy of this agreement.

3. The co-insurance (joint reinsurance) agreement must meet the requirements imposed by the legislation of the Republic of Kazakhstan for the insurance (reinsurance) agreement.

4. A co-insurance (joint reinsurance) agreement concluded within the framework of the activities of an insurance (reinsurance) pool must contain the number and date of concluding the agreement on joint activities, information about the participants of the insurance (reinsurance) pool, as well as the signature of an authorized person of the insurance (reinsurance) organization that is leading in the activities of the insurance (reinsurance) pool, or an insurance broker engaged to manage the activities of the insurance (reinsurance) pool. pool.

5. Insurance reserves are formed by each participant in the insurance (reinsurance) pool in accordance with the volume of obligations assumed.

6. It is prohibited to participate in the insurance pool of an insurance organization whose license does not indicate the appropriate class of insurance.

7. It is prohibited to participate in the reinsurance pool of an insurance (reinsurance) organization that does not have a license to carry out reinsurance activities in the relevant insurance industry.

8. A participant in an insurance (reinsurance) pool may not refuse to fulfill its obligations within the framework of the activities of the pool, except for cases provided for by the regulatory legal act of the authorized body.

An insurance (reinsurance) pool is not liable for the obligations of its participants that arose outside the scope of the pool’s activities, just as participants in an insurance (reinsurance) pool are not liable for the obligations of other participants that arose outside the scope of the pool’s activities.

9. To manage the activities of the insurance (reinsurance) pool, insurance brokers who have the appropriate license from the authorized body may be involved, if there is an agreement between the participants of the insurance (reinsurance) pool and the insurance broker, the terms of which are established by the joint activity agreement.

When concluding an agreement on joint activities with the participation of an insurance broker, the insurance broker performs the functions of the leading insurance (reinsurance) organization established by this article.

Article 14. Prohibition on unlicensed activities

No person who does not have the appropriate license from the authorized body has the right to:

carry out insurance and reinsurance activities on its own behalf, provide services of an insurance broker, actuary in the cases provided for in paragraphs 4 and 5 of Article 11-1 of this Law, as the main or additional type of activity;

2) use in any language in its name, documents, announcements and advertising the words “insurance”, “reinsurance”, “insurance organization”, “reinsurance organization”, “insurance broker” or words (expressions) derived from them, implying that it carries out insurance or reinsurance operations on its own behalf or acts as an insurance broker, actuary in the cases provided for in paragraphs 4 and 5 of Article 11-1 of this Law.

2. It is prohibited to carry out insurance activities without a license from the authorized body, with the exception of the activities of mutual insurance companies.

Article 15. Cross-border insurance and reinsurance

Insurance related to the implementation by an insurance organization of activities related to the conclusion and execution of insurance contracts on the territory of another state is cross-border.

3. Intermediary activities for concluding an insurance contract with an insurance organization - a non-resident of the Republic of Kazakhstan, with the exception of civil liability insurance contracts for owners of motor vehicles traveling outside the Republic of Kazakhstan, the risks specified in subparagraph 2) of paragraph 2 of Article 5-1 of this Law, are not allowed on the territory of the Republic of Kazakhstan, unless otherwise provided by international treaties ratified by the Republic of Kazakhstan.

4. Intermediary activities for concluding in the territory of the Republic of Kazakhstan on behalf of an insurance organization - a non-resident of the Republic of Kazakhstan, contracts of insurance of civil liability of owners of motor vehicles traveling outside the Republic of Kazakhstan, the risks specified in subparagraph 2) of paragraph 2 of Article 5-1 of this Law, can also be carried out by insurance organizations residents of the Republic of Kazakhstan, having a license from the authorized body indicating the appropriate class of insurance, and insurance brokers - residents of the Republic of Kazakhstan in the presence of an appropriate agreement concluded with the named insurance organization - a non-resident of the Republic of Kazakhstan.

Article 15-1. Prohibition on providing preferential conditions to persons connected with an insurance (reinsurance) company by special relations

Footnote: Footnote. The title of Article 15-1 is as amended by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (to come into effect from 01/01/2019).

An insurance (reinsurance) company is prohibited from providing preferential conditions to persons associated with the insurance (reinsurance) company by special relations.
Providing preferential conditions to a person connected with an insurance (reinsurance) company by special relations means making a transaction with a person connected with an insurance (reinsurance) company by special relations, or in his interests, which, due to its nature, purpose, characteristics and risk, the insurance (reinsurance) company would not have made with a person not connected with it by special relations, namely:

the application of an insurance tariff lower or the insurance payment higher than for other insurers;
payment for acquired property and (or) services to a person connected with an insurance (reinsurance) company by special relations, at a price higher than payment for similar acquired property and (or) services to third parties, under a transaction or set of transactions, the cost of which exceeds the amount established by the regulatory legal act of the authorized body;
sale to a person connected with an insurance (reinsurance) company by special relations of property at a value lower than the sale of similar property to third parties or below the market value or the value indicated in the assessment report (in the absence of market value);
carrying out transactions previously classified by the authorized body as transactions with preferential conditions through the use of motivated judgment.

Additional criteria for classifying transactions as transactions with preferential terms are established by the regulatory legal act of the authorized body.

2-1. Persons associated with an insurance (reinsurance) company by special relations are recognized as:

an official or managerial employee, the first manager and chief accountant of a branch of this insurance (reinsurance) organization, as well as their spouses and close relatives;

2) an individual or legal entity that is a major participant in a given insurance (reinsurance) organization, or an official of a major participant in an insurance (reinsurance) organization, as well as their spouses and close relatives;

3) a legal entity in which the persons specified in subparagraphs 1) and 2) of this paragraph own ten or more percent of the outstanding shares (less preferred and repurchased shares) or shares in the authorized capital or are officials;

4) affiliated persons of the insurance (reinsurance) organization;

5) an individual or legal entity that meets the criteria of being connected with an insurance (reinsurance) organization by special relations established by a regulatory legal act of the authorized body.

The authorized body has the right to classify an individual or legal entity as a person related to the insurance (reinsurance) company by special relations, by using a reasoned judgment. In this case, this individual or legal entity is recognized by the insurance (reinsurance) organization as a person connected with it by special relations from the date the insurance (reinsurance) organization receives the appropriate supervisory response measure from the authorized body.

For the purposes of this article, persons associated with an insurance (reinsurance) organization by special relations are not recognized as an independent director, a national management holding company that is a shareholder of an insurance (reinsurance) organization, and legal entities, ten or more percent of the shares (stakes in the authorized capital) of which belong to such a national management holding company, as well as legal entities in which an official of the insurance (reinsurance) organization, who is an independent director, is independent in the management bodies director, as well as other persons determined by the regulatory legal act of the authorized body.

For the purpose of recognizing persons associated with a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan as special relations:

an insurance (reinsurance) organization in subparagraph 2) of part one of this paragraph is understood as an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan;

an insurance (reinsurance) organization in subparagraphs 4) and 5) of part one of this paragraph is understood as a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

Affiliated persons of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan are recognized as affiliated persons of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, recognized as such in accordance with the legislation of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan keeps records of its affiliates on the basis of information provided by the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

A transaction with a person connected with an insurance (reinsurance) company by special relations is carried out taking into account the requirements of paragraph 1 of this article only by decision of the board of directors of the insurance (reinsurance) company.

The requirement of part one of this paragraph does not apply to transactions with a person connected with an insurance (reinsurance) company by special relations, the standard conditions of which are established by the legislation of the Republic of Kazakhstan and (or) were previously approved by the board of directors of the insurance (reinsurance) company and apply to similar transactions with third parties.

Waiver of rights of claim in respect of assets provided (placed) to persons (persons) associated with an insurance (reinsurance) organization by special relations is carried out with subsequent notification of the general meeting of shareholders.

The person specified in paragraph 2-1 of this article should not take part in the consideration and decision-making on any transaction between the insurance (reinsurance) company and:

by himself;

any of his close relatives or his spouse;

any legal entity in which he or any of his close relatives or his spouse is an officer (other than an independent director) or a major participant.

A decision of the board of directors on any transaction between an insurance (reinsurance) company and a person related to the insurance (reinsurance) company by special relations can be made only after the board of directors has considered all its terms.

For the purposes of applying the requirements of this paragraph to a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, the board of directors of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is understood as the corresponding management body of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

5. The insurance (reinsurance) organization is obliged to provide the National Bank with information about persons associated with the insurance (reinsurance) organization by special relations, as well as about all transactions concluded with these persons, in the manner, terms and forms that are provided for by the regulatory legal acts of the National Bank in agreement with the authorized body.

6. The requirements of this article apply to insurance holding companies, with the exception of:

non-residents of the Republic of Kazakhstan who are an insurance holding company, a person possessing the characteristics of an insurance holding company, if one of the following conditions is met:

the presence of an individual credit rating not lower than the A rating of one of the rating agencies, the list of which is established by the authorized body, as well as written confirmation from the financial supervisory authority of the country of origin of the insurance holding company, a person possessing the characteristics of an insurance holding company, that these non-resident persons of the Republic of Kazakhstan are subject to consolidated supervision;

the existence of an agreement between the authorized body and the relevant supervisory authority of a foreign state on the exchange of information, as well as the minimum required rating of one of the rating agencies. The minimum rating and list of rating agencies are established by the regulatory legal act of the authorized body;

insurance holding companies, which are bank holding companies that are part of banking conglomerates.

Article 15-2. Requirements for an insurance organization and Internet resources when concluding, terminating and (or) early termination of an insurance contract and settling insured events through the exchange of electronic information resources

Footnote: Footnote. The title of Article 15-2 as amended by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

In cases provided for by the laws of the Republic of Kazakhstan or the rules of insurance, the conclusion, termination and (or) early termination of insurance contracts and the settlement of insured events in electronic form is carried out through the exchange of electronic information resources between the organization for the formation and maintenance of the database, the insurer and the policyholder (the insured, the beneficiary).

2. The exchange of electronic information resources between the insurance organization and the organization for the formation and maintenance of the database is carried out through the integration of an Internet resource and (or) the information system of the insurance organization with the database.

The exchange of electronic information resources between the policyholder (insured, beneficiary) and the insurer is carried out through the Internet resources of the insurance organization and other organizations that are partners of the insurance organization on the basis of an appropriate agreement, in the manner determined by the regulatory legal act of the authorized body.

Requirements for the Internet resources of partners of an insurance organization used for the exchange of electronic information resources are established by a regulatory legal act of the authorized body.

On the Internet resource of the organization for the formation and maintenance of the database, there is a link to the Internet resource of the insurance organization, used for concluding an insurance contract and settling insurance claims in electronic form.

3. The procedure for the exchange of electronic information resources between the organization for the formation and maintenance of the database and the insurer, insurer and policyholder (insured, beneficiary) is determined by the regulatory legal act of the authorized body.

4. An insurance organization, when using the insurer’s Internet resource and (or) Internet resources of other organizations in accordance with paragraph 1 and part two of paragraph 2 of this article, ensures:

immediate sending to the policyholder of a notification about the conclusion of an insurance contract or refusal to conclude it (indicating the reasons for the refusal) in the form of an electronic message;

2) notification of the policyholder (insured) about the main stages of the process of settling the insured event, including refusal to accept documents for settlement (indicating the reasons for the refusal), in the form of an electronic message in the manner determined by the regulatory legal act of the authorized body;

3) the ability for the policyholder (insured) to check information on the concluded insurance contract on the Internet resource of the insurance organization;

4) the ability for the policyholder (insured, beneficiary) to check information on the insured event on the Internet resource of the insurance organization;

5) storage of the insurance contract in electronic form and information on the insured event, ensuring round-the-clock access for the policyholder (insured, beneficiary) to the Internet resource of the insurance organization;

6) the opportunity for the policyholder (insured, beneficiary) to create and send to the insurance organization information in electronic form (applications, notifications and (or) other documents, information) necessary for:

concluding and amending an insurance contract;

termination and (or) early termination of the insurance contract;

notifications about the occurrence of an insured event (an event considered as an insured event);

determining the amount of harm caused;

receiving insurance payment;

settlement of disputes arising from the insurance contract, for sending information about the existence of disagreements to the insurance ombudsman, taking into account the specifics provided for in paragraph 1 of Article 86 of this Law.

Notification of the conclusion, termination and (or) early termination of the insurance contract and settlement of insured events is sent from the organization for the formation and maintenance of the database in the manner determined by the regulatory legal act of the authorized body;

7) protection of personal data when collecting and processing personal data in accordance with the legislation of the Republic of Kazakhstan on personal data and their protection;

8) preliminary notification of the policyholder (insured) about the expiration of the insurance contract in the manner determined by the regulatory legal act of the authorized body.

5. When concluding an insurance contract through the exchange of electronic information resources, the insurance contract is considered concluded from the date of payment by the policyholder of the insurance premium (the first insurance premium in the case of paying the insurance premium in installments), unless otherwise provided by the insurance contract.

6. When concluding an insurance contract through the exchange of electronic information resources, the policyholder pays the insurance premium (the first insurance premium in the case of paying the insurance premium in installments) after familiarizing himself with the standard insurance conditions provided for by the laws of the Republic of Kazakhstan, or with the insurance rules, thereby confirming his consent to conclude an insurance contract on the terms offered to him.

7. The activities of insurance agents when concluding compulsory insurance contracts are not allowed.

Article 16. Requirements for an insurance organization, an insurance broker, an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, an organization for the formation and maintenance of a database, an insurance ombudsman for informing policyholders

Footnote: Footnote. The title of Article 16 as amended by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall come into force sixty calendar days after the day of its first official publication). Note FROM! Clause 1 is amended by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced from January 1, 2027).

In order to provide policyholders (insured, beneficiaries), persons who intend to enter into an insurance contract, with information about their activities, an insurance organization, an insurance broker, an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, an organization for the formation and maintenance of a database, an insurance ombudsman must have an Internet resource.

2. The following information is posted on the insurance organization’s Internet resource:

full name, address (location), telephone numbers, operating hours, including branches and representative offices;

2) information about shareholders;

3) information about management employees;

4) information about the business identification number;

5) information about the number and date of issue of the license;

6) information about the types of activities carried out;

7) annual financial statements, confirmed by an audit organization, for the three previous reporting years;

8) annual consolidated financial statements, confirmed by an audit organization, for the three previous reporting years (if available);

9) reports on the results of activities for the three previous reporting years (if available);

10) information on participation in associations (unions), including associations of insurance (reinsurance) organizations and insurance brokers (if any);

11) ratings assigned to the insurance organization by rating agencies (if assigned);

12) information about created insurance (reinsurance) pools (for the insurance (reinsurance) organization that is leading in the activities of the insurance (reinsurance) pool);

13) rules of insurance by type of insurance in voluntary form, which provide for the possibility of concluding an insurance contract in electronic form, with the ability to view their previous editions, changes and additions made to them;

information on the amounts of insurance rates (insurance premiums, contributions) by type of insurance in accordance with the regulatory legal act of the authorized body. Instructions on the requirements for assessment methods and principles for calculating insurance rates for classes (types) of insurance of insurance (reinsurance) organizations are approved by a regulatory legal act of the authorized body;

15) information on the minimum and maximum amounts of commission remuneration of insurance agents by classes (types) of insurance approved by the insurance organization.

2-1. The following information is posted on the Internet resource of a branch of a non-resident insurance organization of the Republic of Kazakhstan:

full name, address (location), telephone numbers, operating hours;

2) information about account registration and business identification number;

3) information about a non-resident insurance organization of the Republic of Kazakhstan, its Internet resource;

4) annual consolidated financial statements of a non-resident insurance organization of the Republic of Kazakhstan, and in the absence of a subsidiary (subsidiaries) organization (organizations) - unconsolidated financial statements of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, confirmed by an audit organization, for the three previous reporting years;

5) annual reporting according to the accounting data of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan for the three previous reporting years (if any);

6) information specified in subparagraphs 3), 5), 6), 9), 10), 11), 12), 13), 14) and 15) of paragraph 2 of this article;

3. The following information is posted on the insurance broker’s Internet resource:

information specified in subparagraphs 1), 3), 4), 5), 6), 7), 8), 9) and 10) of paragraph 2 of this article;

2) information about shareholders (participants);

information about the current insurance contract of civil liability of the insurance broker to third parties, including the number and date of conclusion of the contract, the name of the insurer, the object of insurance and the list of risks that are the subject of the contract, the period of its validity and the insured amount under the contract.

3-1. The following information is posted on the Internet resource of the branch of a non-resident insurance broker of the Republic of Kazakhstan:

full name, address (location), telephone numbers, operating hours;

2) information about account registration and business identification number;

3) information about the non-resident insurance broker of the Republic of Kazakhstan, his Internet resource;

4) annual consolidated financial statements of a non-resident insurance broker of the Republic of Kazakhstan, and in the absence of a subsidiary (subsidiaries) organization (organizations) - unconsolidated financial statements of a non-resident insurance broker of the Republic of Kazakhstan, confirmed by an audit organization, for the three previous reporting years;

5) annual reporting according to the accounting data of a branch of a non-resident insurance broker of the Republic of Kazakhstan for the three previous reporting years (if any);

6) information specified in subparagraphs 3), 5), 6), 9) and 10) of paragraph 2, subparagraph 3) of paragraph 3 of this article.

4. The following information is posted on the Internet resource of the organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations:

information specified in subparagraphs 1), 2), 3), 4), 6), 7), 9) and 10) of paragraph 2 of this article;

2) information about participating insurance organizations.

The following information is posted on the Internet resource of the insurance ombudsman:

information specified in subparagraphs 6), 9) and 10) of paragraph 2 of this article;

2) full name, address (location), telephone numbers, operating hours of the office of the insurance ombudsman, including its branches and representative offices;

3) information about the election of an insurance ombudsman;

4) a list of insurance organizations, branches of non-resident insurance organizations of the Republic of Kazakhstan that are members of the council of representatives of the insurance ombudsman;

5) internal rules governing the activities of the insurance ombudsman, including the procedure and timing for considering applications for dispute resolution and making decisions, as well as memorandums concluded with insurance market participants.

6. The following information is posted on the Internet resource of the organization for the formation and maintenance of the database:

information specified in subparagraphs 1), 4), 6), 9) and 10) of paragraph 2 of this article;

2) information about managers;

3) information about shareholders (participants).

The procedure for posting information on the Internet resource of an insurance organization, an insurance broker, an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, an insurance ombudsman, an organization for the formation and maintenance of a database is determined by the authorized body.

8. In the event of a change in the location of its permanent body, a change in the name, the insurance organization, insurance broker is obliged to notify policyholders about this by publishing an announcement in two periodicals distributed throughout the Republic of Kazakhstan, in the Kazakh and Russian languages no later than one month and on the insurer’s Internet resource within ten working days.

In the event of a change in the location of its separate division, an insurance organization or insurance broker is obliged to notify its policyholders about this by publishing an announcement in two periodicals distributed throughout the Republic of Kazakhstan, in the Kazakh and Russian languages no later than one month and on its Internet resource within ten working days.

9. When concluding an Islamic insurance contract, the policyholder has the right to request from the Islamic insurance organization a council opinion on the principles of Islamic finance, confirming compliance of the insurance rules with the requirements specified in Chapter 6-1 of this Law.

Chapter 4. Insurance intermediation

Article 16-1. Creation of an insurance broker

The organizational and legal form of an insurance broker is a limited liability partnership or a joint stock company.
The name of the insurance broker must contain the words “insurance broker” or words derived from them.
An insurance broker is prohibited from using the words “national”, “central”, “budgetary”, “republican” in its name.
It is not permitted to use as a name designations that are identical or similar to the point of confusion with the name of previously created insurance brokers, including non-resident insurance brokers of the Republic of Kazakhstan. This prohibition does not apply to a subsidiary insurance broker if it uses the name of the parent organization.
State registration of an insurance broker is carried out in the manner prescribed by the legislation of the Republic of Kazakhstan.

6. It is allowed to open a branch of a non-resident insurance broker of the Republic of Kazakhstan.

Article 16-2. Requirements for founders (participants, shareholders) of an insurance broker

Footnote: Footnote. The title of Article 16-2 is as amended by the Law of the Republic of Kazakhstan dated June 30, 2025 No. 205-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication). 1. Excluded by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

2. The founders and employees of an insurance broker, employees of a branch of an insurance broker - a non-resident of the Republic of Kazakhstan cannot hold positions in an insurance (reinsurance) organization or carry out the activities of an insurance agent.

3. The founders (participants, shareholders) of an insurance broker cannot be individuals and legal entities included in the list of organizations and persons associated with the financing of terrorism and extremism, and (or) in the list of organizations and persons associated with the financing of the proliferation of weapons of mass destruction, in the manner established by the Law of the Republic of Kazakhstan “On combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction.”

4. If a participant (shareholder) of the insurance broker specified in paragraph 3 of this article is included in the list of organizations and persons associated with the financing of terrorism and extremism, and (or) in the list of organizations and persons associated with the financing of the proliferation of weapons of mass destruction, the authorized body sends to this participant (shareholder) a request for the alienation of its share in the authorized capital (shares) of the insurance broker.

The participant (shareholder) of the insurance broker, within six months from the date of receipt of the request for the alienation of his share of participation in the authorized capital (shares) of the insurance broker, is obliged to fulfill it and notify the authorized body about it, attaching copies of supporting documents.

Article 16-3. Formation of the authorized capital of an insurance broker

The founders, participants or shareholders of an insurance broker are obliged to pay for the acquired participation shares or shares exclusively in money in national currency.

2. The minimum amount of the authorized capital of the created insurance broker must be fully paid by its founders by the time of its state registration.

3. Requirements for the minimum amount of the authorized and equity capital of an insurance broker are established by the regulatory legal act of the authorized body.

Article 16-4. Opening a branch of a non-resident insurance broker of the Republic of Kazakhstan

An application for permission to open a branch of a non-resident insurance broker of the Republic of Kazakhstan in Kazakh or Russian is submitted in the form established by the regulatory legal act of the authorized body, with the following documents attached:

the decision of a non-resident insurance broker of the Republic of Kazakhstan to open a branch on the territory of the Republic of Kazakhstan;

2) draft regulations on the branch of a non-resident insurance broker of the Republic of Kazakhstan;

3) copies of the constituent documents of a non-resident insurance broker of the Republic of Kazakhstan (notarized in case of failure to provide the originals for verification);

4) information about the non-resident insurance broker of the Republic of Kazakhstan in the form determined by the authorized body, including financial statements for the last two completed financial years (including consolidated ones, if any), certified by an audit organization;

5) the organizational structure of the branch of the non-resident insurance broker of the Republic of Kazakhstan and information about affiliated persons of the non-resident insurance broker of the Republic of Kazakhstan;

6) documents of persons proposed for positions of executive employees of a branch of a non-resident insurance broker of the Republic of Kazakhstan in accordance with the requirements for executive employees of a branch of a non-resident insurance broker of the Republic of Kazakhstan, established by the regulatory legal act of the authorized body;

7) written notification to the financial supervisory authority of the state of which the non-resident insurance broker of the Republic of Kazakhstan is a resident, about the absence of objections to the opening of a branch on the territory of the Republic of Kazakhstan by the non-resident insurance broker of the Republic of Kazakhstan or a statement that such permission is not required under the legislation of the state of which the non-resident insurance broker of the Republic of Kazakhstan is a resident;

8) written confirmation from the financial supervisory authority of the state of which the non-resident insurance broker of the Republic of Kazakhstan is a resident, that the non-resident insurance broker of the Republic of Kazakhstan has a valid license to carry out the activities of an insurance broker;

9) written confirmation from the financial supervisory authority of the state of which the non-resident insurance broker of the Republic of Kazakhstan is a resident, that the non-resident insurance broker of the Republic of Kazakhstan has not violated the requirements of the legislation regulating the activities of the non-resident insurance broker of the Republic of Kazakhstan, the state of which the non-resident insurance broker of the Republic of Kazakhstan is a resident, within two years preceding the submission of the application;

10) written confirmation from the authorized body of the state, of which the non-resident insurance broker of the Republic of Kazakhstan is a resident, that the founder (founders) of the non-resident insurance broker of the Republic of Kazakhstan does not have a criminal record for economic and corruption crimes and offenses, as well as that the founder (founders) did not operate as a managerial employee of an insurance (reinsurance) organization non-resident of the Republic of Kazakhstan, a non-resident insurance broker of the Republic Kazakhstan or another financial organization of the state of a non-resident insurance broker of the Republic of Kazakhstan for a period of no more than one year from the moment of deprivation of a license in the manner prescribed by law, the adoption of a decision on forced liquidation, forced repurchase of shares of an insurance (reinsurance) organization non-resident of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan. This requirement applies for five years after the revocation of the license, the date of the decision on forced liquidation, forced redemption of shares of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan;

11) a copy of the current license of a non-resident insurance broker of the Republic of Kazakhstan, issued by the financial supervisory authority of the state of which the non-resident insurance broker of the Republic of Kazakhstan is a resident;

12) documents for accounting registration of a branch of a non-resident insurance broker of the Republic of Kazakhstan, provided for in Article 6-2 of the Law of the Republic of Kazakhstan “On state registration of legal entities and accounting registration of branches and representative offices”;

13) copies of a document confirming payment of the fee for issuing a license for the right to carry out the activities of an insurance broker, with the exception of cases of payment through the “electronic government” payment gateway.

The authorized body has the right to request additional information or documents necessary to make a decision on issuing a permit to open a branch of a non-resident insurance broker of the Republic of Kazakhstan.

An application for a permit to open a branch of a non-resident insurance broker of the Republic of Kazakhstan may be withdrawn by a non-resident insurance broker of the Republic of Kazakhstan at any time during its consideration by the authorized body.

The procedure for issuing permission to open a branch of a non-resident insurance broker of the Republic of Kazakhstan is determined by the regulatory legal act of the authorized body.

2. Refusal to issue a permit to open a branch of a non-resident insurance broker of the Republic of Kazakhstan is made on any of the following grounds:

non-compliance of the submitted documents with the requirements established by paragraph 1 of this article;

2) failure to eliminate the comments of the authorized body on the submitted documents within the period established by it;

3) failure to comply with the requirements established by subparagraph 9) of part one of paragraph 1 of this article;

4) non-compliance of the name of the branch of a non-resident insurance broker of the Republic of Kazakhstan with the requirements of paragraph 8 of this article;

5) submission to the authorized body of unreliable information regarding a non-resident insurance broker of the Republic of Kazakhstan.

The authorized body, within the time limits provided for in paragraph 5 of this article, notifies the non-resident insurance broker of the Republic of Kazakhstan about the refusal to issue a permit to open a branch of the non-resident insurance broker of the Republic of Kazakhstan in writing, indicating the grounds for the refusal.

3. The issued permit to open a branch of a non-resident insurance broker of the Republic of Kazakhstan is considered canceled in the following cases:

adoption by a non-resident insurance broker of the Republic of Kazakhstan of a decision to terminate the activities of a branch of a non-resident insurance broker of the Republic of Kazakhstan;

2) failure to register with the Corporation within two months from the date of issue of permission to open a branch of a non-resident insurance broker of the Republic of Kazakhstan;

3) failure to obtain a license to carry out the activities of an insurance broker within three months from the date of registration of a branch of a non-resident insurance broker of the Republic of Kazakhstan.

4. A non-resident insurance broker of the Republic of Kazakhstan forms the assets of a branch of a non-resident insurance broker of the Republic of Kazakhstan, accepted as a reserve, at the time of its accounting registration. The procedure for the formation of assets of a branch of a non-resident insurance broker of the Republic of Kazakhstan, accepted as a reserve, and their minimum size are determined by the regulatory legal act of the authorized body.

5. An application for a permit to open a branch of a non-resident insurance broker of the Republic of Kazakhstan must be considered by the authorized body within fifty working days from the date of submission of the application.

Notification of the issuance of permission to open a branch of a non-resident insurance broker of the Republic of Kazakhstan is sent to the non-resident insurance broker of the Republic of Kazakhstan and to the Corporation.

A permit to open a branch of a non-resident insurance broker of the Republic of Kazakhstan has legal force until the authorized body makes a decision to issue a license to the branch of a non-resident insurance broker of the Republic of Kazakhstan to carry out the activities of an insurance broker.

6. Accounting registration of a branch of a non-resident insurance broker of the Republic of Kazakhstan is carried out by the Corporation on the basis of permission from the authorized body to open a branch of a non-resident insurance broker of the Republic of Kazakhstan in the manner prescribed by the legislation of the Republic of Kazakhstan.

7. The legal status of a branch of a non-resident insurance broker of the Republic of Kazakhstan is determined by registration with the Corporation and the availability of a license to carry out the activities of an insurance broker.

8. A branch of a non-resident insurance broker of the Republic of Kazakhstan uses as its name the one specified in the regulations on the branch of a non-resident insurance broker of the Republic of Kazakhstan.

A branch of a non-resident insurance broker of the Republic of Kazakhstan in its name must use the name of the non-resident insurance broker of the Republic of Kazakhstan, as well as the word “branch”.

9. The location of the branch of a non-resident insurance broker of the Republic of Kazakhstan is recognized as the location on the territory of the Republic of Kazakhstan, specified in the regulations on the branch of a non-resident insurance broker of the Republic of Kazakhstan.

Article 17. Activities of an insurance broker and requirements for it

The activities of an insurance broker are an exclusive type of activity and are subject to licensing by the authorized body.

An insurance broker is prohibited from:

carry out the activities of an insurance agent, with the exception of activities related to the management of the activities of the insurance (reinsurance) pool;
participate in public procurement for the provision of services related to the conclusion of insurance contracts, with the exception of the provision of services for managing the activities of the insurance (reinsurance) pool;

3) transfer risks to reinsurance with the participation of two or more insurance brokers who are non-residents of the Republic of Kazakhstan or participants of the Astana International Financial Center;

4) issue money to employees and affiliated persons without primary accounting documents;

5) provide financial assistance free of charge, with the exception of financial assistance to employees of an insurance broker, in an amount not exceeding one hundred times the monthly calculation index established by the law on the republican budget and valid as of January 1 of the corresponding financial year.

2. An insurance broker carries out the following types of brokerage activities:

intermediary activities for concluding insurance contracts on one’s own behalf and on behalf of the policyholder;
intermediary activities for concluding reinsurance contracts on its own behalf and on behalf of the reinsurer (assignor).

3. The activities of an insurance broker may include the following types of activities:

consulting activities on insurance (reinsurance) issues;

2) search and attraction of individuals and legal entities to insurance (reinsurance);

3) conducting a comparative analysis of the services and financial condition of insurance (reinsurance) organizations and the Export Credit Agency of Kazakhstan;

4) collection of information about insurance objects for the purpose of conducting a comparative analysis of services provided by insurance (reinsurance) organizations and the Export Credit Agency of Kazakhstan;

5) development, on behalf of clients, of insurance (reinsurance) conditions, selection criteria for insurers (reinsurers), provision of expert services to identify insurance risks;

6) preparation and (or) execution on behalf of the policyholder (assignor) of documents necessary for concluding an insurance (reinsurance) contract, collecting information on insurance issues;

7) execution on behalf of the policyholder (assignor) of an insurance (reinsurance) agreement;

8) collection of insurance premiums from policyholders (assignors) under insurance (reinsurance) contracts for their subsequent transfer to insurance (reinsurance) organizations, the Export Credit Agency of Kazakhstan, if there is an appropriate agreement with the insured (assignor);

9) placement of insurance risks under insurance (reinsurance) or co-insurance (joint reinsurance) contracts on behalf of clients;

10) ensuring the correct and timely execution of documents when concluding an insurance (reinsurance) agreement, making an insurance payment, considering claims upon the occurrence of an insured event, as well as other documents related to concluded insurance (reinsurance) agreements;

11) conducting consultations and providing assistance in obtaining insurance payment by the policyholder (assignor), beneficiary upon the occurrence of an insured event;

12) registration, in accordance with the powers granted, of the necessary documents to receive insurance payment;

13) collection, on behalf of the insured (assignor), of insurance payments from insurance (reinsurance) organizations and the Export Credit Agency of Kazakhstan for their subsequent transfer to the insured (assignor), beneficiary;

14) preparation of documents for the consideration and settlement of losses upon the occurrence of an insured event on behalf of interested parties;

15) organizing the services of experts to assess damage and determine the amount of insurance payment;

16) activities specified in paragraph 4 of Article 15 of this Law;

17) management of the activities of the insurance (reinsurance) pool on the basis of an agreement with its participants.

4. An insurance broker is prohibited from carrying out investment activities to place insurance premiums or insurance payments received from the policyholder (assignor) or insurer (reinsurer).

The insurance broker has the right to place its own funds on deposits in banks of the Republic of Kazakhstan, branches of non-resident banks of the Republic of Kazakhstan.

5. When carrying out its activities, the insurance broker is not a party to the insurance (reinsurance) agreement.

6. The basic rights, duties and responsibilities of an insurance broker must be defined in its internal rules for carrying out the activities of an insurance broker.

7. Any remuneration to an insurance broker for carrying out brokerage activities specified in paragraph 2 of this article in the interests of the insured (assignor) is payable only by the insured (assignor), except for the case provided for in paragraph 8 of this article.

7-1. The insurance broker's commission for carrying out the activities specified in subparagraph 17) of paragraph 3 of this article is determined by the joint activity agreement and is subject to payment by the participants of the insurance (reinsurance) pool.

8. If an insurance broker and (or) his affiliated person - an insurance broker (including a non-resident insurance broker of the Republic of Kazakhstan) carried out intermediary activities in concluding insurance and (or) reinsurance contracts for one insurance risk, then the insurance broker and his affiliated person - an insurance broker (including a non-resident insurance broker of the Republic of Kazakhstan) make mutual settlements among themselves related to remuneration for the specified insurance risk.

9. The conditions and procedure for carrying out the activities of an insurance broker are determined by the regulatory legal act of the authorized body.

Article 18. Intermediary activity of an insurance agent and requirements for it

The powers of the insurance agent to carry out intermediary activities in the insurance market are determined by the agency agreement, taking into account the requirements of this Law and the regulatory legal acts of the authorized body.

The requirements for the agency agreement concluded between an insurance organization and an insurance agent are established by a regulatory legal act of the authorized body.

The insurance agent personally performs actions that are authorized by the insurance organization and does not have the right to entrust their performance to another person.

Acting as an insurance agent if he does not have authority is not permitted.

1-1. An insurance agent, with the exception of an insurance agent that is a financial organization, has no right to carry out intermediary activities in concluding insurance contracts without having a valid insurance contract for its civil liability to third parties, the object of which is the risks associated with the professional liability of the insurance agent.

An insurance contract for the civil liability of an insurance agent to third parties must be concluded with an insurance organization that does not have a valid agency agreement with this insurance agent to carry out intermediary activities in the insurance market.

2. The insurance organization is obliged to fulfill its obligations under the insurance contract concluded by the insurance agent on its behalf and on its behalf.

The insurance organization is responsible for the following actions by the insurance agent:

concluding insurance contracts, as well as performing actions of an insurance agent that go beyond the established powers;

2) conclusion of insurance contracts for classes (types) of insurance for which the insurance organization does not have a license from the authorized body;

3) intentional misleading of the policyholder regarding the terms of the insurance contract;

4) failure to comply with the requirements stipulated by the legislation of the Republic of Kazakhstan for drawing up an insurance contract and documents on the basis of which an insurance contract is concluded;

5) other violations of the requirements of the legislation of the Republic of Kazakhstan on insurance and insurance activities.

The insurance organization is not responsible for the actions of the insurance agent not related to its implementation of intermediary activities provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities.

3. The conditions that must be observed by the insurance agent, including those related to accounting and storage of insurance reporting forms, and handling cash, are established by the internal documents of the insurance organization, taking into account the requirements of the legislation of the Republic of Kazakhstan.

4. An insurance agent is prohibited from accepting a cash payment from an insured who is a legal entity to pay an insurance premium when concluding insurance contracts on behalf and on behalf of an insurance organization.

Insurance premiums (insurance contributions) received by the insurance agent are subject to surrender to the insurance organization in full by transfer to a bank account or to the cash desk of the insurance organization.

Payment of commission to the insurance agent by the insurance organization is carried out only after the insurance organization receives the insurance premium (insurance contribution) in full, paid by the policyholder under the relevant insurance contract.

5. An insurance agent is prohibited from withholding the remuneration due to him under the agency agreement from the insurance premiums he receives from policyholders.

6. It is not allowed for insurance agents to carry out intermediary activities within the powers provided for in Article 18-2 of this Law under one insurance contract by two or more insurance agents.

It is not allowed to carry out intermediary activities of insurance agents under contracts:

pension annuity concluded in accordance with the Social Code of the Republic of Kazakhstan;

insurance concluded as part of public procurement in accordance with the Law of the Republic of Kazakhstan “On Public Procurement”;

insurance for which the policyholders are a national management holding, national holdings, national management companies, national companies, the National Bank;

insurance for which the policyholders are government agencies, government agencies, state-owned enterprises, legal entities, fifty or more percent of voting shares (stakes in the authorized capital) of which belong to the state, and legal entities affiliated with them;

compulsory insurance.

6-1. The amount of commission paid by the insurer to the insurance agent for the provision of intermediary services for concluding an insurance contract, under which the beneficiary is a second-tier bank and (or) an organization engaged in microfinance activities, and (or) the conclusion of which follows from the terms of the financial product of a second-tier bank and (or) an organization engaged in microfinance activities, for the provision of a bank loan and (or) microcredit, as well as another insurance agreement that is concluded upon receipt of a bank loan and (or) microcredit cannot exceed ten percent of the amount of the accrued insurance premium payable under this insurance contract.

7. The commission includes all types of expenses of the insurance organization in relation to the insurance agent who carried out intermediary activities in concluding an insurance contract, including the cost of paying rent, any types of remuneration, as well as the provision of any property or material benefit.

Article 18-1. Requirements for persons carrying out intermediary activities of an insurance agent, as well as for the procedure for their registration and training

An individual may not carry out intermediary activities of an insurance agent:

has not reached the age of majority;
recognized by a court as incompetent or partially capable;
without secondary education;
has not completed training in accordance with the requirements provided for in paragraph 4 of this article;
is an employee of an insurance organization or an insurance broker on the basis of an employment contract;
if there is a criminal record that has not been expunged or expunged in accordance with the procedure established by law;
previously held the position of a managerial employee of an insurance (reinsurance) organization, an insurance broker, another financial organization, a branch of a non-resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan for a period no more than one year before the decision by the authorized body on deprivation of a license, forced liquidation in the manner established by the legislation of the Republic of Kazakhstan, or another legal entity recognized bankrupt in the manner established by the legislation of the Republic of Kazakhstan. This requirement applies within five years after the authorized body makes a decision on deprivation of a license, forced liquidation or declaring a legal entity bankrupt in the manner established by the legislation of the Republic of Kazakhstan;
previously an employee of an insurance broker, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, an insurance agent-legal entity, with whom the employment contract was terminated on the initiative of the insurance broker, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, an insurance agent-legal entity due to the employee’s incompatibility with the position held or the work performed due to insufficient qualifications. This requirement applies for two years from the date of termination at the initiative of an insurance broker, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, an insurance agent-legal entity of an employment contract;

9) indicated in the list of persons involved in terrorist activities, as well as the list of organizations and persons associated with the financing of the proliferation of weapons of mass destruction, and (or) in the list of organizations and persons associated with the financing of terrorism and extremism.

1-1. The insurance organization is obliged to check the compliance of the insurance agent with the requirements of subparagraphs 2), 6) and 9) of paragraph 1 of this article.

2. An insurance organization is obliged to maintain a register of insurance agents and place it in a place accessible for viewing and familiarization (including Internet resources) by consumers of insurance services.

The basis for inclusion in the register of insurance agents is the compliance of persons carrying out the intermediary activities of an insurance agent with the requirements of paragraph 1 of this article, and the presence of a document confirming passing exams under the minimum training program.

An insurance agent, which is a legal entity, is subject to inclusion in the register of insurance agents with the obligatory indication of at least two employees whose job responsibilities include issues related to the conclusion of insurance contracts that meet the requirements of paragraph 1 of this article, and if they have a document confirming that they have passed exams under the minimum training program.

An insurance agent, which is a legal entity, independently maintains a list of all employees whose job responsibilities include concluding insurance contracts that meet the requirements of paragraph 1 of this article, and if they have a document confirming that they have passed exams under the minimum training program.

An insurance agent, at least once every three years after being included in the register of insurance agents, undergoes professional retraining organized by an insurance organization, an insurance agent that is a financial organization, or an association of insurance (reinsurance) organizations and insurance brokers.

3. The insurance organization is obliged to submit to the authorized body a register of persons carrying out intermediary activities of an insurance agent, in the manner and within the time limits provided for by the regulatory legal act of the authorized body.

4. The organization of training according to the minimum training program is carried out by an association of insurance (reinsurance) organizations and insurance brokers, an insurance organization or an insurance agent that is a financial organization.

The minimum training program and requirements for the procedure for conducting training are established by the authorized body.

5. The grounds for exclusion from the register of insurance agents are:

a supervisory response measure, with the exception of a recommendatory supervisory response measure, applied by the authorized body to an insurance organization based on identified violations of the legislation of the Republic of Kazakhstan committed by an insurance agent;
identification by the insurance organization of the conclusion by the insurance agent of insurance contracts that contradict the requirements of the legislation of the Republic of Kazakhstan;

2-1) identification by the insurance organization of failure by the insurance agent to fulfill obligations arising from the terms of the agency agreement;

identification by the authorized body, the insurance organization, of non-compliance of the person carrying out the intermediary activities of the insurance agent with the requirements provided for in paragraph 1 of this article;
termination of the agency agreement by agreement of the parties;

5) failure by the insurance agent to carry out intermediary activities for concluding insurance contracts over the past two years.

In case of exclusion of an insurance agent from the register of insurance agents on the grounds provided for in subparagraphs 1), 2), 2-1) and 3) of part one of this paragraph, the following activities are prohibited:

to an insurance agent who is an individual, within two years from the date of his exclusion;

to an employee of an insurance agent that is a legal entity, within two years from the date of his exclusion;

to an insurance agent that is a legal entity within one year from the date of its exclusion.

In the event of termination of an agency agreement concluded between an insurance organization and an insurance agent on grounds not related to the circumstances provided for in subparagraphs 1), 2), 2-1) and 3) of part one of this paragraph, information about the insurance agent is subject to removal from the register of insurance agents after one year from the date of termination of the agency agreement.

Article 18-2. Rights and obligations of an insurance agent

In its activities, an insurance agent has the right to:

carry out intermediary activities on behalf of and on behalf of one insurance organization operating in the “life insurance” industry and (or) one insurance organization operating in the “general insurance” industry, taking into account the restrictions provided for in Articles 18 and 18-1 of this Law;
receive reliable information from the insurance organization about the availability of licenses and financial reporting data;
carry out consulting activities on insurance;

4) receive remuneration from the insurance organization for carrying out its intermediary activities by non-cash payment.

In his activities, the insurance agent is obliged to:

present to the policyholder the contract of agency, as well as the following documents:

identifying him;

confirming the presence of his data in the register of insurance agents;

provide information about the insurance organization of which he is an insurance agent, including a copy of the insurance organization’s license to carry out insurance activities;
familiarize the policyholder with the insurance rules under the insurance contract being concluded and provide a copy of the rules in cases provided for in Article 828 of the Civil Code of the Republic of Kazakhstan;
provide information and, if available, all necessary documents regarding the insurance contract being concluded;
ensure correct and timely execution of documents when concluding an insurance contract;
ensure the confidentiality of information received during intermediary activities;

7) hand over to the insurance organization the insurance premiums (insurance contributions) received in full from policyholders.

Chapter 5. Actuarial activities and audit

Article 19. Actuarial activity

Footnote: 1. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

2. Actuarial activities must be carried out in accordance with this Law and regulatory legal acts of the authorized body, as well as taking into account international principles (standards) for the implementation of actuarial activities.

2-1. Actuarial activities include the provision of services for:

calculation of the size of insurance reserves and assessment of insurance liabilities;

2) determining the size of loans provided to policyholders under accumulative insurance contracts;

3) drawing up an actuarial report on the completion of a major transaction under insurance and reinsurance contracts;

4) development of a methodology for calculating and economic justification of insurance tariffs, as well as calculating insurance premium rates under insurance and reinsurance contracts;

5) analysis and updating of survival indicators to assess insurance premiums and insurance reserves under annuity and life insurance contracts;

6) providing consulting services and providing recommendations on issues of actuarial calculations;

7) issues related to the assessment of the financial stability and solvency of the insurance (reinsurance) organization;

8) analysis and quantitative, financial assessment of risks and (or) financial obligations due to the presence of risks, as well as the development and evaluation of the effectiveness of financial risk management methods.

3. Actuarial calculations are made on the following grounds:

at the initiative of the insurance (reinsurance) organization - initiative actuarial calculations;
in cases provided for by the legislation of the Republic of Kazakhstan - mandatory actuarial calculations.

4. When making actuarial calculations, the insurance (reinsurance) organization is obliged to provide all available documents and information necessary for the production and preparation of mandatory actuarial calculations and opinions requested by the actuary.

The first head of the insurance (reinsurance) company is responsible for ensuring the actuary has access to documents and information necessary to perform the functions assigned to the actuary, as well as the accuracy and completeness of the documents and information provided to the actuary.

4-1. The actuary is independent of the shareholders and (or) management employees of the insurance (reinsurance) company in making decisions on issues of actuarial calculations based on the professional judgment of the actuary.

4-2. The actuary checks the completeness and accuracy of the information used in calculating insurance reserves and assessing insurance liabilities.

5. The actuary is responsible for the correctness and accuracy of the actuarial calculations and conclusions made by him in the manner prescribed by the laws of the Republic of Kazakhstan.

6. The actuary is obliged to immediately notify the board of directors of the insurance (reinsurance) company about the facts of non-compliance by the insurance (reinsurance) company with the requirements for the formation of insurance reserves, assessment of insurance liabilities and risks that may lead to a deterioration in the financial stability and solvency of the insurance (reinsurance) company.

7. An independent actuary sends to the authorized body the results of checking the reliability of calculations carried out by an actuary on the staff of an insurance (reinsurance) organization in the manner and within the time limits established by the regulatory legal act of the authorized body.

Article 20. Audit

An audit of an insurance (reinsurance) organization, an insurance broker and an organization guaranteeing the implementation of insurance payments is carried out by an audit organization authorized to conduct an audit in accordance with the legislation of the Republic of Kazakhstan on auditing activities and meeting the requirements of paragraph 1-1 of this article.

1-1. The audit report is recognized as valid subject to the submission of documents confirming that the audit organization:

independent from the audited insurance (reinsurance) company, its shareholders and executives;

independent from the insurance broker being audited, its shareholders (participants) and management employees;

independent from the audited organization that guarantees insurance payments, its shareholders and executives;

is authorized to carry out audit activities in accordance with the license and meets the minimum requirements for audit organizations that conduct mandatory audits of financial organizations, developed by the authorized state body that carries out state regulation in the field of audit activities and control over the activities of audit and professional audit organizations, in agreement with the authorized body, or is authorized to carry out audit activities in accordance with the license of the competent authority of the state of which it is a resident.

2. An insurance (reinsurance) organization, an insurance broker, an organization that guarantees the implementation of insurance payments, an insurance holding company and organizations in which the insurance (reinsurance) organization and (or) the insurance holding company are major participants, as well as organizations included in the insurance group, do not have the right to audit their activities for more than seven years in a row in one audit organization or for more than five years in a row with an auditor working in an audit organization.

The requirement of this paragraph does not apply to an insurance (reinsurance) organization that is part of a banking conglomerate.

3. The audit of organizations included in the insurance group as a parent organization and its subsidiaries that are residents of the Republic of Kazakhstan is carried out by the same audit organization. An audit of a parent organization and its non-resident subsidiaries of the Republic of Kazakhstan that are part of an insurance group must be carried out by the same audit organization in cases where such an audit does not contradict the requirements of the legislation of the country of their residence.

4. An audit organization has the right to conduct an audit of an insurance (reinsurance) organization by engaging an independent actuary.

5. The audit report of the financial statements of an insurance (reinsurance) company or other legal entities that are part of the insurance group does not constitute a commercial secret.

6. An insurance (reinsurance) organization must have in its structure an internal audit service (auditor), whose activities are not subject to licensing.

7. The procedure for conducting an internal audit is determined by the relevant internal documents of the insurance (reinsurance) company, taking into account the requirements of regulatory legal acts of the authorized body.

8. Conducting an audit based on the results of the financial year is mandatory for insurance (reinsurance) organizations (with the exception of an insurance (reinsurance) organization that has been deprived of a license to carry out insurance (reinsurance) activities or is in the process of forced liquidation), insurance holdings and organizations in which the insurance (reinsurance) organization and (or) the insurance holding company are major participants, insurance brokers, organizations that guarantee insurance payments. Copies of the audit report and recommendations of the audit organization must be submitted by insurance (reinsurance) organizations, insurance holding companies, organizations in which the insurance (reinsurance) organization and (or) insurance holding company are major participants, insurance brokers, an organization guaranteeing insurance payments, to the authorized body within thirty calendar days from the date of receipt of these documents or their submission to insurance (reinsurance) organizations, insurance holding companies and organizations in which An insurance (reinsurance) organization and (or) an insurance holding company are major participants, insurance brokers, and organizations that guarantee insurance payments.

An insurance (reinsurance) organization is obliged to submit a copy of the audit report within ten calendar days after its receipt by another legal entity in which the insurance (reinsurance) organization has a significant stake in the capital.

The consolidated annual financial statements of an insurance (reinsurance) company and an insurance holding company must be certified by an audit organization.

9. An insurance holding company - a non-resident of the Republic of Kazakhstan, which is subject to consolidated supervision in the country of its location, submits to the authorized body a copy of the audit report and recommendations of the audit organization within thirty calendar days from the date of receipt of these documents in the Kazakh or Russian languages.

The consolidated annual financial statements of an insurance holding company - a non-resident of the Republic of Kazakhstan, which is subject to consolidated supervision in the country of its location, must be certified by an audit organization authorized to conduct an audit of financial organizations in the country of its location.

10. If an insurance (reinsurance) organization, an insurance holding company, an organization that is part of an insurance group, an insurance broker, an organization guaranteeing the implementation of insurance payments fails to eliminate deficiencies that affect the financial condition of the insurance (reinsurance) organization or insurance group, an insurance broker, an organization guaranteeing the implementation of insurance payments specified in the audit report, within the period determined by the authorized body, the authorized body has the right to eliminate the deficiencies until the deficiencies are eliminated apply:

to an insurance (reinsurance) organization, an insurance broker, an organization that guarantees insurance payments - measures to improve the financial condition and (or) minimize risks provided for in Article 53-3 of this Law;

to an insurance holding company, an organization that is part of an insurance group - compulsory supervisory response measures provided for in paragraph 2 of Article 53-4 of this Law.

If there is a deviation of opinions and conclusions about the financial statements and (or) other information related to the financial statements, in terms of recognition of assets, liabilities and contingent liabilities of insurance (reinsurance) companies, insurance holding companies and organizations in which the insurance (reinsurance) company and (or) insurance holding company are major participants, insurance brokers, organizations guaranteeing the implementation of insurance payments set out in the audit report, from the results of the audit conducted by the authorized body, the authorized body has the right to demand from the audit organization an explanation of the reasons for such deviation.

11-1. The provisions of paragraphs 1, 1-1, 2, 3, 4, 5, 8, 9, 10 and 11 of this article do not apply to branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan are required to submit to the authorized body a copy of the audit report of the financial statements of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, the non-resident insurance broker of the Republic of Kazakhstan based on the results of the financial year and the recommendations of the audit organization in Kazakh or Russian within ten working days after their submission by the audit organization to the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan.

12. The authorized body, in the event of identifying risks and shortcomings in the activities of an insurance (reinsurance) company, has the right to require it to conduct an audit of other information regarding the assessment of the risk management and internal control system, including in relation to strategy and business model, assessment of the corporate governance system, assessment of the information technology risk management system, assessment of the effectiveness of the information security system, as well as the effectiveness of the internal control system in the field of combating the legalization (laundering) of proceeds from crime, the financing of terrorism and financing proliferation of weapons of mass destruction (hereinafter referred to as the audit of other information) indicating the list of issues to be verified, the audited period and the deadline for the audit organization to submit an audit report on the audit of other information to the authorized body.

Conducting an audit of other information at the request of the authorized body is mandatory for an insurance (reinsurance) company.

An insurance (reinsurance) organization conducts an audit of other information no more than once a year; on one issue, an audit of other information is carried out no more than once every three years, except for the case provided for in paragraph 14 of this article.

The list of issues subject to verification as part of the audit of other information, requirements for the content, deadlines for the audit organization to submit an audit report on the audit of other information, requirements for auditors as part of an audit organization involved in the audit of other information are established by regulatory legal acts of the authorized body in agreement with the authorized state body that carries out state regulation in the field of auditing activities and control over the activities of auditing and professional auditing organizations.

The verification plan for the audit of other information with a description of the intended directions, scope, nature of the audit, features of the methods and standards used in the audit is subject to prior agreement by the audit organization with the authorized body.

The audit report on the audit of other information is submitted to the authorized body by the audit organization and is not subject to publication.

The results of the audit of other information may be taken into account by the authorized body when applying supervisory response measures.

13. To carry out an audit or audit of other information, an insurance (reinsurance) organization, an insurance holding company and an organization in which the insurance (reinsurance) organization and (or) an insurance holding company are major participants, an insurance broker, an organization that guarantees the implementation of insurance payments, attract an audit organization that meets the minimum requirements for audit organizations that conduct mandatory audits of financial organizations, developed by the authorized state body that carries out state regulation in the field of auditing activities and control over activities audit and professional audit organizations, in agreement with the authorized body.

An insurance (reinsurance) organization, an insurance holding company and an organization in which the insurance (reinsurance) organization and (or) the insurance holding company are major participants, an insurance broker, an organization that guarantees insurance payments, no later than ten working days after concluding an agreement to conduct an audit or audit of other information, notify the authorized body of the choice of an audit organization. In the case of an audit of other information, the insurance (reinsurance) organization has the right to petition the authorized body to conduct an audit of other information by an organization that is not an audit organization in a way other than an audit.

The application of the insurance (reinsurance) company is considered by the authorized body within five working days.

The requirements for the procedure for conducting an audit of other information established by this article apply to the procedure for conducting an audit of other information in a manner other than an audit.

The authorized body has the right, before the audit organization issues an audit report and (or) an audit report on the audit of other information, to provide the audit organization, taking into account confidentiality requirements, information and comments on the results of inspections of persons specified in part one of paragraph 8 of this article, as well as other information related to their activities, including those based on the motivated judgment of the authorized body, including information constituting an insurance secret and (or) a trade secret, without the consent of the persons specified in part one of paragraph 8 of this article.

The audit organization carries out a mandatory assessment and analysis of information sent by the authorized body in accordance with part five of this paragraph. The results of the assessment and analysis are used by the audit organization when expressing opinions and conclusions contained in the audit report or audit report on the audit of other information.

14. If the court recognizes an audit report and (or) audit report on an audit of other information as invalid, an insurance (reinsurance) company, an insurance holding company and an organization in which the insurance (reinsurance) company and (or) an insurance holding company are major participants, an insurance broker, an organization that guarantees the implementation of insurance payments, are obliged to conduct an audit and (or) audit of other information again.

15. The authorized body has the right to request information from the audit organization, including information constituting a commercial secret, including the list of clients. Information on clients is provided with the consent of clients of the audit organization.

Chapter 6. Creation of an insurance (reinsurance) organization

Article 21. Founders and shareholders of an insurance (reinsurance) company

The founders and shareholders of an insurance (reinsurance) company may be individuals and legal entities - residents and non-residents of the Republic of Kazakhstan, taking into account the requirements provided for by this Law and other regulatory legal acts of the authorized body.

2. The state can be the founder and shareholder of an insurance (reinsurance) organization only in the person of the Government of the Republic of Kazakhstan and the authorized body.

Organizations in which more than fifty percent of the shares in the authorized capital or outstanding shares belong to the state, with the exception of the national management holding company, cannot act as founders and shareholders of an insurance (reinsurance) organization.

4. Legal entities registered in offshore zones, the list of which is established by the authorized body, cannot directly or indirectly own and (or) use and (or) dispose of voting shares of insurance (reinsurance) resident organizations of the Republic of Kazakhstan.

This restriction does not apply to insurance (reinsurance) organizations that are subsidiaries of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan that have the minimum required rating of one of the rating agencies.

The list of rating agencies and the minimum required rating are established by the regulatory legal act of the authorized body.

A shareholder participating in a general meeting of shareholders (with the exception of a shareholder who is a resident bank of the Republic of Kazakhstan) submits a statement indicating the fulfillment of the requirement of part one of paragraph 4 of this article by its shareholders (participants), if information about the country of registration of such shareholders (participants) is not available in the insurance (reinsurance) organization.

A shareholder who fails to submit the specified application is not allowed to participate in the general meeting of shareholders.

If the information specified in the application is revealed to be unreliable, or a violation of the requirement specified in part one of paragraph 4 of this article is identified:

if the majority of voting shares voted for the decision (excluding the voting shares of the shareholder who submitted the application), then the decision of the general meeting of shareholders is considered adopted without taking into account the votes of this shareholder;
if the vote of the shareholder who submitted the application was decisive, then this circumstance is the basis for invalidating the decision of the general meeting of shareholders at the request of the authorized body or other interested parties in the manner established by the legislation of the Republic of Kazakhstan.

Article 22. Legal status of the insurance (reinsurance) company

An insurance (reinsurance) organization is a commercial organization created in the legal form of a joint stock company and carries out its activities in accordance with this Law and other regulatory legal acts of the Republic of Kazakhstan.
The legal status of an insurance (reinsurance) organization is determined by the state registration of a legal entity as an insurance (reinsurance) organization in the State Corporation "Government for Citizens" (hereinafter referred to as the Corporation) and the availability of a license to carry out insurance activities.

3. The legal status of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is determined by the accounting registration of the branch as a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in the Corporation and the presence of a license for the right to carry out insurance (reinsurance) activities.

Article 23. Name of the insurance (reinsurance) company

An insurance (reinsurance) organization uses as its name the one written in its charter.

2. The full name of an insurance organization operating in the “general insurance” industry must necessarily contain the word “insurance” or a word derived from it.

2-1. The full name of an Islamic insurance organization operating in the “general insurance” industry must necessarily contain the words “Islamic insurance” or words derived from them.

3. The full name of an insurance organization operating in the “life insurance” industry must necessarily contain the words “life insurance” or words derived from them.

3-1. The full name of an Islamic insurance organization operating in the “life insurance” industry must necessarily contain the words “Islamic” and “life insurance” or words derived from them.

4. The full name of a reinsurance organization carrying out activities exclusively in reinsurance must necessarily contain the word “reinsurance” or a word derived from it.

4-1. The full name of an Islamic reinsurance organization that carries out activities exclusively on the conclusion and execution of Islamic reinsurance contracts must necessarily contain the words “Islamic” and “reinsurance” or words derived from them.

5. An insurance (reinsurance) organization is prohibited from using in any language in its name the words “national”, “central”, “budgetary”, “republican”, “state” in full or abbreviated form, with the exception of an insurance organization that, in accordance with the legislation of the Republic of Kazakhstan, has the status of a national company.

6. It is not permitted to use as a name designations that are identical or similar to the point of confusion with the name of previously created insurance (reinsurance) organizations, including insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan. This prohibition does not apply to a subsidiary insurance (reinsurance) organization if it uses the name of the parent organization.

7. A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan uses as its name the one specified in the regulations on the branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in its name is obliged to use the name of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, as well as the word “branch”.

Article 24. Bodies of the insurance (reinsurance) company

An insurance (reinsurance) company must form the following collegial bodies:

board of directors - governing body;
the board is the executive body;
internal audit service - control body;
advice on the principles of Islamic finance (only for Islamic insurance (reinsurance) organizations).

A newly created insurance (reinsurance) organization operating in the general insurance industry may have one auditor within two years from the date of receiving a license from the authorized body in the life insurance industry - within three years.

2. In addition to the issues referred by the legislation of the Republic of Kazakhstan to the exclusive competence of the board of directors of the joint-stock company, the board of directors of the insurance (reinsurance) organization is competent to consider the following issues:

violations of the requirements of the legislation of the Republic of Kazakhstan on the financial stability and solvency of an insurance (reinsurance) organization, established by the internal audit service, an actuary, an audit organization;

appointment and termination of powers of an actuary, as well as determination of the amount of official salary and terms of remuneration of an actuary.

Article 25. Formation of the authorized capital of an insurance (reinsurance) company

When placing shares of an insurance (reinsurance) company, they must be paid exclusively in money in the national currency of the Republic of Kazakhstan, with the exception of cases of payment for shares of an insurance (reinsurance) company during its reorganization, carried out in the manner established by the Law of the Republic of Kazakhstan “On Joint-Stock Companies”.

4. The minimum amount of the authorized capital of the created insurance (reinsurance) company must be paid in full by its founders no later than three working days after the state registration of the insurance (reinsurance) company.

5. An insurance (reinsurance) company has the right to buy back its own shares from shareholders, provided that the transaction does not violate the requirements of the legislation of the Republic of Kazakhstan related to the issues of financial stability and solvency of the insurance (reinsurance) company.

5-1. An insurance (reinsurance) organization has the right to issue preferred shares, the prospectus of which provides for the right of the executive body of the insurance (reinsurance) organization not to accrue dividends on preferred shares if the accrual of dividends on shares leads to a decrease in prudential standards below the values established by the regulatory legal act of the authorized body.

Article 25-1. Subordinated debt

The conditions for classifying an unsecured obligation as a subordinated debt are the simultaneous presence of the following conditions:

the period for which the unsecured obligation was issued or received is at least five years;
creditors cannot make a claim for repayment or performance of an unsecured obligation earlier than five years from the date of its occurrence;

3) an unsecured obligation may be repaid ahead of schedule or executed at the initiative of the insurance (reinsurance) company, provided that this does not lead to a decrease in prudential standards below the values established by the regulatory legal act of the authorized body;

upon liquidation of an insurance organization, the unsecured obligation is satisfied in the ninth priority, and upon liquidation of a reinsurance organization - in the seventh order, determined by Article 72 of this Law, before the demands of shareholders - owners of common shares.

Article 26. Insurance holding company, major participant in an insurance (reinsurance) organization

No person, alone or jointly with another person (other persons), without obtaining the prior written consent of the authorized body, has the right to:

directly and (or) indirectly own and (or) use and (or) dispose in the aggregate of ten or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the insurance (reinsurance) organization;

exercise control over the insurance (reinsurance) organization;

directly and (or) indirectly influence decisions made by an insurance (reinsurance) organization (vote) with ten or more percent of the voting shares of the insurance (reinsurance) organization.

The requirement established by part one of this paragraph does not apply to:

Government of the Republic of Kazakhstan;

national management holding;

a unified accumulative pension fund that manages an investment portfolio that owns voting shares of an insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization, at the expense of pension assets;

other persons specified in paragraph 19 of Article 9-5 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”.

Requirements for persons directly and (or) indirectly owning and (or) using and (or) disposing in the aggregate of ten or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization, or exercising control over an insurance (reinsurance) organization, or directly and (or) indirectly influencing decisions taken by an insurance (reinsurance) organization (voting) ten or more percent of the voting shares of an insurance (reinsurance) organization, as well as the procedure for such persons to obtain consent to acquire the status of a major participant in an insurance (reinsurance) organization or an insurance holding company are established by Article 9-5 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”.

2. Persons who are jointly a major participant in an insurance (reinsurance) organization are recognized as persons who directly and (or) indirectly own and (or) use and (or) dispose in the aggregate ten or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the insurance company (reinsurance) organization, if any of the following conditions exist:

these persons jointly influence the decisions of the insurance (reinsurance) company by virtue of the agreement (supporting documents) concluded between them;

2) these persons are individually or mutually major participants of each other;

3) one of these persons authorized (obliged) another specified person to purchase voting shares of an insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization, in accordance with the agreement concluded between them, with the exception of cases related to the provision of brokerage services, investment portfolio management services and (or) services for nominal holding of securities;

4) one of these persons provided free of charge money and (or) other property to another specified person for the acquisition of voting shares of an insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization;

5) one of the specified persons is an official of another specified person;

6) one of the specified persons is a representative of another specified person, except for cases where the representative acts in strict accordance with the instructions of the represented person and does not have the right to take actions on behalf of the represented person at his own discretion;

7) one of these persons is a close relative or spouse;

8) these persons jointly influence the decisions of the insurance (reinsurance) organization in another way in cases established by the regulatory legal acts of the authorized body.

If an insurance (reinsurance) organization is part of a banking conglomerate in accordance with the requirements of the banking legislation of the Republic of Kazakhstan, the insurance (reinsurance) organization is subject to consolidated supervision in accordance with the banking legislation of the Republic of Kazakhstan.

3. Persons who are jointly an insurance holding company are recognized as persons who directly and (or) indirectly own and (or) use, and (or) dispose in the aggregate twenty-five or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the insurance (reinsurance) organization, if any any of the following conditions:

these persons jointly influence the decisions of the insurance (reinsurance) company by virtue of the agreement (supporting documents) concluded between them;

2) these persons are individually or mutually major participants of each other;

4) one of these persons provided free of charge money and (or) other property to another specified person for the acquisition of voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization;

5) one of the specified persons is a representative of another specified person, except for cases where the representative acts in strict accordance with the instructions of the represented person and does not have the right to take actions on behalf of the represented person at his own discretion;

6) these persons jointly influence the decisions of the insurance (reinsurance) organization in another way in cases established by the regulatory legal acts of the authorized body.

4. Persons who directly and (or) indirectly own and (or) use, and (or) dispose in the aggregate ten or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which are the voting shares of the insurance company, are not recognized as a major participant in an insurance (reinsurance) organization, an insurance holding company. (reinsurance) organizations operating on the basis of an agreement concluded between them, providing for the adoption of joint decisions by them exclusively on the following issues:

convening an extraordinary general meeting of shareholders of the insurance (reinsurance) company;

2) filing a claim in court to convene a general meeting of shareholders of an insurance (reinsurance) company in the event of a refusal to convene it by the board of directors;

3) inclusion of additional issues on the agenda of the general meeting of shareholders of the insurance (reinsurance) company;

4) convening a meeting of the board of directors of the insurance (reinsurance) organization;

5) an audit organization conducting an audit of an insurance (reinsurance) organization at its own expense.

5. If a person begins to meet the characteristics of a major participant in an insurance (reinsurance) company or an insurance holding company without the written consent of the authorized body, such person does not have the right to take any actions aimed at influencing decisions made in the insurance (reinsurance) company, and (or) vote with shares of the insurance (reinsurance) company, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the insurance (reinsurance) organization, until it receives the written consent of the authorized body in accordance with Article 9-5 of the Law of the Republic of Kazakhstan “On state regulation, control and supervision of the financial market and financial organizations”.

The authorized body has the right to apply supervisory response measures provided for by this Law, compulsory measures provided for in Article 53-4 of this Law, to a person corresponding to the characteristics of a major participant in an insurance (reinsurance) company or an insurance holding company without the written consent of the authorized body, including requiring the said person to sell voting shares of the insurance (reinsurance) company and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or of a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization, within a period of no more than six months.

6. The authorized body has the right to request information confirming or refuting information that a person meets the characteristics of a major participant in an insurance (reinsurance) company or insurance holding company without the written consent of the authorized body.

The specified information may be requested by the authorized body from any person in possession of it, as well as from any organization under the control of such a person.

7. An insurance (reinsurance) organization is obliged to notify the authorized body of a change in the composition of persons holding in the aggregate ten or more percent of the voting shares of the insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the insurance (reinsurance) organization, within fifteen calendar days from the date it establishes this fact.

8. Resident individuals who are major participants in an insurance (reinsurance) organization, as well as their spouses, are required to annually submit a declaration of income and property in the manner and within the time limits established by the tax legislation of the Republic of Kazakhstan.

9. The consent of the authorized body for the bank to acquire the status of an insurance holding company, a major participant in an insurance (reinsurance) organization, the shares of which were acquired during the bank’s reorganization in the form of affiliation in the manner determined by the legislation of the Republic of Kazakhstan, or transferred when carrying out an operation provided for in Articles 68, 97 and 98 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”, is considered issued after registration of the operation in the system of registers of securities holders (nominal holding).

Footnote: Footnote. Article 26-1 is excluded by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 27. Permission to create an insurance (reinsurance) organization

To obtain permission to create an insurance (reinsurance) company, the following documents are submitted to the authorized body:

application for permission to create an insurance (reinsurance) organization;
documents confirming the decision to create an insurance (reinsurance) organization;
information about the founders - legal entities (if there are such founders), including financial statements for the last two completed financial years, certified by an audit organization, balance sheet and profit and loss statement at the end of the last quarter before the submission of documents. Financial statements for the last two completed financial years are not presented if these statements are posted on the Internet resource of the financial statements depository;
information about the founders - individuals (if there are such founders), including a description of the sources and amounts of money used to create an insurance (reinsurance) company.

Sources of funds that can be used by an individual to acquire shares (payment of authorized capital) of an insurance (reinsurance) organization being created are determined by paragraph 7 of Article 9-5 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”;

5-1) documents and information provided for in Articles 9-5 and 9-6 of the Law of the Republic of Kazakhstan “On state regulation, control and supervision of the financial market and financial organizations”, if it is necessary for the applicant to obtain the status of a major participant in an insurance (reinsurance) organization or an insurance holding company, permission to create a subsidiary or acquire a significant participation in the capital of an insurance (reinsurance) organization;

business plan;

2. The founder of an insurance (reinsurance) company who is a non-resident of the Republic of Kazakhstan is obliged to provide a document from the relevant insurance supervisory body of his state confirming that he is allowed to purchase shares of an insurance (reinsurance) company - a resident of the Republic of Kazakhstan, or a statement that such permission is not required under the legislation of the relevant state.

Documents of the founder - a non-resident of the Republic of Kazakhstan, issued by a foreign government agency, are subject to legalization in the manner established by the legislation of the Republic of Kazakhstan.

3. The procedure and conditions for issuing a permit to create an insurance (reinsurance) organization, as well as the requirements for the content of documents specified in subparagraphs 1), 4) - 6 of paragraph 1 of this article, including the procedure for calculating insurance rates and their economic justification, are determined by the regulatory legal acts of the authorized body.

4. The permission to create an insurance (reinsurance) company has legal force until the authorized body makes a decision to issue the insurance (reinsurance) company a license to conduct insurance (reinsurance) activities.

5. If the applicant does not receive a license to carry out insurance (reinsurance) activities within six months from the date of issuance of the permit to create an insurance (reinsurance) company, the permit issued by the authorized body to create an insurance (reinsurance) company, as well as permission to create a subsidiary, significant participation in the capital of the organization and consent to acquire the status of an insurance holding company, a major participant in the insurance (reinsurance) company are considered cancelled.

6. An application for permission to create an insurance (reinsurance) company must be considered by the authorized body within fifty working days from the date of submission of the application.

7. Notification of the issuance of permission to create an insurance (reinsurance) organization is sent to the applicant and to the Corporation.

Article 28. Grounds for refusal to issue permission to create an insurance (reinsurance) company

The grounds for refusal to issue permission to create an insurance (reinsurance) company are:

non-compliance of the submitted documents with the requirements specified in paragraphs 1, 2 and 3 of Article 27 of this Law, or failure to eliminate the comments of the authorized body on the submitted documents within the period established by it;
insufficiency of the founder’s own funds to pay for the shares;
provision of false information to the authorized body regarding the organization being created and its founders;
unprofitable activities of the founder for the last two completed financial years;
refusal to issue consent by the authorized body to acquire the status of a major participant in an insurance (reinsurance) organization or insurance holding company on the grounds specified in Article 9-5 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”;

6-1) failure to comply with the restrictions established by Article 9-5 of the Law of the Republic of Kazakhstan “On state regulation, control and supervision of the financial market and financial organizations”;

the presence of the founders - individuals, the first head of the executive body or the management body of the founder - a legal entity, with an unexpunged or unexpunged criminal record.

2. The authorized body, within the time limits provided for in paragraph 6 of Article 27 of this Law, notifies the applicant of the refusal to issue permission to create an insurance (reinsurance) company in writing, indicating the grounds for the refusal.

Article 29. Grounds for revocation of permission to create an insurance (reinsurance) company

Footnote: Footnote. Article 29 is excluded by the Law of the Republic of Kazakhstan dated November 25, 2019 No. 272-VI (to come into effect from January 2, 2020).

Article 30. State registration of an insurance (reinsurance) company

State registration of an insurance (reinsurance) company is carried out by the Corporation if there is permission from the authorized body for its creation.

Article 30-1. Opening a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan

A non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has the right to apply to the authorized body to obtain permission to open a branch on the territory of the Republic of Kazakhstan if the following conditions are met:

the amount of total assets of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan must not be less than an amount equivalent to five billion US dollars;

2) the insurance (reinsurance) organization, a non-resident of the Republic of Kazakhstan, has at least ten years of experience in providing insurance (reinsurance) in all industries and classes of insurance;

3) the state, the resident of which is the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, is a participant in international cooperation in the field of preventing and combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, and also cooperates with the Financial Action Task Force on Money Laundering (FATF);

4) the existence of an agreement between the authorized body and the financial supervisory body of the state whose resident is the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

An agreement between the authorized body and the financial supervisory body of the state, the resident of which is a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, must contain the procedure for the exchange of confidential information constituting a trade secret on the securities market, banking secret, insurance secret or other secret protected by law, the procedure for cooperation on the issues of opening a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, licensing, approval of management personnel, regulation, control and supervision (including conducting inspections of activities) and termination of activities of an insurance (reinsurance) non-resident organization of the Republic of Kazakhstan and its branch, as well as other issues of interaction for the purposes of exercising control and supervisory functions;

5) availability of a written notification from the financial supervisory authority of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident, that it does not object to the opening of a branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan on the territory of the Republic of Kazakhstan, or a statement from the financial supervisory authority of the said state that such permission is not required under the legislation of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident;

6) availability of written confirmation from the financial supervisory authority of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident, that the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has a valid license to carry out insurance (reinsurance) activities.

2. An application for permission to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in Kazakh or Russian is submitted in the form established by the regulatory legal act of the authorized body, with the following documents attached:

the decision of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan to open a branch on the territory of the Republic of Kazakhstan;

2) draft regulations on a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

3) copies of the constituent documents of an insurance (reinsurance) non-resident organization of the Republic of Kazakhstan (notarized in case of failure to provide the originals for verification);

4) information about the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in the form determined by the authorized body, including financial statements for the last two completed financial years (including consolidated ones, if any), certified by an audit organization;

5) the organizational structure of the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan and information about affiliated persons of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

6) a business plan for a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, approved by an official of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan or a person authorized to sign documents, endorsed by the actuary of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, developed for the next three years for branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan opened in the “general insurance” industry, and for five years for branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan opened in the “life insurance” industry;

7) documents of persons proposed for positions of executive employees of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in accordance with the requirements for executive employees of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, established by the regulatory legal act of the authorized body;

8) a document certifying that an insurance (reinsurance) organization non-resident of the Republic of Kazakhstan has the minimum required rating of one of the rating agencies, the list of which is established by the regulatory legal act of the authorized body, on the day of submission of the application;

9) written notification of the financial supervisory authority of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident, about the absence of objections to the opening of a branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan on the territory of the Republic of Kazakhstan or a statement that such permission is not required under the legislation of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident;

10) written confirmation from the financial supervisory authority of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident, that the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has a valid license for the right to carry out insurance (reinsurance) activities;

11) written confirmation from the financial supervisory authority of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident, that the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has no violations of prudential standards and other mandatory norms and limits established by the legislation of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident, within two years preceding the submission of the application;

12) a written obligation of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan on the unconditional, immediate fulfillment by this non-resident insurance (reinsurance) organization of the Republic of Kazakhstan of obligations related to the activities of its branch operating on the territory of the Republic of Kazakhstan, in the event of their non-fulfillment and (or) improper fulfillment by the branch;

13) a copy of the current license of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, issued by the financial supervisory authority of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident;

14) documents for accounting registration of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, provided for in Article 6-2 of the Law of the Republic of Kazakhstan “On state registration of legal entities and accounting registration of branches and representative offices”;

15) copies of a document confirming payment of the fee for issuing a license for the right to carry out insurance (reinsurance) activities, with the exception of cases of payment through the “electronic government” payment gateway.

The authorized body has the right to request additional information or documents necessary to make a decision on issuing a permit to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

An application for a permit to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan may be withdrawn by a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan at any time during its consideration by the authorized body.

The procedure for issuing permission to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, as well as the requirements for the content of the document specified in subparagraph 6) of part one of this paragraph, are established by the regulatory legal act of the authorized body.

3. Refusal to issue a permit to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is made on any of the following grounds:

non-compliance with the requirements specified in paragraph 1 of this article;

2) non-compliance of the submitted documents with the requirements specified in paragraph 2 of this article;

3) failure to eliminate the comments of the authorized body on the submitted documents within the period established by it;

4) failure to comply with the requirements established by subparagraphs 8) and 11) of part one of paragraph 2 of this article;

5) the grounds specified in subparagraphs 4) and 7) of paragraph 1, paragraph 8 of this Law;

6) non-compliance of the name of the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan with the requirements of paragraph 7 of Article 23 of this Law;

7) provision to the authorized body of unreliable information relating to a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

The authorized body, within the time limits provided for in paragraph 5 of this article, notifies the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan about the refusal to issue a permit to open a branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in writing, indicating the grounds for the refusal.

4. The issued permit to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is considered canceled in the following cases:

the adoption by a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan of a decision on the voluntary termination of the activities of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

2) adoption by the authorized body of a decision to deprive a branch of an insurance (reinsurance) organization non-resident of the Republic of Kazakhstan of a license for the right to carry out insurance (reinsurance) activities;

3) failure to register with the Corporation within two months from the date of issuance of permission to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

4) failure to obtain a license for the right to carry out insurance (reinsurance) activities within three months from the date of registration of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

5. An application for a permit to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan must be considered by the authorized body within fifty working days from the date of submission of the application.

Notification of the issuance of permission to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is sent to the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan and to the Corporation.

A permit to open a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has legal force until the authorized body makes a decision to issue a license to the branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities.

6. Accounting registration of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is carried out by the Corporation on the basis of permission from the authorized body to open a branch of an insurance (reinsurance) organization of the Republic of Kazakhstan in the manner prescribed by the legislation of the Republic of Kazakhstan.

7. The location of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is recognized as the location on the territory of the Republic of Kazakhstan, specified in the regulations on the branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

Article 31. Changes and additions to the constituent documents of an insurance (reinsurance) company

After state registration of changes and (or) additions made to the constituent documents that require re-registration with the Corporation, the insurance (reinsurance) organization, within fourteen calendar days from the date of re-registration, is obliged to submit to the authorized body a copy of the changes and (or) additions to the constituent documents.

In case of making changes and (or) additions to the constituent documents that do not require re-registration, the insurance (reinsurance) organization is obliged, within fourteen calendar days from the date of the Corporation’s mark on acceptance of the notice of amendments and (or) additions to the constituent documents, to submit to the authorized body a document confirming the acceptance of the notice, a copy of the changes and (or) additions to the constituent documents.

Article 31-1. Notification of approval of financial products by an insurance (reinsurance) organization

The insurance (reinsurance) organization notifies the authorized body of the approval of financial products by the body of the insurance (reinsurance) organization authorized to approve financial products within ten working days from the date of their approval.

The list of financial products, about the approval of which the insurance (reinsurance) organization notifies the authorized body, the procedure for notifying the authorized body about the approval of financial products by the insurance (reinsurance) organization, as well as the list of documents attached to the notification, and information on the approved financial products indicated in the notification, are determined by the regulatory legal acts of the authorized body.

Article 32. Subsidiaries of an insurance (reinsurance) organization and significant participation of an insurance (reinsurance) organization in the capital of organizations

An insurance (reinsurance) organization, in order to exercise the powers granted to it by Article 48 of this Law, has the right to create or acquire a subsidiary only with the prior permission of the authorized body.

2. Subsidiaries of an insurance (reinsurance) organization do not have the right to create and (or) have subsidiaries, as well as have a significant participation in the capital of organizations.

3. An insurance (reinsurance) organization has the right to create a subsidiary subject to break-even activity on a consolidated and unconsolidated basis based on the results of each of the last two completed financial years and compliance with prudential standards, including on a consolidated basis, established by the authorized body, during the last three months preceding the date of filing an application with the authorized body for permission.

4. A subsidiary of an insurance (reinsurance) organization, as well as a non-resident organization of the Republic of Kazakhstan, in which the insurance (reinsurance) organization has a significant stake in the capital, are required to disclose to the authorized body, on the basis of a corresponding request, the necessary information in order to ensure high-quality and timely performance of the functions assigned to the authorized body for the implementation of consolidated supervision. In this case, the information received is not subject to disclosure.

5. Significant participation of an insurance (reinsurance) company in the capital of organizations is allowed only with the prior permission of the authorized body.

6. In the event that an insurance (reinsurance) organization acquires signs of control or significant participation in the capital of organizations in the absence of prior permission from the authorized body:

the authorized body has the right to apply supervisory response measures provided for by this Law to the insurance (reinsurance) organization;

2) an insurance (reinsurance) organization is obliged, within six months from the moment signs of control or significant participation in the capital of the organization arise, to alienate its shares, participation interests, shares or other forms of equity participation in the capital of the organization to a person not connected with the insurance (reinsurance) company by special relations, and to submit documents confirming this alienation to the authorized body.

7. The procedure for issuing permission to an insurance (reinsurance) organization to create or acquire a subsidiary, as well as for a significant participation in the capital of the organization, is established by Article 9-6 of the Law of the Republic of Kazakhstan “On state regulation, control and supervision of the financial market and financial organizations” and the regulatory legal act of the authorized body.

Article 33. Creation and closure of branches and representative offices of an insurance (reinsurance) company and an insurance broker

An insurance (reinsurance) organization-resident of the Republic of Kazakhstan, on the basis of a decision of the board of directors of an insurance (reinsurance) organization, an insurance broker-resident of the Republic of Kazakhstan, on the basis of a decision of a general meeting of participants or a general meeting of shareholders, without the consent of the authorized body, has the right to open its own separate divisions - branches and representative offices both on the territory of the Republic of Kazakhstan and abroad.

2. An insurance (reinsurance) organization, an insurance broker, within thirty working days from the date of registration of its branch and representative office in the Corporation, are obliged to inform the authorized body about their opening with the attachment:

copies of the regulations on the branch or representative office;

2) a notarized copy of the power of attorney issued to the first head of the branch or representative office.

3. A branch of an insurance (reinsurance) company carries out insurance activities on behalf of the insurance (reinsurance) company and acts within the powers granted to it by the insurance (reinsurance) company. A branch of an insurance (reinsurance) company has the same balance sheet as the insurance (reinsurance) company, as well as a name that completely coincides with the name of the insurance (reinsurance) company.

4. The branch of an insurance broker carries out its activities on behalf of the insurance broker and acts within the limits of the powers granted to it by the insurance broker. The branch of the insurance broker has the same balance sheet as the insurance broker, as well as a name that completely coincides with the name of the insurance broker.

5. The representative office of an insurance (reinsurance) company acts on behalf of and on behalf of the insurance (reinsurance) company and does not carry out insurance activities.

6. The representative office of an insurance broker acts on behalf of and on behalf of the insurance broker and does not carry out intermediary activities of the insurance broker in concluding insurance (reinsurance) contracts.

Advertisement 229, 230, part four of Article 239 of the Code of the Republic of Kazakhstan on Administrative Offences.

8. An insurance (reinsurance) organization-resident of the Republic of Kazakhstan, an insurance broker-resident of the Republic of Kazakhstan has the right to open representative offices subject to the break-even activity of the insurance (reinsurance) organization, insurance broker based on the results of the last completed financial year.

9. When making changes and (or) additions to the regulations on a branch, representative office, requiring accounting re-registration in the Corporation, an insurance (reinsurance) organization, insurance broker that is residents of the Republic of Kazakhstan, are obliged to submit to the authorized body a copy of the changes and (or) additions to the regulations on the branch, representative office within thirty working days from the date of accounting re-registration in the Corporation.

When making changes and (or) additions to the regulations on a branch, representative office that do not require accounting re-registration with the Corporation, the insurance (reinsurance) organization, insurance broker is obliged, within thirty working days from the date of receipt by the body authorized to receive notification of changes and (or) additions, documents of the insurance (reinsurance) organization, insurance broker, to submit to the authorized body a document confirming their acceptance, copies of changes and (or) additions to the provisions on branch, representative office.

10. An insurance (reinsurance) organization-resident of the Republic of Kazakhstan, an insurance broker-resident of the Republic of Kazakhstan, in the case of opening branches and representative offices outside the Republic of Kazakhstan, are obliged, within thirty calendar days from the date of registration with the relevant state body, to inform the authorized body in writing about their opening, attaching documents confirming registration with the relevant state body.

11. An insurance (reinsurance) organization, an insurance broker that is a non-resident of the Republic of Kazakhstan has the right to open its representative office without obtaining the consent of the authorized body.

12. The representative office of an insurance (reinsurance organization-non-resident of the Republic of Kazakhstan, insurance broker-non-resident of the Republic of Kazakhstan, within thirty working days from the date of registration with the Corporation must inform the authorized body in writing about the opening with the attachment:

copies of the regulations on representation;

2) written confirmation from the insurance supervisory body of the relevant state that the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has a valid license for insurance activities, or a statement from the insurance supervisory body that the issuance of written confirmation is not provided for by the legislation of the country of origin of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

3) written confirmation from the insurance supervisory authority of the relevant state that the non-resident insurance broker of the Republic of Kazakhstan has a valid license to carry out the activities of an insurance broker, or electronic confirmation indicating the registration number if the activity of the insurance broker in the relevant state is not a licensed type of activity, or a statement from the insurance supervisory authority that the issuance of written confirmation is not provided for by the legislation of the country of origin of the non-resident insurance broker of the Republic of Kazakhstan;

4) a written notification from the insurance supervisory authority of the relevant state that it does not object to the opening of a representative office of a non-resident insurance (reinsurance) company of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan on the territory of the Republic of Kazakhstan, or a statement from the insurance supervisory authority or an authoritative legal service of the relevant state that such permission is not required under the legislation of the state of the non-resident insurance (reinsurance) company of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan;

5) a notarized power of attorney addressed to the head of the representative office of a non-resident insurance organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan.

13. The opening of branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan in the Republic of Kazakhstan is permitted under the conditions provided for by this Law.

14. The representative office of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan is obliged, within thirty working days from the date of registration (re-registration) with the Corporation, to inform the authorized body about amendments and (or) additions to the regulations on the representative office with copies of these documents attached.

In case of making changes and (or) additions to the regulations on the representative office that do not require re-registration, the representative office of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan is obliged, within thirty working days from the date of receipt by the body authorized to receive notification of changes and (or) additions, to submit documents of the representative office of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan to authorized body document confirming their acceptance, notarized copies of changes and (or) additions to the regulations on the branch, representative office.

15. An insurance (reinsurance) organization, an insurance broker, within thirty working days from the date of deregistration of its branch and (or) representative office in the Corporation (the corresponding registration body of the state upon termination of the activities of the branch or representative office outside the Republic of Kazakhstan) must inform the authorized body in writing about the termination of their activities, attaching a copy of the document of the Corporation (the corresponding registration authority of the state upon termination of the activities of the branch or representative office outside the Republic of Kazakhstan), confirming the deregistration of the branch and representative office outside the Republic of Kazakhstan. (or) representative office of an insurance (reinsurance) company, insurance broker.

16. The authorized body requires the closure of a branch and (or) representative office of a resident insurance (reinsurance) organization of the Republic of Kazakhstan, a resident insurance broker of the Republic of Kazakhstan and a representative office of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan in case of failure to comply with the requirements of paragraphs 7, 8, 12 and 14 of this article.

The authorized body applies supervisory response measures to the insurance (reinsurance) organization, insurance broker in case of failure to comply with the requirements of paragraphs 2, 9, 10 and 15 of this article.

Article 34. Managers of an insurance (reinsurance) company, an insurance holding company and an insurance broker

The following are recognized as senior employees of an insurance (reinsurance) company:

head and members of the management body;

2) the head of the executive body, his deputy and members of the executive body;

3) chief accountant and deputy chief accountant;

4) other heads of the insurance (reinsurance) organization who coordinate and (or) control the activities of the structural divisions of the insurance (reinsurance) organization and have the right to sign documents on the basis of which insurance and (or) investment activities are carried out, with the exception of the heads of branches and representative offices of the insurance (reinsurance) organization and their chief accountants;

5) other persons recognized as management employees of the insurance (reinsurance) company using the motivated judgment of the authorized body.

At least one of the members of the executive body of the insurance (reinsurance) organization must have supporting documents that he has attended at least fifty percent of the courses of the minimum mandatory training program for actuaries, established by the regulatory legal act of the authorized body.

2. The manager and his deputies, the chief accountant and his deputy are recognized as senior employees of an insurance broker.

3. The following are recognized as managerial employees of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan:

the head of the branch and his deputies;

2) other managers of the branch who coordinate and (or) control the activities of the structural divisions of the branch of the insurance (reinsurance) organization - non-resident of the Republic of Kazakhstan and have the right to sign documents on the basis of which insurance activities are carried out;

3) chief accountant and deputy chief accountant;

4) other persons recognized as management employees of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan using the motivated judgment of the authorized body.

At least two executive employees of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan must be residents of the Republic of Kazakhstan.

The managing employees of a branch of an insurance broker - a non-resident of the Republic of Kazakhstan are recognized as the head and his deputies, the chief accountant.

4. The following are recognized as executive employees of the insurance holding company:

the head of the management body, his deputy and members of the management body;

2) the head of the executive body, his deputy and members of the executive body;

3) chief accountant and deputy chief accountant;

4) other managers exercising coordination and (or) control over the activities of the subsidiary (subsidiaries) organization (organizations) and (or) organization (organizations) in which the insurance holding company has a significant participation in the capital;

5) other persons recognized as management employees of the insurance holding company using the motivated judgment of the authorized body.

5. Requirements for executive employees of an insurance (reinsurance) organization, an insurance holding company, an insurance broker, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan and a branch of an insurance broker - a non-resident of the Republic of Kazakhstan and the procedure for their approval are established by Article 9-4 of the Law of the Republic of Kazakhstan "On State Regulation, Control and Supervision of the Financial Market and Financial Organizations".

6. If a person is recognized as a managerial employee of an insurance (reinsurance) company using a reasoned judgment of the authorized body and the application of a supervisory response measure to the insurance (reinsurance) company provided for in subparagraph 11) of paragraph 1 of Article 53-3 of this Law, the insurance (reinsurance) company is obliged to submit, within the period established by the authorized body, documents to obtain consent to the appointment (election) of a managerial employee, confirming the suitability of the person recognized as a manager an employee of an insurance (reinsurance) organization using the motivated judgment of the authorized body, the requirements established by Article 9-4 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”.

An insurance (reinsurance) organization, if it fails to submit documents within the period established by the authorized body, is obliged to terminate the employment contract with the person recognized as a senior employee of the insurance (reinsurance) organization using the motivated judgment of the authorized body, or in the absence of an employment contract, take measures to terminate the powers of this person.

The provisions of this paragraph apply to insurance holdings and branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan.

7. An insurance (reinsurance) organization, an insurance broker is obliged, within one hundred and twenty calendar days after the end of the financial year, to submit reports to the National Bank, including information on income paid by the insurance (reinsurance) organization, insurance broker to all senior employees of the insurance (reinsurance) organization, insurance broker during the financial year, in the form established by the regulatory legal act of the National Bank in agreement with the authorized body.

8. Requirements for the internal policy of an insurance (reinsurance) organization, insurance broker regarding remuneration, calculation of monetary rewards, as well as other types of material incentives for executive employees of the insurance (reinsurance) organization, insurance broker are determined by the regulatory legal act of the authorized body.

Article 35. Additional requirements for an insurance (reinsurance) company with the participation of a non-resident of the Republic of Kazakhstan

Footnote: 1. Excluded by the Law of the Republic of Kazakhstan dated February 20, 2006 N 128 (the order of enforcement see Art. 2).

2. An insurance (reinsurance) organization with the participation of non-residents of the Republic of Kazakhstan is an insurance (reinsurance) organization, more than twenty-five percent of the voting (less preferred) shares of which are collectively owned or managed by:

non-resident of the Republic of Kazakhstan;
a legal entity - a resident of the Republic of Kazakhstan, more than fifty percent of the shares in the authorized capital or outstanding shares of which are owned and (or) managed by non-residents of the Republic of Kazakhstan;
residents of the Republic of Kazakhstan who are nominal holders of securities of non-residents of the Republic of Kazakhstan.

Article 36. Insurance broker

Footnote: Footnote. Article 36 is excluded by the Law of the Republic of Kazakhstan dated February 20, 2006 No. 128 (the order of enforcement see Article 2).

Chapter 6-1. Features of the creation and activities of Islamic insurance (reinsurance) organizations

Footnote: Footnote. The law is supplemented by Chapter 6-1 in accordance with the Law of the Republic of Kazakhstan dated April 27, 2015 No. 311-V (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Article 36-1. Principles of Islamic Insurance

The principles of Islamic insurance are:

mutual protection and mutual liability of policyholders;

2) a ban on receiving income from investing or providing loans, expressed in percentages provided for in subparagraphs 1), 1-1) and 2) of paragraph 2 of Article 11 of this Law;

3) a ban on insurance (reinsurance) or financing of activities related to the production and (or) trade of tobacco, alcohol products, weapons and ammunition, gambling, as well as other types of business activities, insurance (reinsurance) or financing of which is prohibited by the council on the principles of Islamic finance.

Article 36-2. Islamic Insurance Fund

The Islamic insurance fund is formed by an Islamic insurance (reinsurance) organization at the expense of insurance premiums under Islamic insurance contracts, as well as other income received as a result of their investment, for the purpose of making insurance payments under Islamic insurance contracts.

The rules for the formation, accounting, use and distribution of the Islamic insurance fund are established by the regulatory legal act of the authorized body.

2. An Islamic insurance (reinsurance) organization manages an Islamic insurance fund.

3. An Islamic insurance (reinsurance) organization invests the funds of the Islamic insurance fund in assets, the list of which is established by the council on the principles of Islamic finance, in the interests of policyholders.

4. An Islamic insurance (reinsurance) organization is not responsible for losses associated with a decrease in the value of assets in which the funds of the Islamic insurance fund were invested, except in cases where such losses arose through its fault.

5. An Islamic insurance (reinsurance) organization maintains separate accounting of its own funds from the funds of the Islamic insurance fund.

6. In case of insufficient funds of the Islamic insurance fund to fulfill obligations under Islamic insurance contracts, the Islamic insurance (reinsurance) organization is obliged to transfer money to the Islamic insurance fund with the condition of their return in the future at the expense of cash receipts to the Islamic insurance fund. An Islamic insurance (reinsurance) organization has no right to charge a fee for the transfer of such money.

The rules for the transfer of money by an Islamic insurance (reinsurance) organization to an Islamic insurance fund are established by a regulatory legal act of the authorized body.

7. The distribution of funds from the Islamic insurance fund among policyholders is carried out in proportion to the share of each policyholder in the Islamic insurance fund.

Article 36-3. Remuneration of an Islamic insurance (reinsurance) organization

An Islamic insurance (reinsurance) organization has the right to receive remuneration for the management of an Islamic insurance fund in the form of part of the insurance premium when concluding an Islamic insurance (reinsurance) agreement and (or) part of the income received from investing the funds of the Islamic insurance fund, in the manner determined by the regulatory legal act of the authorized body.

Article 36-4. Activities of the Council on the Principles of Islamic Finance

To determine the compliance of activities, operations and transactions with the principles of Islamic insurance specified in Article 36-1 of this Law, a council on the principles of Islamic finance must be created in an Islamic insurance (reinsurance) organization.

2. The Council on the Principles of Islamic Finance is an independent body appointed by the general meeting of shareholders of an Islamic insurance (reinsurance) organization on the recommendation of the board of directors.

Article 36-5. Requirements for the activities of an Islamic insurance (reinsurance) organization

An Islamic insurance (reinsurance) organization does not have the right to charge remuneration or receive other income for the management of an Islamic insurance fund in any form, in addition to the remuneration specified in Article 36-3 of this Law.

2. The charter of an Islamic insurance (reinsurance) organization, the regulations on a branch of an Islamic insurance (reinsurance) organization non-resident of the Republic of Kazakhstan may grant the council on the principles of Islamic finance the right to determine other requirements for the activities of an Islamic insurance (reinsurance) organization, mandatory for its compliance.

Article 36-6. Consequences of recognizing an Islamic insurance contract as not complying with the principles of Islamic insurance

If the council on the principles of Islamic finance recognizes an Islamic insurance contract that is at the conclusion stage as not complying with the principles of Islamic insurance specified in Article 36-1 of this Law, such a contract cannot be concluded and executed.
If the council on the principles of Islamic finance recognizes a concluded but not executed or partially executed Islamic insurance contract as not corresponding to the principles of Islamic insurance specified in Article 36-1 of this Law, such contract, at the request of the Islamic insurance (reinsurance) organization, is terminated early in the manner established by the civil legislation of the Republic of Kazakhstan.
If the council on the principles of Islamic finance recognizes an executed or partially executed Islamic insurance contract as not corresponding to the principles of Islamic insurance specified in Article 36-1 of this Law, the income of the Islamic insurance (reinsurance) organization under such contract must be directed to charity.

Article 36-7. Additional requirements for the charter of an Islamic insurance (reinsurance) organization

The charter of an Islamic insurance (reinsurance) organization, the regulations on a branch of an Islamic insurance (reinsurance) organization non-resident of the Republic of Kazakhstan, in addition to the information provided for by the laws of the Republic of Kazakhstan, must contain:

the goals of the activities of the Islamic insurance (reinsurance) organization;

2) the tasks, functions and powers of the permanent body of the Islamic insurance (reinsurance) organization - the council on the principles of Islamic finance, as well as the procedure for its creation and requirements for members of the council on the principles of Islamic finance;

3) the conditions and procedure for receiving remuneration for managing an Islamic insurance fund, approved by the Council on the Principles of Islamic Finance.

Chapter 7. Licensing

Article 37. Licensing of an insurance (reinsurance) company and an insurance broker

Footnote: 1. Excluded by the Law of the Republic of Kazakhstan dated November 25, 2019 No. 272-VI (to come into effect from January 2, 2020).

1-1. A license to a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities, to a branch of a non-resident insurance broker of the Republic of Kazakhstan for the right to carry out the activities of an insurance broker is issued by the authorized body if the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan has valid licenses to carry out essentially similar types of activities issued by the state financial supervisory authority, the residents of which are a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan.

1-2. The applicant, before applying to the authorized body with an application for a license to carry out insurance (reinsurance) activities, is obliged to:

carry out all organizational and technical measures, including on accounting issues and automation of accounting;

2) ensure the availability of risk management and internal control systems, internal audit;

3) fulfill the requirements as agreed upon by management employees;

4) ensure the existence of internal rules for the implementation of insurance (reinsurance) activities;

5) have an actuary on staff who has a valid license to carry out actuarial activities in the insurance market;

6) enter into an agreement for participation in an organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of forced liquidation of insurance organizations, if the mandatory participation of an insurance organization in such an organization is established by the laws of the Republic of Kazakhstan;

7) enter into a participation agreement with an organization for the formation and maintenance of a database in accordance with the requirements of this Law and certain laws of the Republic of Kazakhstan.

1-3. To obtain a license to carry out insurance (reinsurance) activities, the applicant submits the following documents to the authorized body:

an application for a license within the insurance classes provided for in the business plan submitted upon receipt of permission to create an insurance (reinsurance) organization;

2) documents confirming the fulfillment of the requirements specified in paragraphs 1-2 of this article;

3) a document confirming payment of the license fee to the budget;

4) copies of documents confirming payment of the authorized capital.

2. To obtain a license for the right to carry out insurance activities in an additional (additional) class (classes) of insurance, an insurance organization, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan shall ensure the presence of risk management and internal control systems that meet the requirements of the authorized body, and also submit the following documents to the authorized body:

application;
a business plan signed by the head of the executive body of an insurance organization or an insurance organization - a non-resident of the Republic of Kazakhstan and an actuary who has a valid license to carry out actuarial activities, and approved by the board of directors of the insurance organization or the relevant management body of an insurance organization - a non-resident of the Republic of Kazakhstan;
a copy of the payment document confirming payment of the license fee, except for cases of payment through the e-government payment gateway;

3. The business plan is drawn up taking into account the additional class(es) of insurance (for the activities of the insurance organization as a whole) and must be developed:

for the next three years for insurance (reinsurance) organizations in the “general insurance” industry and for five years for insurance (reinsurance) organizations in the “life insurance” industry - if on the date of applying for a license to carry out insurance activities in an additional (additional) class (classes) of insurance before the expiration of the period for which the business plan, previously submitted in accordance with Article 27 of this Law, was drawn up, there are less than two years left;

2) for the period until the end of the period for which the business plan, submitted in accordance with Article 27 of this Law, was drawn up - if the insurance organization applied for a license to carry out insurance activities in an additional (additional) class (classes) of insurance, no later than two years before the expiration of the period for which the business plan, submitted in accordance with Article 27 of this Law, was drawn up.

In addition to the information required in the business plan in accordance with Article 27 of this Law, the business plan must contain the following information:

main characteristics (for each additional class of insurance):

covered risks by insurance class;

shares of the insurance class in the structure of the insurance portfolio;

market segment for the provision of services by insurance class (market volume, potential policyholders, geographic area);

methods of selling insurance products within the insurance class;

calculation of insurance rates with economic justification, meeting the requirements established by the regulatory legal act of the authorized body (for each additional class of insurance);
forecast of profits and losses (for the activities of the insurance organization as a whole);
forecast of insurance reserves (for each additional class of insurance and the insurance portfolio as a whole);
loss forecast, risk assessment in the worst and best situations, forecast of compliance with prudential standards (for the activities of the insurance organization as a whole);
reinsurance policy (forms and methods of reinsurance, criteria for evaluating reinsurance organizations);

7) investment policy (for the activities of the insurance organization as a whole).

5. The license is subject to re-issuance when certain classes of insurance and (or) type of activity are excluded from the license with the exclusion of these classes of insurance and (or) type of activity, as well as in cases provided for by the legislation of the Republic of Kazakhstan on permits and notifications, with the exception of a change in the location of the licensee.

The decision of the general meeting of shareholders of an insurance (reinsurance) company on the exclusion of certain classes of insurance and (or) type of activity from the license is sent by the insurance (reinsurance) company to the authorized body within ten working days from the date of the decision.

The license is subject to re-issuance if certain classes of insurance and (or) type of activity are excluded from the license by decision of the general meeting of shareholders within one hundred and eighty days from the date of the decision.

5-1. If the general meeting of shareholders of an insurance (reinsurance) company makes a decision to exclude certain classes of insurance and (or) type of activity from the license, the conclusion of new insurance (reinsurance) contracts for these classes of insurance and (or) type of activity is prohibited, including the extension of existing insurance (reinsurance) contracts and their changes, providing for an increase in insurance premiums, the scope of liability of the insurance (reinsurance) company. This prohibition is effective from the date of notification to the authorized body in accordance with part two of paragraph 5 of this article.

Under previously concluded insurance (reinsurance) contracts for these classes of insurance (type of activity), the insurance (reinsurance) organization is obliged to:

for classes (types) of insurance for which a guarantee is provided in accordance with the Law of the Republic of Kazakhstan "On the Insurance Payment Guarantee Fund", transfer the insurance portfolio to another (other) insurance organization (organizations) with mandatory notification of policyholders (reinsurers) about the insurance organization (organizations) that accepted the insurance portfolio;

2) for other classes (types) of insurance, if there is consent of the policyholder (reinsurer) to choose a new insurance (reinsurance) organization, to transfer the insurance portfolio to another (other) insurance (insurance) organization (organizations) or in case of receiving a written objection from the policyholder (reinsurer) to the transfer of the insurance portfolio within ten calendar days from the date of publication of the announcement in accordance with the requirement of paragraph 4 of Article 37-1 of this Law to terminate the relationship with the policyholder (by the reinsurer) insurance (reinsurance) agreement;

3) terminate insurance (reinsurance) contracts with policyholders (reinsurers) if the other insurance organization(s) have legislative restrictions on accepting an insurance portfolio for these classes of insurance (type of activity).

5-2. When a decision is made by the general meeting of shareholders of an insurance (reinsurance) company to cancel a previously adopted decision of the general meeting of shareholders of an insurance (reinsurance) company to exclude certain classes of insurance and (or) type of activity from the license, the insurance (reinsurance) company is obliged to submit a business plan to the authorized body within ten calendar days from the date of the decision in accordance with subparagraph 2) of paragraph 2 and paragraph 3 of this article. The business plan of an insurance (reinsurance) organization is reviewed by the authorized body within ten working days.

In this case, the prohibition specified in part one of paragraph 5-1 of this article is valid until the authorized body approves the business plan specified in part one of this paragraph.

6. To exclude certain classes of insurance and (or) type of activity from the license for the right to carry out insurance (reinsurance) activities, the insurance (reinsurance) company submits the following documents to the authorized body:

application;

2) a copy of the payment document confirming payment of the license fee, except for cases of payment through the “electronic government” payment gateway;

a copy of the decision of the general meeting of shareholders of the insurance (reinsurance) company on the exclusion of certain classes of insurance and (or) type of activity from the license;

4) documents confirming the early termination of insurance (reinsurance) contracts and (or) transfer of the insurance portfolio in the manner prescribed by Article 37-1 of this Law, in cases of early termination of insurance (reinsurance) contracts and (or) transfer of the insurance portfolio.

The requirements of part one of this paragraph do not apply to the following cases:

adoption by the authorized body of a decision to revoke a license for certain classes of insurance and (or) type of activity;

2) re-issuance of a license in connection with changes in the legislation of the Republic of Kazakhstan.

In the case provided for in subparagraph 1) of part two of this paragraph, the insurance (reinsurance) company is obliged to return the license to the authorized body within the period specified in the relevant decision of the authorized body.

In the case provided for in subparagraph 2) of part two of this paragraph, the insurance (reinsurance) company is obliged to return the license to the authorized body within the period specified in the relevant regulatory legal act, or in the absence of such a period, within thirty calendar days after the date of entry into force of the relevant regulatory legal act.

6-1. The decisions provided for in paragraphs 5, 5-1, 5-2 and 6 of this article in relation to a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, are made by the management body of the insurance organization - a non-resident of the Republic of Kazakhstan.

7. To obtain a license for the right to carry out reinsurance activities, the licensee submits the following documents to the authorized body:

application;
a business plan signed by the head of the executive body of an insurance organization or an insurance organization - a non-resident of the Republic of Kazakhstan and an actuary who has a valid license to carry out actuarial activities, and approved by the board of directors of the insurance organization or the relevant management body of an insurance organization - a non-resident of the Republic of Kazakhstan;
a copy of the payment document confirming payment of the license fee, except for cases of payment through the e-government payment gateway.

7-1. A license for the right to carry out Islamic insurance (reinsurance) activities is issued by the authorized body only to an Islamic insurance (reinsurance) organization.

7-2. A license to carry out investment portfolio management activities on the securities market is issued by an authorized body exclusively to an insurance organization operating in the life insurance industry.

A license to carry out activities for managing an investment portfolio on the securities market, issued to an insurance organization operating in the “life insurance” industry, is suspended or terminated, except for the cases provided for by the legislation of the Republic of Kazakhstan on the securities market, in the event of suspension or termination, respectively, of the insurance organization’s license for the right to carry out insurance activities in the “life insurance” industry.

7-3. To obtain a license to carry out investment portfolio management activities on the securities market, an insurance organization submits the following documents to the authorized body:

application;

2) a document confirming payment of the license fee, with the exception of payment through the “electronic government” payment gateway;

3) provisions on structural divisions that will be entrusted with the functions of carrying out activities in the securities market;

6) a document confirming that the applicant has software, hardware and other equipment necessary to carry out activities on the securities market, in accordance with the requirements of the regulatory legal act of the authorized body.

8. To obtain a license to carry out the activities of an insurance broker, the applicant submits the following documents to the authorized body:

application for a license within the types of brokerage activities;
a notarized copy of the charter that has passed state registration;
documents confirming full payment of the authorized capital;
documents for approval by senior employees of the insurance broker in accordance with the requirements of Article 9-4 of the Law of the Republic of Kazakhstan “On state regulation, control and supervision of the financial market and financial organizations”;
a copy of the payment document confirming payment of the license fee, except for cases of payment through the “electronic government” payment gateway;
a document on state registration, a written notification of the authorized body (for financial organizations - supervisory authorities) of the relevant state that the founder - a non-resident legal entity of the Republic of Kazakhstan is allowed to participate in the authorized capital of an insurance broker resident of the Republic of Kazakhstan, or a statement that according to the legislation of the relevant state such permission is not required;
a document from the authorized body of the relevant state, indicating that the founder - an individual non-resident of the Republic of Kazakhstan has no criminal record for economic and corruption crimes and offenses, activity as a managerial employee of an insurance (reinsurance) organization, insurance broker or other financial organization for a period of no more than one year from the moment of deprivation of a license in the manner prescribed by law, making a decision on forced liquidation, forced repurchase of shares of an insurance company (reinsurance) organization, insurance broker.

This requirement applies for five years after the revocation of the license, the date of the decision on forced liquidation, forced repurchase of shares of the insurance (reinsurance) organization or insurance broker.

8-1. To obtain a license for the right to carry out the activities of an insurance broker for an additional type of brokerage activity, the insurance broker submits the following documents to the authorized body:

application;

2) documents confirming the compliance of the size of the authorized and (or) equity capital with the minimum amounts established by the regulatory legal act of the authorized body;

a copy of the payment document confirming payment of the license fee, except for cases of payment through the “electronic government” payment gateway.

To obtain a license for the right to carry out the activities of an insurance broker for an additional type of brokerage activity, a branch of a non-resident insurance broker of the Republic of Kazakhstan submits the following documents to the authorized body:

documents established in subparagraphs 1) and 5) of part one of this paragraph;

2) documents confirming the compliance of the size of the assets of a branch of a non-resident insurance broker of the Republic of Kazakhstan, accepted as a reserve, with the minimum size established by the regulatory legal act of the authorized body.

8-2. If a certain type of brokerage activity is excluded from the license, the license is subject to re-issuance with the exclusion of this type of brokerage activity.

Voluntary return of the license for the right to carry out the activities of an insurance broker is carried out on the basis of an application from the insurance broker with the attachment of documents confirming that the insurance broker does not have any current obligations to carry out brokerage activities.

8-3. To exclude a certain type of brokerage activity from the license for the right to carry out the activities of an insurance broker, the following documents are submitted to the authorized body:

application;

2) a copy of the payment document confirming payment of the license fee, except for cases of payment through the “electronic government” payment gateway;

3) a copy of the decision of the general meeting of participants or the general meeting of shareholders of the insurance broker (the governing body of the insurance broker - a non-resident of the Republic of Kazakhstan) on the exclusion of a certain type of brokerage activity from the license for the right to carry out the activities of an insurance broker.

The requirements of part one of this paragraph do not apply to the following cases:

adoption by the authorized body of a decision to revoke a license for a certain type of brokerage activity;

2) re-issuance of a license in connection with changes in the legislation of the Republic of Kazakhstan.

In the case provided for in subparagraph 1) of part two of this paragraph, the insurance broker is obliged to return the license to the authorized body within the period specified in the relevant decision of the authorized body.

In the case provided for in subparagraph 2) of part two of this paragraph, the insurance broker is obliged to return the license to the authorized body within the period specified in the relevant regulatory legal act, or in the absence of such a period, within thirty calendar days after the date of entry into force of the relevant regulatory legal act.

9. For the issuance (re-issuance) of a license, a license fee is charged, the amount and procedure for payment of which are determined by the legislation of the Republic of Kazakhstan, with the exception of the decision by the authorized body to deprive an insurance broker of a license for a certain type of brokerage activity or an insurance (reinsurance) organization of a license for certain classes of insurance and (or) type of activity or changes in the legislation of the Republic of Kazakhstan.

10. An application for a license must be considered by the authorized body within thirty working days from the date of submission of the full package of documents that meet the requirements of the legislation of the Republic of Kazakhstan.

When submitting documents on issuing a license to an opening branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan in accordance with paragraph 1 of Article 16-4 and paragraph 2 of Article 30-1 of this Law, the authorized body sends to the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, the non-resident insurance broker of the Republic of Kazakhstan a decision on issuing or refusing to issue a license within nine working days from the date of registration of the branch.

When re-submitting documents in connection with the refusal to issue a license to an insurance (reinsurance) company being created, or to a branch of a non-resident insurance (reinsurance) company being opened in the Republic of Kazakhstan, the documents are considered by the authorized body within the period specified in part one of this paragraph.

If the applicant submits an incomplete package of documents required by the legislation of the Republic of Kazakhstan for obtaining a license, the authorized body gives a reasoned refusal to further consider the application within two working days from the date of receipt of the documents.

An application for renewal of a license, except for the cases provided for in Article 34 of the Law of the Republic of Kazakhstan “On Permits and Notifications,” must be considered by the authorized body within fifteen working days from the date of submission of the full package of documents that meet the requirements of the legislation of the Republic of Kazakhstan.

If the applicant submits an incomplete package of documents provided for by the legislation of the Republic of Kazakhstan for renewal of a license, the authorized body gives a reasoned refusal to further consider the application within two working days from the date of receipt of the documents.

11. Information on the issuance of a license is published on the Internet resource of the authorized body in Kazakh and Russian languages.

12. The procedure for licensing insurance (reinsurance) activities and the activities of an insurance broker, as well as the requirements for the content of documents specified in paragraphs 1-2, 1-3, 2, 3, 6, 7, 7-3, 8, 8-1 and 8-3 of this article, including the procedure for calculating insurance rates and their economic justification, are determined by the regulatory legal acts of the authorized body.

The provisions of paragraphs 7-2, 7-3 and 8 of this article do not apply to a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident Islamic insurance (reinsurance) organization of the Republic of Kazakhstan.

14. If an insurance (reinsurance) organization or insurance broker fails to carry out licensed activities within twelve months from the date of issue of the license, the insurance (reinsurance) organization or insurance broker is obliged to voluntarily return the license within thirty calendar days from the date of receipt of the relevant notification from the authorized body.

15. Voluntary return of the license for the right to carry out insurance (reinsurance) activities is carried out on the basis of an application from the insurance (reinsurance) organization and is carried out only if the insurance (reinsurance) organization does not have an insurance portfolio.

16. After the voluntary return of the license to carry out insurance (reinsurance) activities, the insurance (reinsurance) organization has no right to carry out insurance (reinsurance) activities.

17. The rules for the voluntary return of a license for the right to carry out insurance (reinsurance) activities are approved by a regulatory legal act of the authorized body.

Article 37-1. Transfer of an insurance portfolio upon exclusion of certain classes of insurance and (or) type of activity from a license, change in the insurance industry of an insurance (reinsurance) organization, voluntary return of a license to carry out insurance (reinsurance) activities and (or) voluntary liquidation of an insurance (reinsurance) organization, and (or) voluntary reorganization of an insurance (reinsurance) organization into a legal entity not carrying out insurance (reinsurance) activities

When excluding certain classes of insurance and (or) type of activity from a license, changing the insurance industry of an insurance (reinsurance) organization, voluntary return of a license to carry out insurance (reinsurance) activities and (or) voluntary liquidation of an insurance (reinsurance) organization and (or) voluntary reorganization of an insurance (reinsurance) organization into a legal entity that does not carry out insurance (reinsurance) activities, the insurance The (reinsurance) organization is obliged to:

for classes (types) of insurance for which a guarantee is provided in accordance with the Law of the Republic of Kazakhstan "On the Insurance Payment Guarantee Fund", transfer the insurance portfolio to another (other) insurance (reinsurance) (insurance (reinsurance) organization (organizations) with mandatory notification of policyholders (reinsurers) about the insurance (reinsurance) (insurance (reinsurance) organization (organizations) that accepted) insurance portfolio;
for other classes (types) of insurance, if there is consent of the policyholder (reinsurer) to choose a new insurance (reinsurance) organization, transfer the insurance portfolio to another (other) insurance (reinsurance) (insurance (reinsurance) organization (organizations)) or in case of receiving a written objection from the policyholder (reinsurer) to the transfer of the insurance portfolio within ten calendar days from the date of publication of the announcement in accordance with the requirement of paragraph 4 of this article terminate the insurance (reinsurance) agreement with the policyholder (reinsurer).

In case of voluntary return of the reinsurance license (in case of voluntary liquidation and (or) voluntary reorganization of the reinsurance organization into a legal entity that does not carry out reinsurance activities), the insurance (reinsurance) organization is obliged to transfer the insurance portfolio to another (other) insurance (reinsurance) (insurance (reinsurance) organization (organizations) having a reinsurance license, only with consent the reinsurer (assignor) for such a transfer, with mandatory notification of the reinsurer (assignor).
The insurance (reinsurance) organization accepting the insurance portfolio must comply with all prudential standards and other mandatory norms and limits at the time of its acceptance, as well as taking into account the newly accepted insurance portfolio.

4. In order to notify policyholders (insured, beneficiaries, reinsurers), the insurance (reinsurance) organization publishes an announcement in Kazakh and Russian languages about the upcoming transfer of the insurance portfolio in two periodicals distributed throughout the Republic of Kazakhstan, and on the Internet resource of the insurance (reinsurance) organization within five working days from the date of the decision to transfer the insurance portfolio.

The announcement shall indicate the procedure, the deadline for submitting objections, which is ten calendar days from the date of publication of this announcement, and the addresses at which objections of policyholders (reinsurers) are accepted in the event of their disagreement with the transfer of insurance (reinsurance) contracts for the classes (types) of insurance specified in subparagraph 2) of paragraph 1 of this article.

The absence of a written objection from the policyholder (reinsurer) within ten calendar days from the date of publication of the announcement is considered as the consent of the policyholder (reinsurer) to the transfer of the insurance portfolio according to the classes of insurance specified in subparagraph 2) of paragraph 1 of this article.

The procedure for transferring the insurance portfolio is determined by the regulatory legal act of the authorized body.
The provisions of this article apply to a branch of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan that is forcibly terminating its activities, taking into account the features provided for in Article 72-1 of this Law.

Article 38. Refusal to issue licenses for the right to carry out insurance activities, reinsurance activities and insurance broker activities

Refusal to issue (re-issue) licenses for the right to carry out insurance activities, reinsurance activities and insurance broker activities is made on the following grounds:

failure to comply with the requirements established by the legislation of the Republic of Kazakhstan;

2) non-compliance by the insurance group, which includes an insurance (reinsurance) organization, with established prudential standards and other mandatory norms and limits in the period six months before filing an application;

4) non-compliance of the submitted documents with the requirements of the legislation of the Republic of Kazakhstan;

non-approval of a managerial employee from among the candidates proposed for appointment (election) (for a newly created insurance (reinsurance) company, insurance broker, opened branch of a non-resident insurance (reinsurance) company of the Republic of Kazakhstan, branch of a non-resident insurance broker of the Republic of Kazakhstan);

6) failure to comply with the requirement for the formation of assets of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan, accepted as a reserve, in accordance with paragraph 4 of Article 16-4 and paragraph 12 of Article 46 of this Law;

7) the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan does not have valid licenses to carry out essentially similar types of activities issued by the financial supervisory authority of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan are residents;

8) failure to comply with the requirement specified in part two of paragraph 3 of Article 34 of this Law for the presence of at least two senior executives resident of the Republic of Kazakhstan among the executive employees of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

2. Refusal to issue a license for the right to carry out insurance activities in additional classes of insurance or a license for the right to carry out reinsurance activities or for the right to carry out the activities of an insurance broker for an additional type of brokerage activity, in addition to the grounds set out in paragraph 1 of this article, is made on the following grounds:

forecast of non-compliance with prudential standards, taking into account the additional class of insurance and (or) type of activity received (for insurance (reinsurance) organizations);

2) failure to comply with prudential standards during the last three months before the date of filing the application and during the period of its consideration (for insurance (reinsurance) organizations);

3) the presence of a valid sanction in the form of suspension of the license for the right to carry out insurance activities or for the right to carry out the activities of an insurance broker on the date of filing the application (for insurance (reinsurance) organizations and insurance brokers).

Article 38-1. Changes in the insurance industry of an insurance (reinsurance) organization

A change in the insurance industry of an insurance (reinsurance) company is allowed after the completion of the term and execution of the business plan presented by the insurance (reinsurance) company when issuing a permit for its creation, taking into account the changes and additions made to it, based on the decision of the general meeting of shareholders of the insurance (reinsurance) company (insurance company - non-resident of the Republic of Kazakhstan).

2. To change the insurance industry of an insurance (reinsurance) organization, a petition is submitted to the authorized body with the following documents attached:

a decision of the general meeting of shareholders of an insurance (reinsurance) company (insurance company - a non-resident of the Republic of Kazakhstan) on changing the name of the insurance (reinsurance) company and the insurance industry (if such a decision is not available on the Internet resource of the financial reporting depository);

2) an action plan to change the insurance industry of the insurance (reinsurance) organization, indicating the deadlines for each item of the action plan and the responsible managers according to the procedures provided for in paragraph 3 of this article.

3. Changes in the insurance industry are carried out in compliance with the following procedures:

transfer of the insurance portfolio by classes (types) of insurance and types of activities that cannot be combined with the new insurance industry in accordance with Articles 8 and 9 of this Law, or early termination of the relevant insurance (reinsurance) contracts in the manner prescribed by Article 37-1 of this Law;

2) introducing amendments to the constituent documents of an insurance (reinsurance) company in accordance with Article 31 of this Law or the regulation on a branch of an insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan in accordance with Article 30-1 of this Law;

3) submission to the authorized body of an application for a license for the right to carry out insurance (reinsurance) activities in the new insurance industry and the documents provided for in paragraphs 2 and 7 of Article 37 of this Law.

4. After approval by the authorized body of an action plan to change the insurance industry, the insurance (reinsurance) organization is obliged to implement the measures provided for in this plan.

5. The period of carrying out measures to change the insurance industry cannot exceed six months from the date of adoption by the general meeting of shareholders of an insurance (reinsurance) organization (insurance organization - a non-resident of the Republic of Kazakhstan) of a decision to change the insurance industry.

6. If it is impossible for the insurance (reinsurance) organization to carry out measures within the time limits established in the action plan to change the insurance industry, for reasons beyond its control, the deadline for execution of the action plan may be extended by the authorized body at the request of the insurance (reinsurance) organization, insurance holding company and (or) a major participant.

7. An insurance (reinsurance) organization, during the period of implementation of the action plan to change the insurance industry, is prohibited from concluding new insurance (reinsurance) contracts, including the extension of existing insurance (reinsurance) contracts and their changes, providing for an increase in insurance premiums, the scope of responsibility of the insurance (reinsurance) organization, as well as the implementation of insurance intermediation as an insurance agent.

Under previously concluded insurance (reinsurance) contracts for classes and types of insurance that are not subject to combination in accordance with Articles 8 and 9 of this Law, the insurance (reinsurance) organization is obliged to fulfill its obligations before the transfer of the insurance portfolio or their early termination in the manner prescribed by Articles 37-1 and 72-1 of this Law.

Under insurance contracts for classes of insurance and types of activities subject to combination with the new insurance industry in accordance with Articles 8 and 9 of this Law, the insurance (reinsurance) organization is obliged to fulfill its obligations before their expiration or fulfillment of obligations arising from the terms of the insurance contract.

8. When changing the insurance industry of an insurance (reinsurance) organization, obtaining consents and (or) permits provided for in Articles 26, 32 and 34 of this Law and Articles 9-4, 9-5 and 9-6 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations” is not required for individuals and (or) legal entities who have the appropriate consents and (or) permits before changing the insurance industry of this insurance (reinsurance) organization.

9. Changing the insurance industry is not allowed in the following cases:

failure to eliminate the comments of the authorized body on the submitted documents within the period established by it;

2) non-compliance of the submitted documents with the requirements of the legislation of the Republic of Kazakhstan;

3) failure by the insurance (reinsurance) organization to comply with the requirements established by the legislation of the Republic of Kazakhstan;

4) failure of the insurance (reinsurance) organization and (or) insurance group, which includes the insurance (reinsurance) organization, to comply with established prudential standards and other mandatory norms and limits in the period six months before filing the application in accordance with paragraph 2 of this article and the period of its consideration and implementation of the action plan;

5) forecast of non-compliance with prudential standards, taking into account the received classes of insurance and (or) types of activities in accordance with the business plan presented in accordance with subparagraph 3) of paragraph 3 of this article;

6) the presence of existing supervisory response measures provided for in Articles 53-3 and 53-4 of this Law, and sanctions in accordance with Article 53-5 of this Law;

7) violation of the rights of policyholders, insured persons, beneficiaries as a result of changes in the insurance industry.

10. From the moment the insurance (reinsurance) organization is issued a license to carry out insurance (reinsurance) activities in the new insurance industry, the previously issued license to carry out insurance (reinsurance) activities ceases to be valid.

An insurance (reinsurance) organization, within ten working days after receiving a license to carry out insurance (reinsurance) activities in a new insurance industry, is obliged to return to the authorized body the original of the license previously issued to it (if any).

11. In case of non-execution or untimely execution of the action plan to change the insurance industry, taking into account the terms of its extension in accordance with paragraph 6 of this article, supervisory response measures provided for by this Law are applied to the insurance (reinsurance) organization.

Article 39. Licensing of the activities of an authorized auditor

Footnote: (This article was excluded by the Law of the Republic of Kazakhstan dated May 5, 2006 No. 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No. 139)

Article 40. Licensing of actuarial activities in the insurance market

Licensing of actuarial activities in the insurance market of the Republic of Kazakhstan is carried out by the authorized body.

2. To obtain a license to carry out actuarial activities in the insurance market, the applicant submits the following documents to the authorized body:

application for a license in the form established by the regulatory legal act of the authorized body;

3) a copy of an identity document (for individuals - non-residents of the Republic of Kazakhstan);

4) a notarized copy of a diploma of higher education;

5) a copy of the document confirming payment of the license fee, except for cases of payment through the “electronic government” payment gateway;

6) copies of documents indicating that the applicant for a license has been trained and successfully passed the relevant exams according to the minimum mandatory training program for actuaries established by the regulatory legal act of the authorized body, and (or) a copy of the master’s diploma that meets the requirements of the regulatory legal act of the authorized body;

7) for non-resident individuals of the Republic of Kazakhstan - copies of documents confirming the status of an actuary and membership in international associations of actuaries, the list and requirements for which are established by the authorized body;

8) copies of documents indicating that the applicant for a license has passed international exams that meet the requirements of the regulatory legal act of the authorized body (if any);

9) a copy of a document confirming work experience that meets the requirements of the regulatory legal act of the authorized body.

An application for a license is considered by the authorized body within twenty working days from the date of submission of the full package of documents that meet the requirements of the legislation of the Republic of Kazakhstan.

If the applicant submits an incomplete package of documents provided for by the legislation of the Republic of Kazakhstan for obtaining a license, the authorized body gives a reasoned refusal to further consider the application within two working days from the date of receipt of the documents.

An application for re-issuance of a license, except for the cases provided for in Article 34 of the Law of the Republic of Kazakhstan “On Permits and Notifications”, must be considered by the authorized body within fifteen working days from the date of submission of a complete package of documents that meets the requirements of the legislation of the Republic of Kazakhstan.

If the applicant submits an incomplete package of documents provided for by the legislation of the Republic of Kazakhstan for re-issuing a license, the authorized body gives a reasoned refusal to further consider the application within two working days from the date of receipt of the documents.

3. A license to carry out actuarial activities in the insurance market is issued to the applicant after passing a test on knowledge of the legislation of the Republic of Kazakhstan on insurance and insurance activities. The testing procedure is established by the regulatory legal act of the authorized body.

4. Every three years, an actuary licensed to carry out actuarial activities in the insurance market confirms his qualifications in accordance with the requirements established by the regulatory legal act of the authorized body.

5. The grounds for refusal to issue a license are the following cases:

non-compliance of the submitted documents with the requirements of the legislation of the Republic of Kazakhstan;

2) availability of data on deprivation of a license on the grounds provided for in subparagraphs 2-1), 2-2) and 3) of paragraph 1 of Article 60 of this Law;

3) a negative test result conducted by the authorized body.

6. Information about the issuance of a license is published on the Internet resource of the authorized body in the Kazakh and Russian languages.

Chapter 8. Authorized body and state regulation, control and supervision of insurance activities

Footnote: Footnote. The title of Chapter 8 as amended by the Law of the Republic of Kazakhstan dated 07/05/2012 No. 30-V (shall be brought into force after ten calendar days after its first official publication).

Article 41. Main tasks and principles of state regulation in the field of insurance

Footnote: Footnote. The title of Article 41 is as amended by the Law of the Republic of Kazakhstan dated June 30, 2025 No. 205-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

The main objectives of state regulation in the field of insurance are:

creation and maintenance of a stable insurance system in the Republic of Kazakhstan and the formation of the infrastructure of the national insurance market;
regulation of the insurance market, control and supervision of insurance activities;
legislative consolidation of the fundamentals of insurance, establishment of types of compulsory insurance, principles of participation of the Republic of Kazakhstan in the international insurance system;
protection of the rights and legitimate interests of policyholders, insured persons and beneficiaries.

1-1. The basic principles of state regulation of the activities of professional and other participants in the insurance market are:

efficient use of resources and regulatory tools;

2) transparency of the activities of professional and other participants in the insurance market and financial supervision;

3) responsibility of professional and other participants in the insurance market.

2. The implementation of state policy in the field of insurance, including ensuring state control over the state of affairs in the insurance market, is carried out by the authorized body and other state bodies within their competence.

The powers of other state bodies not regulated by this Law may be provided for by relevant separate legislative acts of the Republic of Kazakhstan regulating compulsory types of insurance.

Interference by state bodies and their officials in the activities of an insurance (reinsurance) organization and an insurance broker is prohibited, except in cases expressly provided for by the legislative acts of the Republic of Kazakhstan.

Article 42. Authorized body

State regulation, control and supervision of insurance activities are carried out by the authorized body in accordance with the powers established by the legislation of the Republic of Kazakhstan.

The legal status of the authorized body is determined by the laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 43. Competence of the authorized body

Authorized body:

pursues state policy to ensure the functioning of the insurance system in the Republic of Kazakhstan and the formation of the infrastructure of the national insurance market, protection of the rights and legitimate interests of policyholders and other participants in the insurance market;

2) determines the principles and methods of regulation of the insurance market, the procedure for organizing control and supervision of insurance activities;

3) issues permits for the creation of insurance (reinsurance) organizations, the opening of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan;

4) determines, taking into account the requirements of this Law, the procedure for issuing and revoking consent to acquire the status of a major participant in an insurance (reinsurance) company or insurance holding company, issues permission to acquire the status of a major participant in an insurance (reinsurance) company or insurance holding company, establishes the shares of direct and (or) indirect ownership of a major participant in voting (less preferred) shares of the insurance (reinsurance) company or insurance holding company;

5) gives consent to the voluntary reorganization and liquidation of an insurance (reinsurance) organization, voluntary termination of the activities of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

6) issues permission to create a subsidiary of an insurance (reinsurance) organization and for a significant participation in the authorized capital of the organization;

7) determines the procedure for forming a risk management and internal control system for insurance (reinsurance) organizations and insurance groups;

8) determines, taking into account the requirements of this Law, the procedure for issuing and issues licenses for the right to carry out insurance (reinsurance) activities, activities of an insurance broker, actuarial activities in the insurance market;

9) determines the procedure for transferring the insurance portfolio;

10) establishes prudential standards and other mandatory norms and limits for the insurance (reinsurance) company and insurance group, including the minimum amounts of the authorized capital, guarantee fund, solvency margin and ensures control over their compliance;

11) establishes requirements for the minimum amount of the authorized and equity capital of an insurance broker, ensures control over their compliance;

determines the conditions and procedure for carrying out the activities of an insurance broker;

12-1) determines the procedure for electing and carrying out the activities of the insurance ombudsman;

13) exercises control over the activities of liquidation commissions of liquidated insurance (reinsurance) organizations that forcibly terminate the activities of branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan;

14) in case of suspension of a license on the grounds provided for in subparagraph 2) of paragraph 1 of Article 54 of this Law, has the right to limit the increase in expenses, including administrative ones, of the insurance (reinsurance) company;

15) gives consent to the appointment (election) of executive employees of insurance (reinsurance) organizations, insurance holding companies and insurance brokers;

16) carries out analysis, assessment and control of the financial stability and solvency of the insurance (reinsurance) organization;

17) establishes the procedure for accounting by the insurance (reinsurance) organization of insurance contracts (insurance policies) and reinsurance;

sets requirements for assessment methods and principles for calculating insurance rates by classes (types) of insurance of insurance (reinsurance) organizations;

18-1) determines the procedure for calculating correction coefficients to the coefficients for the territory of vehicle registration for calculating the insurance premium for compulsory civil liability insurance of vehicle owners;

18-2) determines the procedure for calculating and applying the coefficient according to the “bonus-malus” system for calculating the insurance premium for compulsory civil liability insurance of vehicle owners;

18-3) determines the procedure, conditions and terms of the simplified procedure for the settlement of insured events, the maximum amount of the insurance amount for each individual insured event, as well as the form of the declaration on the simplified procedure for the settlement of insured events and the requirements for the preparation of documents and information attached to it;

19) determines the procedure for calculating coefficients characterizing the loss ratio (loss ratio, cost ratio, combined ratio) of an insurance (reinsurance) organization;

establishes the procedure for calculating the redemption amount;

20-1) determines the procedure and conditions for the provision of services by a branch of an insurance (reinsurance) non-resident organization of the Republic of Kazakhstan, carrying out accumulative insurance activities, for the issuance of loans by a non-resident insurance organization of the Republic of Kazakhstan to its policyholders;

23) establishes requirements for the organization’s activities in creating and maintaining a database, including requirements for:

information process;

forming a security system and establishing minimum requirements for electronic equipment;

database security;

premises;

24) establishes requirements for software and hardware and Internet resources of an insurance (reinsurance) organization that ensure the conclusion of insurance contracts and the exchange of electronic information resources between the policyholder and the insurer;

25) establishes requirements for the organization of safe work, ensuring the safety and protection of information from unauthorized access to data stored in the insurance (reinsurance) organization, as well as the cybersecurity of the insurance (reinsurance) organization;

26) determines the procedure and features of the implementation of reinsurance activities, as well as the insurance (reinsurance) pool;

27) adopts mandatory regulatory legal acts in the field of insurance for insurance (reinsurance) organizations and other participants in the insurance market in accordance with the goals and objectives provided for in Article 1-1 and paragraph 1 of Article 41 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is determined in the regulations on the authorized body;

28) conducts inspections of insurance entities, insurance brokers, separate divisions of insurance entities and insurance brokers, organizations that guarantee insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, as well as insurance holdings, insurance groups and large participants of an insurance (reinsurance) organization;

29) exercises control over compliance by insurance (reinsurance) organizations and insurance brokers with the requirements provided for by the legislation of the Republic of Kazakhstan on combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

30) imposes sanctions on professional participants in the insurance market, an insurance holding company, organizations that are part of an insurance group, large participants in an insurance (reinsurance) organization;

31) makes decisions on suspension of licenses and deprivation of licenses issued to professional participants in the insurance market;

32) coordinates the decision of the temporary administration on the transfer of the insurance portfolio in the event of deprivation of the license of the insurance (reinsurance) organization;

33) makes a decision to file a claim in court to terminate the activities of an insurance (reinsurance) company on the grounds provided for by the laws of the Republic of Kazakhstan;

34) has the right to receive information about the activities of the insurance (reinsurance) company, the legal status and financial condition of its founders, as well as persons who are subsidiaries or separate divisions in relation to the insurance (reinsurance) company, and its founders;

35) have the right to receive from professional participants in the insurance market and their associations, insurance agents the necessary information to carry out their control and supervisory functions in accordance with this Law;

36) has the right to receive from state bodies and organizations information necessary to carry out its control and supervisory functions, including information constituting official or commercial secrets;

37) establishes requirements for the content and procedure for issuing insurance policies;

39) determines the procedure for the exchange of electronic information resources between the organization for the formation and maintenance of the database and the insurer, insurer and policyholder (insured, beneficiary);

40) has the right to apply mandatory supervisory response measures to professional participants in the insurance market, an insurance holding company, an organization guaranteeing insurance payments, their management employees, organizations that are part of an insurance group, large participants in an insurance (reinsurance) organization, persons who have the characteristics of a major participant in an insurance (reinsurance) organization or an insurance holding company;

42) carries out cooperation and the necessary exchange of information with other authorized bodies supervising financial market entities of the Republic of Kazakhstan;

43) represents the interests of the Republic of Kazakhstan in relations with insurance supervisory authorities of other states, as well as international organizations on issues of regulation of the insurance market and supervision of insurance activities;

determines the procedure for posting information on the Internet resource of an insurance organization, an insurance broker, an organization for the formation and maintenance of a database and an organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, an insurance ombudsman;

45) establishes the conditions for the appointment and procedure for conducting actuarial calculations by independent actuaries;

46) has the right to demand adjustments to financial and other reporting by an insurance (reinsurance) company or an insurance broker if they submit unreliable (incomplete) reporting;

46-1) determines the minimum requirements for standard contracts for imputed insurance;

46-2) approves the methodology for calculating the amount of mandatory contributions, the procedure and terms for payment of mandatory contributions by insurance organizations to the office of the insurance ombudsman;

46-3) elects to the position of insurance ombudsman from among at least three candidates recommended for election by the council of representatives of the insurance ombudsman who meet the requirements established by Article 88 of this Law;

46-4) early terminate the powers of the insurance ombudsman in the event of systematic (three or more times during the last twelve months) violation in its activities of the requirements of the legislation of the Republic of Kazakhstan on insurance and insurance activities and (or) internal rules of the insurance ombudsman;

47) performs other functions provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 44. Inspection of the activities of insurance (reinsurance) organizations, major participants in insurance (reinsurance) organizations, insurance brokers, insurance holding companies, insurance groups, actuaries licensed to carry out actuarial activities in the insurance market, organizations guaranteeing insurance payments

Inspection of the activities of insurance (reinsurance) organizations, major participants in insurance (reinsurance) organizations, insurance brokers, insurance holding companies, insurance groups, actuaries licensed to carry out actuarial activities in the insurance market, organizations guaranteeing the implementation of insurance payments, is carried out by the authorized body independently or with the involvement of other government bodies and (or) organizations.

2. Insurance (reinsurance) organizations, large participants in insurance (reinsurance) organizations, insurance brokers, insurance holdings, insurance groups, actuaries licensed to carry out actuarial activities in the insurance market, an organization guaranteeing the implementation of insurance payments, as well as their affiliates are obliged to assist the inspection body on the issues specified in the assignment of the authorized body for inspection, as well as provide the opportunity to interview any officials and employees and access to any sources of information necessary for verification.

3. Persons carrying out the inspection are responsible for the disclosure of information obtained during the inspection of the activities of insurance (reinsurance) organizations, large participants in insurance (reinsurance) organizations, insurance brokers, insurance holding companies, insurance groups, actuaries licensed to carry out actuarial activities in the insurance market, organizations guaranteeing the implementation of insurance payments that constitute an insurance secret or a commercial secret.

4. Employees of the authorized body are prohibited from disclosing or transferring to third parties information obtained during the inspection of the activities of insurance (reinsurance) organizations, large participants in insurance (reinsurance) organizations, insurance brokers, insurance holding companies, insurance groups, actuaries licensed to carry out actuarial activities in the insurance market, organizations guaranteeing the implementation of insurance payments.

5. State bodies carrying out inspections of the activities of insurance (reinsurance) organizations, large participants in insurance (reinsurance) organizations, insurance brokers, separate divisions of insurance (reinsurance) organizations, insurance brokers, insurance holding companies, insurance groups, actuaries licensed to carry out actuarial activities in the insurance market, organizations guaranteeing the implementation of insurance payments, within the powers granted to them by the legislation of the Republic of Kazakhstan, are obliged to inform the authorized to the authority about identified violations of the legislation of the Republic of Kazakhstan on insurance and insurance activities.

6. The requirements of paragraphs 1 and 2 of this article do not apply to non-residents of the Republic of Kazakhstan who are a major participant in an insurance (reinsurance) organization - a legal entity, an insurance holding company, a person possessing the characteristics of a major participant in an insurance (reinsurance) organization or an insurance holding company, if one of the following conditions is met:

the presence of an individual credit rating not lower than the A rating of one of the rating agencies, the list of which is established by the authorized body, as well as written confirmation from the financial supervisory authority of the country of origin of the insurance holding company, a person possessing the characteristics of an insurance holding company, that these persons - non-residents of the Republic of Kazakhstan are subject to consolidated supervision;

7. When conducting an inspection of the activities of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, the authorized body has the right to obtain information about the activities of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan from the financial supervisory authority of the state whose resident is the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan within the framework of the agreement specified in subparagraph 4) of paragraph 1 of Article 30-1 of this Law.

Article 44-1. Disclosure of information by an authorized body within the framework of international treaties and other agreements providing for the exchange of confidential information

The authorized body provides information constituting an insurance secret to the organizations specified in paragraph 4 of Article 15 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations” on the conditions provided for in this article.

The authorized body provides information received in accordance with international treaties of the Republic of Kazakhstan, agreements providing for the exchange of confidential information, to other government bodies of the Republic of Kazakhstan only with the consent of the party that provided it with such information.

Chapter 9. Regulation of the activities of an insurance (reinsurance) company

Article 45. Solvency and financial stability of an insurance (reinsurance) company

Footnote: Footnote. Article 45 was excluded by the Law of the Republic of Kazakhstan dated February 20, 2006 No. 128 (the order of enforcement see Article 2).

Article 46. Prudential standards and other mandatory norms and limits

Control and supervision over the solvency and financial stability of the insurance (reinsurance) company and persons in respect of whom supervision is carried out on a consolidated basis is carried out through control and supervision over the implementation or compliance with prudential standards established by the authorized body and (or) other mandatory norms and limits.

2. Prudential standards for insurance (reinsurance) organizations include:

minimum amount of authorized capital;

solvency margin adequacy standard;

adequacy standard for highly liquid assets;

asset diversification standards.

The prudential standard for insurance groups is the solvency margin adequacy standard.

The authorized body has the right to establish additional prudential standards, including for the investment of assets covering insurance reserves for annuity insurance.

The authorized body has the right to establish additional prudential standards for insurance organizations licensed to carry out investment portfolio management activities on the securities market.

The authorized body, in accordance with the legislation of the Republic of Kazakhstan, takes measures to hold insurance (reinsurance) organizations and (or) insurance holding companies or their officials and (or) major participants of insurance (reinsurance) organizations or insurance holding companies liable for violation by the insurance (reinsurance) organization of prudential standards and (or) other mandatory norms and limits.

3-1. Payment of dividends on common and (or) preferred shares (stakes in the authorized capital) of an insurance (reinsurance) company or insurance holding company is not allowed in the following cases:

if such payment will lead to:

to violation of one or more prudential standards of an insurance (reinsurance) organization, insurance group, established by a regulatory legal act of the authorized body;

to the emergence of a factor (factors) influencing (affecting) the deterioration of the financial position of an insurance (reinsurance) company, insurance group, established by a regulatory legal act of the authorized body;

2) the existence of a violation by the insurance (reinsurance) organization, insurance group of prudential standards, as well as failure to take measures in accordance with paragraph 4 of this article;

3) the presence of a factor (factors) influencing the deterioration of the financial position of the insurance (reinsurance) company, insurance group and (or) failure to implement an action plan providing for early response measures to increase the financial stability of the insurance (reinsurance) company, insurance group, preventing the deterioration of its financial position and increasing risks associated with insurance activities and the activities of the insurance group, submitted to the authorized body in accordance with paragraphs 3 and 4 of Article 53 of this Law.

4. An insurance holding company, as well as large participants in an insurance (reinsurance) organization - individuals who own directly or indirectly more than twenty-five percent of the voting (less preferred) shares of an insurance (reinsurance) organization, are obliged to take measures provided for by the regulatory legal acts of the authorized body to maintain prudential standards at a level not lower than the established one.

In the event of a deterioration in the financial position of an insurance (reinsurance) company or insurance group, an insurance holding company, a major participant in an insurance (reinsurance) company is obliged, including at the request of the authorized body, to take measures to improve the financial position of the insurance (reinsurance) company or insurance group, to increase the equity capital of the insurance (reinsurance) company or insurance group in an amount sufficient to ensure the financial stability of the insurance (reinsurance) company or insurance group groups.

If the requirements provided for by this paragraph are not met, the authorized body has the right to apply compulsory supervisory response measures provided for in Article 53-4 of this Law to the insurance holding company or a major participant in the insurance (reinsurance) organization.

4-1. The measures given in this article may also be applied to affiliates of major participants in an insurance (reinsurance) company if the authorized body determines that violations, unlawful actions or inactions of these persons, their officials or employees have worsened the financial condition of the insurance (reinsurance) company.

5. Solvency margin represents the excess of assets over liabilities of an insurance (reinsurance) organization.

6. The guarantee fund is created in order to ensure the financial stability and solvency of the insurance (reinsurance) organization as a result of a decrease in the solvency margin below the minimum established amount.

7. Requirements for calculating the amount of the insurance (reinsurance) company’s own deductible under the insurance, reinsurance, co-insurance (joint reinsurance) agreement (agreements) are established by regulatory legal acts of the authorized body.

9. The insurance (reinsurance) organization submits to the authorized body information on the availability and restrictions on the use of derivative financial instruments that are not included in the financial statements.

10. Regulatory values and methods for calculating prudential standards of an insurance (reinsurance) company and insurance group and other mandatory norms and limits are established by regulatory legal acts of the authorized body.

Insurance (reinsurance) organizations and insurance groups submit reports on compliance with prudential standards in accordance with the regulatory legal act of the National Bank.

10-1. Regulatory values and methods for calculating prudential standards of an Islamic insurance (reinsurance) organization and other mandatory norms and limits are established by regulatory legal acts of the authorized body, taking into account the specifics of the implementation of Islamic insurance activities by Islamic insurance (reinsurance) organizations, provided for by this Law.

Islamic insurance (reinsurance) organizations submit reports on compliance with prudential standards to the National Bank in accordance with the regulatory legal act of the National Bank.

10-2. In order to determine the value of assets taken into account when calculating prudential standards, the authorized body has the right to require an insurance (reinsurance) company or insurance holding company to assess their value from an appraiser or through the chamber of appraisers.

If the insurance (reinsurance) organization or insurance holding company fails to comply with the requirements of the authorized body established by part one of this paragraph, the corresponding asset is excluded from the subsequent calculation of prudential standards.

11. If an insurance (reinsurance) organization or a participant in an insurance group fails to comply with the requirements of the authorized body specified in a written order to adjust data in financial and (or) other statements, the calculation of prudential standards and other mandatory norms and limits is carried out by the authorized body on the basis of the statements adjusted by it.

11-1. The requirements of this article do not apply to an insurance (reinsurance) organization in cases where the general meeting of shareholders (an insurance organization - a non-resident of the Republic of Kazakhstan) makes a decision on voluntary liquidation (voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan) of this insurance (reinsurance) organization, voluntary reorganization of this insurance (reinsurance) organization into a legal entity that does not carry out insurance activities, voluntary delivery of a license for the right to carry out insurance (reinsurance) activities, as well as the availability of documents confirming that the insurance (reinsurance) organization does not have an insurance portfolio, within six months from the date of adoption by the general meeting of shareholders (insurance organization - non-resident of the Republic of Kazakhstan) of the decision on the voluntary liquidation of the insurance (reinsurance) organization (voluntary termination of the activities of a branch of the insurance (reinsurance) organization - non-resident of the Republic of Kazakhstan), voluntary reorganization of the insurance company (reinsurance) organization to a legal entity that does not carry out insurance activities, voluntary surrender of a license for the right to carry out insurance (reinsurance) activities.

12. The authorized body, in order to ensure the integrity and stability of the financial system, protect investors, policyholders (insured, beneficiaries), establishes prudential standards and other mandatory norms and limits for branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan.

The authorized body has the right to establish additional prudential standards, including for the investment of assets covering insurance reserves for annuity insurance.

In order to ensure the financial stability of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, no later than three working days after the accounting registration of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, forms assets of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, accepted as a reserve.

Regulatory values and methods for calculating prudential standards of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan and other mandatory norms and limits, including the procedure for the formation of assets of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, accepted as a reserve, and their minimum size are established by regulatory legal acts of the authorized body.

The authorized body, in accordance with the legislation of the Republic of Kazakhstan, takes measures to hold branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan liable for violation by a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan of prudential standards and (or) other mandatory norms and limits.

Branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan submit reports on the implementation of prudential standards to the National Bank in accordance with the regulatory legal act of the National Bank.

Regulatory values and methods for calculating prudential standards of a branch of a non-resident Islamic insurance (reinsurance) organization of the Republic of Kazakhstan and other mandatory norms and limits, including the procedure for the formation of assets of a branch of a non-resident Islamic insurance (reinsurance) organization of the Republic of Kazakhstan, accepted as a reserve, and their minimum size are established by regulatory legal acts of the authorized body, taking into account the specifics of implementation by branches of Islamic insurance (reinsurance) non-resident organizations of the Republic of Kazakhstan for Islamic insurance activities provided for by this Law.

Branches of Islamic insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan submit reports on the implementation of prudential standards to the National Bank in accordance with the regulatory legal act of the National Bank.

A non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of which is opened on the territory of the Republic of Kazakhstan, is obliged to take measures provided for by the regulatory legal acts of the authorized body to maintain the prudential standards of the branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan at a level not lower than the established one.

In the event of a deterioration in the financial situation of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is obliged, including at the request of the authorized body, to take measures to improve the financial position of the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, to increase the assets of the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, accepted as a reserve, provided for in part three of this paragraph, in an amount sufficient to ensure the financial stability of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

If the measures taken by the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, specified in part ten of this paragraph, are insufficient, the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan shall fulfill the obligations unfulfilled and (or) improperly fulfilled by the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in accordance with the written obligation previously submitted to the authorized body in accordance with subparagraph 12) of part one of paragraph 2 of the article 30-1 of this Law.

If a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan fails to comply with the requirements of the authorized body, specified in a written order, to adjust the data in the reporting according to accounting data and (or) other reporting, the calculation of prudential standards and other mandatory norms and limits is carried out by the authorized body on the basis of the reporting adjusted by it.

The provisions of paragraphs 5, 6 and 10-2 of this article apply to a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan.

Article 46-1. Responsibilities of major participants

Footnote: Footnote. The chapter is supplemented by Article 46-1 in accordance with the Law of the Republic of Kazakhstan dated December 23, 2005 N 107 (the order of enforcement see Article 2); excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Article 47. Insurance reserves

In order to comply with prudential standards and other mandatory norms and limits established by the authorized body, the insurance (reinsurance) organization is obliged to have formed insurance reserves in the amount calculated by an actuary licensed to carry out actuarial activities in the insurance market.

3. Requirements for the formation, methodology for calculating insurance reserves and their structure are established by regulatory legal acts of the authorized body.

4. The assessment of the sufficiency of the insurance reserves formed by the insurance (reinsurance) organization is carried out by the authorized body, including using motivated judgment.

Article 47-1. Insurance obligations

To ensure the fulfillment of accepted obligations under insurance and reinsurance contracts, an insurance (reinsurance) organization must have insurance liabilities in the amount calculated by an actuary licensed to carry out actuarial activities in the insurance market.

2. Requirements for the assessment and structure of insurance liabilities in accordance with international financial reporting standards and automation of their assessment, methodology for assessing insurance liabilities, the procedure and timing for its approval are approved by the regulatory legal act of the authorized body.

3. To assess the adequacy of the insurance obligations of an insurance (reinsurance) company, the authorized body has the right to use a reasoned judgment.

Article 48. Activities prohibited or limited for insurance (reinsurance) organizations and insurance holding companies

An insurance (reinsurance) organization is prohibited from acquiring shares in the authorized capital or shares of legal entities, creating and participating in the activities of non-profit organizations, with the exception of membership in the National Chamber of Entrepreneurs of the Republic of Kazakhstan, as well as cases established by this Law, and carrying out transactions with securities in the cases provided for in paragraph 4 of this article.

2. Insurance holding companies are prohibited from carrying out operations and transactions as entrepreneurial activities, as well as acquiring shares in the authorized capitals or shares of legal entities, creating and participating in the activities of non-profit organizations, with the exception of membership in the National Chamber of Entrepreneurs of the Republic of Kazakhstan, as well as cases established by this Law, and carrying out transactions with securities in the cases provided for in paragraph 4 of this article.

3. The prohibition established by paragraphs 1 and 2 of this article does not apply to the following cases of creation or acquisition of shares or participation interests in authorized capital:

insurance (reinsurance) organizations:

organizations for the formation and maintenance of the database;

legal entities carrying out the activities of an insurance agent as an exclusive type of activity;

an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations;

legal entities in the amount of less than ten percent of the placed (minus preferred and repurchased by the company) shares (participatory interests in the authorized capital), provided that the acquired shares (participatory interests in the authorized capital) comply with the requirements of the regulatory legal act of the authorized body;

financial organizations, as well as non-resident legal entities of the Republic of Kazakhstan having the status of banks, insurance organizations, pension funds, professional participants in the securities market, in the amount of ten or more percent of the placed (less preferred and purchased by the company) shares (participatory interests in the authorized capital) if it has an insurance holding company. At the same time, the requirement for the presence of an insurance holding company does not apply to insurance (reinsurance) organizations, more than fifty percent of the voting shares of which belong to the state or the national management holding company;

organizations (residents and non-residents of the Republic of Kazakhstan) developing, implementing, supporting software used in the activities of financial organizations, including to automate their activities;

organizations (residents and non-residents of the Republic of Kazakhstan) providing services to provide the opportunity to provide financial services using artificial intelligence, blockchain and other innovative technologies;

medical organizations and legal entities (residents and non-residents of the Republic of Kazakhstan) providing assistance services;

legal entities - non-residents of the Republic of Kazakhstan, forming capital to provide insurance or reinsurance of risks, as part of international insurance syndicates operating or created by them.

International insurance syndicate is an association of legal entities and (or) individuals, created in accordance with the legislation of a foreign state, ensuring the acceptance and distribution of insurance risks or obligations;

legal entities (residents and non-residents of the Republic of Kazakhstan) providing insurance brokerage services;

2) insurance holdings:

financial organizations;

non-resident legal entities of the Republic of Kazakhstan having the status of banks, insurance organizations, pension funds, professional participants in the securities market;

The provisions established by paragraphs seven and eight of subparagraph 1) and paragraphs four and five of subparagraph 2) of part one of this paragraph apply to cases of creation and acquisition by insurance (reinsurance) organizations and insurance holding companies of shares or participation interests in the authorized capital of non-resident organizations of the Republic of Kazakhstan in the presence of an agreement between the authorized body and the relevant supervisory authority of a foreign state on the exchange of information.

The acquisition by an insurance (reinsurance) organization of shares in the authorized capital or shares of legal entities specified in subparagraph 1) of part one of this paragraph must not exceed ten percent of the equity capital of the insurance (reinsurance) organization per legal entity. This restriction applies to the ownership of an insurance (reinsurance) organization with shares in the authorized capital or shares of the specified legal entities, including in cases of their creation.

The total value of the participation shares of an insurance (reinsurance) organization in the authorized capital of legal entities or shares should not exceed fifty percent of the equity capital of the insurance (reinsurance) organization.

Subsidiaries of insurance (reinsurance) organizations have the right to acquire only shares or participation interests in the authorized capital of legal entities that meet the requirements established by the regulatory legal act of the authorized body. This requirement does not apply to resident subsidiary banks of the Republic of Kazakhstan.

Subsidiaries of an insurance holding company have the right to acquire only shares or participation interests in the authorized capital of legal entities that meet the requirements established by the regulatory legal act of the authorized body. This requirement does not apply to:

subsidiary insurance (reinsurance) resident organizations of the Republic of Kazakhstan;

subsidiary resident banks of the Republic of Kazakhstan;

legal entities in which the insurance holding company is the parent organization through ownership (having the ability to vote, determine decisions and (or) influence decisions made by virtue of an agreement or otherwise) shares of an insurance (reinsurance) organization or resident bank of the Republic of Kazakhstan, directly owning (having the ability to vote, determine decisions and (or) influence decisions made by virtue of an agreement or otherwise) shares or participation interests in the authorized capital of these legal entities;

non-residents of the Republic of Kazakhstan, which are subsidiaries of non-residents of the Republic of Kazakhstan, which are an insurance holding company, if one of the following conditions is met:

the insurance holding company has an individual credit rating not lower than the A rating of one of the rating agencies, the list of which is established by the authorized body, as well as written confirmation from the financial supervisory authority of the country of origin of these persons that they are subject to consolidated supervision;

4. The prohibition established by paragraphs 1 and 2 of this article does not apply to cases of acquisition of ownership:

insurance holdings:

bonds of international financial organizations and digital financial assets, the list of which is established by the authorized body;

bonds with the minimum required rating. The minimum required rating and the list of rating agencies are established by the regulatory legal act of the authorized body;

2) insurance (reinsurance) organizations:

financial instruments (except for shares and participation interests in the authorized capital) and digital financial assets, the list of which is established by regulatory legal acts of the authorized body.

The restrictions established by this article do not apply to cases of acquisition by an insurance (reinsurance) organization or an insurance holding company of bonds, in replacement of previously acquired ones, by organizations that are in the process of restructuring, subject to the inclusion of obligations under previously issued bonds in the list of restructured obligations of this organization.

5. An insurance (reinsurance) company is prohibited from:

issue other types of securities, except for shares, as well as unsecured bonds that meet the conditions provided for in Article 25-1 of this Law;

2) attract borrowed funds from banks, branches of non-resident banks of the Republic of Kazakhstan for a period exceeding three months, in an amount exceeding the amount of equity capital, with the exception of attracting a loan without collateral that meets the conditions provided for in Article 25-1 of this Law;

2-1) attract borrowed funds from individuals and legal entities, with the exception of attracting loans without collateral that meet the conditions provided for in Article 25-1 of this Law;

3) provide financial assistance free of charge, with the exception of financial assistance to officials and employees of an insurance (reinsurance) organization in an amount not exceeding one hundred times the monthly calculation index;

4) provide loans by any means, except for cases established by the legislation of the Republic of Kazakhstan;

5) payment of any types of remuneration to policyholders, including through third parties, unless otherwise provided by the legislation of the Republic of Kazakhstan;

5-1) conclude, through the mediation of an insurance agent - a second-tier bank, a branch of a non-resident bank of the Republic of Kazakhstan, an organization engaged in microfinance activities, an insurance agreement without indicating the amount of its commission;

6) issue money to employees and affiliated persons of the insurance (reinsurance) organization without primary accounting documents.

6. In addition to the activities specified in paragraph 2 of this article, insurance holding companies have the right to engage in the following types of activities:

purchase of property from a person who is not an affiliate of the insurance holding company acquired for its own needs;

2) provision of consulting services on issues related to financial activities;

3) sale of own property to a person who is not an affiliate of the insurance holding company.

7. Insurance (reinsurance) organizations and insurance holding companies are prohibited from carrying out transactions with derivative financial instruments, with the exception of transactions made for the purpose of hedging risks.

7-1. Transactions with derivative financial instruments carried out by insurance (reinsurance) organizations and (or) insurance holding companies for the purpose of hedging risks can be carried out in the form of a transaction (transactions) within the framework of a general financial agreement.

The provisions of subparagraphs 2), 4), 7) and 8) of paragraph 1 of Article 53-3, subparagraphs 2), 3) and 5) of paragraph 2 of Article 53-4, paragraph 1 of Article 53-5, paragraph 5 of Article 54-1, paragraph 3 of Article 55, paragraph 1 of Article 55-1, subparagraph 4) of paragraph 1 and subparagraph 7) of paragraph 2 of Article 55-4, paragraph 2 of Article 69 and paragraph 2 of Article 71 of this Law do not apply to the offset of claims and (or) liquidation netting under a transaction (transactions) within the framework of a master financial agreement.

The parties to the master financial agreement carry out (apply) offset of claims and (or) liquidation netting for the transaction (transactions) within the framework of the master financial agreement in the manner and on the conditions specified in the master financial agreement.

A net claim arising (calculated) as a result of offsetting claims and (or) liquidation netting carried out (applied) in the manner and on the terms specified in the general financial agreement is satisfied on a general basis in accordance with the rules for settlements with creditors established by this Law and the civil legislation of the Republic of Kazakhstan.

8. The total share of shares (stakes in the authorized capital) of the parent organization of an insurance group, insurance (reinsurance) organization or insurance holding company, owned by subsidiaries of the insurance (reinsurance) organization or insurance holding company, organizations in which the insurance (reinsurance) organization or insurance holding company has a significant participation in the capital, should not exceed the limits determined by the regulatory legal act of the authorized body.

9. The requirements of this article do not apply to:

for non-residents of the Republic of Kazakhstan who are an insurance holding company, a person possessing the characteristics of an insurance holding company, if one of the following conditions is met:

2) for insurance holdings that are bank holdings that are part of banking conglomerates;

3) on insurance holdings that indirectly own (have the ability to vote, determine decisions and (or) influence decisions made by virtue of a contract or otherwise) shares of an insurance (reinsurance) organization through ownership (have the ability to vote, determine decisions and (or) influence decisions made by virtue of a contract or otherwise) shares or participation interests in the authorized capital of an insurance holding company resident of the Republic of Kazakhstan, directly owning (having the ability to vote, determine decisions and (or) influence decisions made by virtue of a contract or otherwise) with shares of the specified insurance (reinsurance) company;

4) for insurance holdings – residents of the Republic of Kazakhstan, which are financial organizations.

10. An insurance (reinsurance) organization is obliged to transfer part of the insurance risks it accepts from affiliates of the insurance (reinsurance) organization, exceeding the amount of the insurance (reinsurance) organization’s own retention, to insurance (reinsurance) organizations that have an international credit rating not lower than the sovereign rating of the Republic of Kazakhstan. The list of rating agencies is established by the regulatory legal act of the authorized body.

11. The requirements of this article do not apply to the investment of assets formed from part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the condition of the policyholder’s participation in investments.

Article 49. Concluding major insurance transactions

An insurance (reinsurance) transaction is recognized as large if the insured amount (accepted volume of liabilities) under a separate concluded insurance contract or the accepted volume of liabilities under a separate reinsurance contract of an insurance (reinsurance) organization exceeds the standard established by the regulatory legal act of the authorized body.

2. The decision to enter into a major transaction is made in accordance with the Law of the Republic of Kazakhstan “On Joint Stock Companies” on the basis of the conclusion of an actuary licensed to carry out actuarial activities in the insurance market.

Article 50. Transactions with securities and bills

Transactions made with shares of an insurance (reinsurance) company are registered in accordance with the requirements of the legislation of the Republic of Kazakhstan, taking into account the specifics provided for by this Law.

2. An insurance (reinsurance) organization does not have the right to issue a golden share.

Article 51. Control over transactions with shares of an insurance (reinsurance) company

A person who receives the right of ownership or the right to manage voting (less preferred) shares of an insurance (reinsurance) company in the amount of more than five percent of the total number of voting (less preferred) shares is obliged to submit a written notification to the authorized body within ten calendar days about the completion of the specified transaction with the submission of supporting documents.

4. The requirements of this article apply to all types of transactions with shares of insurance (reinsurance) organizations and depository receipts issued for shares of insurance (reinsurance) organizations.

Article 52. Participation of an insurance (reinsurance) company in joint activities

An insurance (reinsurance) organization has the right to participate in the creation of a consortium or simple partnership in accordance with the requirements established by Article 13 of this Law.

2. Supervision over the activities of an insurance (reinsurance) organization, persons and organizations affiliated with it and its founders, participating in consortia and simple partnerships with the participation of insurance (reinsurance) organizations, can be carried out on a consolidated basis. The rules of consolidated supervision are approved by the authorized body.

Article 52-1. Risk management and internal control system

Insurance (reinsurance) organizations form a risk management and internal control system, which must contain:

powers and functional responsibilities for risk management and internal control of the board of directors, board, divisions of the insurance (reinsurance) organization (the relevant management body of the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan), their responsibility;

2) internal policies and procedures for risk management and internal control;

3) limits on the permissible amount of risks separately by type of activity of the insurance (reinsurance) organization;

4) internal procedures for submitting reports on risk management and internal control to the bodies of the insurance (reinsurance) organization;

5) internal criteria for assessing the effectiveness of the risk management system.

The procedure for forming a risk management and internal control system is established by a regulatory legal act of the authorized body.

Features of the formation of a risk management system by insurance organizations that have a license to carry out investment portfolio management activities on the securities market are determined by the regulatory legal act of the authorized body provided for in this paragraph.

1-1. Insurance organizations carrying out investment asset management activities form a risk management and internal control system in the manner established by the regulatory legal act of the authorized body.

1-2. An insurance (reinsurance) organization when appointing employees to the position of head of a risk management unit (risk manager of an insurance (reinsurance) organization, solely performing risk management functions in an insurance (reinsurance) organization), head of the internal audit service (auditor of an insurance (reinsurance) organization, solely performing internal audit functions in an insurance (reinsurance) organization), head of a compliance control unit (compliance controller of an insurance (reinsurance) organization, solely exercising the functions of compliance control in an insurance (reinsurance) organization) independently checks them for compliance with the requirements established by the regulatory legal act of the authorized body, which determines the procedure for forming a risk management and internal control system.

2. The insurance group must have a risk management and internal control system that meets the requirements established by the regulatory legal act of the authorized body.

The parent organization of the insurance group ensures compliance with the requirements for the risk management and internal control system on a consolidated basis.

The parent organization of the insurance group is responsible for ensuring that the insurance group members comply with the requirements for the risk management and internal control system.

2-1. The insurance holding company ensures the presence of risk management and internal control systems, including in relation to risks associated with the activities of a subsidiary or organizations in which the insurance holding company has a significant participation.

The requirements of part one of this paragraph apply to persons wishing to acquire the status of an insurance holding company.

3. The authorized body assesses the compliance of the risk management and internal control system with the requirements established by this article.

Article 52-2. Advertising distributed and placed by insurance (reinsurance) organizations

Footnote: Footnote. The title of Article 52-2 is as amended by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Insurance (reinsurance) organizations are prohibited from:

inappropriate advertising;

Requirements for the management of financial products, a list of financial products (indicating rates and tariffs), the approval, change and termination of which the subject of behavioral supervision notifies the authorized body, the procedure for such notification, as well as the list of documents and information attached to the notification, are approved by the regulatory legal act of the authorized body.

2. The authorized body has the right to demand that the insurance (reinsurance) company make changes to advertising that does not correspond to reality, terminate it, or publish a refutation.

In case of failure to comply with this requirement within the period established by the authorized body, the authorized body has the right to publish information about the discrepancy between the reality of the information contained in the advertisement, or to clarify it at the expense of the insurance (reinsurance) organization that published such advertisement.

3. The following persons are prohibited from acting as an advertiser of services provided by insurance (reinsurance) organizations:

legal entities that do not have a license from the authorized body in the “life insurance” or “general insurance” industries, as well as to carry out reinsurance activities;

to individuals who are not employees of insurance (reinsurance) organizations and not authorized by insurance (reinsurance) organizations.

Article 52-3. Accounting and financial reporting

Accounting and preparation of financial statements, automation of accounting by an insurance (reinsurance) organization, an Islamic insurance (reinsurance) organization and an insurance broker are carried out in accordance with the regulatory legal acts of the National Bank.

Branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan carry out accounting and reporting on accounting data in accordance with international standards and regulatory legal acts of the National Bank.

Article 52-4. Prohibition of dishonest behavior when concluding an insurance contract, during the period of insurance protection and settlement of an insured event

When concluding an insurance contract, during the period of insurance protection and settlement of an insured event, the parties to the insurance contract are prohibited from providing false information and hiding information that affects the fulfillment of the essential terms of the insurance contract.

2. Signs of dishonest behavior when concluding an insurance contract, during the period of insurance protection and settlement of an insured event are:

concealment or distortion of information affecting the essential terms of the insurance contract upon its conclusion;

2) unreasonable overestimation of the insured value of the insured property when concluding an insurance contract;

3) concealment and distortion of information about the circumstances of the occurrence of an insured event;

4) giving the event the appearance of an insured event in one way or another;

5) conclusion of an insurance contract after the occurrence of an insured event;

6) distortion in the insurance contract of information about the insurance agent and his remuneration;

7) applying for insurance payment to several insurers for the same insured property if the amount of insurance payments exceeds the amount of actual damage.

3. If the insurer establishes signs of dishonest behavior provided for in paragraph 2 of this article, before the expiration of the insurance payment period provided for by the laws of the Republic of Kazakhstan or the insurance contract, the insurer has the right to suspend the insurance payment for a period of up to thirty calendar days.

A notice of suspension of insurance payment must be sent to the policyholder (beneficiary) with an instruction to conduct an appropriate inspection no later than the day following the day of suspension.

Before the expiration of the period for suspending the insurance payment, the insurer is obliged to send a reasoned refusal to make an insurance payment or make an insurance payment taking into account a penalty calculated based on the base rate of the National Bank on the day of making the insurance payment, for each day over the period of insurance payment provided for by the laws of the Republic of Kazakhstan or the insurance contract.

4. When the policyholder (insured, beneficiary) or the authorized body establishes facts of dishonest behavior on the part of the insurer, the authorized body applies measures against the insurer provided for in Article 53-1 of this Law.

Chapter 10. Supervisory response measures, sanctions and other enforcement measures

Footnote: Footnote. The title of Chapter 10 is as amended by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (to come into effect from 01/01/2019).

Article 53. Early response measures

In order to protect the legitimate interests of policyholders (insured, beneficiaries), ensure the financial stability of insurance (reinsurance) organizations, prevent the deterioration of their financial position and increase the risks associated with insurance activities, the authorized body carries out an analysis of the activities of insurance (reinsurance) organizations to identify factors influencing the deterioration of the financial position of insurance (reinsurance) organizations established by the regulatory legal act of the authorized body.

2. In order to ensure the financial stability of the insurance group, prevent the deterioration of its financial position and increase the risks associated with the activities of the insurance group, the authorized body carries out an analysis of the activities of the insurance group to identify factors influencing the deterioration of the financial position of the insurance group, established by the regulatory legal act of the authorized body.

3. If the factors specified in paragraph 1 of this article are identified, as a result of an analysis of the financial position of the insurance (reinsurance) company and (or) based on the results of its inspection, the authorized body sends to the insurance (reinsurance) company and (or) its shareholders a written request for the submission of an action plan that provides for early response measures to increase the financial stability of the insurance (reinsurance) company, to prevent the deterioration of its financial position and the increase in risks associated with insurance activities.

The insurance (reinsurance) company and (or) its shareholders are obliged, within no more than five working days from the date of receipt of the specified request, to develop and submit to the authorized body an action plan indicating the deadlines for each item and the responsible executives.

If the authorized body approves the action plan, the insurance (reinsurance) organization and (or) its shareholders begin its implementation, notifying the authorized body of the results of its implementation within the time frame established by the plan.

If the action plan is not approved, the authorized body applies supervisory response measures provided for by this Law to the insurance (reinsurance) organization and (or) its major participants (insurance holding companies).

4. If the factors specified in paragraph 2 of this article are identified as a result of an analysis of the financial position of the insurance group and (or) based on the results of an inspection of the insurance holding company or members of the insurance group, the authorized body sends to the insurance holding company and (or) its major participant a written request to submit an action plan that provides for early response measures to improve the financial stability of the insurance group, prevent the deterioration of its financial position and increase the risks associated with the activities of the insurance group.

The insurance holding company and (or) its major participants are obliged, within no more than five working days from the date of receipt of the specified requirement, to develop and submit to the authorized body an action plan indicating the deadlines for each item and the responsible managers.

If the authorized body approves the action plan, the insurance holding company and (or) its major participants begin its implementation, notifying the authorized body of the results of its implementation within the time frame established by the plan.

If the action plan is not approved, the authorized body applies supervisory response measures provided for by this Law to the insurance holding company and (or) its major participants.

5. In the event of failure to submit, within the time limits established by paragraphs 3 and 4 of this article, an action plan aimed at increasing the financial stability of an insurance (reinsurance) organization (insurance group), failure to implement or untimely execution of the measures of this plan, the insurance (reinsurance) organization (insurance holding company) and (or) its (its) major participants are subject to supervisory response measures provided for by this Law.

If the factor(s) influencing the deterioration of the financial position of the insurance (reinsurance) organization (insurance group) is not eliminated, after the completion of the terms and activities of the relevant plan(s), supervisory response measures provided for by this Law are applied to the insurance (reinsurance) organization (insurance holding company) and (or) senior employees of the insurance (reinsurance) organization (insurance holding company).

6. If it is impossible for the insurance (reinsurance) company, insurance holding company and (or) major participant to carry out the measures within the time limits established in the action plan, for reasons beyond their control, the deadline for execution of the action plan may be extended by the authorized body at the request of the insurance (reinsurance) company, insurance holding company and (or) major participant.

7. The procedure for approving an action plan providing for early response measures and the methodology for determining factors influencing the deterioration of the financial position of an insurance (reinsurance) organization (insurance group) are established by a regulatory legal act of the authorized body.

Article 53-1. Supervisory Response Measures

In order to protect the legitimate interests of policyholders (insured, beneficiaries) of an insurance (reinsurance) organization, ensure the financial stability of the insurance (reinsurance) organization and insurance group, prevent the deterioration of their financial situation and increase the risks associated with insurance activities, the authorized body applies to the insurance (reinsurance) organization, insurance broker, participant, shareholder of the insurance broker, insurance holding company, organization guaranteeing the implementation of insurance payments, their executive employees, organizations that are part of the insurance group, major participants in an insurance (reinsurance) company, persons who have the characteristics of a major participant in an insurance (reinsurance) company or an insurance holding company, an actuary licensed to carry out actuarial activities in the insurance market, supervisory response measures.

2. The grounds for applying supervisory response measures are:

violation of the legislation of the Republic of Kazakhstan on issues within the competence of the authorized body;

2) shortcomings and (or) risks in the activities of an insurance (reinsurance) organization, an insurance broker, an insurance holding company, an organization that guarantees insurance payments, organizations that are part of an insurance group, an actuary licensed to carry out actuarial activities in the insurance market, identified by the authorized body as part of the implementation of control and supervision functions, including using a reasoned judgment, which may lead to the creation of a situation that threatens the stable functioning of the insurance company (reinsurance) organization, and (or) the interests of its policyholders (insured, beneficiaries), and (or) the stability of the insurance system of the Republic of Kazakhstan;

3) identification of illegal actions or inactions of senior employees of an insurance (reinsurance) company, insurance broker, insurance holding company, organization guaranteeing insurance payments, which may threaten their stable functioning and (or) the interests of policyholders (insured, beneficiaries);

4) sufficient data to recognize the actions (inaction) of a managerial employee, official (managerial employees, officials) as not complying with the requirements of the legislation of the Republic of Kazakhstan on issues within the competence of the authorized body, and (or) indicating damage to the insurance (reinsurance) organization, insurance broker, organization guaranteeing the implementation of insurance payments, and (or) policyholders (insured, beneficiaries);

5) the commission of actions by a person who has the characteristics of a major participant in an insurance (reinsurance) company or an insurance holding company, as well as a major participant in an insurance (reinsurance) company (including organizations over which a major participant has control), an insurance holding company or organizations that are part of an insurance group, as a result of which damage is caused or may be caused to the insurance (reinsurance) organization;

6) unstable financial situation of persons who have the characteristics of a major participant in an insurance (reinsurance) company or an insurance holding company, as well as large participants in an insurance (reinsurance) company (including organizations over which a major participant in an insurance (reinsurance) company has control), an insurance holding company or organizations that are part of an insurance group;

7) failure to comply with supervisory response measures previously applied in accordance with this Law;

8) failure to submit to the authorized body or the National Bank or submission of false reports or information, as well as other information requested by the authorized body or the National Bank;

9) obstruction by an insurance (reinsurance) organization, an insurance broker, an insurance holding company, an insurance group, organizations that are part of an insurance group, major participants in an insurance (reinsurance) organization, persons possessing the characteristics of a major participant in an insurance (reinsurance) organization or an insurance holding company, an organization guaranteeing the implementation of insurance payments, an actuary licensed to carry out actuarial activities in the insurance market, from conducting an audit, causing the impossibility of carrying it out within the established time frame;

failure by an insurance (reinsurance) organization, an insurance holding company, an organization that is part of an insurance group, an insurance broker, an organization that guarantees the implementation of insurance payments, to eliminate shortcomings that affect the financial condition of the insurance (reinsurance) organization or an insurance group, an insurance broker, an organization that guarantees the implementation of insurance payments specified in the audit report, within the time limits provided for in paragraph 10 of Article 20 of this Law;

11) non-payment, untimely payment or payment of mandatory or emergency contributions, as well as initial one-time and additional contributions in an incomplete amount to an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations;

non-payment, untimely payment or partial payment of mandatory contributions by insurance organizations to the office of the insurance ombudsman within the period established by the methodology for calculating the amount of mandatory contributions, the procedure and timing of payment of mandatory contributions by insurance organizations to the office of the insurance ombudsman, approved by the authorized body;
failure by the insurance organization to comply with the decision of the insurance ombudsman within the period established by him;

14) failure to fulfill or improper fulfillment of requirements for the provision of information to the database, including its distortion and (or) incomplete and (or) untimely provision;

15) failure to submit in a timely manner the action plan provided for in paragraphs 3 and 4 of Article 53 of this Law, disapproval of it by the authorized body, failure to implement or untimely implementation of the measures of this plan, failure to eliminate the factor (factors) influencing the deterioration of the financial position of the insurance (reinsurance) organization (insurance group), within the time limits established by the action plan;

16) failure to implement or untimely implementation of the plan measures provided for in subparagraph 2) of paragraph 2 of Article 38-1 of this Law.

3. When determining the feasibility of applying supervisory response measures and choosing a supervisory response measure, the following are taken into account:

level of risk, nature of violations and (or) deficiencies and their consequences;

2) the scale and significance of the violations and (or) shortcomings and their consequences;

3) systematicity and duration of violations and (or) deficiencies;

4) the impact of violations and (or) shortcomings on the financial condition;

5) the ability to correct the situation as a result of applying the selected supervisory response measure;

6) the availability and effectiveness (effectiveness) of previously applied supervisory response measures;

7) the adequacy of the applied supervisory response measure to the grounds for its application;

8) the reasons that led to the occurrence of identified violations and (or) shortcomings and (or) risks;

9) adoption by an insurance (reinsurance) organization, an insurance broker, an insurance holding company, organizations that are part of an insurance group, a major participant in an insurance (reinsurance) organization, a person possessing the characteristics of a major participant in an insurance (reinsurance) organization or an insurance holding company, an organization guaranteeing the implementation of insurance payments, an actuary licensed to carry out actuarial activities in the insurance market, independent measures aimed at eliminating violations, risks and (or) shortcomings identified in the activities, the effectiveness of such measures and (or) the readiness to take them.

4. The authorized body applies the following supervisory response measures:

advisory supervisory response measures in accordance with Article 53-2 of this Law;

2) measures to improve financial condition and (or) minimize risks in accordance with Article 53-3 of this Law;

3) compulsory supervisory response measures in accordance with Article 53-4 of this Law.

5. The authorized body has the right to apply any of the supervisory response measures defined in paragraph 4 of this article, regardless of the supervisory response measures previously applied to them.

Article 53-2. Recommended supervisory responses

Advertisement payments, an actuary licensed to carry out actuarial activities in the insurance market, including using motivated judgment, do not have a significant impact on the financial stability of the insurance (reinsurance) organization and (or) insurance group, do not pose a threat to their financial position and (or) the interests of the policyholders (insured, beneficiaries) of the insurance (reinsurance) organization.

2. Recommended supervisory response measures include:

notification of identified deficiencies, risks or violations with bringing (if necessary, determined by the authorized body) this information to the attention of individual bodies of the insurance (reinsurance) organization, insurance broker, organization that is part of the insurance group, insurance holding company, a major participant in the insurance (reinsurance) organization, a person possessing the characteristics of a major participant in the insurance (reinsurance) organization or insurance holding company, an organization guaranteeing the implementation of insurance payments;

2) providing recommendations from the authorized body to eliminate identified deficiencies, risks or violations;

3) a warning about the possibility of applying other supervisory response measures in the event of repeated identification by the authorized body of deficiencies, risks or violations, as well as failure to comply with recommended supervisory response measures.

3. The recommendatory supervisory response measure is formalized in a letter from the authorized body.

Article 53-3. Measures to improve financial condition and (or) minimize risks

The authorized body, in order to eliminate shortcomings, risks or violations, including those identified using a reasoned judgment, applies measures to improve the financial condition and (or) minimize the risks of an insurance (reinsurance) company, insurance broker, insurance holding company, insurance group and (or) organizations included in the insurance group, a major participant in the insurance (reinsurance) company, an organization guaranteeing insurance payments, an actuary licensed to carry out actuarial activities in the insurance market, by submitting claims for:

maintaining the adequacy ratio of the solvency margin and (or) the adequacy ratio of highly liquid assets above the minimum values established by the authorized body;

1-1) elimination of the factor (factors) influencing (affecting) the deterioration of the financial position of the insurance (reinsurance) organization (insurance group);

2) suspension and (or) restriction of certain types of transactions, including insurance (reinsurance) contracts, or the establishment of a special procedure for their implementation;

3) reducing costs, including by stopping or limiting additional hiring of employees, closing certain branches and representative offices, subsidiaries, limiting cash remunerations and other types of material incentives for executive employees;

4) suspension and (or) limitation of investments in certain types of assets or the establishment of a special procedure for their implementation;

5) additional formation of insurance reserves;

5-1) additional formation of insurance obligations;

6) recognition of an individual and (or) legal entity as a person associated with an insurance (reinsurance) company, an insurance holding company by special relations;

7) changing the terms of a transaction concluded on preferential terms with a person associated with an insurance (reinsurance) company, insurance holding company by special relations, to the conditions for similar transactions with third parties concluded on the date of the transaction with preferential terms;

8) restriction of transactions with persons related to the insurance (reinsurance) company, insurance holding company by special relations;

9) termination of accrual and (or) payment of dividends on common and (or) preferred shares;

10) review of internal policies and procedures, limits on the permissible amount of risks, procedures for assessing the effectiveness of the risk management and internal control system;

removal from the performance of official duties of persons specified in Article 34 of this Law and (or) a regulatory legal act of the authorized body establishing the procedure for forming a risk management and internal control system, including in the case of removal by an insurance (reinsurance) organization, an insurance broker, an insurance holding company, an organization guaranteeing the implementation of insurance payments, an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan of persons specified in Article 34 of this Law, from the performance of official duties to the application by the authorized body of such a supervisory response measure. When such a supervisory response measure is applied to a managerial employee, the authorized body revokes consent to the appointment (election) to the position of the managerial employee.

From the day following the day of receipt by an insurance (reinsurance) organization, an insurance broker, an insurance holding company, an organization guaranteeing insurance payments, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a written notification of the authorized body on the application of a supervisory response measure on the removal of persons specified in Article 34 of this Law, all subsequent decisions of the collegial body with the participation of the removed person are considered invalid;

11-1) removal from official duties of a managerial employee of an organization that guarantees insurance payments, with the simultaneous withdrawal of consent to the appointment (election) to the position of a managerial employee. In case of removal by the organization guaranteeing the implementation of insurance payments from the performance of official duties or dismissal of this executive employee before the authorized body removes him from the performance of official duties, the authorized body withdraws consent to the appointment (election) of this person to the position of an executive employee of the organization guaranteeing the implementation of insurance payments;

12) assessing the value of property owned by a major participant in an insurance (reinsurance) company and (or) an insurance holding company;

13) eliminating the causes and (or) conditions that contributed to the violation of the requirements of the legislation of the Republic of Kazakhstan on issues within the competence of the authorized body, the rights and legitimate interests of policyholders (insured, beneficiaries) of insurance (reinsurance) organizations;

14) exclusion of the insurance agent from the register of insurance agents;

15) ensuring compliance of their activities with the legislation of the Republic of Kazakhstan.

2. The measures provided for in paragraph 1 of this article are applied in the form of a written order or written agreement.

3. A written order is an instruction to an insurance (reinsurance) organization, an insurance broker, an organization that guarantees the implementation of insurance payments, an actuary licensed to carry out actuarial activities in the insurance market, organizations that are part of an insurance group, an insurance holding company, a major participant in an insurance (reinsurance) organization to take mandatory measures established by paragraph 1 of this article, and (or) on the need to submit, within a specified period, an action plan for their implementation (hereinafter referred to as the action plan).

The action plan contains a description of deficiencies, risks or violations, the reasons that led to their occurrence, a list of planned activities, the timing of their implementation, as well as responsible management personnel.

4. A written agreement is concluded between the authorized body and an insurance (reinsurance) organization, or an insurance holding company, or organizations that are part of an insurance group, or a major participant in an insurance (reinsurance) organization, or an insurance broker, or an organization that guarantees the implementation of insurance payments, a written agreement on the implementation of measures established by paragraph 1 of this article, indicating the deadlines for eliminating identified deficiencies, risks or violations and (or) a list of restrictions, which these persons assume until the identified deficiencies, risks or violations are eliminated.

A written agreement is subject to mandatory signing by an insurance (reinsurance) company or an insurance holding company, or organizations that are part of an insurance group, or a major participant in an insurance (reinsurance) company, or an insurance broker, or an organization that guarantees insurance payments.

5. An insurance (reinsurance) organization, an insurance holding company, an organization that is part of an insurance group, a major participant in an insurance (reinsurance) organization, an insurance broker, an organization that guarantees insurance payments, an actuary licensed to carry out actuarial activities in the insurance market, are obliged to notify the authorized body about the implementation of the measures specified in the written order and written agreement, within the time limits specified by these documents.

If it is not possible to eliminate the violation within the time frame established in the written order and (or) action plan, written agreement, for reasons beyond the control of the insurance (reinsurance) company, insurance holding company, organizations included in the insurance group, a major participant in the insurance (reinsurance) company, insurance broker, organization guaranteeing insurance payments, an actuary licensed to carry out actuarial activities in the insurance industry market, the deadline for the execution of a written order and (or) action plan, written agreement may be extended until the date established by the authorized body.

7. A non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, to whose branch the requirements specified in paragraph 1 of this article have been presented by the authorized body, is obliged to take measures to improve the financial condition of the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, including increasing the amount of assets accepted as reserve, provided for in paragraph 12 of Article 46 of this Law, minimizing risks by bringing its activities into compliance with the legislation of the Republic of Kazakhstan and the requirements authorized body.

If the measures taken by the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, specified in part one of this paragraph, are insufficient, the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan shall fulfill the obligations unfulfilled and (or) improperly fulfilled by the branch of the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in accordance with the written obligation previously submitted to the authorized body in accordance with subparagraph 12) of part one of paragraph 2 of Article 30-1 of this Law.

Article 53-4. Compulsory supervisory measures

The authorized body applies compulsory supervisory response measures to persons who have the characteristics of a major participant in an insurance (reinsurance) company or an insurance holding company, as well as large participants in an insurance (reinsurance) company, an insurance holding company, large participants in an insurance holding company and organizations that are part of an insurance group, participants (shareholders) of an insurance broker in the following cases:

provided for in paragraph 10 of Article 20, paragraph 3 of Article 26 and paragraph 4 of Article 46 of this Law;

2) if the application of other supervisory response measures cannot ensure the protection of the legitimate interests of policyholders (insured, beneficiaries), the financial stability of the insurance (reinsurance) company and (or) insurance group, and the minimization of risks associated with insurance (reinsurance) activities;

3) if the actions (inaction) of an insurance holding company and (or) a major participant in an insurance (reinsurance) organization, and (or) a major participant in an insurance holding company, and (or) an organization that is part of an insurance group, and (or) a person possessing the characteristics of a major participant in an insurance (reinsurance) organization or an insurance holding company, may lead to a further deterioration in the financial position of the insurance (reinsurance) organization.

2. If there are cases provided for in paragraph 1 of this article, the authorized body has the right to:

demand from a person who has the characteristics of a major participant in an insurance (reinsurance) company, as well as from a major participant in an insurance (reinsurance) company, to reduce the share of his direct or indirect ownership to a level below ten percent of the voting shares of the insurance (reinsurance) company;

1-1) demand from the participant (shareholder) of the insurance broker the alienation of his share in the authorized capital (shares) of the insurance broker;

2) demand from a person possessing the characteristics of an insurance holding company, as well as from the insurance holding company, to reduce the share of its direct or indirect ownership to a level below twenty-five percent of the voting shares of the insurance (reinsurance) organization and to suspend transactions (direct and indirect) between it and the insurance (reinsurance) organization that expose the insurance (reinsurance) organization to risk;

3) demand from the insurance (reinsurance) company and the insurance holding company in relation to organizations in which the insurance (reinsurance) company or insurance holding company is a shareholder (participant), as well as organizations that are part of the insurance group, to suspend transactions (direct and indirect) between them that expose the insurance (reinsurance) company and (or) the insurance holding company or organizations that are part of the insurance group to risk;

4) demand from an insurance (reinsurance) organization or a person possessing the characteristics of an insurance holding company, as well as an insurance holding company, to alienate its share of ownership or control over a subsidiary organization or organizations in the capital of which they have a significant participation;

5) demand from organizations that are part of the insurance group to suspend transactions (direct and indirect) between them and their affiliates that expose the organizations that are part of the insurance group to risk;

6) in order to increase the equity capital of an insurance (reinsurance) company or insurance group in an amount sufficient to ensure the financial stability of the insurance (reinsurance) company or insurance group, require the insurance holding company, a major participant in the insurance (reinsurance) company to take measures for additional capitalization of the insurance (reinsurance) company or insurance group.

Article 53-5. Sanctions

The authorized body has the right to apply the following sanctions to an insurance (reinsurance) organization, insurance broker, actuary licensed to carry out actuarial activities in the insurance market, regardless of the supervisory response measures previously applied to them:

suspension of the license on the grounds established by Articles 54 and 59 of this Law;

2) deprivation of a license on the grounds provided for in Articles 55 and 60 of this Law;

3) making a decision on the forced transfer of the insurance portfolio by classes (types) of insurance for which a guarantee is provided in accordance with the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund”, in the event of repeated (two or more times within six consecutive calendar months) violation by the insurance (reinsurance) organization of one or more prudential standards and (or) other mandatory norms and limits established by the regulatory legal act of the authorized body, and failure of an insurance holding company or a major participant in an insurance (reinsurance) organization to take measures for additional capitalization of the insurance (reinsurance) organization.

1-1. The authorized body has the right to apply the following sanctions to a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan, regardless of the supervisory response measures previously applied to them:

suspension of the license on the grounds provided for in paragraphs 1-2 of Article 54 of this Law;

2) deprivation of a license on the grounds provided for in paragraphs 1-2 of Article 55 of this Law.

2. When determining the feasibility of applying sanctions and choosing a sanction in the form of suspension or deprivation of a license, the following are taken into account:

level of risk, nature of violations and (or) deficiencies and their consequences;

2) the scale and significance of the violations and (or) shortcomings and their consequences;

3) systematicity and duration of violations and (or) deficiencies;

4) the impact of violations and (or) shortcomings on the financial condition;

5) the reasons that determined the occurrence of the identified violations and (or) deficiencies;

6) adoption by an insurance (reinsurance) organization, an insurance broker, an actuary licensed to carry out actuarial activities in the insurance market, independent measures aimed at eliminating deficiencies, risks or violations identified in the activity, as well as the adoption by an insurance (reinsurance) organization of a decision on the voluntary return of the license (voluntary reorganization or liquidation).

Article 54. Suspension of the license of an insurance (reinsurance) company and an insurance broker

The license of an insurance (reinsurance) organization and an insurance broker may be suspended for a period of up to six months on one of the following grounds:

failure to comply with the requirements of supervisory response measures applied by the authorized body;

1-1) revocation of the status of an insurance holding company, a major individual participant in the absence of another insurance holding company or a major individual participant at the insurance (reinsurance) organization;

failure to comply with the requirements of prudential standards and other mandatory norms and limits established by the legislation of the Republic of Kazakhstan;

2-1) identification of a violation of the legislative acts of the Republic of Kazakhstan regulating compulsory types of insurance, expressed in the application of unreasonable amounts of the insurance premium, unreasonable refusal to make an insurance payment, untimely payment of an insurance payment, non-fulfillment or improper performance of duties arising from the conditions and procedure for compulsory types of insurance;

2-2) violation of the prohibition established by Article 15-1 of this Law on the provision of preferential conditions to persons associated with the insurance (reinsurance) organization by special relations;

2-4) violation of the prohibition established by paragraph 4 of Article 17 of this Law;

2-5) failure by the insurance broker to comply with the requirements for the minimum amount of equity capital established by the regulatory legal act of the authorized body;

2-6) identification of the fact of participation of an insurance broker in public procurement for the provision of services related to the conclusion of an insurance contract, with the exception of the provision of services for managing the activities of an insurance (reinsurance) pool;

2-7) failure to comply with the conditions and procedure for carrying out the activities of an insurance broker, determined by the regulatory legal act of the authorized body;

refusal to provide documents and information requested by the authorized body within its competence in connection with the inspection of insurance activities and the activities of an insurance broker;
violation of the requirements related to the approval of management employees of the insurance (reinsurance) organization and the insurance broker;
identification of a violation of the law related to improper reflection in accounting of financial transactions on insurance (reinsurance), as well as maintaining other mandatory forms of accounting;
establishing the fact of providing false information in the documents that served as the basis for issuing a license;
implementation by an insurance broker of the activities of an insurance agent;

10-1) the implementation by an insurance broker of intermediary activities for the conclusion of insurance (reinsurance) contracts without a valid insurance contract for its civil liability to third parties, the object of which is the risks associated with the professional liability of the insurance broker;

systematic (three or more times within twelve consecutive calendar months) violation of the requirements provided for by the legislation of the Republic of Kazakhstan on combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;
the insurance (reinsurance) organization does not have an agreement to participate in the database in cases provided for by this Law;
the insurance (reinsurance) organization does not have a participation agreement in the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, the presence of which is provided for by the laws of the Republic of Kazakhstan;

13-1) the insurance (reinsurance) organization does not have a major participant-individual or an insurance holding company when carrying out compulsory types of insurance, except for the cases provided for in part two of paragraph 3-1 of Article 11 of this Law;

failure by an insurance holding company, a major participant in an insurance (reinsurance) organization to comply with the requirements of the authorized body to increase the equity capital of the insurance (reinsurance) organization, as well as the requirements presented in accordance with paragraph 2 of Article 53-4 of this Law;
non-compliance of the risk management and internal control system with the requirements of the authorized body.

1-1. The license of an insurance (reinsurance) company may be suspended both for all classes of insurance and (or) types of activity, and for individual classes of insurance and (or) type of activity.

1-2. The license of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan and a branch of a non-resident insurance broker of the Republic of Kazakhstan may be suspended for a period of up to six months on one of the following grounds:

the grounds provided for in subparagraphs 1), 2), 2-1), 2-2), 2-4), 2-6), 2-7), 4), 5), 7), 8), 10), 10-1), 11), 12), 13) and 16) of paragraph 1 of this article;

2) failure by a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan to comply with the requirements for the amount of assets accepted as a reserve, established by the regulatory legal act of the authorized body in accordance with paragraph 4 of Article 16-4 and paragraph 12 of Article 46 of this Law;

3) failure of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan to comply with the requirements of the authorized body presented in accordance with paragraph 12 of Article 46 and paragraph 7 of Article 53-3 of this Law;

4) carrying out activities prohibited for a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in accordance with paragraph 3 of Article 11 of this Law;

5) non-compliance in the process of activities of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan, requirements imposed on the management employees of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan;

6) suspension of the license of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities, a non-resident insurance broker of the Republic of Kazakhstan to carry out the activities of an insurance broker by the financial supervisory authority or the court of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan are residents.

2. Suspension of the license of an insurance (reinsurance) company entails a ban on its concluding new insurance (reinsurance) contracts, including the extension of existing insurance (reinsurance) contracts and their changes, providing for an increase in insurance premiums, the scope of responsibility of the insurance (reinsurance) company, as well as on the implementation of insurance intermediation as an insurance agent. Under previously concluded insurance (reinsurance) contracts, the insurance (reinsurance) organization is obliged to fulfill its obligations.

3. The decision to suspend a license must indicate the grounds and duration of suspension of the license.

The license is considered suspended from the day such a decision is brought to the attention of the licensee’s executive body.

Information about the decision made to suspend the license is published on the Internet resource of the authorized body in the Kazakh and Russian languages.

4. The requirements of subparagraph 2) of paragraph 1 of this article do not apply to an insurance broker.

Article 54-1. Transfer of an insurance portfolio in case of deprivation of a license of an insurance (reinsurance) company

In case of deprivation of the license of an insurance (reinsurance) organization by the temporary administration, within thirty working days from the date of deprivation of the license, the insurance portfolio must be transferred by classes (types) of insurance for which a guarantee is provided in accordance with the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund” to another insurance (reinsurance) organization (insurance (reinsurance) organizations).

At the request of the temporary administration, the period specified in part one of this paragraph may be extended by the authorized body for the period specified in its decision.

2. The transfer of the insurance portfolio is carried out without the consent of the policyholder (reinsurer).

3. The transfer of the insurance portfolio is carried out at the expense of an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations.

4. The provisional administration shall forward for approval to the authorized body the decision made on the selection of an insurance (reinsurance) organization (insurance (reinsurance) organizations) for the transfer of the insurance portfolio no later than the first working day following the day such a decision was made, and also notifies of the completion of the transfer of the insurance portfolio no later than the first working day following the day of completion of such transfer.

The authorized body considers this decision of the temporary administration within five working days from the date of its receipt.

The grounds for the refusal of the authorized body to approve the decision of the temporary administration are the non-compliance of the insurance (reinsurance) organization accepting the insurance portfolio with the requirements established by the regulatory legal act of the authorized body, including failure to comply with prudential standards and other mandatory norms and limits at the time of its adoption, as well as taking into account the newly accepted insurance portfolio.

5. The Provisional Administration publishes an announcement in Kazakh and Russian about the transfer of the insurance portfolio in two periodicals distributed throughout the Republic of Kazakhstan, and on the Internet resource of the insurance (reinsurance) organization.

6. The procedure and features of the transfer of the insurance portfolio in the event of deprivation of the license of an insurance (reinsurance) company are determined by the regulatory legal act of the authorized body.

7. The provisions of this article apply to a branch of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan that is forcibly terminating its activities, taking into account the features provided for in Article 72-1 of this Law.

Article 55. Deprivation of the license of an insurance (reinsurance) company and an insurance broker

The authorized body has the right to make a decision to revoke a license on one of the following grounds:

failure to eliminate within the established time frame the circumstances that served as the basis for suspension of the license;

2-1) repeated (two or more times within twelve consecutive calendar months) failure to comply with supervisory response measures applied by the authorized body;

2-2) repeated (two or more times within twelve consecutive calendar months) violation of the legislative acts of the Republic of Kazakhstan governing compulsory types of insurance;

2-3) repeated (two or more times within twelve consecutive calendar months) failure to comply with the requirements of prudential standards and other mandatory norms and limits established by the legislation of the Republic of Kazakhstan;

the court makes a decision to terminate the activities of an insurance (reinsurance) company or an insurance broker;
repeated violation within the last twelve months of the requirements stipulated by the legislation of the Republic of Kazakhstan on combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, for which a sanction was applied in the form of suspension of the license on the grounds provided for in subparagraph 11) of paragraph 1 of Article 54 of this Law;
participation of an insurance (reinsurance) organization or insurance broker in transactions related to money laundering, terrorist financing or financing the proliferation of weapons of mass destruction.

1-1. An insurance (reinsurance) organization may be deprived of its license both for all classes of insurance and (or) types of activity, and for individual classes of insurance and (or) type of activity.

1-2. The authorized body has the right to make a decision on depriving a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan of a license on one of the following grounds:

the grounds provided for in subparagraphs 1), 2-1), 2-2), 2-3), 7) and 8) of paragraph 1 of this article;

2) repeated (two or more times within twelve consecutive calendar months) violation provided for in subparagraphs 2), 3), 4), 5) and 6) of paragraphs 1-2 of Article 54 of this Law;

3) deprivation of the license of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities, a non-resident insurance broker of the Republic of Kazakhstan for the right to carry out the activities of an insurance broker by the financial supervisory authority or the court of the state whose residents are the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, non-resident insurance broker of the Republic of Kazakhstan;

4) adoption by the court of the state, the resident of which is a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan, of a decision on the forced liquidation (termination of activities) of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan;

the court makes a decision to terminate the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan in the cases provided for by part two of paragraph 5 of Article 72-1 of this Law.

1-3. An insurance (reinsurance) company may be deprived of a license to carry out insurance (reinsurance) activities if it has an insurance portfolio. In the absence of an insurance portfolio, such a license is voluntarily returned.

2. The decision to deprive a license must indicate the basis for its deprivation.

3. An insurance (reinsurance) organization that has been deprived of a license, does not have the right to carry out insurance or other activities, is obliged to cease all operations on existing bank accounts, with the exception of operations, the list of which is determined by the authorized body.

4. An insurance broker who is deprived of a license does not have the right to carry out his activities and is obliged to stop all operations on existing bank accounts, with the exception of cases related to the current costs of its maintenance, the crediting of money received by the insurance broker.

5. The decision to revoke the licenses of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan and a branch of a non-resident insurance broker of the Republic of Kazakhstan comes into force from the date of its adoption by the authorized body. Information about the decision made to revoke a license is published on the Internet resource of the authorized body in the Kazakh and Russian languages.

A non-resident insurance (reinsurance) organization of the Republic of Kazakhstan has the right to appeal the decision to revoke the license of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities.

Article 55-1. Conservation of an insurance (reinsurance) company

Footnote: Footnote. Article 55-1 is excluded by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 55-2. Temporary administration for managing an insurance (reinsurance) company

The temporary administration is appointed by the authorized body from among its employees or other persons who meet the requirements established by paragraph 2 of Article 9-4 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations”.

2. The rights and obligations, as well as the terms of payment for the work of the head and members of the temporary administration (with the exception of employees of the authorized body) are established by a separate agreement concluded between the authorized body and the temporary administration.

3. The Provisional Administration in its activities is guided by this Law, regulatory legal acts of the authorized body and other legislation of the Republic of Kazakhstan.

4. The authorized body has the right to replace members of the temporary administration at any time.

5. For damage caused to an insurance (reinsurance) company, the head and members of the temporary administration are liable in accordance with the laws of the Republic of Kazakhstan. It is unacceptable to hold the head and members of the temporary administration responsible for damage that can be classified as a normal production risk.

6. The provisions of this article apply to a branch of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan that is forcibly terminating its activities, taking into account the features provided for in Article 72-1 of this Law.

Article 55-3. Decision on mothballing an insurance (reinsurance) company

Footnote: Footnote. Article 55-3 is excluded by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 55-4. Features of managing an insurance (reinsurance) company during the period of conservation. Powers of the temporary administration to manage an insurance (reinsurance) company

Footnote: Footnote. Article 55-4 is excluded by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 55-5. Control over the activities of the temporary administration (temporary manager) of an insurance (reinsurance) company

Footnote: Footnote. Article 55-5 is excluded by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 55-6. Termination of conservation

Footnote: Footnote. Article 55-6 is excluded by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 56. Consequences of deprivation of licenses of insurance entities and insurance brokers

The decision to revoke the licenses of insurance entities and an insurance broker shall come into force from the date of its adoption by the authorized body. Information about the decision made to revoke a license is published on the Internet resource of the authorized body in the Kazakh and Russian languages.

2. Within fifteen days from the date of deprivation of the license, the authorized body is obliged to apply to the court with an application for the forced termination of the activities (liquidation) of the insurance broker in the manner prescribed by law.

3. From the date of entry into force of the decision to revoke the license, the authorized body appoints a temporary administration of the insurance (reinsurance) company, to which the powers of all bodies of the insurance (reinsurance) company are transferred.

The powers of the previously operating bodies of the insurance (reinsurance) organization are suspended. Shareholders of an insurance (reinsurance) company have the right to appeal a decision to revoke a license in the manner established by the laws of the Republic of Kazakhstan.

3-1. The temporary administration of an insurance (reinsurance) company in the event of deprivation of the license of an insurance (reinsurance) company:

transfers the insurance portfolio by classes (types) of insurance for which a guarantee is provided in accordance with the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund”, in the manner prescribed by Article 54-1 of this Law and the regulatory legal act of the authorized body;

2) within two working days from the date of revocation of the license of the insurance (reinsurance) organization, forms and transfers to the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, registers of contracts of the liquidated insurance (reinsurance) organization from the databases of the organization for the formation and maintenance of the database and the liquidated insurance (reinsurance) organization by classes (types) of insurance, for which a guarantee is provided in accordance with the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund”;

3) publishes an announcement about the implementation by the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, guarantee payments for classes (types) of insurance for which a guarantee is provided in accordance with the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund”. This announcement on the implementation of guarantee payments is published in the Kazakh and Russian languages in two periodicals distributed throughout the Republic of Kazakhstan, and on the Internet resource of the insurance (reinsurance) organization.

The authorized body, within ten working days from the date of transfer of the insurance portfolio, applies to the court with an application for the forced termination of the activities (liquidation) of the insurance (reinsurance) organization in the manner established by the legislation of the Republic of Kazakhstan.

4. The temporary administration carries out its activities in the period until the appointment of the liquidation commission of the insurance (reinsurance) organization by the authorized body.

Control over the activities of the temporary administration of the insurance (reinsurance) company until the appointment of a liquidation commission of the insurance (reinsurance) company is carried out by the authorized body.

In order to exercise control over the activities of the temporary administration, the authorized body has the right, when identifying violations of the requirements of the legislation of the Republic of Kazakhstan, the rights and legitimate interests of creditors in the activities of the temporary administration, to issue written orders, mandatory for execution by the temporary administration, to eliminate the identified violations and (or) causes, as well as the conditions that contributed to their commission, within a specified period of time and (or) to submit an action plan within a specified period of time.

The action plan, submitted within the period established by the written order, indicates descriptions of violations, the reasons that led to their occurrence, a list of planned activities, the timing of their implementation, as well as responsible officials.

An appeal against a written order of the authorized body is carried out in the manner established by the laws of the Republic of Kazakhstan. An appeal against a written order of the authorized body does not suspend its execution.

5. The report of the temporary administration (temporary administrator) of the insurance (reinsurance) company on the work performed is submitted to the authorized body for approval.

The acceptance and transfer of documents and property of the insurance (reinsurance) company from the temporary administration to the chairman of the liquidation commission is formalized by an act, which is drawn up in four copies. One copy of the acceptance certificate is sent to the authorized body, the other - to the court that made the decision to liquidate the insurance (reinsurance) company.

6. During the period of its activity, the temporary administration of an insurance (reinsurance) company does not have the right to carry out expenditure transactions, except for the cases provided for in paragraph 3 of Article 55 of this Law.

7. The procedure for the operation of an insurance (reinsurance) company, the appointment of its temporary administration (temporary administrator), the powers of the temporary administration (temporary administrator), as well as the procedure, forms and timing for the provision of reports and other information by the temporary administration (temporary administrator) to the authorized body are determined by the regulatory legal acts of the authorized body.

8. It is prohibited for the authorized body to finance the costs of terminating the activities of insurance (reinsurance) organizations on the basis of forced liquidation, with the exception of costs associated with the remuneration of employees of the authorized body included in the temporary administration (temporary administrator) of the insurance (reinsurance) organization and the liquidation commission, as well as costs of publishing in the official printed publications of the central body of justice information about the court decision on the forced liquidation of the insurance company (reinsurance) organization and expenses associated with state registration of termination of the activities of an insurance (reinsurance) organization on the basis of forced liquidation by the Corporation, and delivery of documents for storage in the archive after completion of the liquidation of the insurance (reinsurance) organization in cases where there is no property of the insurance (reinsurance) organization or if its value is insufficient to cover these costs.

9. The provisions of this article apply to a branch of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan that is forcibly terminating its activities, taking into account the features provided for in Article 72-1 of this Law.

Article 57. Suspension of the license of an authorized auditor

Footnote: (Excluded by the Law of the Republic of Kazakhstan dated May 5, 2006 No. 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No. 139)

Article 58. Revocation of the license of an authorized auditor

Footnote: (Excluded by the Law of the Republic of Kazakhstan dated May 5, 2006 No. 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No. 139)

Article 59. Suspension of an actuary’s license

An actuary’s license may be suspended by the authorized body for a period of up to three months on one of the following grounds:

failure to submit an actuarial report and other documents requested by the authorized body within its competence within the period established by the legislation of the Republic of Kazakhstan or the authorized body;

1-1) failure to comply with the requirements of supervisory response measures applied by the authorized body, and other requirements of the authorized body;

1-2) failure to comply with the requirements of paragraph 4 of Article 40 of this Law;

2) carrying out actuarial activities in violation of the requirements of the legislation of the Republic of Kazakhstan on insurance and insurance activities;

3) establishing the fact of providing false information in documents sent to the authorized body, including those that served as the basis for issuing a license;

2. The decision to suspend the license must indicate the basis and period for the suspension of the license. The license is considered suspended from the day such a decision is brought to the attention of the licensee.

Information about the decision made to suspend an actuary’s license is published on the Internet resource of the authorized body in Kazakh and Russian.

Article 60. Revocation of an actuary’s license

The authorized body has the right to make a decision to revoke a license on one of the following grounds:

failure to eliminate within the established time frame the circumstances that served as the basis for suspension of the license;

2-1) violation by the actuary of the legislation of the Republic of Kazakhstan on insurance and insurance activities, resulting in systematic (three or more times within twelve consecutive calendar months) failure by the insurance organization to comply with the requirements of prudential standards and (or) other mandatory norms and limits;

2-2) provision of a knowingly false actuarial opinion;

disclosure or transfer to third parties (except for the authorized body) of information obtained during actuarial calculations, as well as carrying out activities as an independent actuary and constituting the subject of an insurance secret or trade secret;
the court makes a decision to terminate the actuary’s business activities.

2. The decision to deprive a license must indicate the basis for its deprivation. The licensee is considered deprived of the license from the day such a decision is brought to the attention of the licensee.

Information about the decision made to revoke an actuary’s license is published on the Internet resource of the authorized body in Kazakh and Russian.

Article 61. Forced repurchase of shares

Footnote: Footnote. Article 61 is excluded by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Chapter 11. Reorganization

Article 62. Voluntary reorganization of an insurance (reinsurance) company and an insurance holding company

Voluntary reorganization (merger, accession, division, spin-off, transformation) of an insurance (reinsurance) organization (insurance holding company) is carried out in the manner prescribed by the legislative acts of the Republic of Kazakhstan, taking into account the specifics established by this Law and the regulatory legal acts of the authorized body.

2. Voluntary reorganization of an insurance (reinsurance) organization (insurance holding company) can be carried out with permission from the authorized body.

Upon receipt of permission for voluntary reorganization into a legal entity that does not carry out insurance activities, the insurance (reinsurance) organization is obliged to return all previously issued licenses to the authorized body within a week.

3. The basis for filing an application for permission to conduct a voluntary reorganization of an insurance (reinsurance) company (insurance holding company) is the presence of a decision of the general meeting of shareholders (participants) of this insurance (reinsurance) company (insurance holding company).

The decision of the general meeting of shareholders (participants) of an insurance (reinsurance) organization (insurance holding company) on its (his) voluntary reorganization is sent by the insurance (reinsurance) organization (insurance holding company) to the authorized body within five working days from the date of adoption of such a decision.

If the general meeting of shareholders of an insurance (reinsurance) company makes a decision on its voluntary reorganization into a legal entity that does not carry out insurance (reinsurance) activities, the conclusion of new insurance (reinsurance) contracts is prohibited, including the extension of existing insurance (reinsurance) contracts and their changes, providing for an increase in insurance premiums, the scope of liability of the insurance (reinsurance) company. This prohibition is valid from the date of notification to the authorized body in accordance with part two of this paragraph.

When a decision is made by the general meeting of shareholders of an insurance (reinsurance) company to cancel a previously adopted decision of the general meeting of shareholders of an insurance (reinsurance) company on its voluntary reorganization into a legal entity that does not carry out insurance (reinsurance) activities, the insurance (reinsurance) company is obliged, within five calendar days from the date of signing the minutes of the general meeting of shareholders, to submit a business plan to the authorized body in accordance with subparagraph 2) of paragraph 2 and paragraph 3 of Article 37 of this Law.

The business plan of an insurance (reinsurance) organization is reviewed by the authorized body within ten working days.

In this case, the prohibition specified in part three of this paragraph is valid until the authorized body approves the business plan specified in part four of this paragraph.

4. The following documents must be attached to the application for permission from the authorized body to conduct a voluntary reorganization of an insurance (reinsurance) company (insurance holding company):

decision of the supreme body of the insurance (reinsurance) organization (insurance holding company) on its voluntary reorganization (in the absence of information on the Internet resource of the financial reporting depository);

2) an action plan for the reorganization of an insurance (reinsurance) organization (insurance holding company).

5. An application for permission to conduct a voluntary reorganization of an insurance (reinsurance) company (insurance holding company) must be considered by the authorized body within thirty-five working days from the date of submission of the full package of documents.

6. The reorganized insurance (reinsurance) organization (insurance holding company), within two weeks from the date of receipt of permission from the authorized body to carry out the reorganization, is obliged to inform all its policyholders about the upcoming changes by direct notification and publication of the corresponding announcement in at least two periodicals distributed throughout the Republic of Kazakhstan, in the Kazakh and Russian languages and on the Internet resource of the insurance (reinsurance) organization.

7. State registration or re-registration of legal entities formed as a result of reorganization is carried out in accordance with the legislative acts of the Republic of Kazakhstan.

8. The procedure for issuing a permit for the voluntary reorganization of an insurance (reinsurance) organization (insurance holding company) or refusing to issue the said permit is determined by a regulatory legal act of the authorized body.

9. The requirements of this article do not apply to non-residents of the Republic of Kazakhstan who are an insurance holding company, a person possessing the characteristics of an insurance holding company, if one of the following conditions is met:

Article 63. Refusal to issue permission for voluntary reorganization

Refusal to issue permission for the voluntary reorganization of an insurance (reinsurance) company (insurance holding company) is made by the authorized body on the following grounds:

violation as a result of the proposed voluntary reorganization of the legitimate interests of policyholders and other creditors;
violation, as a result of the proposed reorganization, of the minimum conditions for ensuring financial stability, other mandatory norms and limits and other requirements established by this Law and regulatory legal acts of the authorized body;

2-1) absence of relevant decisions of the supreme bodies of the reorganized insurance (reinsurance) organizations (insurance holdings);

2-2) violation as a result of the proposed reorganization of the requirements of the legislation of the Republic of Kazakhstan in the field of competition protection;

failure to eliminate the comments of the authorized body on the submitted documents within the period established by it;
non-compliance of the provided documents with the legislation of the Republic of Kazakhstan.

2. The authorized body notifies the applicant in writing of the refusal to issue permission for its voluntary reorganization, indicating the grounds for the refusal.

Article 64. Features of forced reorganization of an insurance (reinsurance) company

Footnote: Footnote. The article was excluded by the Law of the Republic of Kazakhstan dated February 20, 2006 No. 128 (the order of enforcement see Article 2).

Chapter 12. Liquidation

Article 65. Types and grounds for liquidation of an insurance (reinsurance) company

Liquidation of an insurance (reinsurance) company, including on the grounds of bankruptcy, is carried out in accordance with this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. An insurance (reinsurance) company may be liquidated:

by decision of its shareholders with permission from the authorized body (voluntary liquidation);

2) by a court decision in cases provided for by the legislation of the Republic of Kazakhstan (forced liquidation).

Article 66. Committee of creditors of compulsorily liquidated insurance (reinsurance) organizations

Footnote: Footnote. The title of Article 66 as amended by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

In order to ensure the interests of creditors and make decisions with their participation in the procedure for the forced liquidation of insurance (reinsurance) organizations, a committee of creditors is created.

The composition of the committee of creditors of the liquidated insurance (reinsurance) company is approved by the authorized body upon the proposal of the liquidation commission of the insurance (reinsurance) company.

2. The specifics of the formation and activities of the creditors’ committee are established by the regulatory legal acts of the authorized body.

Article 67. Features of voluntary liquidation of an insurance (reinsurance) company

After the general meeting of shareholders of an insurance (reinsurance) company makes a decision on its voluntary liquidation, the insurance (reinsurance) company is obliged to:

send a copy of such a decision to the authorized body within three working days from the date of drawing up and signing the minutes of the general meeting of shareholders of the insurance (reinsurance) company.

The decision of the general meeting of shareholders of an insurance (reinsurance) company on its voluntary liquidation entails a ban on the conclusion of new insurance (reinsurance) contracts, including the extension of existing insurance (reinsurance) contracts and their changes, providing for an increase in insurance premiums, the volume of liability of the insurance (reinsurance) company, from the date of notification of the authorized body in accordance with this subparagraph, which, in the event of a refusal by the authorized body to issue permission for the voluntary liquidation of the insurance company the (reinsurance) organization acts until such refusal;

2) transfer the insurance portfolio to another (other) insurance (reinsurance) organization (insurance (reinsurance) organizations) that has a license (licenses) for the transferred classes (types) of insurance and is (are) a participant (participants) in the system of guaranteeing insurance payments.

The procedure for issuing permission for the voluntary liquidation of insurance (reinsurance) organizations or refusing to issue the said permission, as well as the procedure for transferring the insurance portfolio, are determined by the regulatory legal act of the authorized body.

After the transfer of the insurance portfolio in the manner prescribed by Article 37-1 of this Law and the regulatory legal act of the authorized body, the insurance (reinsurance) organization is obliged to apply to the authorized body with a request to issue permission for its voluntary liquidation.

2. When a decision is made by the general meeting of shareholders of an insurance (reinsurance) company to cancel a previously adopted decision of the general meeting of shareholders of an insurance (reinsurance) company on its voluntary liquidation, the insurance (reinsurance) company is obliged, within three calendar days from the date of drawing up and signing the minutes of the general meeting of shareholders of the insurance (reinsurance) company, to submit a business plan to the authorized body in accordance with subparagraph 2) of paragraph 2 and paragraph 3 Article 37 of this Law.

The business plan of an insurance (reinsurance) organization is reviewed by the authorized body within ten working days.

In this case, the prohibition specified in subparagraph 1) of part one of paragraph 1 of this article is valid until the authorized body approves the business plan specified in part one of this paragraph.

3. The application for permission to conduct voluntary liquidation of an insurance (reinsurance) company must be accompanied by documents, the list of which is established by the regulatory legal acts of the authorized body.

4. An application for permission to conduct voluntary liquidation of an insurance (reinsurance) company must be considered by the authorized body within two months from the date of receipt of all necessary documents.

5. After receiving permission for voluntary liquidation, the insurance (reinsurance) company is obliged to return the license and (or) annex to the license to the authorized body within ten working days.

6. After receiving permission from the authorized body for the voluntary liquidation of an insurance (reinsurance) company, liquidation is carried out by its shareholders (sole shareholder) or persons authorized by them, in the manner prescribed by the Civil Code of the Republic of Kazakhstan.

7. After registering the termination of the activities of an insurance (reinsurance) company, the liquidation commission of the insurance (reinsurance) company within ten working days notifies the authorized body of the completion of the voluntary liquidation process.

Article 68. Refusal to issue permission for voluntary liquidation

Refusal to issue permission for the voluntary liquidation of an insurance (reinsurance) company is made by the authorized body on the following grounds:

violation as a result of the alleged voluntary liquidation of the legitimate interests of policyholders and other creditors;
failure to eliminate the comments of the authorized body on the submitted documents within the period established by it;
non-compliance of the provided documents with the legislation of the Republic of Kazakhstan;
insufficient funds of the insurance (reinsurance) company to pay its obligations;
existence of obligations under insurance (reinsurance) contracts.

2. The authorized body notifies the applicant in writing of the refusal to issue permission for its voluntary liquidation, indicating the grounds for the refusal.

Article 69. Features of the forced liquidation of an insurance (reinsurance) company

The temporary administration resigns its powers and transfers the documents and property of the insurance (reinsurance) organization to the chairman of the liquidation commission after the court makes a decision on the forced liquidation of the insurance (reinsurance) organization and completion of the procedures provided for by the regulatory legal act of the authorized body.

1-1. The chairman and members of the liquidation commission of a compulsorily liquidated insurance (reinsurance) company are appointed by the authorized body, who can be appointed from among:

employees of the authorized body;

2) employees of an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations;

3) its shareholders (sole shareholder) or persons authorized by them (them) in the manner prescribed by the Civil Code of the Republic of Kazakhstan.

2. From the date of deprivation of the insurance (reinsurance) company’s license:

its shareholders (sole shareholder) or persons authorized by them, in the manner prescribed by the Civil Code of the Republic of Kazakhstan, the bodies of the insurance (reinsurance) company do not have the right to dispose of the property of the insurance (reinsurance) company, with the exception of liquidating the insurance (reinsurance) company and ensuring settlements with its creditors, in the event of appointing the chairman of the liquidation commission of the compulsorily liquidated insurance (reinsurance) company from among its shareholders (sole shareholder) or persons authorized by them (them), in the manner prescribed by the Civil Code of the Republic of Kazakhstan;

2) the execution of previously adopted court decisions in relation to the liquidated insurance (reinsurance) company is suspended, with the exception of court decisions on the implementation of insurance payments (insurance payments) for guaranteed classes (types) of insurance provided for by the Law of the Republic of Kazakhstan "On the Insurance Payment Guarantee Fund", which (are) made (are made) by the organization guaranteeing the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, in accordance with the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund”;

3) claims of creditors against a liquidated insurance (reinsurance) organization may be presented in liquidation proceedings, with the exception of claims related to expenses provided for in paragraph 3 of Article 55 of this Law, as well as payments for guaranteed classes (types) of insurance provided for by the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund”;

4) collection of money from the bank accounts of an insurance (reinsurance) organization on claims of creditors, state revenue authorities, including those subject to satisfaction in an indisputable (non-acceptance) manner, as well as foreclosure on the property of an insurance (reinsurance) organization and on assets formed at the expense of part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the participation of the policyholder in the investment;

5) shareholders of an insurance (reinsurance) company are prohibited from alienating their shares of the insurance (reinsurance) company;

6) management, and, if necessary, other employees are suspended from work in accordance with the labor legislation of the Republic of Kazakhstan.

3. In the case of forced liquidation of an insurance (reinsurance) organization, the court notifies the authorized body and the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, and within ten calendar days from the date of the decision on the forced liquidation of the insurance (reinsurance) organization sends them a copy of such a decision.

3-1. From the date of entry into legal force of a court decision on the forced liquidation of an insurance (reinsurance) company, the powers of the previously operating bodies of the insurance (reinsurance) company are terminated, management, and, if necessary, other employees are dismissed in the manner established by the labor legislation of the Republic of Kazakhstan.

3-2. From the date of entry into force of a court decision on the forced liquidation of an insurance (reinsurance) company, the consequences provided for in subparagraphs 1)-5) of paragraph 2 of this article occur.

3-3. From the date of entry into force of a court decision on the forced liquidation of an insurance (reinsurance) organization, insurance (reinsurance) contracts concluded with a forcibly liquidated insurance (reinsurance) organization are terminated early in the manner prescribed by the Civil Code of the Republic of Kazakhstan, with the exception of contracts for guaranteed types (classes) of insurance provided for by the Law of the Republic of Kazakhstan “On the Insurance Payment Guarantee Fund”.

4. If the court makes a decision on the forced liquidation of an insurance (reinsurance) company on grounds not related to the deprivation of a license by the authorized body, the authorized body considers the issue of depriving its license in the manner established by the legislation of the Republic of Kazakhstan.

Article 69-1. Transfer of the insurance portfolio from the date of entry into legal force of the court decision on the forced liquidation of the insurance (reinsurance) company

Footnote: Footnote. Article 69-1 is excluded by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 70. Liquidation commission of a compulsorily liquidated insurance (reinsurance) company

After making a decision on the liquidation of an insurance (reinsurance) company, including on the grounds of bankruptcy, the court initiates liquidation proceedings and assigns to the authorized body the responsibility for creating a liquidation commission of the insurance (reinsurance) company, taking into account its branches and representative offices.

The procedure for appointing and dismissing liquidation commissions of compulsorily liquidated insurance (reinsurance) organizations and the requirements for the chairman and members of the liquidation commission are determined by the regulatory legal acts of the authorized body.

The rights and obligations of the chairman and member of the liquidation commission, including the right to remuneration, the scope of powers to manage the affairs and property of a compulsorily liquidated insurance (reinsurance) company are regulated by regulatory legal acts of the authorized body and an agreement concluded with them by the committee of creditors, taking into account the requirements established by the legislation of the Republic of Kazakhstan.

1-1. The liquidation commission of a compulsorily liquidated insurance (reinsurance) company may make a demand to recognize a transaction concluded by the insurance (reinsurance) company within one year before the deprivation of its license as invalid by the court on the following grounds:

unequal counter-fulfillment of obligations by the other party:

if the price of the transaction and (or) its other conditions differ significantly for the worse for the insurance (reinsurance) company from the price and (or) other conditions under which similar transactions are made in comparable circumstances;

if the market value of the property transferred by the insurance (reinsurance) organization or other fulfillment of obligations carried out by it significantly exceeds the value of the received counter-fulfillment of obligations, determined taking into account the conditions and circumstances of such counter-fulfillment of obligations;

if the transaction was made free of charge or in relation to a person connected with an insurance (reinsurance) company by special relations, in violation of the requirements of the legislation of the Republic of Kazakhstan;

2) making settlements by an insurance (reinsurance) organization in relation to an individual creditor or other person, which entailed giving preference to one of the creditors over other creditors when satisfying claims, in the event that the transaction led to the satisfaction of the claims of some creditors, the deadline for fulfillment of which by the time the transaction was completed, in the presence of obligations to other creditors that were not fulfilled within the established period.

The statute of limitations for disputes related to the invalidity of transactions concluded by an insurance (reinsurance) company within one year before the revocation of its license is five years from the date of their discovery.

When a transaction is declared invalid, the consequences of invalidity of the transaction established by the Civil Code of the Republic of Kazakhstan (General Part) are applied.

1-2. The provisions of paragraph 1-1 of this article do not apply to the transaction (transactions) within the framework of the master financial agreement, except for the following cases:

the transaction (transactions) within the framework of the general financial agreement was (were) completed after the initiation of a case on the forced liquidation of an insurance (reinsurance) company or within one month before the date of initiation of the case on the forced liquidation of an insurance (reinsurance) company;

2) the transaction (transactions) within the framework of the general financial agreement were completed within one month before the date of deprivation of the insurance (reinsurance) organization’s license;

3) the transaction (transactions) within the framework of the general financial agreement was (were) completed within six months before the date of initiation of the case on the forced liquidation of the insurance (reinsurance) company or the date of deprivation of the insurance (reinsurance) company’s license with a person connected with the insurance (reinsurance) company by special relations, or in his interest;

4) the transaction (transactions) within the framework of the general financial agreement was (were) completed within six months before the date of initiation of the case on the forced liquidation of the insurance (reinsurance) company or the date of deprivation of the insurance (reinsurance) company’s license with a person who knew (or should have known) about the signs of the unstable financial position of the insurance (reinsurance) company;

5) in a transaction (transactions) within the framework of the general financial agreement, a change of parties has been carried out (with the exception of a change of parties as a result of universal legal succession) in one of the following cases:

after the initiation of a case on the forced liquidation of an insurance (reinsurance) company or within one month before the date of initiation of a case on the forced liquidation of an insurance (reinsurance) company;

within one month before the date of deprivation of the insurance (reinsurance) organization’s license;

within six months before the date of initiation of the case on the forced liquidation of the insurance (reinsurance) company or the date of deprivation of the insurance (reinsurance) company’s license with a person connected with the insurance (reinsurance) company by special relations;

within six months before the date of initiation of a case on the forced liquidation of an insurance (reinsurance) company or the date of deprivation of an insurance (reinsurance) company’s license with a person who knew (or should have known) about the signs of an unstable financial position of the insurance (reinsurance) company.

1-3. The invalidity of one or more transactions within the framework of the general financial agreement does not entail the invalidity of the general financial agreement itself and the remaining transactions within the framework of the general financial agreement, if in relation to the general financial agreement and other transactions there are no grounds for declaring them invalid.

If one or more transactions within the framework of a general financial agreement are recognized as invalid after determining the net obligation (net claim), the net liability (net claim) is subject to recalculation by the party to the transaction by which the net liability (net claim) was determined, by excluding from it the results of the transaction or transactions declared invalid.

2. The interim liquidation balance sheet and the register of creditors’ claims of a compulsorily liquidated insurance (reinsurance) company are approved by the authorized body.

3. The liquidation commission of a compulsorily liquidated insurance (reinsurance) company is obliged to submit to the authorized body reports on the work done and, upon its written request, additional information about its activities and data relating to the compulsorily liquidated insurance (reinsurance) company.

4. The liquidation bankruptcy estate of an insurance (reinsurance) organization is formed in the manner established by the legislation of the Republic of Kazakhstan, taking into account the specifics established by this Law.

Assets formed from part of the insurance premiums (insurance contributions) received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment, under insurance contracts that provide for the condition of the insured's participation in investments, are not included in the bankruptcy (liquidation) estate of the insurance (reinsurance) organization.

The monthly amount of remuneration paid to the chairman, members of the liquidation commission of a compulsorily liquidated insurance (reinsurance) organization and other involved employees must not exceed for each of them the amount of ten times the minimum wage established for the corresponding financial year by the law on the republican budget.

The sale of property of a compulsorily liquidated insurance (reinsurance) company is carried out by the liquidation commission in the manner determined by the regulatory legal acts of the authorized body.

Control over the activities of the liquidation commission of a forcibly liquidated insurance (reinsurance) company is carried out by the authorized body.

5. The liquidation commission submits to the court a liquidation report and liquidation balance sheet agreed with the authorized body.

The court approves the liquidation report and liquidation balance sheet and issues a ruling on the completion of liquidation proceedings.

The liquidation commission sends a copy of the court ruling to the Corporation, as well as to the authorized body.

The liquidation commission is obliged to submit them to the Corporation, and copies of these documents to the authorized body, within thirty calendar days after approval of the liquidation balance sheet and liquidation report.

The procedure for liquidation and requirements for the work of the liquidation commission of a compulsorily liquidated insurance (reinsurance) company are determined by the regulatory legal acts of the authorized body.

Upon completion of the liquidation of an insurance (reinsurance) company, the liquidation commission is obliged to submit documents for storage in the archive in accordance with the established procedure and notify the authorized body about this.

After registering the termination of the activities of the insurance (reinsurance) company, the liquidation commission, within five working days, submits to the authorized body a copy of the order to register the termination of the activities of the insurance (reinsurance) company.

Article 71. Declaring an insurance (reinsurance) company bankrupt

The insolvency of an insurance (reinsurance) company is established taking into account the conclusion of the authorized body, submitted to the court, drawn up taking into account the methodology for calculating prudential standards and other mandatory norms and limits, the amount of capital of the insurance (reinsurance) company, including the presence of the insurance (reinsurance) company with monetary obligations and other monetary requirements not fulfilled by the insurance (reinsurance) company in within three or more months from the date of their execution.

An insurance (reinsurance) organization is insolvent if it is unable to fulfill monetary obligations and other monetary requirements within three months from the date of their fulfillment.

2. Rehabilitation procedures in relation to an insurance (reinsurance) company may be prescribed by a court if there is a corresponding conclusion from the authorized body.

3. Rehabilitation procedures in relation to an insurance (reinsurance) organization can be carried out in the form of reorganization or in the form of transfer of insurance liabilities and the corresponding amount of assets to interested insurance (reinsurance) organizations through public auctions held in the manner determined by the legislation of the Republic of Kazakhstan.

4. An insurance (reinsurance) company may be declared bankrupt only by a court decision in the manner prescribed by law. An extrajudicial procedure for the liquidation of an insolvent insurance (reinsurance) company by decision of its creditors and the insurance (reinsurance) company itself is not permitted.

5. The conclusion of a settlement agreement by the parties in a bankruptcy case of an insurance (reinsurance) company is not allowed.

Article 72. The order of satisfaction of claims of creditors of an insurance (reinsurance) company

The claims of creditors of an insurance organization, recognized in the manner prescribed by law, must be satisfied in the following order:

first of all, the claims of creditors for making insurance payments for insured events that occurred before the court decision on the liquidation of the insurance organization entered into legal force;

1-1) secondly, the requirements for payment of alimony withheld from wages and (or) other income are satisfied, as well as the claims of citizens to whom the liquidated insurance organization is liable for causing harm to life or health, by capitalizing the corresponding time payments on grounds not related to liability under insurance contracts;

in the third place, calculations are made for wages and compensation to persons working under an employment contract, arrears of social contributions to the State Social Insurance Fund, payment of mandatory pension contributions withheld from wages, as well as remunerations under copyright agreements;
fourthly, the claims of creditors under concluded insurance contracts related to the person of the insured are satisfied;
fifthly, the claims of creditors - individuals under property insurance contracts concluded by them and other types of insurance not related to the person of the insured are satisfied;
in the sixth place, the claims of creditors under concluded insurance contracts other than those specified in subparagraphs 3) and 4) of this paragraph, as well as the requirements of the organization guaranteeing the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, under insurance contracts, for guarantee payments made, expenses associated with payment of the insurance portfolio of the liquidated insurance organization, transferred to another insurance organization in the manner and on the terms provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities, and other expenses associated with their implementation;
in the seventh place, the claims of creditors for obligations secured by a pledge of property of the liquidated insurance organization are satisfied within the limits of the security amount;
in the eighth place, debts on taxes, fees and other obligatory payments to the budget are repaid, as well as on repayment of loans issued from the republican budget;
ninthly, settlements with other creditors are carried out in accordance with the legislative acts of the Republic of Kazakhstan.

2. Expenses associated with liquidation proceedings of an insurance (reinsurance) organization are incurred out of turn.

3. The claims of creditors of the reinsurance company, recognized in the manner prescribed by law, must be satisfied in the following order:

first of all, the requirements for payment of alimony withheld from wages and (or) other income are satisfied, as well as the claims of citizens to whom the liquidated reinsurance organization is liable for causing harm to life or health, by capitalizing the corresponding time payments on grounds not related to liability under reinsurance contracts;
secondly, calculations are made for wages and compensation to persons working under an employment contract, arrears of social contributions to the State Social Insurance Fund, payment of mandatory pension contributions withheld from wages, as well as remunerations under copyright agreements;
thirdly, the claims of assignors arising from contracts in the “life insurance” industry are satisfied;
fourthly, the claims of assignors arising from contracts in the “general insurance” industry are satisfied;
fifthly, the claims of creditors for obligations secured by a pledge of property of the reinsurance company being liquidated are satisfied within the limits of the security amount;
sixthly, debts on taxes, fees and other obligatory payments to the budget are repaid, as well as on repayment of loans issued from the republican budget;
seventhly, settlements with other creditors are carried out in accordance with the legislative acts of the Republic of Kazakhstan.

4. The requirements of each subsequent queue are satisfied after the requirements of the previous queue are fully satisfied.

When the claims of creditors of one priority are satisfied, the funds are distributed among them in proportion to the amounts of claims to be satisfied.

5. When the appropriate turn occurs, the creditor’s claim, with his consent, can be satisfied in ways that do not contradict the legislation of the Republic of Kazakhstan, including in cash and (or) through the transfer of property in kind, in compliance with the principle of proportionality of payments.

6. Claims of creditors expressed in foreign currency are satisfied in tenge at the rate established by the National Bank of the Republic of Kazakhstan on the date of entry into force of the court decision on the forced liquidation of the insurance (reinsurance) company.

Article 72-1. Termination of activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan

Termination of activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is carried out in accordance with this Law and other regulatory legal acts of the Republic of Kazakhstan.

Termination of activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan can be carried out:

by decision of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan on the basis of a permit from the financial supervisory authority of the state of which the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is a resident, or a statement from the financial supervisory authority of the relevant state that such permission is not required under the legislation of the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan (voluntary termination of activities);

2) based on the decision of the authorized body to deprive the license (forced termination of activity).

2. After an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan makes a decision on the voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, the branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is obliged to:

send to the authorized body a copy of such a decision within three working days from the date of drawing up and signing the protocol of the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, attaching a permit from the financial supervisory authority of the state of which the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is a resident, or a statement from the financial supervisory authority of the relevant state that such permission is not required under the legislation of the insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan.

The decision of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan on the voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan entails a ban on concluding new insurance (reinsurance) contracts, including the extension of existing insurance (reinsurance) contracts and their changes, providing for an increase in insurance premiums, the scope of liability of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, from the date of notification of the authorized body in accordance with this subparagraph, which, in the event of a refusal by the authorized body to issue a permit for the voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, is valid until such refusal;

2) transfer the insurance portfolio to another (other) insurance (reinsurance) organization (insurance (reinsurance) organizations), another (other) branch (branches) of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, which has (has, have) a license (licenses) for the transferred classes (types) of insurance and is (is, are) a participant (participants) in the system of guaranteeing insurance payments.

The procedure for issuing a permit for the voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan or refusal to issue the said permit, as well as the procedure for transferring the insurance portfolio, are determined by the regulatory legal act of the authorized body.

After the transfer of the insurance portfolio in the manner prescribed by Article 37-1 of this Law and the regulatory legal act of the authorized body, as well as the repayment of all obligations, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is obliged to apply to the authorized body with a request to issue a permit for the voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan.

3. When a decision is made by an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan to cancel a previously made decision of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan on the voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, the branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is obliged, within three calendar days from the date of drawing up and signing the protocol of the insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan to submit a business plan to the authorized body in accordance with subparagraph 2) of paragraph 2 and paragraph 3 of Article 37 of this Law.

The business plan of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is considered by the authorized body within ten working days.

In this case, the prohibition specified in part two of subparagraph 1) of paragraph 2 of this article is valid until the authorized body approves the business plan specified in part one of this paragraph.

The application for permission to carry out voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan must be accompanied by documents, the list of which is established by the regulatory legal acts of the authorized body.

An application for permission to conduct a voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan must be considered by the authorized body within two months from the date of receipt of all necessary documents.

After receiving permission to voluntarily terminate the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is obliged to return the license and (or) annex to the license to the authorized body within ten working days.

The assets of a branch of an insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan, accepted as a reserve, are returned to the insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan after receiving permission from the authorized body to voluntarily terminate the activities of a branch of the insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan and the return of the license and (or) annex to the license to the authorized body.

After receiving permission from the authorized body to voluntarily terminate the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, the termination of activities is carried out by the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan or persons authorized by them, in the manner prescribed by the Civil Code of the Republic of Kazakhstan.

After deregistration of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, within ten working days, notifies the authorized body about the completion of the process of voluntary termination of the activities of the branch of the insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan.

4. Refusal to issue a permit to voluntarily terminate the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is made by the authorized body on the following grounds:

provided for in subparagraphs 2), 3) and 5) of paragraph 1 of Article 68 of this Law;

2) violation of the legitimate interests of policyholders and other creditors as a result of the alleged voluntary termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan;

3) insufficient funds of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan to pay for the obligations of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan.

5. Forced termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is carried out in connection with the deprivation of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan by the authorized body of a license for the right to carry out insurance (reinsurance) activities on the grounds provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities, including in connection with the decision of the competent authority of the state of which the insurance (reinsurance) organization is a resident - a non-resident of the Republic of Kazakhstan, on the deprivation of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan of a license for the right to carry out insurance (reinsurance) activities and (or) forced liquidation (termination of activities) of an insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan.

If the court makes a decision on the forced termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan on grounds not related to the deprivation of its license by the authorized body, the authorized body considers the issue of depriving its license in the manner established by the legislation of the Republic of Kazakhstan.

In case of forced termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, the authorized body notifies the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, and within ten calendar days from the date of the decision on the forced termination of the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, sends it a copy of such a decision.

6. From the date of deprivation of the license of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities, the authorized body appoints a temporary administration, which exercises the functions and powers established by Article 55-2 of this Law, and transfers the insurance portfolio in the manner and terms provided for in Article 54-1 of this Law, taking into account the specifics of this article.

From the date of the decision to revoke the license of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, insurance (reinsurance) contracts concluded with a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan that is forcibly terminating its activities, are terminated early, with the exception of contracts for guaranteed types (classes) of insurance provided for by the Law of the Republic of Kazakhstan "On the Insurance Payment Guarantee Fund".

The transfer of the insurance portfolio of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan that is forcibly terminating the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is carried out only at the expense of the assets of a branch of an insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan, accepted as a reserve, and money in bank accounts opened for the activities of a branch of an insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan.

If there are insufficient assets of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, accepted as a reserve, and money in bank accounts opened for the activities of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, the transfer of the insurance portfolio for guaranteed types (classes) of insurance is carried out at the expense of the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries), in the event of liquidation of insurance organizations.

After the temporary administration completes the procedure for transferring the insurance portfolio and terminating insurance (reinsurance) contracts, the temporary administration terminates its powers and transfers documents related to the transfer of the insurance portfolio and termination of insurance (reinsurance) contracts to the founders (participants) and (or) the body of the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan and (or) management employees of the branch of the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan that is forcibly terminating the activities. The founders (participants), bodies of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan are obliged to complete the process of forced termination of the activities of a branch, including satisfying the claims of creditors of a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan that is forcibly terminating the activities, in accordance with the civil legislation of the Republic of Kazakhstan.

The exchange of information between the authorized body and the financial supervisory body of the state, the resident of which is an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, on the progress and results of the liquidation procedure of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan is carried out on the basis and in the manner provided for by the agreement specified in subparagraph 4) of paragraph 1 of Article 30-1 of this Law.

Article 73. Control powers of the authorized body in the liquidation process of an insurance (reinsurance) company

In order to exercise control over the activities of the liquidation commission of a compulsorily liquidated insurance (reinsurance) company, including on the grounds of bankruptcy, the authorized body has the right to:

receive reports from the liquidation commission on the work done, and, if necessary, additional information;

2) establish the form, timing and frequency of provision of reports and additional information by the liquidation commission;

3) conduct inspections of the activities of the liquidation commission in the manner established by the laws of the Republic of Kazakhstan;

4) when identifying shortcomings and (or) risks in the activities of the liquidation commission that may lead to the creation of a situation that threatens the interests of policyholders (beneficiaries) and (or) other creditors, violations of the legislation of the Republic of Kazakhstan, the rights and legitimate interests of creditors, issue written orders mandatory for execution by the liquidation commission to eliminate the identified violations and (or) causes, as well as the conditions that contributed to their commission, within a prescribed period and (or) submit to set deadline for the action plan.

Appealing a written order of an authorized body in court does not suspend its execution;

5) in case of failure by the liquidation commission to comply with a written order within the established period, replace members of the liquidation commission, apply measures provided for by the legislation of the Republic of Kazakhstan, and also apply to the court or prosecutorial authorities for the protection of the rights and legally protected interests of creditors;

6) establish the features and procedure for the formation and approval of estimates of liquidation expenses;

7) determine the requirements for the liquidation commission to comply with the rules for storing cash in the cash register, performing incoming and outgoing transactions with cash, maintaining cash documents, ensuring the expenditure of cash, limits on cash balances, as well as the deadlines for depositing cash into the current account of the liquidation commission.

2. In case of violation by the liquidation commission of the legislation of the Republic of Kazakhstan, the chairman, head of the division of the liquidation commission shall bear responsibility established by the laws of the Republic of Kazakhstan.

Chapter 13. Reporting and other issues

Article 74. Financial and other reporting

An insurance (reinsurance) organization and an insurance broker keep records of their transactions in accordance with international financial reporting standards, the legislation of the Republic of Kazakhstan on accounting and financial reporting.

1-1. An insurance (reinsurance) organization and an insurance broker are obliged to promptly submit reliable and complete financial and other reports to the National Bank.

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan and a branch of a non-resident insurance broker of the Republic of Kazakhstan are required to promptly submit to the National Bank reliable and complete reporting on accounting data and other reporting.

2. Insurance (reinsurance) organizations and insurance brokers submit financial and other statements, including financial and other statements on a consolidated basis, to the National Bank in accordance with the regulatory legal acts of the National Bank.

Branches of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan and branches of an insurance broker - a non-resident of the Republic of Kazakhstan submit reporting on accounting data and other reporting to the National Bank in accordance with the regulatory legal acts of the National Bank.

3. An insurance (reinsurance) organization and an insurance broker are obliged to provide the authorized body, at its request, with information about their property, including those located outside the Republic of Kazakhstan, about the size of accepted risks, provided guarantees and sureties, about completed and ongoing insurance and reinsurance transactions, information about participation in the authorized capital of legal entities, including information that constitutes an insurance secret, for the purpose of exercising control and supervisory functions.

3-1. The authorized body has the right to require adjustment of reporting according to accounting data and other reporting of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan in the event that they submit unreliable (incomplete) reporting.

Article 74-1. Reporting of a major participant in an insurance (reinsurance) company and insurance holding companies

Major participants in an insurance (reinsurance) company and insurance holding companies submit financial and other reports to the National Bank in accordance with the regulatory legal acts of the National Bank.

2. A major participant in an insurance (reinsurance) organization who is an individual resident of the Republic of Kazakhstan, in addition to the reporting provided for in paragraph 1 of this article, must, within five working days after the date of submission of the declaration of income and property to the tax authority, submit to the authorized body a copy of it with confirmation of the submission of the declaration to the tax authority.

Article 75. Mandatory actuarial report

Mandatory actuarial opinions on the calculation of insurance reserves and the assessment of insurance liabilities are an integral part of the annual financial statements of the insurance (reinsurance) organization, the annual reporting according to the accounting data of the branch of the insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan and are subject to submission to the authorized body.

2. Requirements for the content and procedure for providing mandatory actuarial opinions are established by regulatory legal acts of the authorized body.

Article 75-1. Ratios characterizing loss ratio

Insurance (reinsurance) organizations, in order to analyze their activities when carrying out all or individual classes (types) of insurance, calculate coefficients characterizing loss ratio (loss ratio, cost ratio, combined ratio).
Ratios characterizing unprofitability (loss ratio, cost ratio, combined ratio) are relative indicators reflecting the unprofitability of the activities of an insurance (reinsurance) organization when carrying out all or individual classes (types) of insurance.

The procedure for calculating coefficients characterizing unprofitability (loss ratio, cost ratio, combined ratio) is established by regulatory legal acts of the authorized body.

Article 76. Publication of key performance indicators of an insurance (reinsurance) company, insurance broker and insurance holding company

Footnote: Footnote. Article 76 - excluded by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 77. Procedure and terms for storing documents

Professional participants in the insurance market, insurance agents engaged in business activities are required to generate data on insurance (reinsurance), insurance intermediation and ensure recording and storage of documents related to their activities in the manner established by the legislation of the Republic of Kazakhstan.

An insurance (reinsurance) organization is obliged to maintain a register of insurance (reinsurance) contracts in the manner established by the regulatory legal act of the authorized body. The insurance (reinsurance) contract must be entered into the register of insurance (reinsurance) contracts within one business day from the date of its conclusion.

Information about the policyholder (insured) (last name, first name, patronymic (if any) or name of the legal entity, insurance contract number, dates of its conclusion, entry into force of the insurance contract and expiration, individual identification number or business identification number), contained in the register of insurance contracts and in the database, must correspond to each other.

The list of documents subject to mandatory storage, the procedure and terms of their storage by professional participants in the insurance market, insurance agents engaged in business activities, are established by the authorized body in agreement with the authorized body for managing archives and documentation.

Article 78. Appeal against the decision of the authorized body

The decision of the authorized body may be appealed by an interested person within ten days from the date it entered into force in the manner established by the legislative acts of the Republic of Kazakhstan.

2. An appeal against the decision of the authorized body on the application of supervisory response measures (except for advisory supervisory response measures) and (or) sanctions, as well as the actions of the temporary administration (temporary administrator) of the insurance (reinsurance) company before the court decision on the forced liquidation of the insurance (reinsurance) company enters into legal force does not suspend the execution of the appealed decision or actions (inaction).

If a transaction concluded on the basis of a decision of an authorized body and (or) a party to which is the temporary administration (temporary administrator) of an insurance (reinsurance) company is declared invalid before the court decision on the forced liquidation of the insurance (reinsurance) company enters into legal force, the return of everything received under this transaction by the parties is not allowed.

Chapter 14. Activities for the formation and maintenance of a database

Footnote: Footnote. The Law is supplemented by Chapter 14 in accordance with the Law of the Republic of Kazakhstan dated July 15, 2010 No. 338-IV (the order of enforcement see Article 2).

Article 79. The procedure for creating and the main functions of the organization for the formation and maintenance of a database

The organization for the formation and maintenance of the database (hereinafter referred to as the organization) is a non-profit organization created in the legal form of a joint stock company, one hundred percent of the voting shares of which belong to the National Bank.

The organization creates and maintains a database on compulsory and voluntary types of insurance, reinsurance, co-insurance, joint reinsurance on the basis of this Law and certain laws of the Republic of Kazakhstan governing compulsory types of insurance

The organization develops, coordinates with the authorized body and approves a database development plan.

The organization maintains a unified register of insurance agents.

1-4. The competence of the board of directors of the organization, in addition to the issues determined by the legislation of the Republic of Kazakhstan on joint stock companies, includes the following issues:

approval of the rate of contributions payable to the organization by recipients of insurance reports specified in subparagraph 3) of part one of paragraph 4 of Article 80 of this Law;

2) approval of the database development plan for the coming calendar year.

5. The procedure for entering a database by classes (types) of insurance consists of the following steps:

commissioning of the database management system;
organizing the information process for creating a database;
testing the information process specified in subparagraph 3) of this paragraph with information providers who have entered into an agreement with them on the provision of information.

Requirements for the content of internal rules establishing the procedure for the organization’s activities are determined by the regulatory legal act of the authorized body. The regulatory legal act of the authorized body is mandatory for execution by the information providers specified in subparagraph 1) of paragraph 3 of Article 80 of this Law, insofar as it relates to their activities as information providers to participate in the creation and protection of the database.

6. The organization in its activities is obliged to:

have technical and other premises for the safe placement and operation of information systems and databases;
when creating and using information systems to host the database and means of protecting said information systems, use certified equipment and software;
conduct an audit of the organization’s software and hardware at least once every three years, including information and communication technologies used by the organization in its activities;
provide authorized state bodies exercising state control over database subjects in accordance with the requirements of the legislation of the Republic of Kazakhstan, round-the-clock access to the information listed in paragraph 2 of Article 80 of this Law, in real time in accordance with the requirements of the Law of the Republic of Kazakhstan “On Informatization” and other laws of the Republic of Kazakhstan;

4-1) ensure the publication on its Internet resource of statistical information on classes of insurance, without disclosing the secret of insurance or other secrets protected by law, in the manner determined by the regulatory legal act of the authorized body;

ensure immediate notification of the conclusion of an insurance contract in electronic form and the settlement of insured events under it in cases provided for by the laws of the Republic of Kazakhstan;

5-1) limit access to the database to recipients of the insurance report specified in subparagraph 3) of part one of paragraph 4 of Article 80 of this Law, in order for them not to conclude new insurance contracts for the period specified in the notification of the authorized body on the restriction of such access;

ensure the storage of information on insurance contracts, including information on insured events (events considered as insured events) and insurance payments, in electronic form;
provide the policyholder (insured, beneficiary) with permanent access to the organization’s Internet resource to view information on insurance contracts in electronic form concluded with this policyholder, in cases provided for by the laws of the Republic of Kazakhstan;

7-1) ensure the availability of a backup server for storing copies of information about the subjects of the unified insurance database located outside the boundaries of the locality in which the organization is located;

comply with other requirements established by the legislation of the Republic of Kazakhstan and (or) agreements on the provision of information and (or) receipt of insurance reports.

7. The main functions of the organization are:

collection of information provided for in paragraphs 1 and 2 of Article 81 of this Law;
generation and issuance of insurance reports, the content requirements of which are established by this Law and certain legislative acts of the Republic of Kazakhstan governing compulsory types of insurance;
formation of insurance statistics, including those necessary for conducting actuarial research in the field of insurance and insurance activities;
creation and maintenance of an information analytical system for statistical recording, analysis and summarization of data on the insurance market and placement of them on information objects, including on the organization’s Internet resource, as well as presentation to the persons specified in paragraph 4 of Article 80 of this Law, in the manner established by this Law;

4-1) interaction with state databases in order to provide analytical and other information services to the persons specified in paragraph 4 of Article 80 of this Law.

The procedure for providing analytical and other information services is determined by the organization independently, taking into account the restrictions established by this Law and other laws of the Republic of Kazakhstan;

automatic calculation of insurance premiums under compulsory insurance contracts in accordance with certain legislative acts of the Republic of Kazakhstan governing compulsory types of insurance;
maintaining an electronic database on insurance, reinsurance, co-insurance and joint reinsurance contracts to store information on them, including information on insured events (events considered as insured events) and insurance payments, in electronic form for each policyholder (insured, beneficiary);
posting on your Internet resource a list of Internet resources of insurance organizations used for concluding insurance contracts in electronic form and settling insured events on them through the exchange of electronic information resources;

8) other functions provided for by the regulatory legal act of the authorized body and (or) the charter of the organization.

8. In order to ensure high-quality and timely performance of functions to implement the requirements provided for by the legislative acts of the Republic of Kazakhstan and this Law, the organization has the right to receive information from individuals and legal entities, as well as government bodies, including information that constitutes an insurance secret.

In order to ensure that insurance (reinsurance) organizations comply with the requirements of the legislation of the Republic of Kazakhstan on combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, the organization has the right to gain access to the relevant information systems and databases of government bodies in accordance with the requirements of the Law of the Republic of Kazakhstan “On Informatization” and other laws of the Republic of Kazakhstan.

Employees of the organization are responsible for the disclosure of information received in the course of carrying out their functions, constituting official, commercial secrets, insurance secrets or other secrets protected by law, in accordance with the laws of the Republic of Kazakhstan.

Article 80. Database

The structure of the database is determined by the organization taking into account the requirements established by this Law.

2. The insurance report is divided into the following types:

limited access insurance report - an insurance report containing information about double insurance, insurance payments, insurance premiums paid, the amount of the insured amount and other information relating to the identity of the policyholder, insured or beneficiary;

2) insurance report of standard access - an insurance report containing information about insured events, the object of insurance, insurance agents, and other information not related to the secret of insurance or other secret protected by law;

3) consolidated insurance report - an insurance report that does not reveal the secret of insurance or other secret protected by law, containing a summary volume of data in quantitative form, including in the context of concluded insurance contracts, the volume of insurance premiums, insurance payments, the number of insured events and other insurance parameters.

3. Suppliers of information for the formation of the database are:

insurance (reinsurance) organizations, including branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, on the basis of agreements concluded with the organization on the provision of information;

1-1) an organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, on the basis of an agreement on the provision of information concluded with the organization;

1-2) unified accumulative pension fund, voluntary accumulative pension fund on the basis of agreements concluded with the organization on the provision of information;

authorized state bodies exercising state control over the subjects of the database, in accordance with the requirements of certain legislative acts of the Republic of Kazakhstan governing compulsory types of insurance;
authorized body;
other persons on the basis of agreements on the provision of information.

4. Recipients of the insurance report are:

authorized body;

1-1) National Bank;

authorized state bodies exercising state control over the subjects of the database, in accordance with the requirements of the laws of the Republic of Kazakhstan;

2-1) a state body that, within its competence, carries out statistical activities in the field of legal statistics and special accounting, in order to provide information regarding compulsory insurance contracts of civil liability of vehicle owners to authorized state bodies through the information exchange system of law enforcement, special state and other bodies;

insurance (reinsurance) organizations, including branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, on the basis of agreements concluded with the organization on the receipt of insurance reports;

3-1) an organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, on the basis of an agreement concluded with the organization on the receipt of insurance reports;

3-2) a unified pension savings fund, a voluntary pension savings fund on the basis of agreements concluded with the organization on the receipt of insurance reports;

subjects of the database (policyholder, insured, beneficiary);

6) other persons in the manner prescribed by the legislative acts of the Republic of Kazakhstan;

insurance ombudsman;
persons specified in subparagraphs 1), 2), 3), 4) and 4-4) of paragraph 5 of Article 830 of the Civil Code of the Republic of Kazakhstan (Special Part);

9) banks, branches of non-resident banks of the Republic of Kazakhstan, organizations carrying out certain types of banking operations, organizations carrying out microfinance activities, on the basis of an agreement concluded with the organization on the provision of information and (or) receipt of insurance reports and the consent of the subject of the database.

foreign organizations on the basis of a concluded agreement on the exchange of information between the authorized body and the relevant supervisory authority of a foreign state;

11) other persons with the consent of the database subject.

It is not permitted to provide information to persons not specified in this paragraph, with the exception of the submission of a consolidated insurance report provided for in subparagraph 3) of paragraph 2 of this article.

5. Issuance of insurance reports from the database to the recipients of the insurance report specified in paragraph 4 of this article is carried out depending on the levels of access and type of insurance reports, with the exception of the submission of a consolidated insurance report provided for in subparagraph 3) of paragraph 2 of this article:

recipients of the insurance report specified in subparagraphs 1) and 1-1) of part one of paragraph 4 of this article have the right to receive all types of insurance reports about all subjects of the database;

2) recipients of the insurance report specified in subparagraphs 2) and 2-1) of part one of paragraph 4 of this article have the right to receive all types of insurance reports on all subjects of the database, taking into account the restrictions established by this Law and other laws of the Republic of Kazakhstan;

3) the recipient of the insurance report specified in subparagraph 3) of part one of paragraph 4 of this article has the right to receive all types of insurance reports about the database subject under insurance contracts concluded with this recipient in accordance with the requirements of the laws of the Republic of Kazakhstan, and for other subjects only with the consent of the database subject;

4) the recipient of the insurance report specified in subparagraph 3-1) of part one of paragraph 4 of this article has the right to receive all types of insurance reports on all subjects of the database within the framework of the guaranteed classes (types) of insurance included in the system of guaranteeing insurance payments;

5) the recipient of the insurance report specified in subparagraph 3-2) of part one of paragraph 4 of this article has the right to receive all types of insurance reports on all subjects of the database under pension annuity contracts concluded within the framework of the Law of the Republic of Kazakhstan “On Pension Security in the Republic of Kazakhstan”;

6) recipients of the insurance report specified in subparagraph 4) of part one of paragraph 4 of this article have the right to receive an insurance report of limited and standard access only about themselves;

7) the policyholder (insured) has the right to receive a limited access insurance report about the beneficiary in order to fulfill the requirement of Article 924 of the Civil Code of the Republic of Kazakhstan;

8) the beneficiary has the right to receive a limited access insurance report about the policyholder (insured) in order to exercise his rights as a victim;

9) recipients of the insurance report specified in subparagraph 6) of part one of paragraph 4 of this article have the right to receive insurance reports containing information provided for by the laws of the Republic of Kazakhstan;

10) the insurance ombudsman has the right to receive insurance reports of limited and standard access about the subjects of the database when resolving issues in the manner prescribed by the laws of the Republic of Kazakhstan;

11) recipients of the insurance report specified in subparagraph 9) of part one of paragraph 4 of this article have the right to receive insurance reports of limited and standard access about the subjects of the database, subject to the conclusion of an agreement with the organization on the provision of information and (or) receipt of insurance reports, as well as with the consent of the database subject upon each receipt of information containing an insurance secret or other secret protected by law, including personal data;

12) recipients of the insurance report specified in subparagraph 10) of part one of paragraph 4 of this article have the right to receive insurance reports of standard access;

13) recipients of the insurance report specified in subparagraph 11) of part one of paragraph 4 of this article have the right to receive insurance reports of standard and limited access with the written consent of the database subject.

Recipients of the insurance report specified in subparagraphs 1), 1-1), 2), 2-1), 3), 3-1), 3-2), 6), 7), 8), 9) and 11) of part one of paragraph 4 of this article are responsible for the disclosure of information constituting official, commercial secrets, insurance secrets or other secrets protected by law.

6. The organization’s submission of an insurance report to the recipients specified in part one of paragraph 4 of this article is carried out in writing based on their request.

The request is submitted in writing on behalf of recipients of insurance reports of standard and (or) limited access specified in subparagraphs 3-1), 3-2), 4), 7), 9), 10) and 11) of part one of paragraph 4 of this article, by the authorized person responsible for submitting the request to the organization, information about which is contained in the register of recipients of the database.

6-1. Authorized state bodies exercising state control over database subjects in accordance with the requirements of the legislative acts of the Republic of Kazakhstan have the right to receive the information listed in paragraphs 1 and 2 of this article around the clock in real time using information systems integrated with appropriate software, in accordance with the requirements of the Law of the Republic of Kazakhstan “On Informatization” and other laws of the Republic of Kazakhstan.

7. For distortion of information received from information providers, failure to fulfill and (or) untimely fulfillment of the duties provided for in paragraph 1 of Article 82 of this Law, the organization bears responsibility established by the Code of the Republic of Kazakhstan on Administrative Offenses.

Article 81. Information provided to create a database

Information providers specified in subparagraph 1) of paragraph 3 of Article 80 of this Law are required to provide information on each concluded insurance, reinsurance, co-insurance and joint reinsurance agreement, including changes and additions made to them, their early termination, the volume of insurance (reinsurance) premiums, insured events (events considered as insured events), insurance agents and insurance brokers, and also the amounts of insurance (reinsurance) payments in the manner, terms and volume that are provided for in the agreement on the provision of information and (or) receipt of insurance reports, taking into account the requirements provided for by this Law and the regulatory legal act of the authorized body.

Branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan provide the information specified in part one of this paragraph for all classes of insurance (reinsurance) specified in the license.

1-1. The information provider specified in subparagraph 1-1) of paragraph 3 of Article 80 of this Law provides information on each insured event, as well as on the amounts of insurance payments in the manner, timing and volume that are provided for in the agreement on the provision of information and (or) receipt of insurance reports, taking into account the requirements provided for by this Law, the Law of the Republic of Kazakhstan "On the Insurance Payment Guarantee Fund" and the regulatory legal act of the authorized body.

1-2. Information providers specified in subparagraph 1-2) of paragraph 3 of Article 80 of this Law provide information on pension annuity agreements concluded in accordance with the Social Code of the Republic of Kazakhstan, in the manner, terms and volume that are provided for in the agreement on the provision of information and (or) receipt of insurance reports, taking into account the requirements provided for by this Law, the Social Code of the Republic of Kazakhstan and the regulatory legal act of the authorized body.

2. A regulatory legal act of the authorized body may establish additional requirements for the content of information provided by information providers specified in subparagraphs 1), 1-1) and 1-2) of paragraph 3 of Article 80 of this Law to the database.

3. The information listed in paragraphs 1, 1-1, 1-2 and 2 of this article is provided by the information providers specified in subparagraphs 1), 1-1) and 1-2) of paragraph 3 of Article 80 of this Law, in electronic form using information systems integrated with appropriate software, within the time limits established by the regulatory legal act of the authorized body.

4. Information providers specified in subparagraphs 1) and 3) of paragraph 3 of Article 80 of this Law bear responsibility, established by the Code of the Republic of Kazakhstan on Administrative Offenses, for distortion of information when provided to the database, failure to fulfill and (or) untimely fulfillment of the duties provided for in paragraph 3 of Article 82 of this Law.

Article 82. Rights and obligations of persons participating in the formation and maintenance of the database

The organization is obliged:

generate insurance reports;
provide insurance reports in the manner prescribed by this Law and the regulatory legal acts of the authorized body;
not to allow disclosure of information contained in insurance reports, except for the cases provided for by this Law;
provide the recipient of the insurance report and the subject of the database with a corrected insurance report if the insurance report presented to the recipient, due to the action or inaction of the organization’s employees, contained information that does not correspond to the information provided to the organization by information providers, within five working days from the moment of discovery of the specified discrepancy.

If it is necessary for the information provider to confirm the fact of non-compliance of the insurance report issued by the organization, the calculation of the period for providing the recipient of the insurance report and the subject of the database with a corrected insurance report is carried out from the moment the organization receives the relevant information from the information provider within the period established by subparagraph 7) of paragraph 3 of this article;

at the request of the database subject, provide him with information about the information provider who provided the information disputed by the database subject;
refuse to submit an insurance report if the request for its submission is made in violation of the requirements established by the legislation of the Republic of Kazakhstan;
keep records of requests for the submission of insurance reports and records of submitted insurance reports;
contact the information provider with a request to correct or supplement the received information, subject to re-registration or clarification if there are appropriate grounds;
use electronic information resources and information systems in accordance with the legislation of the Republic of Kazakhstan;
ensure equal conditions for the participation of information providers specified in paragraph 3 of Article 80 of this Law in the creation and access to information resources of the database;
provide information requested by the authorized body in order to exercise its powers provided for by the legislation of the Republic of Kazakhstan, including:

information about the failure to provide, untimely provision or provision of information incompletely by the suppliers of information specified in subparagraph 1) of paragraph 3 of Article 80 of this Law, the provision of which is required by this Law, the regulatory legal act of the authorized body and contracts for the provision of information and (or) receipt of insurance reports;

information on the amounts of insurance premiums calculated by the information providers specified in subparagraph 1) of paragraph 3 of Article 80 of this Law, in violation of the requirements of the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;

provide the authorized body with access to the database;
within two working days from the date of application of the database subject, provide him with information about the availability in the database of information about the insurance contract concluded by the policyholder with the insurer (information provider), whose responsibilities include entering information into the database under the insurance contract;
within three working days from the date of receipt of a written request from the victim or a person who, according to the laws of the Republic of Kazakhstan, has the right to compensation for damage in connection with the death of the victim, provide in writing information about the presence or absence of an insurance policy in cases provided for by the legislative act of the Republic of Kazakhstan on compulsory types of insurance;
comply with other requirements established by the legislation of the Republic of Kazakhstan and (or) agreements on the provision of information and (or) receipt of insurance reports;

16) maintain a unified register of insurance agents, including:

provide information to the insurer about the presence of an insurance agent in the unified register and confirm the authority of insurance agents to provide intermediary services when concluding insurance contracts;

exclude from the unified register of insurance agents on the grounds provided for by this Law.

2. The organization has the right:

enter into agreements on the provision of information with information providers and (or) receipt of insurance reports with recipients of insurance reports;
demand from information providers complete and reliable information provided to create a database;
return information provided by the information provider without its use in the database, due to its incorrect or incomplete registration, discrepancy between the data of the information provider, the recipient of the insurance report, and the subject of the database with the requirements in the information system used;

3-1) purchase information materials related to business activities from a self-regulatory organization;

3-2) to form and use a database, obtain information from databases and information systems of government bodies and organizations;

3-3) provide recipients of insurance reports with information on the history of the insured vehicle;

have other rights provided for by the legislative acts of the Republic of Kazakhstan and agreements concluded in accordance with this Law.

3. Information providers are obliged to:

enter into an agreement with the organization on the provision of information and (or) receipt of insurance reports;
provide information to the database for its formation in the volume, manner and terms determined by agreements on the provision of information and (or) receipt of insurance reports;
make adjustments to the information transferred to the organization at the request of the database subject;
provide information to the organization in strict accordance with the available information about the subject of the database;
use electronic information resources and information systems in accordance with the legislation of the Republic of Kazakhstan;
provide appropriate conditions for receiving and processing information at their own expense;
provide information to the organization within three working days in the cases provided for in subparagraph 4) of paragraph 1 of this article.

4. The information provider has the right:

require the organization to use the information provided in accordance with this Law;
have other rights in accordance with the legislative acts of the Republic of Kazakhstan and (or) the agreement on the provision of information and (or) receipt of information.

5. The recipient of the insurance report specified in subparagraph 3) of part one of paragraph 4 of Article 80 of this Law is obliged to:

report changes in the information they provided when registering as a recipient of information;
maintain confidentiality regarding the information received and not disclose it to third parties;
use the information received only for the purposes provided for by this Law;
familiarize the database subject, upon his request, with the contents of the information or provide him with a copy of this information in accordance with internal documents;
pay for services for providing information from the database in the manner, amount and terms determined by the agreement on the submission and (or) receipt of insurance reports;
have other obligations in accordance with the legislative acts of the Republic of Kazakhstan and (or) the agreement on the provision of information and (or) receipt of insurance reports.

6. The recipient of information has the right to receive an insurance report and have other rights in accordance with the legislative acts of the Republic of Kazakhstan.

7. The database subject has the right:

receive, in accordance with the requirements established by this Law, an insurance report about yourself;
when concluding an insurance contract, require the recipient of the insurance report specified in subparagraph 3) of paragraph 4 of Article 80 of this Law to familiarize themselves with the insurance report or to provide him with a copy of the insurance report received by this recipient from the database;
declare disagreement with the information contained in the insurance report, obtaining information about the information provider;
contact the information provider and organization with a request to correct inaccurate information;
have other rights in accordance with the legislative acts of the Republic of Kazakhstan.

Article 83. Mandatory terms of the contract for the provision of information and (or) receipt of insurance reports

The agreement on the provision of information and (or) receipt of insurance reports must contain:

full names of the parties, information about their location and bank details;
an indication of the subject of the agreement, consistent with this Law;
list and forms of insurance reports submitted from the database;
rights and obligations of the parties corresponding to this Law;
the procedure for payment for services for providing information from the database;
types, volume, terms (frequency), procedure for providing information for the formation of a database;
types, timing (frequency), volume of information contained in insurance reports, and the procedure for obtaining insurance reports;
the duration of the contract, the grounds and procedure for changing it, terminating it in case of unilateral refusal to perform the contract in cases provided for by this Law, as well as the amount of the penalty for non-fulfillment or improper fulfillment of obligations under the contract;
the obligation of the information provider to maintain confidentiality in relation to all information sent to the organization;
the organization’s obligation to maintain confidentiality in relation to all information received;
conditions on the liability of the parties for violation of the contract.

Unilateral refusal to fulfill an agreement on the provision of information is possible only in cases of voluntary return, as well as deprivation of the insurance organization’s license to carry out insurance activities. In this case, the insurance organization is obliged, before the expiration of the existing insurance contracts, to provide the organization with the information provided for in Article 81 of this Law.

When concluding an agreement on the provision of information and (or) receipt of insurance reports with information providers specified in subparagraph 1) of paragraph 3 of Article 80 of this Law, the following conditions must be included in the agreement on the provision of information and (or) receipt of insurance reports:

on the list and forms of information provided for in paragraph 2 of Article 81 of this Law;
on the mandatory joint implementation of organizational, technical measures and technological requirements for software protection used in the formation and operation of information systems used to create a database and means of protecting these information systems.

Article 84. Registration in an organization

To register with the organization, information providers specified in paragraph 3 of Article 80 of this Law submit the following documents:

application for registration in the organization;
a certificate of state registration (re-registration) of a legal entity;

2-1) certificate of registration of a branch of a non-resident insurance organization of the Republic of Kazakhstan;

information about the last name, first name, patronymic (if any), position of persons authorized to make requests to the database in the manner established by the organization.

If necessary, the specified information is certified by the electronic digital signature of these persons.

Article 85. Reorganization and liquidation of an organization

Footnote: Footnote. Article 85 is excluded by the Law of the Republic of Kazakhstan dated April 27, 2015 No. 311-V (shall be enforced upon the expiration of ten calendar days after the day of its first official publication). Note FROM! Chapter 15 is envisaged to be excluded by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced from January 1, 2027).

Chapter 15. Insurance Ombudsman

Footnote: Footnote. The law is supplemented by Chapter 15 in accordance with the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Article 86. Insurance Ombudsman, his status, principles of activity, procedure for election and early termination of his powers

An insurance ombudsman is an individual independent in his activities who resolves disagreements:

between insurance organizations arising on issues of compulsory and voluntary insurance;

2) between policyholders (insured, beneficiaries) and insurance organizations arising from insurance contracts.

Individuals and (or) small businesses who are policyholders (insured, beneficiaries) have the right to contact the insurance ombudsman to resolve disagreements on all types of insurance. Other legal entities can contact the insurance ombudsman only for the class (type) of compulsory civil liability insurance of vehicle owners.

The amount of claims for disagreements between persons specified in part two of this paragraph should not exceed ten thousand times the monthly calculation index.

2. The insurance ombudsman is guided in his activities by the following principles:

equality of the parties;

2) objectivity and impartiality when making decisions by the insurance ombudsman;

3) maintaining the secrecy of insurance and other secrets protected by law;

4) observance of the rights and respect for the interests of the parties protected by law;

5) transparency and validity of the decision-making procedure.

The insurance ombudsman is elected by the authorized body for a period of three years.

3-1. The procedure for electing and carrying out the activities of the insurance ombudsman is determined by the regulatory legal act of the authorized body.

5. A meeting of the council of representatives of the insurance ombudsman is recognized as competent, and the quorum conditions are met, if the members of the council of representatives of the insurance ombudsman present at it have in the aggregate at least two-thirds of the total number of votes.

6. Early termination of the powers of the insurance ombudsman is carried out by the authorized body, including at the request of the council of representatives of the insurance ombudsman.

7. The same person cannot be elected as an insurance ombudsman more than two times in a row.

8. Early termination of the powers of the insurance ombudsman on his initiative is carried out on the basis of a written notification to the council of representatives of the insurance ombudsman and the authorized body one month before the termination of powers.

Article 87. Council of representatives of the insurance ombudsman and its competence

The Council of Representatives of the Insurance Ombudsman is formed by one representative from:

each insurance organization that has a license to carry out insurance activities;

2) authorized body.

2. Competence of the council of representatives:

approval of a list of candidates of at least three candidates for the position of insurance ombudsman who meet the requirements established by Article 88 of this Law;

2) approval of the structure and staff (office of the insurance ombudsman);

3) approval of the annual budget, a report on the results of the activities of the insurance ombudsman and determination of the amount of the mandatory annual contribution based on the methodology for calculating the amount of mandatory contributions, the procedure and timing of payment of mandatory contributions by insurance organizations to the office of the insurance ombudsman, approved by the authorized body;

4) approval of the internal rules of the insurance ombudsman in agreement with the authorized body;

4-1) providing recommendations to the insurance ombudsman on improving its activities based on the results of analyzing complaints from consumers of insurance services about the actions of the insurance ombudsman and reviewing the reports of the insurance ombudsman;

5) sending a petition to the authorized body for early termination of the powers of the insurance ombudsman;

6) other issues related to the activities of the insurance ombudsman in accordance with this Law.

Article 88. Requirements for the insurance ombudsman

A person may be recommended for election as an insurance ombudsman:

having a higher legal education;

2) having an impeccable business reputation;

3) having worked in the insurance field for more than five years;

4) who was not previously a senior employee of an insurance (reinsurance) company or other legal entity for a period no more than one year before the authorized body made a decision to revoke the license of an insurance (reinsurance) company, as well as the forced liquidation of an insurance (reinsurance) company or other legal entity or declaring them bankrupt in the manner established by the legislation of the Republic of Kazakhstan.

An insurance ombudsman cannot recommend a person who has been recognized by a court in the manner prescribed by the law of the Republic of Kazakhstan as incompetent or partially capable, as well as a person against whom criminal prosecution is being carried out.

2. The insurance ombudsman has no right to hold any position in financial organizations and (or) be an affiliate of insurance organizations.

Article 89. Rights and obligations of the insurance ombudsman

The insurance ombudsman has the right:

request from insurance organizations the information necessary to consider the applicant’s application;

2) publish in the media materials about the activities of the insurance ombudsman in compliance with the requirements of subparagraph 2) paragraph 2 of this article;

3) for the formation of a staff (office of the insurance ombudsman).

2. The insurance ombudsman is obliged to:

be guided in their activities by the principles provided for in paragraph 2 of Article 86 of this Law;

2) maintain confidentiality with respect to information obtained during dispute resolution and not disclose it to third parties;

report annually to the council of representatives of the insurance ombudsman on their activities;

4) ensure the completeness, accuracy and timeliness of posting information and information on your Internet resource.

Article 90. The procedure for making decisions by the insurance ombudsman

The decision is made by the insurance ombudsman alone and is brought to the attention of the parties involved in the dispute in writing.

2. When making decisions, the insurance ombudsman is guided by the legislation of the Republic of Kazakhstan and the terms of concluded contracts.

3. The decision of the insurance ombudsman on disagreements between insurance organizations is mandatory for insurance organizations.

The decision of the insurance ombudsman on disagreements between the policyholder (insured, beneficiary) and the insurance organization is mandatory for the insurance organization if accepted by the policyholder (insured, beneficiary).

4. If the insurance organization fails to comply with the decision of the insurance ombudsman within the period established by him, the insurance ombudsman is obliged no later than three working days to inform the authorized body about this, attaching documents confirming the fact of violation of the requirements of this Law and the regulatory legal acts of the authorized body.

5. The persons specified in part two of paragraph 1 of Article 86 of this Law, who are policyholders (insured, beneficiaries), as well as the insurer, have the right to go to court in accordance with the legislation of the Republic of Kazakhstan after receiving a decision of the insurance ombudsman. At the same time, execution of the decision of the insurance ombudsman for the policyholder (insured, beneficiary) is not mandatory.

Article 91. Activities of the insurance ombudsman

The activities of the insurance ombudsman, including the procedure and timing for considering applications to resolve disagreements and making decisions, are carried out on the basis of the procedure for electing and carrying out the activities of the insurance ombudsman, approved by the authorized body, and the internal rules of the insurance ombudsman.

2. In order to properly perform the assigned functions, the activities of the insurance ombudsman are financed from contributions from insurance organizations. The methodology for calculating the amount of mandatory contributions, the procedure and terms for payment of mandatory contributions by insurance organizations to the office of the insurance ombudsman are established by a regulatory legal act of the authorized body.

3. The settlement of disagreements in the cases provided for in paragraph 1 of Article 86 of this Law is carried out by the insurance ombudsman free of charge.

4. In case of non-payment, late payment or partial payment of mandatory contributions, the insurance ombudsman is obliged to notify the authorized body within seven working days of the insurance organization’s improper fulfillment of its obligations under this Law.

5. The office of the insurance ombudsman must contain services and specialists in information technology, jurisprudence, accounting and financial reporting, in the field of assessment, for working with applications from applicants and other services (specialists) based on the decision of the insurance ombudsman, approved by the council of representatives of the insurance ombudsman.

Article 92. Features of the settlement of disputes arising from compulsory insurance contracts

Features of the settlement of disputes arising from compulsory insurance contracts are established by separate legislative acts of the Republic of Kazakhstan regulating compulsory types of insurance.

President of the Republic of Kazakhstan

Law «On Insurance Activity» (No. 126-II)

Law of the Republic of Kazakhstan «On Insurance Activity» (No. 126-II)

Requisites

Subject of the document

Relevance for actuarial practice

Official source

English Translation (Auto-generated)

Chapter 1. General provisions

Article 1. Legislation of the Republic of Kazakhstan on insurance and insurance activities

Article 1-1. The main goals of state regulation in the insurance sector

Article 2. Relations regulated by this Law

Article 3. Basic concepts used in this Law

Article 4. Insurance and insurance activities

Article 5. Insurance of foreign individuals and legal entities and stateless persons

Article 5-1. Insurance by insurance organizations - non-residents of the Republic of Kazakhstan and insurance (reinsurance) organizations - participants of the Astana International Financial Center

Chapter 2. Organization of insurance activities

Article 6. Industries, classes and types of insurance

Article 7. Contents of insurance classes

Article 8. Combination of industries and classes of insurance

Article 9. Reinsurance activities

Chapter 3. Insurance market

Article 10. Insurance market participants

Article 10-1. Powers of the association of insurance (reinsurance) organizations and insurance brokers

Article 10-2. Internal documents of the association of insurance (reinsurance) organizations and insurance brokers

Article 10-3. Association of Actuaries

Article 11. Activities of an insurance (reinsurance) company

Article 11-1. General conditions for carrying out insurance (reinsurance) activities

Article 11-2. Consideration of applicants' requests

Article 12. Features of carrying out life insurance activities

Article 13. Co-insurance and joint reinsurance activities

Article 14. Prohibition on unlicensed activities

Article 15. Cross-border insurance and reinsurance

Article 15-1. Prohibition on providing preferential conditions to persons connected with an insurance (reinsurance) company by special relations

Article 15-2. Requirements for an insurance organization and Internet resources when concluding, terminating and (or) early termination of an insurance contract and settling insured events through the exchange of electronic information resources

Chapter 4. Insurance intermediation

Article 16-1. Creation of an insurance broker

Article 16-2. Requirements for founders (participants, shareholders) of an insurance broker

Article 16-3. Formation of the authorized capital of an insurance broker

Article 16-4. Opening a branch of a non-resident insurance broker of the Republic of Kazakhstan

Article 17. Activities of an insurance broker and requirements for it

Article 18. Intermediary activity of an insurance agent and requirements for it

Article 18-1. Requirements for persons carrying out intermediary activities of an insurance agent, as well as for the procedure for their registration and training

Article 18-2. Rights and obligations of an insurance agent

Chapter 5. Actuarial activities and audit

Article 19. Actuarial activity

Article 20. Audit

Chapter 6. Creation of an insurance (reinsurance) organization

Article 21. Founders and shareholders of an insurance (reinsurance) company

Article 22. Legal status of the insurance (reinsurance) company

Article 23. Name of the insurance (reinsurance) company

Article 24. Bodies of the insurance (reinsurance) company

Article 25. Formation of the authorized capital of an insurance (reinsurance) company

Article 25-1. Subordinated debt

Article 26. Insurance holding company, major participant in an insurance (reinsurance) organization

Article 26-1. Grounds for refusal by the authorized body to issue consent to persons wishing to become an insurance holding company or a major participant in an insurance (reinsurance) organization

Article 27. Permission to create an insurance (reinsurance) organization

Article 28. Grounds for refusal to issue permission to create an insurance (reinsurance) company

Article 29. Grounds for revocation of permission to create an insurance (reinsurance) company

Article 30. State registration of an insurance (reinsurance) company

Article 30-1. Opening a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan

Article 31. Changes and additions to the constituent documents of an insurance (reinsurance) company

Article 31-1. Notification of approval of financial products by an insurance (reinsurance) organization

Article 32. Subsidiaries of an insurance (reinsurance) organization and significant participation of an insurance (reinsurance) organization in the capital of organizations

Article 33. Creation and closure of branches and representative offices of an insurance (reinsurance) company and an insurance broker

Article 34. Managers of an insurance (reinsurance) company, an insurance holding company and an insurance broker

Article 35. Additional requirements for an insurance (reinsurance) company with the participation of a non-resident of the Republic of Kazakhstan

Article 36. Insurance broker

Chapter 6-1. Features of the creation and activities of Islamic insurance (reinsurance) organizations

Article 36-1. Principles of Islamic Insurance

Article 36-2. Islamic Insurance Fund

Article 36-3. Remuneration of an Islamic insurance (reinsurance) organization

Article 36-4. Activities of the Council on the Principles of Islamic Finance

Article 36-5. Requirements for the activities of an Islamic insurance (reinsurance) organization

Article 36-6. Consequences of recognizing an Islamic insurance contract as not complying with the principles of Islamic insurance

Article 36-7. Additional requirements for the charter of an Islamic insurance (reinsurance) organization

Chapter 7. Licensing

Article 37. Licensing of an insurance (reinsurance) company and an insurance broker

Article 38. Refusal to issue licenses for the right to carry out insurance activities, reinsurance activities and insurance broker activities

Article 38-1. Changes in the insurance industry of an insurance (reinsurance) organization

Article 39. Licensing of the activities of an authorized auditor