On insurance activities

The Law of the Republic of Kazakhstan dated 18 December, 2000 No. 126

Unofficial translation

      Footnote. 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” in the text by the Law of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January, 2004).

Chapter 1. General Provisions

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

      Footnote. Title, as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234 -IV

      1. 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.
      2. Relations, arising out of insurance and related to the scope of other legislative acts of the Republic of Kazakhstan shall be regulated by these acts, with the exception of the relationship, directly regulated by this Law. 3. If an international treaty, ratified by the Republic of Kazakhstan establishes the rules other than those contained in this Law, the rules of the international treaty shall be applied.
      Footnote. Article 1, as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Article 2), dated 30.12.2009 No. 234 -IV.

      Article 2. Relations, regulated by this Law

      1. This Law shall define the basic provisions for the implementation of insurance as a form of entrepreneurial activity, peculiarities of the creation, licensing, regulation, termination of the activities of insurance (reinsurance) companies, insurance brokers, the activity conditions in the insurance market of other individuals and legal entities, the tasks of state regulation of the insurance market and the principles of control and supervision of the insurance activities. 2. The regulatory legal acts of the National Bank of the Republic of Kazakhstan (hereinafter - the authorized body), taken in accordance with this Law, are regulatory for all participants in the insurance market.
      Footnote. Article 2 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30 -V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 3. The basic concepts, used in this Law

      The following concepts shall be used in this Law:
      1) an adjuster - an employee of the insurance (reinsurance) company, whose functions include the consideration of the application for insurance payment and the damage assessment of the insured event;
     1-1) an actuary - an individual, who has a license of the authorized body, carrying out the activities, related to the conduct of economic and mathematical calculations of the liabilities, insurance rates for insurance and reinsurance contracts, as well as conducting the assessment of profitability and return on the existing and planned insurance types of the insurance (reinsurance) company to conduct in order to ensure the required level of solvency and financial stability of the insurance (reinsurance) company;
      1-2) a union of actuaries - a non-profit organization, created in the form of a public association to protect the interests of its members and the creation of conditions of professional activity;
      1-3) an underwriter - an employee of the insurance (reinsurance) company, whose functions include the assessment of insurance risks, assumed by insurance and the definition of conditions of insurance (reinsurance) contracts;
      2) assistance - a provision of assistance by insurance companies, legal entities to the policyholder (the insured, the beneficiary), who got in trouble during his (her) travels or his (her) location away from the residence, in the form of money and (or) natural-material form through technical, medical assistance as a result of the insured event;
      3) control - the ability to determine the solutions of the legal entity that occurs when one of the following conditions is happened:
      direct or indirect ownership by one person alone or together with one or more persons over fifty percent of the shares in the authorized capital or allotted (net of preferred and bought back by the public shares) shares of the legal entity or the existence of the possibility of their own to vote more than fifty percent of shares of the legal entity;
      having the ability of one person to elect independently at least half of the governing body or the executive body of the legal entity;
      inclusion of financial statements of a legal entity, with the exception of the financial statements of the special finance company, incorporated under the legislation of the Republic of Kazakhstan on project financing and securitization in the financial statements of another entity, in accordance with the auditor’s report;
      having the ability of one person independently or together with one or more other persons determine the decisions of a legal entity by treaty (supporting documents) or otherwise in the cases, provided by the regulatory legal act of the authorized body;
      4) a parental organization is the legal entity that has control over the other legal entity;
      5) a subsidiary is a legal entity, in relation to which another legal entity has control;
      6) indirect ownership of partnership shares in the authorized capital or ownership (voting) of shares of a legal entity is the ability to influence to the decisions of a legal entity, a major participant of the legal entity or the persons, who are together the major participant in the legal entity through the ownership (voting) of shares (shares in the authorized capital) of other legal entities;
      7) a major participant of a legal entity - an individual or a legal entity that owns, directly or indirectly, ten or more percent of shares in the authorized capital or voting (excluding the preferred shares) shares of the legal entity (except in cases, where such owner is a state or a national holding company);
      8) a significant part in the capital - the ownership, directly or indirectly, independently or jointly with one or more persons of twenty or more percent of voting (less the preferred shares) shares (shares in the authorized capital) or the presence of possible vote by twenty or more percent of the shares;
      9) a reinsurance is the activities and related to it relations, arising in connection with the transfer of all or part of the insurance risks in reinsurance by the reinsured, on the one hand, and the acceptance of these risks by the reinsurance company, on the other hand, in accordance with the reinsurance contract, concluded between them;
      10) a reinsurance company (a reinsurer) - a legal entity, carrying out the activities on the conclusion and execution of reinsurance contracts on the basis of a license of the authorized body;
      11) a reinsured (cedant) - the insurance or reinsurance company, carrying out the transfer of insurance risks it has taken to reinsurance;
      12) impeccable business reputation - the existence of facts, supporting the professionalism, integrity, lack of unexpunged or outstanding conviction;
      13) co-insurance - the activity and related relations to it, arising in connection with the adoption of insurance risks under a contract of insurance at the same time by a number of insurance companies with the distribution of their responsibilities in accordance with the coinsurance contract, concluded between them;
      14) net retention - a part of the responsibility, in which the insurer or reinsured (cedant) shall be responsible for its own account in accordance with the contract of insurance or reinsurance;
      15) prudential standards - the standards, established by the authorized body and mandatory to comply with by the insurance (reinsurance) companies;
      16) an insurance agent is an individual or legal entity, included in the register of insurance agents and operating as agents for conclusion of insurance contracts on behalf of and by the order of one or more insurance companies on the basis of the contract of agency;
      17) an insurance broker - a legal entity, representing the policyholder in the relations, associated with the conclusion and performance of insurance contracts with the insurer by the order of the policyholder, or carrying out on its own name the mediation activities to provide services, relating to the conclusion of insurance or reinsurance contracts, and consulting activities on insurance and reinsurance;
      18) rules of insurance - the document of an insurance company that defines the conditions of the insurance for a particular type of insurance;
      Note of the RCLI!
      Subparagraph 18-1) shall be enforced from 01.01.2011 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      18-1) an insurance report - a form of full or partial release of information, contained in the database;
      Note of the RCLI!
      Subparagraph 18-2) shall be enforced from 01.01.2011 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      18-2) a single database of insurance (hereinafter - the database) - a set of information (including in electronic form) about the insurer, the policyholder, the insured person and the beneficiary;
      19) subjects of insurance activities - the insurance and reinsurance companies;
      20) professional participants of the insurance market - the insurance (reinsurance) company, insurance broker, actuary, which operate its activity on the basis of the appropriate license of the authorized body;
      21) the insurance ombudsman - an individual, who is independent in his activities and regulates the relationship between the participants of the insurance market;
      22) an insurance portfolio - a set of insurance (reinsurance) contracts, as well as insurance premiums (insurance contributions) taken by them;
      23) insurance reserves - the obligations of the insurance (reinsurance) company under the insurance (reinsurance) contracts, estimated on the basis of actuarial calculations;
      23-1) an insurance risk - the probability of occurrence of the insured event;
      23-2) an insurance group - a group of legal entities, which is not a banking conglomerate, consisting of an insurance holding company, an insurance (reinsurance) company, as well as subsidiaries of an insurance holding company, and (or) subsidiaries of insurance (reinsurance) company and (or) organizations, in which the insurance holding company, and (or) its subsidiaries, and (or) insurance (reinsurance) company have a significant participation in the capital;
      24) an insurance company - a legal entity, carrying out the activities on the conclusion and execution of insurance contracts on the basis of a license of the appropriate authorized body;
      25) indirect ownership (voting) of shares of the insurance (reinsurance) company - the ability to influence to the decisions of the insurance (reinsurance) company, a major participant of the insurance (reinsurance) company, an insurance holding company or persons, that are together, a major participant in the insurance (reinsurance) company, an insurance holding company, through the ownership of shares (shares in the authorized capital) of legal entities;
      25-1) association of insurance (reinsurance) companies, insurance brokers - a non-commercial organization, established in the form of association (union) to protect the interests of its members and the coordination of their professional activities;
      26) a major participant of insurance (reinsurance) company - an individual or a legal entity (except in cases, where such holder is a state or a national holding company, as well as otherwise provided by this Law), which is in accordance with the written consent of the authorized body may own, directly or indirectly, ten or more percent of outstanding (net of preferred shares and bought shares of the insurance (reinsurance) company) shares of the insurance (reinsurance) company or shall be able to:
      vote, directly or indirectly, by ten or more percent of voting (net of preferred) shares of the insurance (reinsurance) company;
      influence to the decisions of the insurance (reinsurance) company under the contract or otherwise in the manner, specified by the regulatory legal acts of the authorized body;
      26-1) an insurance holding company - a legal entity (except in cases, where such holder is a state or a national holding company, as well as otherwise provided by this Law), which is in accordance with the written consent of the authorized body may own, directly or indirectly, twenty-five or more percent of outstanding (net of preferred shares and bought shares of the insurance (reinsurance) company) shares of the insurance (reinsurance) company or shall be able to:
      vote, directly or indirectly, by twenty-five or more percent of the voting shares of the insurance ( reinsurance) organization;
      determine the decisions, made by the insurance (reinsurance) company, under the contract or otherwise, or have control;
      27) redemption amount - the amount of money that the policyholder is entitled to receive upon early termination of the endowment insurance contract;
      28) a surveyor is an employee of the insurance (reinsurance) company or a legal entity, providing services to the insurance (reinsurance) company in accordance with the paid services contract, whose functions include the preliminary inspection and assessment of the object of insurance, taken to the insurance;
      Note of the RCLI!
      Subparagraph 29) shall be enforced from 01.01.2012.
      29) an independent actuary - an individual, who attracted by the insurance (reinsurance) company to assess the actuarial calculations, which consists in the state of the insurance (reinsurance) company and meet the requirements of this Law;
      29-1) affiliated entities - individuals or legal entities (with the exception of state bodies, exercising the control and supervisory functions under the authority, granted to them and the national holding company), and having the ability to directly (or) indirectly determine and (or) influence to the decisions, made by each other (one of the persons), including by virtue of the concluded contract. The presence of national holding company in the shareholders of the insurance (reinsurance) company is not a basis for determining as affiliated with respect to each other;
      30) the internal reserve fund - the amount of money that is formed by the insurer in accordance with the requirements of the regulatory legal acts of the authorized body, at the expense of the part of the insurance premiums, received from insurers for the purposes of investment, and income (loss), derived from their investment with the insurer’s expenses, incurred as a result of management.
      Footnote. Article 3 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV, as amended by the Laws of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 12.01.2012 No. 539-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 4. Insurance and insurance activities

      1. Insurance - a complex relationship for the protection of the legitimate proprietary interests of an individual or a legal entity upon the occurrence of an insurance event or another event, specified in the insurance contract by the insurance payments made by the insurance company at the expense of their assets.
      2. Insurance activities - the activities of insurance (reinsurance) company, related to the conclusion and execution of insurance (reinsurance) contracts, carried out under the license of the authorized body in accordance with the legislation of the Republic of Kazakhstan, as well as the activities of mutual insurance associations, related to the conclusion and execution of insurance contracts, carried without the license in accordance with the legislation of the Republic of Kazakhstan on mutual insurance.
      Footnote. Article 4, as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 05.07.2006 No. 164 (the order of enforcement see Art. 2), dated 30.12.2009 No. 234 – IV.

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

      1. Foreign citizens, stateless persons, foreign legal entities, including those, who are carrying out their activities in the territory of the Republic of Kazakhstan, are entitled to insurance coverage as citizens and legal entities of the Republic of Kazakhstan.
      2. (Is excluded – dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 5-1. Insurance by insurance companies - non-residents of the Republic of Kazakhstan

      1. Insurance of the property interests of the legal entity or its separate divisions, located in the territory of the Republic of Kazakhstan and the property interests of an individual, who is the resident of the Republic of Kazakhstan, may be carried out only by an insurance company - resident of the Republic of Kazakhstan.
      2. The conclusion and execution of insurance contracts with the insurance companies - non-residents of the Republic of Kazakhstan, by individuals, who are the residents of the Republic Kazakhstan, temporarily located outside the Republic of Kazakhstan to work, study, treatment or rest, only for the period of temporary stay of such persons outside the Republic of Kazakhstan, are allowed.
      3. Second-tier banks of the Republic of Kazakhstan and organizations, engaged in certain types of banking operations, are prohibited to make payments and money transfers, except in cases provided for in paragraph 2 of this article related to:
      1) the payment of insurance premiums (contributions) to non-residents of the Republic of Kazakhstan from individuals and legal entities-residents of the Republic of Kazakhstan;
      2) the implementation of insurance payments in favor of individuals or legal entities - residents of the Republic of Kazakhstan under the insurance contracts, received from non-residents of the Republic of Kazakhstan.
      Footnote. Chapter 1 is supplemented by Article 5-1 in accordance with the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No.338-IV (the order of enforcement see Art. 2).

Chapter 2. The organization of insurance activities

      Article 6. Sectors, classes and types of insurance

      1. For the organization and implementation of the state regulation and licensing of insurance activities, the insurance coverage is divided into sectors, classes and types. Insurance activities of the insurance company are carried out by sectors “life insurance” and “general insurance”.
      2. The sector of “life insurance” includes the following classes in the voluntary form of insurance:
      1) a life insurance;
      2) an annuity insurance;
      3 ) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2);
      4) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).
      3. The sector “general insurance” includes the following classes in the voluntary form of insurance:
      1) an accident insurance;
      2) a health insurance;
      3) a motor vehicle insurance;
      4) an insurance of railway transport;
      5) an air transport insurance;
      6) a water transport insurance;
      7) a cargo insurance;
      8) an insurance against property damage, except for the classes specified in subparagraphs 3) - 7) of this paragraph;
      9) an insurance of civil liability of motor vehicle owners;
      10) an insurance of civil liability of owners of air transport;
      11) an insurance of civil liability of owners of water transport;
      12) an insurance of civil liability, except for the classes specified in paragraphs 9) - 11) of this paragraph;
      13) a loan insurance;
      14) a mortgage insurance;
      15) a guarantees and warranties insurance;
      15-1) an insurance of losses of financial institutions, with the exception of the classes specified in paragraphs 13), 14), 15) and 16) of this paragraph;
      16) an insurance against other financial losses;
      17) a legal expenses insurance;
      18) a title insurance.
      4. Additional requirements under the terms of a separate class (type) of insurance in the form of voluntary insurance, including prudential standards within the individual classes (types) of insurance, shall be established by the regulatory legal acts of the authorized body.
      5. Type of insurance - an insurance product, developed and provided by insurance company to the policyholder within one or more classes of insurance by conclusion of the insurance contract.
      6. Each type of compulsory insurance, contents and conditions of which are determined by the legislation of the Republic of Kazakhstan, regulating compulsory type of insurance is a separate class of insurance.
      Footnote. Article 6, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 07.05.2007 No. 244, dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338 -IV (the order of enforcement see Art. 2).

      Article 7. The content of the classes of insurance

      1. A life insurance - a combination of types of insurance, providing for an insurance payment in case of death of the insured person or his (her) survival until the end of the insurance period or for an age, specified in the insurance contract.
      2. An annuity insurance - a combination of types of endowment insurance, providing for the implementation of periodic insurance payments in the form of a pension or annuity within the period, established in the contract or for life in the event of reaching of the insured person a certain age, disablement (in age, due to disability, due to illness), death of a breadwinner, unemployment or other cases, lead to a decrease or loss of personal income of the insured person. The condition of the implementation of the periodic payments under the annuity insurance contracts is not related to the definition, refinement and confirmation of the amount of insurance payments.
      2-1. Is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).
      2-2. Is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).
      3. An accident insurance - a combination of types of insurance, providing for an insurance payment in a fixed amount and (or) in the amount of partial or full compensation of expenses of the insured person in case of death, loss (total or partial) disability (general or vocational) or any other damage to health of the insured person as a result of an accident, occupational disease, except for the insurance risks specified in subparagraph 2) of paragraph 3 of Article 6 of this Law.
      By accident is understood a sudden, short-term event (accident), which occurred against the will of a person as a result of external mechanical, electrical, chemical, or thermal effects on the insured person, which led to a personal injury, bodily injury or a death.
      4. A health insurance - a combination of types of insurance, providing for an insurance payment in a fixed amount and (or) in the amount of partial or full compensation of expenses of the insured person in connection with disease and other health disorders, with the exception of the classes of insurance specified in subparagraph 1) of paragraph 3 article 6 of this Law.
      5. An insurance of means of transport, specified in subparagraphs 3) - 6) of paragraph 3 of Article 6 of this Law, is a combination of types of insurance, providing for insurance payments in the amount of partial or full compensation for the damage, caused to property interests of a person, connected with the possession, use and disposal of means of transport, including hijacking or theft, as well as due to its damage or destruction.
      6. A cargo insurance - a combination of types of insurance, providing for insurance payments in the amount of partial or full compensation for the damage, caused to the property interests of a person, connected with the possession, use and disposal of cargo, including luggage, goods, and all other types of products as a result of their injuries, destruction, loss, regardless of the mode of transportation.
      7. A property insurance - a combination of types of insurance, providing for insurance payments in the amount of partial or full compensation for the damage, caused to the property interests of a person, connected with the possession, use and disposal of property as a result of 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. An insurance of civil liability of owners of the means of transport, provided for in subparagraphs 9) - 11) of paragraph 3 of Article 6 of this Law, is a combination of types of insurance, providing for insurance payments in the amount of partial or full compensation for the damage, caused to the property interests of a person, connected with his (her) duty to repair the damage, caused to third parties in connection with his (her) use of the vehicle, including the civil liability of the carrier.
      9. An insurance of civil liability - a combination of types of insurance, providing for insurance payments in the amount of partial or full compensation for the damage, caused to the property interests of a person, related to his (her) obligation to repair the damage, caused to third parties as a result of insurance of all the risks, except as provided in subparagraphs 9) - 11) of paragraph 3 of Article 6 of this Law.
      10.A loan insurance - a combination of types of insurance, providing for insurance payments in the event of loss of the lender as a result of non-fulfillment by the insurer (the borrower) the obligations to the lender.
      11. A mortgage insurance is a type of insurance, which includes the implementation of insurance payments in the amount of partial or full compensation for the damage, caused to the property interests of the lender, as a result of non-fulfillment by the borrower his (her) obligations under the contract of mortgage loan, in the event of a reduction in the market value of housing, acting as a collateral for a mortgage loan.
      12.A guarantees and warranties insurance - a combination of types of insurance, providing for insurance payments in the amount of partial or full compensation of the damage, caused to the property interests of the person, issued the guarantee or warranty, as a result of his (her) obligation to perform the issued warranty or guarantee.
      13. An insurance against other financial losses - a combination of types of insurance, providing for insurance payments in the event of loss due to loss of job, loss of income, adverse natural phenomena, continuous, unexpected expenses, loss of market value and other damages as a result of the financial and economic activity, except for insurance of the risks, specified in subparagraphs 12) - 15) of paragraph 3 of Article 6 of this Law.
      14. A legal expenses insurance - a combination of types of insurance, providing for insurance payments for losses of the policyholder (the insured person) as a result of their expenses, incurred in connection with court trial.
      15. Under the insurance risks contracts, specified in paragraphs 11 - 13 of this article, the risk of the policyholder and only in his (her) favor, can be insured.
      16. An insurance of losses of financial institutions- a combination of types of insurance, providing for the implementation of the insurance payment in the amount of partial or full compensation for losses, as a result of providing the financial services by the financial institution, with the exception of the classes specified in subparagraphs 13), 14), 15) and 16) of paragraph 3 Article 6 of this Law.
      17. A title insurance - a combination of types of insurance, providing for an insurance payment in the amount of partial or full compensation for the damage, caused to the property interests of the policyholder in the event of termination of the right to the property.
      Footnote. Article 7, as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 8. The combination of sectors and classes of insurance

      1. The activities of the insurance company in the Republic of Kazakhstan are carried out on the basis of a license for the sector “life insurance” or a license for the sector “general insurance” within the respective classes of insurance, specified in the license.
      2. The activity in the sector “general insurance” may not be:
      1) combined with the activities in the sector “life insurance”;
      2) carried out in the form of endowment insurance.
      3. The activity in the sector “life insurance” may not be combined with the activities in the sector “general insurance”, as well as the corresponding classes in the form of compulsory insurance, except for insurance of the risks within the classes of insurance, specified in subparagraphs 1) and 2) of paragraph 3 of Article 6 of this Law.
      4. The insurance company may develop a type of insurance that combines the features and contents of two or more classes of insurance, provided that it has a license with the indication of corresponding classes of insurance and subject to the restrictions on combining the classes of insurance, specified by this Law.
      5. (Paragraph is excluded by the Law of the Republic of Kazakhstan dated July 10, 2003 No. 483 (shall be enforced from January 1, 2004).
      Footnote. Article 8, as amended by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 9. Reinsurance activities

      1. The reinsurance activity in the territory of the Republic of Kazakhstan is subject to licensing in the manner, provided in this Law.
      2. The insurance company transfers the insurance risks to reinsurance without a license for reinsurance.
      3. The insurance company may accept the insurance risks to reinsurance only in the presence of the reinsurance license.
      4. The insurance company, having the license in the sector “general insurance” has the right to obtain a license and implement activities to reinsurance in all the classes of insurance, exclusively in the sector “general insurance”.
      5. The insurance company, having the license in the sector “life insurance” has the right to obtain a license and implement activities to reinsurance in all the classes of insurance in the sector “life insurance” with the combination of the classes, provided for in paragraph 3 of Article 8 of this Law.
      6. The reinsurance company, implementing the reinsurance as an exceptional activity on the basis of a license to reinsurance, has the right to implement reinsurance in all the insurance classes in the sector “life insurance” and “general insurance”.
      7. The provisions of this Law regarding the formation, licensing, regulation and termination of the insurance company shall be applied to the conditions for formation, licensing, regulation and termination of the reinsurance companies, implementing reinsurance as an exceptional activity.
      8. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.
      Footnote. Article 9 is in the wording of the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), as amended by the Laws of the Republic of Kazakhstan dated 05.07.2006 No. 164 (the order of enforcement see Art. 2), dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

Chapter 3. The insurance market

      Article 10. The participants of the insurance market

      The participants of the insurance market of the Republic of Kazakhstan are:
      1) an insurance (reinsurance) company;
      2) an insurance broker;
      3) an insurance agent;
      4) the policyholder, the insured person, the beneficiary;
      5) an actuary;
      Note of the RCLI!
      Subparagraph 6) shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      6) an independent actuary;
      7) an independent assessor;
      8) an underwriter;
      9) an adjuster;
      10) a surveyor;
      11) an insurance ombudsman;
      12) an association of insurance (reinsurance) companies and insurance brokers;
      13) an association of actuaries;
      14) other individuals and legal entities, engaged in entrepreneurial activities, related to insurance.
      Footnote. Article 10 is in wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 10-1. The authority of the association of insurance (reinsurance) companies and insurance brokers, the association of actuaries

      1. The authority of the association of insurance (reinsurance) companies and insurance brokers, the association of actuaries shall include:
      1) ensuring the interaction of its members in carrying out their activities in the insurance market;
      2) development of internal documents;
      3) training of the insurance market participants;
      4) consideration of disputes between the members;
      5) protection of the interests of its members;
      6) direction to the authorized body of information about possible violations of the requirements, established in the legislative acts of the Republic of Kazakhstan by the professional participants of the insurance market;
      7) performance of other functions, provided in the constituent documents.
      2. The association of insurance (reinsurance) companies and insurance brokers, the association of actuaries are required to communicate to its members the information, provided by the authorized body on professional activities of its members.
      Footnote. The Law is supplemented by Article 10-1, in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

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

      The association of insurance (reinsurance) companies and insurance brokers, the association of actuaries take up the following internal documents:
      1) standards in the insurance market;
      2) professional code of ethics;
      3) dispute resolution procedures;
      4) other documents, required by the statute.
      Internal documents are approved by the supreme governing body of the association of insurance (reinsurance) companies and insurance brokers, the association of actuaries, and are binding on their members.
      Footnote. The Law is supplemented by Article 10-2, in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No.338 -IV (the order of enforcement see Art. 2).

      Article 11. The activities of the insurance (reinsurance) company

      1. Insurance activity is the main type of entrepreneurial activity, carried out by the insurance (reinsurance) company.
      2. The insurance (reinsurance) company, other than insurance activity, shall be entitled to carry out the following activities:
      1) the investing activities subject to the limitations set forth in this Law;
      2) the issuance of loans to its policyholders within the redemption amount, provided by the relevant contract of endowment insurance (for an insurance company, operating in the sector “life insurance”);
      3) the sale of specialized software, used to automate the activities of the insurance (reinsurance) companies;
      4) the sale of specialized literature on insurance and insurance activities on all types of media;
      5) the sale or lease of property, acquired for their own use (for insurance (reinsurance) companies) or received at its disposal in connection with the conclusion of insurance contracts (for an insurance company);
      6) the advising on the issues, related to the insurance activities;
      7) the organization and conduct the training to enhance the skills of experts in the field of insurance (reinsurance);
      8) the insurance mediation as an insurance agent;
      9) the activity, specified in paragraph 1 of Article 52 of this Law;
      10) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2);
      11) the assistance, carried out on the basis of a joint operation agreement between the insurance companies or between insurance companies and other legal entities that provide the assistance services;
      12) the activity, provided by the legislative acts of the Republic of Kazakhstan, in the framework of participation in the system of guaranteeing insurance payments.
      3. An insurance (reinsurance) company is prohibited from carrying out transactions and operations as an entrepreneurial activity, not covered by paragraphs 1 and 2 of this Article.
      3-1. The insurance company may not carry out the compulsory insurance, the contents and conditions of which are determined by the legislative acts of the Republic of Kazakhstan, in the absence of it:
      1) a major participant, which is an individual or an insurance holding company;
      2) branches and (or) insurance agents in the capital, the cities of republican, regional and district significance.
      The requirement of subparagraph 1) of first part of this paragraph shall not be applied to insurance companies, more than fifty percent of the outstanding shares of which are directly or indirectly owned or transferred in trust administration to the state or the national management holding company.
      4. The insurance companies have the right to create an organization that guarantees the insurance payments to the policyholders (the insured persons, beneficiaries) in the case of compulsory liquidation of insurance companies. The order of establishment and activities of the organization, guaranteeing the insurance payments to the policyholders (the insured persons, beneficiaries) in the case of liquidation of insurance companies, are regulated by the legislation of the Republic of Kazakhstan.
      Mandatory participation of the insurance companies in the organization, guaranteeing the insurance payments to the policyholders (the insured persons, beneficiaries) in the case of compulsory liquidation of insurance company, is provided by this Law or the legislative acts of the Republic of Kazakhstan on compulsory insurance.
      Footnote. Article 11, as amended by the Laws of the Republic of Kazakhstan dated 11.06.2003 No. 436, dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 11-1. General conditions of carrying out the insurance activities

      1. The insurance (reinsurance) company may carry out the insurance activities only with a license to engage in the insurance activities (reinsurance activity), the insurance rules that determine the general conditions of the insurance activities for a particular type, and the internal rules.
      2. The internal rules of the insurance (reinsurance) companies shall determine:
      1) the structure, objectives, functions and powers of the departments of insurance (reinsurance) company;
      2) the structure, membership, objectives, functions and powers of the internal audit service and other standing bodies;
      3) the risk management system, revealing a policy of insurance (reinsurance) company on managing the technical (insurance), investment, credit, operational, market and other risks;
      4) the rights and duties of heads of departments;
      5) the powers of the officials and employees of the insurance (reinsurance) company in carrying out transactions on its behalf and for its expenses;
      6) the procedure for registration of written and oral complaints of policyholders (insured persons), victims (beneficiaries) and their representatives, as well as incoming applications and documents on the issues of insurance events;
      7) the procedure and terms of consideration and responses to policyholders (the insured persons), victims (beneficiaries) and their representatives on the applications and documents on the issues of insurance events;
      8) the procedure for deciding on the insurance payment with a timetable for its implementation or presentation of a reasoned justification of the reasons for refusal of the insurance compensation;
      9) the procedure for assessment of insurance risks (including the property received in insurance) and the amount of damage on the insured event;
      10) the powers of an underwriter, an adjuster and a surveyor.
      3. The insurance rules and the internal rules of the insurance (reinsurance) company are approved by the board of directors.
      4. The insurance (reinsurance) company may not engage in insurance activities without the presence of a staff actuary.
      Note of the RCLI!
      This paragraph shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      The actuary may not combine their activities in other insurance (reinsurance) companies, except in cases of involving an independent actuary.
      Note of the RCLI!
      Paragraph 5 shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      5. The insurance (reinsurance) company engages an independent actuary to check the activity of actuary, established by this Law, who consists in the staff of the insurance (reinsurance) company, in the manner and terms, established by the regulatory legal acts of the authorized body.
      This paragraph shall not be applied to the insurance (reinsurance) company in the case of hiring an independent actuary by an audit firm during the mandatory audit.
      Note of the RCLI!
      Paragraph 6 shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      6. An independent actuary shall meet the following requirements:
      1) to be not an employee of the checked insurance (reinsurance) company;
      2) to have the actuarial experience of at least two years in the insurance industry, where the insurance (reinsurance) company operates;
      3) to have a license of the authorized body on the actuarial work, or to be a member of the international actuarial association, the list and requirements for which are set by the authorized body.
      Note of the RCLI!
      Paragraph 7 shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      7. An independent actuary shall be responsible for the disclosure of the information, obtained during the audit of the activities of the actuary, who consists in the staff of the insurance (reinsurance) company, in accordance with the Laws of the Republic of Kazakhstan.
      8. The requirements for the implementation of the insurance activities by the insurance company, including the relationship with the participants of the insurance market, are established by the regulatory legal act of the authorized body.
      Footnote. Section is supplemented by Article 11-1, in accordance with the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 12. Features of carrying out activities for life insurance

      1. The insurance company, carrying out activities on the endowment insurance, has the right to provide loans to its policyholders within the redemption amount to meet the requirements of the regulatory legal acts of the authorized body.
      2. The insurance company may increase the size of regular insurance payments during the term of the annuity insurance contract on the advice of the actuary, in the manner set forth in the regulatory legal acts of the authorized body.
      Note of the RCLI!
      Paragraph 3 shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      3. The insurance company, carrying out activities on the endowment insurance, prior to the conclusion of the insurance annuity contracts in accordance with the Laws of the Republic of Kazakhstan “On mandatory insurance of employees against accidents in the performance of labor (official) duties” or “On pensions in the Republic of Kazakhstan” is obliged to conclude a contract of participation with the organization that guarantees the insurance payments to the policyholders (the insured persons, beneficiaries) in the case of compulsory liquidation of insurance companies, and becomes a shareholder in the manner, specified by the Law of the Republic of Kazakhstan on the establishment and activities of this organization.
      4. The insurance company may develop types of insurance within the classes of insurance, specified in paragraph 2 of Article 6 of this Law, providing for an insurance payment in case of participation of the policyholder in the investments and profits of the insurer.
      5. The order and features of participation of the policyholder in the investments or profits of the insurer, as well as the requirements for the contents of the insurance contract, providing for a condition of participation of the policyholder in the investments or profits of the insurer are established by the regulatory legal acts of the authorized body.
      At the conclusion of the insurance contract, providing for a condition of participation of the policyholder in the investment, the insurance company is obliged to transfer the assets, covering the internal reserve fund in the investment management to the manager of the investment portfolio in the manner and subject to the conditions, stipulated by the regulatory legal act of the authorized body.
      Recording and storage of assets of internal reserve fund are made by custodian in accordance with the custodian agreement, concluded with the investment portfolio manager.
      Using the resources of the internal reserve fund for the purposes not provided in this Law is not allowed.
      Calculation of payments in connection with the participation of the policyholder in the investments or profits of the insurer is made ??according to the results of the completed financial year.
      6. Implementation of payments in connection with the participation of the policyholder in the investments or profits of the insurer with the accumulated amount is made in the following cases:
      1) the occurrence of the insured event as part of an insurance payment;
      2) the expiration of the term of the endowment insurance as part of an insurance payment;
      3) the early termination of the insurance contract as part of the redemption amount.
      Conclusion of an insurance contract, providing for a condition of participation of the policyholder in the profits of the insurer, with the shareholders (a single shareholder) and (or) the affiliated persons of the insurance company is not allowed.
      Footnote. Article 12 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 13. Activities for coinsurance

      1. In the implementation of insurance risks through the creation of an insurance pool, a coinsurance contract is concluded subject to the conditions of the insurance company that takes over the functions and powers of a leading insurance company.
      2. Participating in the coinsurance of the insurance company, in the license of which the class of insurance is not shown, is prohibited.
      Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 14. Prohibition on the unlicensed activity

      1. Everybody, who does not have the appropriate license of the authorized body shall not:
      1) carry out on its own behalf the insurance, reinsurance activities, provide services of an insurance broker, an actuary as a primary or secondary activity;
      2) use in any language in his name, documents, announcements and advertisements of the word “insurance”, “reinsurance”, “insurance company”, “reinsurance company”, “an insurance broker” or derivative words (expressions), implying that it carries out on its own behalf the insurance or reinsurance transactions or act as an insurance broker, an actuary.
      2. Carry out the insurance activity without the license of the authorized body, except for the cases established by the legislative act of the Republic of Kazakhstan on mutual insurance, is prohibited.
      Footnote. Article 14, as amended by the Laws of the Republic of Kazakhstan dated 05.05.2006 No. 139 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 139), dated 05.07.2006 No. 164 (the order of enforcement see Art. 2), dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 15. Trans border insurance and reinsurance

      1. Insurance, related to the implementation of activities by an insurance company on the conclusion and execution of insurance contracts in another state, shall be transboundary.
      2. Transfer by an insurance (reinsurance) company of the insurance risks, adopted by it in reinsurance shall be based on the requirements to the payment procedure of prudential standard.
      3. Agency business on the conclusion of an insurance contract on behalf of an insurance company - a non-resident of the Republic of Kazakhstan, with the exception of the contract of insurance of the civil liability of vehicles owners, traveling outside of the Republic of Kazakhstan, in the territory of the Republic of Kazakhstan shall not be permitted by international treaties ratified by the Republic of Kazakhstan, if it is not provided otherwise.
      4. The insurance companies - residents of the Republic of Kazakhstan, having the license of the authorized body with the appropriate class of insurance and insurance brokers - residents of the Republic of Kazakhstan in the presence of the appropriate contract concluded with the said insurance company - a non-resident of the Republic of Kazakhstan may carry out agency business on the conclusion in the territory of the Republic of Kazakhstan on behalf of the insurance company - a non-resident of the Republic of Kazakhstan of the contracts of insurance of the civil liability of vehicle owners that travel outside the Republic of Kazakhstan.
      5. (Is excluded – dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).
      Footnote. Article 15 as amended by the Law of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January, 2004), dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 15-1. Prohibition on the provision of concessional conditions by an insurance (reinsurance) company

      Footnote. Title, as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524 -IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      1. Insurance (reinsurance) company shall be prohibited from granting the concessional conditions to affiliated persons of an insurance (reinsurance) company.
      2. Concessional conditions shall mean:
      1) entering into a transaction with an affiliated person of an insurance (reinsurance) company or its interests, that by its nature, purpose, characteristics and risk an insurance (reinsurance) company not be entered with the clients that are not affiliated persons;
      2) using of a lower insurance rate or making an insurance payment higher than for other insurers.
      3. Is excluded by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524 -IV (shall be enforced upon expiry of ten calendar days after its first official publication).
      4. The transaction with an affiliated person of an insurance (reinsurance) company may be made ??only by the decision of the board of directors of an insurance (reinsurance) company, subject to the requirements of paragraph 1 of this Article. The waiver of rights to claim for assets provided (offered) to affiliated persons (in individuals) of insurance (reinsurance) company shall be followed by the notification of the general meeting of shareholders.
      Affiliated person of an insurance (reinsurance) company shall not take part in the consideration and decision making on any transaction between the insurance (reinsurance) company and:
      by itself;
      any of his relatives or his spouse (wife);
      any legal entity in which he or any of his close relatives, his spouse (wife) is an official or a major participant.
      The decision of the board of directors on any transaction between an insurance (reinsurance) company and affiliated person of an insurance (reinsurance) company may be taken only after consideration by the board of directors of all its terms.
      4-1. The board of directors of an insurance (reinsurance) company shall consider the business plan, submitted by a major participant of insurance (reinsurance) company – an individual that owns twenty-five or more percent of allotted (net of preferred and bought shares of the insurance (reinsurance) company) shares of an insurance (reinsurance) company or an insurance holding company, through the attainment of appropriate status, established by Article 26 of this Law.
      Insurance (reinsurance) company shall inform the authorized body on the results of consideration of a business plan of a major participant of an insurance (reinsurance) company (insurance holding company) by the board of directors of an insurance (reinsurance) company within five working days from the date of the decision to include or not to include a business plan of a major participant of an insurance (reinsurance) company (insurance holding company) in the development strategy (development plan) of an insurance (reinsurance) company.
      The board of directors of an insurance (reinsurance) company shall ensure the compliance with the development strategy (development plan) of an insurance (reinsurance) company.
      5. Insurance (reinsurance) company shall provide data to the authorized body about all transactions with affiliated persons in the forms, stipulated by the regulatory legal acts of the authorized body.
      6. The requirements of this Article shall apply to insurance holding companies, except for:
      1) non-residents of the Republic of Kazakhstan, that are an insurance holding company, a person with characteristics of an insurance holding company, if any of the following conditions:
      presence of an individual’s credit rating not lower rating A one of the rating agencies, the list of which shall be established by the authorized body, as well as a written confirmation from the financial supervisory authority of the country of origin of an insurance holding company, the person, having the characteristics of the insurance holding company, that these persons - residents of the Republic of Kazakhstan shall be subject to the consolidated supervision;
      existence of an agreement between the authorized body and the relevant supervisory body of a foreign state for the exchange of information, as well as the minimum required rating of one of the rating agencies. Minimum rating and list of rating agencies shall be established by the regulatory legal act of the authorized body;
      2) insurance holding companies, that are the bank holding companies-members of the banking conglomerates.
      Footnote. Chapter 3 is supplemented by Article 15-1, in accordance with the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), as amended by the Laws of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 26.12.2012 No. 61-V (shall be enforced from 04.02.2012).

      Article 16. The requirements for an insurance company to inform policyholders

      1. In case of changing the location of its permanent body, changing the name, the insurance company within a month shall notify their policyholders by publication of the advertisement in two republican newspapers.
      In case of changing the location of its separate divisions, the insurance company within a month shall notify their policyholders by publication advertisement in the two respective regional newspapers.
      2. Insurance company shall place a duly certified copy of the license to carry on insurance activity in a place, accessible for review and become familiar with it.
      2-1. Insurance company shall post on the internet site or in a place, accessible for viewing clients, and maintain up to date information on the size of insurance rates by class of insurance in accordance with the requirements of the regulatory legal act of the authorized body for the provision of services within the insurance activity.
      3. When concluding an insurance contract, a policyholder shall have the right to ask the insurance company’s annual financial statements consisting of the balance sheet and the profit and loss account activity and the audit report, certified by an audit organization, as well as any other information that do not constitute insurance secret, commercial or other secret protected by the law.
      Footnote. Article 16, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 05.05.2006 No. 139 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 139), dated 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 4. Insurance mediation

      Article 16-1. Creating an insurance broker

      1. The legal organizational form of an insurance broker shall be a limited liability company or a joint stock company.
      2. The name of an insurance broker shall contain the words “insurance broker” or derivative words.
      3. Insurance broker shall be prohibited to use in its name the words “national”, “central”, “budget”, “republican”.
      4. Using as a name the appellations that are identical or similar to the point of mixing it with the name of the previously created insurance brokers, including insurance brokers that are non-residents of the Republic of Kazakhstan, shall not be allowed. This prohibition shall not apply to a subsidiary of an insurance broker in the case of its use the parent organization’s name.
      5. The state registration of an insurance broker shall be made in the manner specified by the legislation of the Republic of Kazakhstan.
      Footnote. Section is supplemented by Article 16-1 by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 16-2. Requirements for the founders of an insurance broker

      1. Participating of an insurance (reinsurance) company or its employees in the creation and activities of an insurance broker shall be prohibited.
      2. The founders and employees of an insurance broker cannot hold simultaneously any positions in the insurance (reinsurance) company.
      Footnote. Section is supplemented by Article 16-2 by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

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

      1. The founders, members or shareholders of an insurance broker shall pay the purchased participation shares or shares solely in cash in national currency.
      2. The minimum amount of the authorized capital of a creating insurance broker shall be fully paid by the founders at the time of its state registration.
      3. The requirements for the minimum amount of the authorized capital and other conditions for the activities of an insurance broker shall be determined by the legislation of the Republic of Kazakhstan.
      Footnote. Section is supplemented by Article 16-3 by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 17. Insurance broker activity and requirements imposed on it

      1. Activity of an insurance broker shall be an exceptional activity and shall be subject to licensing by the authorized body.
      An insurance broker shall be prohibited from carrying out an insurance agent activity.
      2. An insurance broker shall provide the following types of brokerage activities:
      1) mediation activities on the conclusion of insurance contracts on its own behalf and on behalf of the policyholder or reinsurance contracts on its own behalf and on behalf of the assignor;
      2) consulting activities regarding insurance (reinsurance);
      3) search and engaging of individuals and legal entities to the insurance (reinsurance);
      4) carrying out a comparative analysis of services and financial condition of insurance (reinsurance) companies;
      5) collection of information about the objects of insurance in order to conduct a comparative analysis of services, provided by insurance (reinsurance) companies;
      6) development of insurance (reinsurance) conditions, selection criteria of insurers (reinsurers), provision of expert services for the identification of insurance risks on behalf of clients;
      7) training and (or) execution on behalf of a policyholder (an assignor) necessary documents for concluding an insurance (reinsurance) contract, collection of information on insurance matters;
      8) execution of an insurance (reinsurance) contract on behalf of a policyholder (an assignor);
      9) collection of insurance premiums from policyholders (assignors) under the insurance (reinsurance) contacts for the subsequent transfer of insurance (reinsurance) companies under the relevant agreement with a policyholder (an assignor);
      10) placing insurance risks under the contracts of insurance (reinsurance) or coinsurance on behalf of clients;
      11) ensuring the proper and timely execution of documents in concluding a contract of insurance (reinsurance), insurance payment, considering the claims in the insurance event, as well as other documents related to the concluded contracts of insurance (reinsurance);
      12) consultation and assistance in obtaining by a policyholder (an assignor), a beneficiary of the insurance payment upon the occurrence of an insured event;
      13) execution in accordance with the granted powers the necessary documents to obtain insurance payments;
      14) collection on behalf of a policyholder (an assignor) insurance payments from the insurance (reinsurance) companies for their subsequent transfer to a policyholder (an assignor), a beneficiary;
      15) preparation of documents for consideration and settlement of losses upon occurrence of an insurance event on behalf of the interested persons;
      16) arrangement of experts services to assess the damage and determine the amount of the insurance payment.
      3. An insurance broker in the implementation of its activities shall not be a party to the insurance (reinsurance) contract.
      4. Basic rights, duties and responsibilities of an insurance broker shall be defined in its internal rules for carrying out activities of an insurance broker.
      5. Any compensation to an insurance broker for the exercise of brokerage activities, specified in paragraph 2 of this article, in the interests of a policyholder (an assignor) shall be payable only by a policyholder (an assignor).
      6. If the insurance broker and (or) its affiliated person operated as agents for the conclusion of contracts of insurance and reinsurance for one insured risk, the remuneration to an insurance broker and (or) its affiliated person shall be paid by a policyholder.
      Footnote. Article 17 is in the wording of the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

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

      1. The powers of an insurance agent for brokering activity in the insurance market shall be determined by the contract of agency with regard to the requirements of this Law and the regulatory legal acts of the authorized body.
      The requirements for a contract of agency, concluded between an insurance company and an insurance agent shall be established by the regulatory legal act of the authorized body.
      An insurance agent in person shall commit acts, to which authorized by an insurance company, and may not subcontract their commitment to another person.
      Acting as an insurance agent in the event of his lack of powers shall not be allowed.
      2. Insurance company shall meet its obligations under the contract of insurance, concluded by an insurance agent on its name and on its behalf.
      Insurance company shall be responsible for the commission of the following actions by an insurance agent:
      1) conclusion of insurance contracts, as well as commission of actions of an insurance agent, beyond the established powers;
      2) conclusion of insurance contracts by class and types of insurance for which the insurance company do not have the license of the authorized body;
      3) intentional misrepresentation of a policyholder under the conditions of conclusion of an insurance contract;
      4) failure to comply with the requirements stipulated by the legislation of the Republic of Kazakhstan on the execution of an insurance contract and documents, on the basis of which the contract of insurance shall be concluded;
      5) other violations of the legislation of the Republic of Kazakhstan on insurance and insurance activities.
      The insurance company shall not be responsible for the actions of an insurance agent that not associated with the implementation of their brokering activities under the legislation of the Republic of Kazakhstan on insurance and insurance activities.
      3. Conditions that are binding to an insurance agent, including on issues of registration and storage of forms of insurance accounting, work with cash shall be established by the internal documents of an insurance company taking into account the requirements of the legislation of the Republic of Kazakhstan.
      Note of the RCLI!
      Paragraph 4 shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      4. Insurance agent shall be prohibited from taking from a policyholder cash payment in the payment of insurance premiums in conclusion of insurance contracts on the name and on behalf of an insurance company.
      This restriction shall not apply to an insurance agent receiving payment in cash from persons temporarily entering the territory of the Republic of Kazakhstan, in payment of the insurance premium under the insurance contract at checkpoints across the state border of the Republic of Kazakhstan.
      5. Insurance agent shall be prohibited from retain the remuneration due to him under a contract of agency from the insurance premiums, received by him from policyholders.
      6. Brokering activities within the powers, provided for in Article 18-2 of the Law by two or more insurance agents under one contract of insurance shall not be allowed.
      7. The amount of commission remuneration, paid by an insurer to an insurance agent for the provision of brokering services for conclusion of insurance contracts in accordance with the legislative acts of the Republic of Kazakhstan on compulsory insurance may not exceed for:
      An individual - ten percent of the amount of accrued insurance premium payable under the contract;
      A legal entity - fifteen per cent of the amount of accrued insurance premium payable under the contract.
      8. The composition of the commission remuneration shall include all expenses of an insurance (reinsurance) company in respect of an insurance agent, including the costs of paying rent, all kinds of remunerations, as well as the provision of any property or material gain.
      Footnote. Article 18 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 18-1. The requirements for persons, involved in the brokering activity of an insurance agent, as well as to the order of their registration and training

      1. An individual shall not have the right carry out brokering activity of an insurance agent if he:
      1) is not attained the age of majority;
      2) is recognized by the court as incapable or partially capable;
      3) do not have a secondary education;
      4) is not trained in accordance with the requirements of paragraph 4 of this Article;
      5) is an employee of an insurance company, an insurance broker based on an employment contract;
      6) has a criminal record that not cancelled or expunged in accordance with the law;
      7) is previously served as an executive officer of an insurance (reinsurance) company, an insurance broker or other financial institution, in a period not exceeding one year prior to the decision of the authorized body on the compulsory redemption of shares of the insurance (reinsurance) company, revocation of the license, compulsory liquidation in order established by the legislation of the Republic of Kazakhstan, or other legal entity, declared as bankrupt in accordance with the legislation of the Republic of Kazakhstan. The above requirement shall apply within five years after the adoption of the decision by the authorized body on the compulsory redemption of shares of an insurance (reinsurance) company, revocation of the license, compulsory liquidation or recognition of a legal entity as bankrupt in accordance with the legislation of the Republic of Kazakhstan;
      8) had previously been an employee of an insurance broker, an insurance agent-legal entity, with which the employment contract was terminated at the initiative of an insurance broker, an insurance agent-legal entity in the case of employee’s unsuitability for the position or job due to insufficient qualifications. The above requirement shall apply for five years from the date of termination of the employment contract at the initiative of an insurance broker, an insurance agent-legal entity.
      2. Insurance company shall maintain a register of insurance agents and place it in a location that is accessible for review and guidance (including Internet resources) of consumers of insurance services.
      The basis for inclusion in the register of insurance agents shall be the compliance of the persons exercising brokering activity of an insurance agent with the requirements of paragraph 1 of this Article, and the availability of the document confirming the exams at the minimum training program.
      An insurance agent that is a legal entity shall be included in the register of insurance agents with the obligatory indication of employees, the duties of which include the conclusion of insurance contracts that meet the requirements of paragraph 1 of this Article, and if they have a document certifying exams at the minimum training program.
      The number of employees of an insurance agent-legal entity, the duties of which include the conclusion of insurance contracts, shall be at least two people.
      3. Insurance company shall submit the register of persons, engaged in brokering activity of an insurance agent to the authorized body in the manner and time, stipulated by the regulatory legal act of the authorized body.
      4. Organization of training and issuing the relevant document certifying exams at the minimum training program shall provide an insurance company.
      The minimum training program and the requirements to the procedures for training shall be set by the authorized body.
      An insurance company shall have the right not to accept a document certifying exams at the minimum training program issued to an insurance agent by another insurance company.
      5. The grounds for exclusion from the register of insurance agents shall be:
      1) a written order of the authorized body, issued by an insurance company on the revealed numerous violations of the legislation of the Republic of Kazakhstan, committed by an insurance agent within the twelve consecutive months;
      2) an identification of non-fulfillment of duties of an insurance agent under the conditions of the contract of agency by an insurance company, as well as conclusion of insurance contracts, contrary to the requirements of the legislation of the Republic of Kazakhstan;
      3) an identification of non-compliance of a person exercising brokering activity of an insurance agent with the requirements provided for in paragraph 1 of this Article, by the authorized body, an insurance company.
      In the case of exclusion of an insurance agent from the register of insurance agents on the grounds specified in this paragraph, the person shall be prohibited from carrying out an insurance agent activity for five years from the date of his exclusion.
      Footnote. Chapter 4 is supplemented by Article 18-1 in accordance with the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 18-2. The rights and obligations of an insurance agent

      1. An insurance agent in his activities shall have the right to:
      1) carry out brokering activity on the name and on behalf of one or more insurance companies subject to the limitations, provided for in Articles 18 and 18-1 of this Law;
      2) obtain reliable information from an insurance company on the licenses and the financial statements;
      3) carry out the consulting activities for insurance;
      4) receive remuneration from an insurance company for the implementation of its brokering activities by cashless payment.
      2. An insurance agent in his activities shall:
      1) show a policyholder a contract of agency, as well as the documents:
      proving his identity;
      confirming the availability of its data in the register of insurance agents;
      2) provide information on the insurance company, the insurance agent that he is, including a copy of the license of the insurance company to engage in insurance activities;
      3) inform a policyholder with the insurance rules on the concluded insurance contracts and provide a copy of the rules in the cases provided for in Article 828 of the Civil Code of the Republic of Kazakhstan;
      4) provide information and, if available all the necessary documents for an insurance contract;
      5 ) ensure the proper and timely execution of documents at the conclusion of an insurance contract;
      6) ensure the confidentiality of the information, received in carrying out brokering activities.
      Footnote. Chapter 4 is supplemented by Article 18-2 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

Chapter 5. The actuarial activities and audit

      Article 19. Actuarial activities

      1. An individual that has a license to engage in actuarial activity, issued by the authorized body may be an actuary.
      2. Actuarial activities shall be carried out in accordance with this Law and the regulatory legal acts of the authorized body, as well as in accordance with the international principles (standards) for carrying out actuarial activities.
      3. Actuarial calculations shall be made for the following reasons:
      1) at the initiative of an insurance (reinsurance) company – the initiative actuarial calculations;
      2) in the cases provided by the legislation of the Republic of Kazakhstan, - the required actuarial calculations.
      4. In the production of actuarial calculations an insurance (reinsurance) company shall submit all the available documents and information necessary for the production and preparation of required actuarial calculations and conclusions, required by the actuary.
      5. An actuary shall be responsible for the correctness and accuracy of actuarial calculations and the conclusions made ??by him, in the manner prescribed by the Laws of the Republic of Kazakhstan.
      6. An actuary shall immediately notify the authorized body on the findings of non-compliance of an insurance (reinsurance) company with the requirements for the formation of insurance reserves.
      7. An independent actuary shall send the results of validation of calculations carried out by an actuary on the staff of the insurance (reinsurance) company to the authorized body, in the manner and terms, established by the regulatory legal act of the authorized body.
      Footnote. Article 19, as amended by the Laws of the Republic of Kazakhstan dated 07.05.2007 No. 244, dated 26.07.2007 No. 313 (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2012).

      Article 20. Audit

      1. Audit of an insurance (reinsurance) company shall be carried out by an audit firm, eligible to conduct an audit in accordance with the legislation of the Republic of Kazakhstan on auditing.
      2. An insurance (reinsurance) company, an insurance holding company and entities in which the insurance (reinsurance) company and (or) an insurance holding company are the major participants, as well as organizations within the insurance group, shall not have the right to conduct an audit of its own activities for more than seven consecutive years in one audit organization, or more than five consecutive years of the auditor, that working in the audit organization.
      The requirement of this paragraph shall not apply to an insurance (reinsurance) company that is a member of the banking conglomerate.
      3. Audit of organizations that are part of an insurance group as the parent company and its subsidiaries, that are the residents of the Republic of Kazakhstan shall be carried out by one and same audit firm. Audit of the parent company and its subsidiaries-non-residents of the Republic of Kazakhstan that are part of an insurance group shall be carried out by the same audit firm in cases where conduct of an audit is not contrary to the requirements of the legislation of their country of residence.
      Note of the RCLI!
      Paragraph 4 shall be enforced from 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      4. An audit firm shall have the right to conduct an audit of an insurance (reinsurance) company by hiring an independent actuary.
      5. The audit report of financial statements of an insurance (reinsurance) company or other legal entities that are part of an insurance group shall not constitute a trade secret.
      6. Insurance (reinsurance) company shall have in its structure, the internal audit service (auditor), the activity of which shall not be subject to licensing.
      7. The procedure for internal auditing shall be defined by the relevant internal documents of an insurance (reinsurance) company, subject to the requirements of regulatory legal acts of the authorized body.
      8. Conducting of an audit according to the results of the financial year shall be mandatory for insurance (reinsurance) companies, insurance holding companies and entities in which an insurance (reinsurance) company and (or) an insurance holding company are the major participants, insurance brokers. Copies of the conducting audit report and recommendations of an audit firm shall be submitted to the authorized body by the insurance (reinsurance) companies, insurance holding companies, entities, in which an insurance (reinsurance) company and (or) an insurance holding company are the major participants, and by audit firms within thirty calendar days from the date of receipt of these documents, or their submission to the insurance (reinsurance) companies, insurance holding companies and entities in which an insurance (reinsurance) company and (or) an insurance holding company are the major participants.
      Insurance (reinsurance) company shall submit a copy of the audit report within ten calendar days of its receipt by another legal entity, in which an insurance (reinsurance) company has a significant shareholding.
      The consolidated annual financial statements of an insurance (reinsurance) company and an insurance holding company shall be certified by an audit firm.
      9. An insurance holding company - a non-resident of the Republic of Kazakhstan that is subject to consolidated supervision in the country of its location, shall submit a copy of the audit report and recommendations of the audit firm to the authorized body within thirty calendar days from the date of receipt of these documents in Kazakh and Russian languages.
      The consolidated annual financial statements of an insurance holding company - a non-resident of the Republic of Kazakhstan that is subject to consolidated supervision in the country of their location, shall be certified by an audit firm eligible to conduct of an audit of financial institutions in the country of their location.
      10. In case of failure to eliminate by an insurance (reinsurance) company, an insurance holding company and entity that are part of an insurance group, violations that affect the financial condition of an insurance (reinsurance) company or an insurance group, specified in the audit report, within three months from the date of receipt of the audit report by the said persons, the authorized body prior to eliminate violations shall have the right:
      in respect of an insurance (reinsurance) company to suspend the license of an insurance (reinsurance) company under subparagraph 8-1) of paragraph 1 of Article 54 of this Law;
      in respect of an insurance holding company, an entity that are part of an insurance group - to apply the measures provided for in paragraph 2 of Article 53-1 of this Law.
      In case of failure to eliminate the violations within a year from the date of receiving this report, the authorized body shall have the right:
      in respect of an insurance (reinsurance) company – to revoke a license of an insurance (reinsurance) company under subparagraph 1) of paragraph 1 of Article 55 of this Law;
      in respect of an insurance holding company – to apply the measures in paragraph 3 of Article 53-1 of this Law.
      Footnote. Article 20 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

Chapter 6. Creating of an insurance (reinsurance) company

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

      1. Founders and shareholders of an insurance (reinsurance) company may be individuals or legal entities - residents and non-residents of the Republic of Kazakhstan subject to the requirements stipulated in this Law and other regulatory legal acts of the authorized body.
      2. The state may be a founder and shareholder of an insurance (reinsurance) company only represented by the Government of the Republic of Kazakhstan and the authorized body.
      Organizations, more than fifty percent of the shares in the authorized capital or outstanding shares of which are owned by the state, except for national holding company, may not act as founders and shareholders of an insurance (reinsurance) company.
      3. (Is excluded – No. 72 dated 8.07.2005).
      4. Legal entities, registered in offshore zones, the list of which is established by the authorized body, may not directly or indirectly own and (or) use and (or) dispose of the voting shares of the insurance (reinsurance) companies - residents of the Republic of Kazakhstan.
      This restriction shall not apply to the insurance (reinsurance) companies that are subsidiaries of insurance (reinsurance) companies - non-residents of the Republic of Kazakhstan with the minimum required rating from one of the rating agencies.
      The list of rating agencies and the minimum required rating shall be established the regulatory legal act of the authorized body.
      5. A shareholder, participating in the general meeting of shareholders (except for the shareholder that is a bank - a resident of the Republic of Kazakhstan), shall submit a statement that indicates the implementation of the requirements of first part of paragraph 4 of this Article by its shareholders (participants), if the information about the country of registration of such shareholders (participants) is not in the insurance (reinsurance) company.
      A shareholder that did not present such application shall not be permitted to participate in the general meeting of shareholders.
      In identifying the unreliability of the information, specified in the application, or identification of violations of the requirements specified in first part of paragraph 4 of this Article:
      1) in the case that the decision is adopted by the majority of the voting shares (without voting shares of the shareholder, submitting the application), the decision of the general meeting of shareholders shall be considered as adopted without vote of the shareholder;
      2) if the vote of the shareholder, submitting the application, was decisive, this circumstance shall be a ground for annulment of the decision of the general meeting of shareholders at the request of the authorized body or other interested parties in accordance with legislation of the Republic of Kazakhstan.
      Footnote. Article 21, as amended by the Laws of the Republic of Kazakhstan dated 08.07.2005 No. 72 (the order of enforcement see Art. 2), dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 07.07.2006 No. 178 (shall be enforced from the day of its official publication), dated 26.07.2007 No. 313 (the order of enforcement see Art. 2), dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 13.02.2009 No. 135-IV (the order of enforcement see Art. 3), dated 28.12.2011 No. 524-IV (shall be enforced from 01.01.2010), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 22. The legal status of an insurance (reinsurance) company

      1. An insurance (reinsurance) company shall be a commercial organization, established in the legal form of a joint stock company, and shall operate in accordance with this Law and other regulatory legal acts of the Republic of Kazakhstan.
      2. The legal status of an insurance (reinsurance) company shall be defined by the state registration of a legal entity as an insurance (reinsurance) company in the judicial bodies and the availability of a license to engage in insurance activities.
      Footnote. Article 22 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.

      Article 23. Name of an insurance (reinsurance) company

      1. An insurance (reinsurance) company shall use as its name that is specified in its charter.
      2. Full name of an insurance company, operating in the field “general insurance” shall necessarily contain the word “insurance” or its derivative words.
      3. Full name of an insurance company, operating in the field “life insurance” shall necessarily contain the words “life insurance” or its derivative words.
      4. Full name of a reinsurance company, operating exclusively in reinsurance, shall necessarily contain the word “reinsurance” or its derivative of words.
      5. Insurance (reinsurance) company shall be prohibited from using in its name the words “national”, “central”, “budget”, “republican”.
      6. Using as a name of appellations that are identical or similar to the point of mixing it with the name of the previously created insurance (reinsurance) companies, including insurance (reinsurance) companies – non-residents of the Republic of Kazakhstan shall not be allowed. This prohibition shall not apply to the subsidiary insurance (reinsurance) company in the case of its use of the name of the parent organization.

      Article 24. The bodies of an insurance (reinsurance) company

      1. An insurance (reinsurance) company shall necessarily form the following collegial bodies:
      1) a board of directors - the management body;
      2) a governing body - the executive body;
      3) an internal audit service – the supervising body.
      A newly created insurance (reinsurance) company, operating in the field “general insurance” may have one auditor for two years after receiving the license of the authorized body in the field “life insurance” – 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 a joint stock company, the board of directors of an insurance (reinsurance) company shall be competent to consider the issues, relating to breaches of the requirements of the legislation on financial stability and solvency of an insurance (reinsurance) company, established on the basis of the audit report of an audit firm, internal audit service or an actuary.
      Footnote. Article 24 as amended by the Law of the Republic of Kazakhstan dated 8 July, 2005 No. 72 (the order of enforcement see Art. 2), dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2), dated 5 May, 2006 No. 139 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 139), dated 23.10.2008 No. 72 -IV (the order of enforcement see Art. 2).

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

      1. Shares of an insurance (reinsurance) company in placing shall be paid exclusively in cash in national currency of the Republic of Kazakhstan, except in cases of payment of shares of an insurance (reinsurance) company during its reorganization, carried out in accordance with the Law of the Republic of Kazakhstan “On Joint Stock Companies”.
      2. Is excluded by the Law of the Republic of Kazakhstan dated 21.06.2013 No.106 -V (shall be enforced upon expiry of ten calendar days after its official publication).
      3. Is excluded by the Law of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No.107).
      4. The minimum size of the authorized capital of the creating insurance (reinsurance) company shall be fully paid by its founders at the time of its registration.
      5. An insurance (reinsurance) company shall have the right to buy back its own shares from the shareholders, provided that the transaction shall not be violated the requirements of the legislation of the Republic of Kazakhstan relating to issues of financial stability and solvency of an insurance (reinsurance) company.
      6. Is excluded by the Law of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004).
      Footnote. Article 25, as amended by the Laws of the Republic of Kazakhstan dated 16.05.2003 No. 416, dated 08.07.2005 No. 72 (the order of enforcement see Art. 2), dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its official publication).

      Article 26. An insurance holding company, a major participant of an insurance (reinsurance) company

      1. Nobody alone or jointly with the other (other) person (s) cannot, directly or indirectly, own, use, and (or) dispose of ten or more percent of outstanding (net of preferred and bought by the insurance (reinsurance) company shares of an insurance (reinsurance) company, as well as have the ability to exercise control or influence over the insurance (reinsurance) company solutions at the rate of ten percent or more percent of the outstanding (net of preferred and bought by the insurance (reinsurance) company shares of an insurance (reinsurance) company without the prior written consent of the authorized body. This requirement shall not apply to the state or national management holding company, as well as to the cases, provided by this Law.
      Non-resident legal entities of the Republic of Kazakhstan can obtain the consent of the authorized body to acquire the status of an insurance holding company or a major participant of an insurance (reinsurance) company in the presence of the minimum required rating of one of the rating agencies. The minimum required rating and the list of rating agencies shall be established by the regulatory legal act of the authorized body.
      The presence of this rating shall not be required for a non-resident legal entity of the Republic of Kazakhstan, intending indirectly own ten or more percent of outstanding shares of an insurance (reinsurance) company or voting indirectly by ten percent or more percent of the voting shares of an insurance (reinsurance) company through the ownership (voting) of shares (stakes in the authorized capital) of the non-resident legal entity of the Republic of Kazakhstan that is a major participant of an insurance (reinsurance) company that directly owns ten or more percent of outstanding shares of an insurance (reinsurance) company, or having the opportunity to vote by ten or more percent of the voting shares of an insurance (reinsurance) company that has the minimum required rating.
      An insurance holding company, a non-resident of the Republic of Kazakhstan that directly owns twenty-five or more percent of outstanding (net of preferred and bought by an insurance (reinsurance) company) shares of an insurance (reinsurance) company or having the opportunity to vote directly by twenty-five or more percent of the voting shares of an insurance (reinsurance) company may be only a financial institution – a non-resident of the Republic of Kazakhstan that subject to the consolidated supervision in the country of its location.
      2. The rules for issuing, withdrawing the consent to acquire the status of a major participant of an insurance (reinsurance) company or an insurance holding company, the requirements to the documents, submitted to obtain the consent shall be determined by the authorized body.
      3. Nobody may own alone or jointly with other persons, directly or indirectly, twenty-five or more percent of outstanding (net of preferred and bought by an insurance (reinsurance) company) shares or the voting shares of an insurance (reinsurance) company, except:
      The state or national management holding company;
      An insurance holding company;
      A major participant of an insurance (reinsurance) company – an individual that owns, directly or indirectly, less than twenty-five percent of outstanding (net of preferred and bought by an insurance (reinsurance) company) shares or the voting shares or other financial institution, except when the indirect ownership carried out through an insurance holding company.
      The requirements to acquire the status of an insurance holding company or a major participant of an insurance (reinsurance) company shall not apply to a person that recognized as indirectly owns (having the opportunity to vote, make decisions and (or) influence on the decision making by virtue of a contract or otherwise) of shares of an insurance (reinsurance) company through the ownership (the availability to vote, make decisions and (or) influence on decision making by virtue of a contract or otherwise) of shares of another financial institution having the status of a major participant (an insurance holding company) of the said insurance (reinsurance) company.
      The requirements to acquire the status of an insurance holding company or a major participant of insurance (reinsurance) company shall not apply to a non-resident of the Republic Kazakhstan that indirectly owns (having the ability to vote, make decisions and (or) influence on decision making by virtue of a contract or otherwise) of shares of an insurance (reinsurance) company through the ownership of (the availability to vote, make decisions and (or) influence on the decision making by virtue of a contract or otherwise) shares of another financial institution - a non-resident of the Republic of Kazakhstan, that is subject to the consolidated supervision in the country of its location and has the status of a major participant (an insurance holding company) of the said insurance (reinsurance) company.
      Granting the consent of the authorized body to acquire the status of an insurance holding company shall be carried out under the conditions and in the manner that specified for a major participant of an insurance (reinsurance) company.
      4. A person, wishing to become a major participant in an insurance (reinsurance) company to obtain the consent shall submit a statement on the acquisition of the status of a major participant of an insurance (reinsurance) company with the documents and data, specified by paragraphs 6, 7, 8, 9 and 10 of this Article to the authorized body.
      5. Major participants in the insurance (reinsurance) company - individuals shall pay a share of the insurance (reinsurance) company in an amount not exceeding the value of the property, belonging to them by right of ownership. Thus, the cost of the property shall not be less than the aggregate value of the previously purchased and purchasing shares of the insurance (reinsurance) company.
      6. To obtain the consent to acquire the status of a major participant of an insurance (reinsurance) company, an individual shall submit the following documents:
      1) data on the conditions and manner for the acquisition of shares of an insurance (reinsurance) company, including the previously purchased, including a description of the sources and the funds, used for the acquisition of shares, with copies of supporting documents.
      The source used for the purchase of shares of an insurance (reinsurance) company shall be:
      Income, derived from entrepreneurial activity, labour or other gainful activity;
      duly documented monetary savings of an applicant.
      In addition to the sources, listed in the second part of this subparagraph, money, received as a gift, winnings, income from the sale of property received free, in an amount not exceeding twenty-five percent of the value of purchased shares of an insurance (reinsurance) company can be used for purchase of shares of an insurance (reinsurance) company.
      In purchasing the shares of an insurance (reinsurance) company at the expense of the property received as a gift, the applicant shall submit data on the grantor and the source of origin of such property from the grantor;
      2) the power of attorney to the representative of the applicant that is entrusted with representing the interests of the applicant (if available);
      3) the list of entities to which it is a major participant, and the notarized copies of the constituent documents;
      4) a plan of recapitalization of an insurance (reinsurance) company in cases of possible deterioration of the financial situation of an insurance (reinsurance) company;
      5) data on the impeccable business reputation with copies of the supporting documents;
      6) data on income and assets, as well as data on the existing debt for all the obligations of the applicant, according to the form prescribed by the regulatory legal act of the authorized body;
      7) short details of the applicant in the form, prescribed by the regulatory legal acts of the authorized body, including data about education, about the labour activity;
      8) a written confirmation of the relevant state body of the country of residence of individual - non-resident of the Republic of Kazakhstan that the purchase of shares of the insurance (reinsurance) company - resident of the Republic of Kazakhstan shall be permitted by the national legislation of this country or a statement of the authorized body of the relevant state that such a permit under the legislation of the state of the said founder is not required.
      7. To obtain the consent to acquire the status of a major participant of an insurance (reinsurance) company, a legal entity-resident of the Republic of Kazakhstan shall submit the following documents:
      1) a copy of the decision of the supreme body of the applicant to acquire the shares of an insurance (reinsurance) company;
      2) data and supporting documents about persons that own (alone or jointly with others) ten or more percent of the shares (stakes in the authorized capital) of the legal entity, as well as having the ability to influence the decisions of the legal entity by virtue of a contract or otherwise, or exercise control;
      3) a list of affiliated persons of the applicant;
      4) data and documents specified in subparagraphs 1), 2), 3) and 4) of paragraph 6 of this Article;
      5) data on the impeccable business reputation of its executives;
      6) notarized copies of the constituent documents, short details about the major participants of the applicant, as well as about the major participants in the major participants of the applicant;
      7) short details about the executives of the applicant in the form, prescribed by the regulatory legal acts of the authorized body, including data about education, about the labour activity;
      8) the annual financial statements for the last two completed financial years, certified by the audit firm, as well as the financial statements for the last full quarter before the submission of such application;
      9 ) an analysis of the financial implications of becoming a major participant, including the estimated balance of payments of the applicant, insurance (reinsurance) company after the acquisition, the plans and proposals of the applicant, if available, for the sale of the assets of the insurance (reinsurance) company, reorganization or making significant changes in the activity or management of the insurance (reinsurance) company, including the plan of activities and organizational structure.
      8. To obtain the consent to acquire the status of a major participant of an insurance (reinsurance) company, the non-resident legal entity of the Republic of Kazakhstan shall submit the following documents:
      1) data and documents, specified in subparagraphs 1), 2), 3) and 4) of paragraph 6 and subparagraphs 1), 2), 3), 5), 6), 7), 8) and 9) of paragraph 7 of this article;
      2) data about the credit rating of the legal entity that is assigned by one of the international rating agencies, the list of which is established by the authorized body, except as provided for in paragraph 1 of this Article.
      To obtain the consent to acquire the status of a major participant of the insurance (reinsurance) company, a non-resident financial institution of the Republic of Kazakhstan, in addition to the documents specified in this paragraph shall provide a written confirmation from the financial supervisory body of the country of location of the applicant that the applicant is authorized to carry out the financial activities within the national legislation of this country, or a statement of the financial supervisory body of the country of location of the applicant that such authorization is not required under the legislation of that state.
      9. To obtain the consent to acquire the status of the insurance holding company, a financial institution – non-resident of the Republic of Kazakhstan shall submit the following documents:
      1) data and documents specified in paragraph 8 of this article;
      2) a written confirmation from the financial supervisory body of the country of location of the applicant that the financial institution - non-resident of the Republic of Kazakhstan shall be subject to the consolidated supervision;
      3) a written permission (consent) of the financial supervision body of the country of the location of the applicant to purchase by a financial institution - non-resident of the Republic of Kazakhstan of the status of an insurance holding company or a statement of the authorized body of the country that such permission (consent) is not required under the legislation of that state.
      10. Individuals, wishing to acquire the status of a major participant of an insurance (reinsurance) company with the ownership twenty-five or more percent (net of preferred and bought by an insurance (reinsurance) company) shares, as well as legal entities wishing to acquire the status of an insurance holding company, in addition to the documents and data specified in this article shall represent the business plan, the requirements for which are set by the authorized body for the next five years.
      11. As persons that are jointly a major participant in the insurance (reinsurance) companies shall be recognized the persons in total owning ten or more percent of outstanding (net of preferred and bought by the insurance (reinsurance) company) shares or having the power, directly or indirectly, to vote by ten or more percent of the shares of the insurance (reinsurance) company and:
      1 ) jointly affecting to the decisions of the insurance (reinsurance) company by virtue of an agreement between them or otherwise;
      2) being separately or mutually the major participants of each other;
      3) one of them shall be an officer or a representative of another person;
      4) one of them granted to another person the opportunity to purchase the shares of the insurance (reinsurance) company in accordance with the agreement between them;
      5) shall be close relatives or spouses;
      6) one of them gave the other person the opportunity to purchase the shares of the insurance (reinsurance) company at the expense of the donated to them money or property received free.
      In case if the insurance (reinsurance) company is a part of a banking conglomerate in accordance with the requirements of the banking legislation of the Republic of Kazakhstan, the insurance (reinsurance) company shall be subject to the consolidated supervision in accordance with the banking legislation of the Republic of Kazakhstan.
      12. The decision on the application, filed to acquire the status of an insurance holding company or a major participant of the insurance (reinsurance) company in accordance with the requirements of this article shall be taken by the authorized body within three months after the submission of the application.
      The authorized body shall notify the applicant on the results of their solutions, while in the case of refusal to grant the consent for purchase of the corresponding status the grounds for refusal shall be indicated in the written notice.
      13. The authorized body shall have the right to withdraw the consent, granted in accordance with this article, deciding to cancel it within two months from the date of discovery of the fact that is the basis for withdrawal of the consent, in case of the inaccurate information on the basis of which the consent was issued, or the violation of the antimonopoly legislation of the Republic of Kazakhstan as a result of acquisition of the status of a major participant or an insurance holding company by the applicant, or non-compliance of the major participants of the insurance (reinsurance) company or the insurance holding company with the requirements of this Law. In this case, the person to whom this measure applies, shall reduce, within six months the number of its shares in the insurance (reinsurance) company to a level below than specified in this article.
      The person that was withdrawn the consent, granted in accordance with this article shall not have the right to transfer the shares of the insurance (reinsurance) company in trust administration to a third party.
      In the case of non-performance of the requirements of this paragraph by the persons, in respect of which the authorized body decided to withdraw the relevant consent, the authorized body shall have the right to apply to the court for the performance of the requirements of the authorized body by those persons.
      14. If the person complies with characteristics of an insurance holding company, a major participant of the insurance (reinsurance) company without the prior written consent of the authorized body, he shall not have the right to take any action aimed at influencing the management or policies of the insurance (reinsurance) company, (or) vote on such shares until such time as he received the written consent from the authorized body in accordance with the provisions of this Article.
      In this case, the person corresponding to the characteristics of an insurance holding company, a major participant of insurance (reinsurance) companies shall notify the authorized body within ten calendar days from the time when he became aware that he meets the grounds of the insurance holding company, a major participant of the insurance (reinsurance) company.
      An application on acquisition of the corresponding status shall be submitted to the authorized body within thirty calendar days from the time when he became aware that he meets the grounds of the insurance holding company, a major participant of the insurance (reinsurance) company, unless the person is not going to dispose of the shares within the specified period. The data about the decision on the alienation of shares shall be submitted to the authorized body immediately from the date of the decision.
      15. Shareholders that in total own ten or more percent of outstanding (net of preferred and bought by the insurance (reinsurance) company) shares or the voting shares of the insurance (reinsurance) company and acting on the basis of agreement between them, providing for making decisions on the following issues shall not be the insurance holding companies, major participants in the insurance (reinsurance) companies:
      1) convening of an extraordinary general meeting of shareholders or appeal to the court to convene it in the case of refusal of the board of directors to convene a general meeting of shareholders;
      2) inclusion of additional issues on the agenda of a general meeting of shareholders;
      3) convening of a meeting of the board of directors;
      4) conduct of an audit of the insurance (reinsurance) company at their own expense.
      16. As persons that are together the insurance holding company, shall be recognized the persons in total owning twenty-five or more percent of outstanding (net of preferred and bought by the insurance (reinsurance) company) shares of the insurance (reinsurance) company or having the power, directly or indirectly, to vote by twenty-five or more percent of voting shares of the insurance ( reinsurance) and:
      1) jointly affecting to the decisions of the insurance (reinsurance) company by virtue of an agreement between them or otherwise;
      2) shall be separately or mutually the major participants of each other;
      3) one of them shall be a representative of another person;
      4) one of them granted to another person the opportunity to purchase the shares of the insurance (reinsurance) company in accordance with the contract between them.
      17. The authorized body shall have the right to request the data from individuals and legal entities in the presence of evidence, indicating that this person meets the characteristics of the insurance holding company or a major participant of the insurance (reinsurance) company. The data can be claimed from any person that has it, as well as from organizations under the control of that person.
      18. The major participant of the insurance (reinsurance) company, the insurance holding company shall notify, within thirty calendar days from the date of the decision the authorized body to change the percentage of the number of his shares in the insurance (reinsurance) company to the number of outstanding (net of preferred and bought the insurance (reinsurance) company) shares and (or) to the number of the voting shares of the insurance (reinsurance) company, that he owns, directly or indirectly, or has the ability to vote directly or indirectly, with submitting the supporting documents.
      In case of changing the number of shares of an insurance (reinsurance) company (in percentage or absolute value) belonging to a major participant of an insurance (reinsurance) company, an insurance holding company to the number of outstanding (net of preferred and bought by the insurance (reinsurance) company) shares and (or) to number of voting shares of an insurance (reinsurance) company in the direction of increasing, the major participant of an insurance (reinsurance) company, an insurance holding company shall submit the data on the sources of funds, used to purchase shares of the insurance (reinsurance) company, with copies of the supporting documents to the authorized body. The sources of funds, used to purchase the shares of the insurance (reinsurance) company by the major participants in the insurance (reinsurance) company - individuals shall be identified in subparagraph 1) of paragraph 6 of this Article.
      In case of changing the percentage of the number of shares of an insurance (reinsurance) company to an amount less than ten or twenty-five percent owned by a major participant of an insurance (reinsurance) company, an insurance holding company, to the number of outstanding (net of preferred and bought by the insurance (reinsurance) company) shares and (or) to the number of the voting shares of the insurance (reinsurance) company, the authorized body at the request of a major participant of an insurance (reinsurance) company, an insurance holding company or in the case of self- discovery of this fact shall make the decision to cancel the previously issued written approval within two months from the date of discovery of this fact in the manner provided for grant of the consent to acquire the status of a major participant of an insurance (reinsurance) company, an insurance holding company.
      19. An insurance (reinsurance) company and an insurance holding company shall submit quarterly a list of all its major participants or insurance holding companies (for insurance (reinsurance) companies ) with the percentage of the number of their shares (stakes in the authorized capital) of an insurance (reinsurance) company or an insurance holding company to the number of outstanding (net of preferred shares and bought) shares and (or) to the number of voting shares of an insurance (reinsurance) company or an insurance holding company to the authorized body no later than the tenth day of the month following the reporting quarter.
      20. Insurance (reinsurance) company shall notify the authorized body to change the composition of shareholders, owning ten or more percent of voting and (or) outstanding (net of preferred and bought by the insurance (reinsurance) company) shares of the insurance (reinsurance) company, within fifteen calendar days from the date of identification of this fact by it.
      21. Delays in the provision, or failure to provide or presentation of inaccurate data by an insurance (reinsurance) company, major participants in the insurance (reinsurance) company, an insurance holding company, as well as by individuals and legal entities, by the relevant characteristics of an insurance holding company or a major participant of the insurance (reinsurance) company, as well as the information required in accordance with paragraphs 14-20 of this Article, within the specified period shall entail the liability under the Laws of the Republic of Kazakhstan.
      Footnote. Article 26 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 26-1. Grounds for refusal to grant the consent by the authorized body for persons wishing to become an insurance holding company or a major participant in the insurance (reinsurance) company

      Footnote. Title, as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      1. The grounds for refusal to grant the consent by the authorized body for persons, wishing to become an insurance holding company or a major participant in the insurance (reinsurance) shall be:
      1) submission of an incomplete set of documents or non-conformity of the submitted documents with the requirements specified in Article 26 of this Law;
      2) failure to comply with the requirements of paragraph 3) - 5) of paragraph 2 of Article 34 of this Law (in relation to an individual or executives of the applicant - legal entity);
      3) unstable financial situation of the applicant;
      3-1) ineffectiveness of the submitted plan for recapitalization of the insurance (reinsurance) company in the case of a possible deterioration in the financial condition of the insurance (reinsurance) company;
      3-2) in the absence of the applicant – individual, executive applicant - legal entity an impeccable business reputation;
      4) violation of the requirements of the antimonopoly legislation by the applicant as a result of acquisition of the status of a major participant of an insurance (reinsurance) company or an insurance holding company;
      5) cases, when in the transaction to acquire the status of a major participant of an insurance (reinsurance) company or an insurance holding company, the acquirer party shall be a legal entity (its major participant (major shareholder) registered in offshore zones, the list of which is established by the authorized body;
      6) cases, when the applicant - financial institution shall not be subject to supervision on a consolidated basis in the host country;
      6-1) impossibility of the consolidated supervision of insurance group due to the fact that the legislation of the host countries of the participants of the insurance group - non-residents of the Republic of Kazakhstan makes it impossible to perform the requirements of this Law by them and the insurance group;
      7) non-compliance with other requirements established by the legislative acts of the Republic of Kazakhstan to the major participants of insurance (reinsurance) companies and insurance holding companies by the applicant;
      8) an analysis of the financial consequences of the acquisition of the status of a major participant of an insurance (reinsurance) company or an insurance holding company, involving the deterioration of the financial condition of the insurance (reinsurance) company by the applicant;
      9) the absence of the applicant - non-resident financial institution - of the Republic of Kazakhstan of powers for the financial activities within the legislation of the country of origin;
      10 ) the absence of the applicant – non-resident legal entity of the Republic of Kazakhstan the minimum required rating of one of the international rating agencies, the list of which is determined by the authorized body, except as provided by paragraph 1 of Article 26 of this Law;
      11) cases, when the person was previously or is a major participant – an individual or the first head of a major participant of the legal entity of a financial institution, and (or) the executive of a financial institution in a period not more than one year before the authorized body makes the decisions on the conservation of a financial institution, the forced redemption of its shares, as well as the revocation of the license of a financial institution, as well as the compulsory liquidation of a financial institution or declaring it as bankrupt in the manner specified in the legislative acts of the Republic of Kazakhstan. The above requirement shall apply within five years after the adoption by the authorized body of the decision on the conservation of a financial institution, the forced redemption of its shares, on the revocation of the license of a financial institution, as well as the compulsory liquidation of a financial institution or declaring it as bankrupt in the manner specified by the legislative acts of the Republic of Kazakhstan;
      12) inconsistency of the legislation in the field of the consolidated supervision for the financial institutions of the country of location of the applicant - legal entity with the consolidated supervision requirements, established by the legislation of the Republic of Kazakhstan;
      13) for major participants - legal entities and insurance holding companies that are non -resident financial institutions of the Republic of Kazakhstan - the absence of agreement between the authorized body and the financial supervisory bodies of the state, the resident of which is the applicant that provided the exchange of information, with the exception of the cases stipulated by the regulatory legal act of the authorized body.
      2. A sign of the unstable financial situation of the applicant - legal entity shall be the presence of one of the following conditions:
      1) a legal entity- applicant is created in less than two years prior to the date of application;
      2) the applicant’s obligations exceed its assets less the amount of assets, invested in stocks and shares in the authorized capital of other legal entities and intended to purchase the shares of an insurance (reinsurance) company;
      3) damages according to the results of each of the two completed financial years;
      4) the amount of obligations of the applicant poses a significant risk to the financial condition of an insurance (reinsurance) company;
      5) the existence of overdue and (or) related over the insurance (reinsurance) company debt of the applicant to the insurance (reinsurance) company;
      6) an analysis of the financial consequences of the acquisition by the applicant of the status of a major participant assumes the worsening of the financial condition of the applicant;
      7) other grounds, indicating the possibility of damage to the insurance (reinsurance) company and (or) its customers.
      3. In acquisition the signs of a major participant of an insurance (reinsurance) company or an insurance holding company by a person without the written consent of the authorized body, the authorized body shall have the right to apply the sanctions provided for by the Laws of the Republic of Kazakhstan, as well as coercive measures under Article 53-1 of this Law to the individual, in terms of requirements for the sale of shares of the insurance (reinsurance) company in a period not exceeding six months.
      Footnote. Section is supplemented by Article 26-1, in accordance with the Law of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107 ), as amended by the Laws of the Republic of Kazakhstan dated 19.02.2007 No. 230 (the order of enforcement see Art. 2), dated 07.05.2007 No. 244, dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

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

      1. The following documents shall be submitted to the authorized body to obtain the permission to create an insurance (reinsurance) company:
      1) an application to obtain a permission to create an insurance (reinsurance) company;
      2) four copies of the constituent documents (charter, foundation agreement) that notarized and executed in accordance with legislation;
      3) documents, proving the decision to create an insurance (reinsurance) company;
      4) data about the founders - legal entities (if any of the founders), including the certificates on the state registration (re-registration ) of legal entities, copies of the notarized constituent documents, the financial statements for the last two completed financial years that certified by an audit firm, balance sheet and statement of profit and loss account at the end of the last quarter before submission of the documents;
      5) data about the founders - individuals (if any of the founders), including a description of the sources and the amounts of money used to create an insurance (reinsurance) company, as well as certificate of no outstanding or unexpunged in the prescribed manner criminal records;
      6) a business plan, approved by a person authorized by the founders to sign the documents that certified by an actuary and developed over the next three years for insurance (reinsurance) companies created in the field “general insurance”, and for five years for insurance (reinsurance) companies created in the field “life insurance”. The business plan shall include the following issues: the purpose of the insurance (reinsurance) company, brief description of the main activities and the market segment for which the creating insurance (reinsurance) company is focused, data about the creating insurance (reinsurance) company and the market share, types of products and services, methods of their sale, market research, insurance underwriting, pricing strategy, including the procedure for the calculation of insurance rates and their economic feasibility, strategy of promoting products, distribution of insurance products, financial plan, including the forecast of loss ratios, investment policy and the policy of reinsurance, that the created the insurance (reinsurance) company intends to carry out, organizational structure, board of directors of the insurance (reinsurance) company, expected education level of professionals, organization of risk management that meets the requirements of the authorized body;
      6-1) (Is excluded - dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2).
      7) the notarized document, confirming the powers of the applicant to submit the application on behalf of the founders.
      1-1. In addition to the documents listed in paragraph 1 of this Article, a person that intends to purchase the shares of the insurance (reinsurance) company in an amount corresponding to the status of a major participant of an insurance (reinsurance) company or an insurance holding company shall submit the documents and data specified in Article 26 of this Law.
      2. The founder of an insurance (reinsurance) company that is a non-resident of the Republic of Kazakhstan, shall submit a document of the appropriate supervisory authority of the state, confirming that he is allowed to purchase the shares of the insurance (reinsurance) company - resident of the Republic of Kazakhstan, or a statement that under the legislation of the corresponding state, such permission is not required.
      The documents of the founder - non-resident of the Republic of Kazakhstan, issued by a foreign state body shall be legalized in the manner, prescribed by the legislation of the Republic of Kazakhstan.
      3. The procedure and conditions for granting the permission to create an insurance (reinsurance) company, as well as the requirements for the content of the documents, specified in sub-paragraphs 1), 4) – 6 of paragraph 1 of this Article, including the order for the calculation of insurance rates and their economic feasibility shall be determined by the regulatory legal acts of the authorized body.
      4. The permission for the creation of an insurance (reinsurance) company shall be valid for a period of six months from the date of issuance. The permission for the creation of an insurance (reinsurance) company may be prematurely withdrawn by the authorized body on the grounds provided for in this Law.
      5. The permission for the creation of an insurance (reinsurance) company shall be returned by the insurance (reinsurance) company to the authorized body in the issuance of the license to the insurance (reinsurance) company to engage in insurance activities.
      6. The application to grant the permission for the creation of an insurance (reinsurance) company shall be considered by the authorized body within three months from the date of submission by the applicant the last document, requested by the authorized body in accordance with paragraph 1 of this Article.
      7. The authorized body shall notify the applicant of its decision on the location specified by him (place of residence).
      Footnote. Article 27, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 08.07.2005 No. 72 (the order of enforcement see Art. 2), dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 28. Grounds for refusal to grant a permission for the creation of an insurance (reinsurance) company

      1. The grounds for refusal to grant a permission for the creation of an insurance (reinsurance) company shall be:
      1) submission of an incomplete set of documents or non-conformity of the submitted documents with the requirements specified in paragraphs 1-3 of Article 27 of this Law;
      2) insufficiency of own funds of the founder to pay for the shares;
      3) provision of inaccurate information concerning the newly created organization and its founders to the authorized body;
      4) loss-making activities of the founder for the last two completed financial years;
      5) (Is excluded – by the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2).
      6) refusal for giving the consent by the authorized body on acquire of the status of a major participant of an insurance (reinsurance) company on the grounds specified in Article 26-1 of the Law;
      6-1) failure to comply with the restrictions, imposed by Article 26 of this Law;
      7) presence of unexpunged or outstanding conviction of the founders - individuals, the first head of the executive body or governing body of the founder – a legal entity.
      2. The authorized body within the time, specified in paragraph 6 of Article 27 of this Law shall notify the applicant on the refusal to grant the permission for the creation of an insurance (reinsurance) company in writing, including the grounds for refusal.
      Footnote. Article 28, as amended by the Laws of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Article 2 of the Law No. 107), dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 15.07.2010 No. 338 -IV (the order of enforcement see Art. 2), dated 27.04.2012 No.15-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 29. Grounds for withdrawal of a permission for the creation of an insurance (reinsurance) company

      The authorized body shall withdraw a granted permission for the creation of an insurance (reinsurance) company in the following cases:
      1) detection of the inaccurate information on the basis of which it was issued;
      2) implementation of insurance and related to insurance activities by a legal entity, registered as an insurance (reinsurance) company prior to obtaining a license to engage in insurance activities;
      3) expiration of the term of the permission issued by the authorized body for the creation of an insurance (reinsurance) company, during which it was not registered in the judicial bodies or not appealed to the authorized body for a license to engage in insurance activities.
      Footnote. Article 29, as amended by the Law of the Republic of Kazakhstan dated 27.04.2012 No. 15-V (shall be enforced upon expiry of ten calendar days after its first official publication).

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

      1. State registration of an insurance (reinsurance) company shall be carried out by judicial bodies with the permission of the authorized body to create it.
      2. The founders of an insurance (reinsurance) company shall apply to the judicial bodies for its state registration not later than two months from the date of permission of the authorized body for its creation.
      Footnote. Article 30, as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

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

      After the state registration of changes and (or) amendments to the constituent documents, required re-registration in the judicial bodies, the insurance (reinsurance) company shall submit, within fourteen calendar days from the date of re-registration, a notarially certified copy of changes and (or) amendments to the constituent documents with the mark and seal of the registered organ of justice to the authorized body.
      In case of changes and (or) amendments to the constituent documents that do not require re-registration, the insurance (reinsurance) company shall submit, within fourteen calendar days from the date of the notation of the judicial body on the admission of the letter of the insurance (reinsurance) company, a copy of the letter of the insurance (reinsurance) company, a notarized copy of the changes and (or) amendments to the constituent documents to the authorized body.
      Footnote. Article 31 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 32. Subsidiaries of an insurance (reinsurance) company and insurance holding companies and a major participation of an insurance (reinsurance) company and insurance holding companies in the capital of organizations

      1. An insurance (reinsurance) company and an insurance holding company in order to exercise the powers authorized them by Article 48 of this Law, may create or have a subsidiary only with the prior permission of the authorized body.
      The requirement to obtain the permission of the authorized body for the creation or acquisition of a subsidiary shall not apply to insurance holding companies that indirectly own shares (having the opportunity to vote, make decisions and (or) influence on decisions, made by virtue of an agreement or otherwise) or stakes in the authorized capital of this organization through the ownership (the opportunity to vote, make decisions and (or) influence on decisions, made by virtue of an agreement or otherwise) of shares of the insurance (reinsurance) company - the resident of the Republic of Kazakhstan, that directly owns the shares (having the opportunity to vote, make decisions and (or) influence the decisions, made by virtue of an agreement or otherwise) or stakes in the authorized capital of this organization and having the appropriate permission of the authorized body.
      The procedure for granting the permission for the creation or acquisition of a subsidiary shall be defined by the regulatory legal act of the authorized body.
      2. Subsidiaries of an insurance (reinsurance) company shall not have the right to create and (or) have subsidiaries, as well as to have a major participation in the capital of the organizations.
      3. Subsidiaries of insurance holding companies, except for subsidiary insurance (reinsurance) companies – the residents of the Republic of Kazakhstan, shall not have the right to create and (or) have subsidiaries.
      This requirement shall not apply to subsidiaries of the insurance holding companies that are bank holding companies. In this case, the requirements of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan” shall apply to the specified persons.
      4. The application to obtain the permission to create, acquire the subsidiary shall attach the following documents:
      1) the constituent documents of the subsidiary, the decision on approval of the charter;
      2) the decision of the body of an insurance (reinsurance) company and (or) an insurance holding company on the creation or acquisition of the subsidiary;
      3) data about executives of the subsidiary (or candidates, recommended for appointment or election to the post of executives);
      4) the organizational structure of the subsidiary and the data about affiliated persons.
      In case of absence of an insurance holding company of the insurance (reinsurance) company the data on the organizations, related to subsidiaries shall be additionally provided:
      management of their activities on a consolidated basis in accordance with the terms of memorandum or provisions of associations of such organizations;
      if the composition of the executive body, governing body (for joint stock companies), the supervisory board (for limited liability companies) of the said organizations in more than one-third represented by the same persons;
      5) data on the type or types of activities of the subsidiary with the submission of a business plan;
      6) data, on the basis of analysis of the legislation of the location of the subsidiary, on the absence of circumstances, suggesting the impossibility of the consolidated supervision of insurance group due to the fact that the legislation of the location of the participants of the insurance group - non-residents of the Republic of Kazakhstan makes it impossible to perform them and by the insurance group the requirements stipulated by the legislative acts of the Republic of Kazakhstan;
      7) data on the percentage and amount of participation of the insurance (reinsurance) company and (or) the insurance holding company in the authorized capital of the creating subsidiary, as well as the number of shares they buy and the amount of the advance payment of shares (stakes in the authorized capital);
      8) the report of the auditor firm and the financial statements of the acquired subsidiary, certified by the audit firm;
      9) a certificate of the state registration (re-registration ) of a legal entity - the acquired subsidiary;
      10) data on the amount of the authorized capital of the acquired subsidiary (if such information is not contained in the audit report), as well as on the stakes of the insurance (reinsurance) company and (or) the insurance holding company in the authorized capital or the number of shares of the acquired subsidiary, on the terms and order for acquisition of the subsidiary;
      11) data on the legal entity, by the purchase of stakes in the authorized capital or the shares of which the insurance (reinsurance) company and (or) the insurance holding company purchases a subsidiary, including:
      the name and address of the legal entity;
      data about the amount of the stakes of the insurance (reinsurance) company and (or) the insurance holding company in the authorized capital of the legal entity, its purchase price, the founder (participant) of which is the insurance (reinsurance) company and (or) the insurance holding company;
      data on the number of shares, the purchase price, their percentage to the total number of outstanding shares (net of the shares preferred and bought by the company) of a legal entity, a shareholder of which is the insurance (reinsurance) company and (or) the insurance holding company;
      data about the amount of the stakes of a legal entity (a founder, a participant, a shareholder of which is the insurance (reinsurance) company and (or) the insurance holding company), its purchase price in the authorized capital of the other legal entity;
      data about the number of shares, the purchase price, their percentage to the total number of outstanding shares (net of the shares preferred and bought by the company), purchased by a legal entity, a shareholder (a founder, a participant) of which is the insurance (reinsurance) company and (or) the insurance holding company.
      These requirements shall apply to cases of acquisition of a subsidiary by the insurance (reinsurance) company and (or) the insurance holding company through the purchase of stakes in the authorized capital or the shares of several legal entities;
      12) the documents proving the existence of risk management and internal control system, including the risks associated with the activities of the subsidiary;
      13) analysis of the financial implications of the creation, acquisition of the subsidiary by the insurance (reinsurance) company and (or) the insurance holding company, including the expected balance of payments of the insurance (reinsurance) company and (or) the insurance holding company and the subsidiary after its creation or acquisition, as well as in the presence of plan and offer of the insurance (reinsurance) company and (or) the insurance holding company for the sale of assets of the subsidiary or making important changes in the management of the subsidiary;
      14) other documents on the basis of which it is supposed to acquire the control or confirming the control over the subsidiary, specifying the reasons of occurrence of the control.
      5. Insurance (reinsurance) company and (or) insurance holding company shall have the right to create a subsidiary subject to break-even activity on a consolidated and unconsolidated basis according to the results of each of the last two completed financial years and the compliance with the prudential standards, including on a consolidated basis, established by the authorized body during the last three months preceding the date of application for a permission to the authorized body.
      6. Grounds for refusal to grant the permission for the establishment, acquisition of a subsidiary shall be:
      1) failure to provide the documents, required to obtain the permission;
      2) non-compliance of the legislation on consolidated supervision over the financial institutions of the country of location of the established or acquired subsidiary with the requirements for the consolidated supervision established by legislative acts of the Republic of Kazakhstan;
      3) non-compliance of the executives of the subsidiary (or the candidates, recommended for appointment or election to the post of executives) with the requirements of paragraph 3), 4) and 5) of paragraph 2 of Article 34 of this Law;
      4) failure to comply with the prudential standards of the insurance group that includes the insurance (reinsurance) company and (or) the insurance holding company, as a result of the alleged presence of the subsidiary of the insurance (reinsurance) company and (or) the insurance holding company;
      5) an analysis of the financial implications, suggesting deterioration in the financial condition of the insurance ( reinsurance), an insurance holding company or an insurance group as a result of the activities of the subsidiary or the planned insurance ( reinsurance) organization and ( or) the insurance holding company investments;
      6 ) non-compliance of the submitted documents confirming the existence of the risk management and internal control, including the risks associated with the activities of the subsidiary requirements of the authorized body of the systems of risk management and internal control;
      7) failure to comply of the subsidiary with the established prudential standards in the cases, provided by the legislation of the country of location of the subsidiary, as well as by the insurance (reinsurance) company and (or) the insurance holding company of the prudential standards, including on the consolidated basis, and other mandatory standards and limits within the last three months preceding the date of application to the authorized body for the permission, and (or) during the consideration of the application;
      8) presence of the existing limited sanctions, provided for in subparagraph 4) of paragraph 1 of Article 53-2 of this Law, and (or) the enforcement measures under paragraph 2 of Article 53-1 of this Law, and (or) the sanctions, provided for in subparagraphs 2) - 4) of paragraph 2 of Article 53-3 of the Law as applied by the authorized body in respect of the insurance (reinsurance) company and (or) the insurance holding company, and (or) to the proposed for acquisition of the subsidiary during the consideration of documents;
      9) in the case of establishment or acquisition by the insurance (reinsurance) company and (or) the insurance holding company the subsidiary - insurance (reinsurance) company, the bank that manages the investment portfolio – the residents of the Republic of Kazakhstan - failure to comply with the requirements of this Law, the legislation of the Republic of Kazakhstan on banks and banking, on pensions and securities market regarding the issuance of the consent to obtain the status of the insurance or a bank holding company, a major participant of the insurance (reinsurance) company, the bank that manages the investment portfolio – the residents of the Republic of Kazakhstan.
      7. The authorized body shall issue the permission or refuse to issue the permission within three months after the submission of the application.
      In case of refusal to issue the permission, the authorized body shall notify the applicant on the grounds for refusal.
      8. The subsidiary of the insurance (reinsurance) company and (or) the insurance holding company shall notify, within thirty calendar days the authorized body of any changes and amendments, made to the constituent documents.
      9. The subsidiary of the insurance (reinsurance) company and (or) the insurance holding company - a non-resident of the Republic of Kazakhstan, as well as the organization - a non-resident of the Republic of Kazakhstan, in which the insurance (reinsurance) company and (or) the insurance holding company has a major participation in the capital, shall disclose the necessary data to the authorized body on basis of the relevant request in order to ensure the quality and timely perform the functions imposed to the authorized body for the implementation of the consolidated supervision. In this case, the received data shall be confidential.
      10. In the case of acquire by the insurance (reinsurance) company and (or) the insurance holding company the right of control of the subsidiary, without the prior approval of the authorized body, the authorized body shall apply the sanctions provided by the Laws of the Republic of Kazakhstan to the insurance (reinsurance) company or the insurance holding company. In this case, within six months after the detection of the above violation by the authorized body, the insurance (reinsurance) company and (or) the insurance holding company shall dispose of their shares (stakes in the authorized capital) of the subsidiaries to the entities that are not their affiliated entities, and submit the supporting documents to the authorized body.
      11. A major participation of the insurance (reinsurance) company and (or) the insurance holding company in the capital of an organization shall be permitted only with the prior permission of the authorized body.
      The requirement to obtain the permission of the authorized body for a participation in the capital of an organization shall not apply to the insurance holding companies that indirectly own (having the opportunity to vote, make decisions and ( or) influence on the decisions, made by virtue of a contract or otherwise) shares or stakes in the authorized capital of this organization through the ownership of (the opportunity to vote, make decisions and (or) influence on the decisions, made by virtue of a contract or otherwise) shares of the insurance (reinsurance) company - the resident of the Republic of Kazakhstan that directly owns (having the opportunity to vote, make decisions and (or) to influence the decisions, made by virtue of a contract or otherwise) shares or stakes in the authorized capital of this organization and have the appropriate permission of the authorized body.
      Issuance of permission for major participation in the capital of organizations shall be carried out in the manner, specified by the regulatory legal act of the authorized body.
      In the case of purchase by the insurance (reinsurance) company and (or) the insurance holding company of major participation in the capital of the organization without the prior permission of the authorized body, the authorized body shall apply the sanctions, provided by the Laws of the Republic of Kazakhstan to the insurance (reinsurance) company and (or) the insurance holding company. In this case, the insurance (reinsurance) company and (or) the insurance holding company shall dispose their shares (stakes in the authorized capital) of the organization, in the capital of which they have a major participation to the entities that are not affiliated entities of the insurance (reinsurance) company and (or) the insurance holding company, and submit the supporting documents to the authorized body within six months.
      12. Application to obtain the permission for a major participation in the capital of an organization shall be submitted with the documents, specified in subparagraphs 2) and 3), 5), 6), 7), 10) and 11) of paragraph 4 of this Article.
      Refusal to issue the permission for a major participation in the capital of an organization shall be made on the grounds, provided in paragraph 6 of this Article.
      13. The authorized body shall withdraw the permission for the establishment, acquisition of the subsidiary, the major participation in the capital of an organization in the following cases:
      1) the identification of inaccurate data on the basis of which the permission was granted;
      2) the adoption of a decision by the bodies of the subsidiary of the insurance (reinsurance) company and (or) the insurance holding company, as well as the organizations in which the insurance (reinsurance) company and (or) the insurance holding company has a major participation in the capital, or by a court decision to terminate the activities of these organizations through the reorganization or liquidation;
      3) there is no evidence of control of the insurance (reinsurance) company and (or) the insurance holding company over the subsidiary;
      4) the disposal of the insurance (reinsurance) company and (or) the insurance holding company of the shares (stakes in the authorized capital) of the organization;
      5) identification of non-conformity of the activities of the subsidiary of the insurance (reinsurance) company and (or) the insurance holding company, as well as the organization in which the insurance (reinsurance) company and (or) the insurance holding company has a major participation, with the requirements of paragraph 3 of Article 48 of this Law.
      In case of withdrawal of the permission for the establishment, acquisition of the subsidiary, the major participation in the capital of the organization, the authorized body shall take the decision to cancel the previously issued permission within two months from the date of identification of the fact that is the basis to withdraw of the permission, or filing the application to withdraw by the insurance (reinsurance) company and (or) the insurance holding company.
      In case of withdrawal of the permission for the establishment, acquisition of the subsidiary, the major participation in the capital of the organization, the insurance (reinsurance) company and (or) the insurance holding company shall dispose, within six months, their shares (stakes in the authorized capital) in these organizations to the entities that are not affiliated entities of the insurance (reinsurance) company and (or) the insurance holding company, and submit the supporting documents to the authorized body.
      The order for withdrawal of the permission for the establishment, acquisition of the subsidiary, the major participation in the capital of the organization shall be defined by the regulatory legal act of the authorized body.
      14. The requirements of this Article shall not apply to:
      1) non-residents of the Republic of Kazakhstan that are subsidiaries or affiliated organizations of non-residents of the Republic of Kazakhstan that are an insurance holding company, an entity with characteristics of an insurance holding company, as well as non-residents of the Republic of Kazakhstan that are an insurance holding company, an entity with characteristics of an insurance holding company, in the establishment or acquisition by them the subsidiaries and affiliated organizations – non-residents of the Republic of Kazakhstan when complying with one of the following conditions:
      the presence of an insurance holding company, having the characteristics of the insurance holding company of an individual credit rating not lower rated A of one of the rating agencies, the list of which is established by the authorized body, as well as a written confirmation from the financial supervisory authority of the country of origin of these persons that they are subject to the consolidated supervision;
      the presence of an agreement between the authorized body and the relevant supervisory body of a foreign state for the exchange of information, as well as the minimum required rating of one of the rating agencies. The minimum rating and the list of rating agencies shall be established by the regulatory legal act of the authorized body;
      2) insurance holding companies that are bank holding companies or banks, that are members of the banking conglomerates, and having the appropriate permission of the authorized body, issued in accordance with the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”.
      Note of the RCLI!
      Paragraph 15 shall be enforced from 01.01.2017.
      15. The total net worth of the insurance (reinsurance) companies that are the subsidiaries of the insurance (reinsurance) companies - non-residents of the Republic of Kazakhstan, may not exceed fifty percent of the total equity capital of all insurance (reinsurance) companies of the Republic of Kazakhstan.
      Footnote. Article 32 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (the order of enforcement see Art. 2), as amended by the Laws of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication), dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication), dated 26.12.2012 No. 61-V (shall be enforced from 04.02.2012 ), dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 33. Establishment, closing of the branches and representative offices of the insurance (reinsurance) company

      1. The insurance (reinsurance) company – the resident of the Republic of Kazakhstan on the basis of decisions of the board of directors of the insurance (reinsurance) company without the consent of the authorized body shall have the right to open their separate subdivisions - branches and representative offices on the territory of the Republic of Kazakhstan and beyond.
      2. The insurance (reinsurance) company shall notify, within thirty working days from the date of registration of its branch and representative office in the judicial bodies, the authorized body of their discovery in writing with the application of:
      1) the certificate of record registration of a branch (representative office);
      2) a notarized copy of the statute of a branch or a representative office with the mark and seal of the registered body of justice;
      3) a notarized copy of power of attorney, issued to the first head of a branch or a representative office.
      3. Branch of the insurance (reinsurance) company is a separate subdivision of the insurance (reinsurance) company that is not a legal entity, located outside the insurance (reinsurance) company, carrying out the insurance activities on behalf of the insurance (reinsurance) and acting within the powers, granted to it by the insurance (reinsurance) company. Branch of the insurance (reinsurance) company shall have the united with the insurance (reinsurance) company balance sheet, and the name that is identical to the name of the insurance (reinsurance) company.
      4. Representative office of the insurance (reinsurance) company is a separate subdivision of the insurance (reinsurance) company that is not a legal entity, located outside the insurance (reinsurance) company, acting in the name and on behalf of the insurance (reinsurance) company and not carrying out the insurance activities.
      5. The essential requirements for the opening of branches of the insurance (reinsurance) company shall be:
      1) break-even activity of the insurance (reinsurance) company, except the insurance companies, licensed in the field “life insurance”, on the results of the last completed financial year;
      2) compliance of the insurance (reinsurance) company with the prudential standards (except for the standard of asset diversification) within three months preceding the date of registration of the branch in the judicial bodies;
      3) lack of sanctions in the form of suspension of the license to engage in insurance activities, as well as the non-use by the authorized body within three months preceding the date of registration of a branch in the judicial bodies, the sanctions in the form of administrative punishment for an administrative offense, provided in the first part (on submission of the inaccurate statements or other requested data to the authorized body by the insurance (reinsurance) companies), in the parts five, eight, ten, eleven of Article 173, in Articles 174 and 175 of the Code of the Republic of Kazakhstan on Administrative Offences.
      6. The insurance (reinsurance) company - resident of the Republic of Kazakhstan shall have the right to open representative offices subject to break-even activity of the insurance (reinsurance) company on the results of the last completed financial year.
      7. In making changes and (or) amendments in the statute of a branch, representative office, requiring the record re-registration in the judicial bodies, the insurance (reinsurance) company - resident of the Republic of Kazakhstan shall submit, within thirty business days from the date of the record re-registration in the judicial bodies, to the authorized body:
      1) a notarized copy of the changes and (or) amendments in the statute of a branch or a representative office;
      2) a certificate of the record re-registration of a branch (a representative office).
      In making changes and (or) amendments to the statute of a branch, representative office that do not require the record re-registration in the judicial bodies, the insurance (reinsurance) company shall submit, within thirty business days from the date of mark of the judicial body for the admission of the letter of the insurance (reinsurance) companies, a copy of the letter of the insurance (reinsurance) company, notarized copies of the changes and (or) amendments to the statute of a branch or a representative office to the authorized body.
      8. The insurance (reinsurance) company - resident of the Republic of Kazakhstan in the case of opening branches and representative offices outside the Republic of Kazakhstan shall notify, within thirty calendar days from the date of registration in the relevant body of the state, the authorized body in writing about their opening with the documents, confirming the registration in the relevant body of the state.
      9. The insurance (reinsurance) company - non-resident of the Republic of Kazakhstan shall have the right to open its representative office without the consent of the authorized body.
      10. Representative office of the insurance (reinsurance) company -non-resident of the Republic of Kazakhstan shall notify, within thirty business days from the date of the record registration in the judicial bodies, the authorized body on the opening with the application of:
      1) the certificate of the record registration of representative offices of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan;
      2) a notarized copy of the statute of the representative office with a mark and seal of the registered body of justice;
      3) a written confirmation of the insurance supervisory authority of the relevant state that the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan shall have a valid license for the insurance activity, or statements of the insurance supervisory authority that the issuance of the written confirmation is not provided by the legislation of the country of origin of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan;
      4) a written notice to the insurance supervisory authority of the relevant state that it does not mind opening a representative office of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan on the territory of the Republic of Kazakhstan, or the statement of the insurance supervisory authority or the authoritative legal service of the relevant state that such permission under the legislation of the insurance (reinsurance) - non-resident of the Republic of Kazakhstan is not required;
      5) a notarized power of attorney in the name of the head of the representative office of the insurance company.
      11. The opening of branches of the insurance (reinsurance) companies - non-residents of the Republic of Kazakhstan in the Republic of Kazakhstan is prohibited.
      12. Representative office of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan shall notify, within thirty business days from the date of the record registration (re-registration) in the judicial bodies, the authorized body about the changes and (or) amendments in the statute of the representative office attached with notarized copies of these documents.
      In case of making changes and (or) amendments in the statute of the representative office, not requiring the re-registration, the representative office of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan shall submit, within thirty business days from the date of the mark of judicial body for the admission of the letter of the representative office of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan, a copy of the letter of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan, notarized copies of the changes and (or) amendments in the statute of the branch or representative office to the authorized body.
      13. The insurance (reinsurance) company within thirty business days from the date of removal from the record registration of its branch and (or) representative office in the judicial bodies (the relevant registration body of the state at the termination of the activities of a branch or representative office outside the Republic of Kazakhstan) shall notify the authorized body at the termination of their activities, attached with a notarized copy of the document of the judicial body, confirming the removal from the record registration of the branch and (or) representative office of the insurance (reinsurance) company.
      14. The authorized body shall require the closure of the branch and (or) representative office of the insurance (reinsurance) company - resident and the representative office of the insurance (reinsurance) company - non-resident of the Republic of Kazakhstan in the case of failure to comply with paragraphs 2, 5-8, 10, 12 of this Article.
      Footnote. Article 33 is in the wording of the Law of the Republic of Kazakhstan dated 23 December, 2005 No. 107 (the order of enforcement see Article 2 of the Law No. 107). Article as amended by the Laws of the Republic of Kazakhstan dated 19 February, 2007 No. 230 (the order of enforcement see Art. 2), dated 7 May, 2007 No. 244, dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 34. Requirements for executives of insurance (reinsurance) company, insurance holding company and insurance broker

      Footnote. Title, as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      1. As executives of the insurance (reinsurance) company shall be recognized the first head and the members of the board of directors, the first head and board members, the chief accountant and the other heads of the insurance (reinsurance) company, carrying out the coordination and (or) control over the activities of the structural subdivisions of the insurance (reinsurance) company and having the right to sign the documents on the basis of which the insurance and (or) investment activities are held, with the exception of the first heads of branches and representative offices of the insurance (reinsurance) company and their chief accountants.
      The first head and his deputies, the chief accountant shall be recognized as executives of the insurance broker.
      1-1. The insurance (reinsurance) company shall submit, within one hundred and twenty calendar days after the end of the financial year, the reporting, including data on income, paid by the insurance (reinsurance) company to all the executives of the insurance (reinsurance) company during the financial year, in the form prescribed by the regulatory legal act of the authorized body, to the authorized body.
      The requirements for domestic policy of the insurance (reinsurance) company for payment of labour, accrued gratuities, as well as other kinds of material incentives of the executives of the insurance (reinsurance) company shall be established by the regulatory legal act of the authorized body.
      2. A person that:
      1) does not have higher education;
      2) does not have the established by this article work experience in international financial institutions, the list of which shall be established by the authorized body and (or) work experience in the provision and (or) regulation of financial services and (or) services for the audit of a financial institution;
      3) does not have impeccable business reputation;
      4) previously was the first head of the board of directors, chief executive of the board and his deputy, chief accountant, major participant - individual, the first head of a major participant (insurance holding company) - legal entity of a financial institution in a period not more than one year before the authorized body makes the decision on the conservation of a financial institution, the forced redemption of its shares, on the revocation of the license of a financial institution, as well as the compulsory liquidation of a financial institution or declaring it as bankrupt in the manner, established by the legislation of the Republic of Kazakhstan. The above requirement shall apply within five years after the adoption of the decision by the authorized body on the conservation of a financial institution, the forced redemption of its shares, on the revocation of the license of a financial institution, as well as the compulsory liquidation of a financial institution or declaring it as bankrupt in the manner, established by the legislation of the Republic of Kazakhstan;
      5) was withdrawn the consent to the appointment (election) on the position of the executive during the period when the person was in the position of the executive in other financial institution. The above requirement shall apply during the last twelve consecutive months after the authorized body makes the decision to withdraw the consent to the appointment (election) on the position of the executive, - cannot be appointed (elected) as the executive of the insurance (reinsurance) company and insurance broker.
      3. A major participant of the insurance (reinsurance) company cannot be appointed (elected) for the post of the first head of board of the insurance (reinsurance) company.
      The number of board members shall be at least three people.
      The number of members of the executive body of the insurance (reinsurance) company that are the members of the governing body of branch organization of the insurance (reinsurance) company or the organization in the capital of which the insurance (reinsurance) company has a major participation, may not exceed one third of the total number of members of the governing bodies of branch organization of the insurance (reinsurance) company or the organization in the capital of which the insurance (reinsurance) company has a major participation, with the exception of members of the executive body of the insurance (reinsurance) company, the parent organization of which is the national holding company.
      4. To meet the requirement under subparagraph 2) of paragraph 2 of this article, the work experience shall be necessary:
      1) for candidates for the post of the first head or member of the board of directors that is a member of the executive body of the parent financial institution, the first head of board, the chief accountant of the insurance (reinsurance) company and the first head of an insurance broker for at least three years;
      2) for candidates for the post of the first head of the board of directors, members of board of the insurance (reinsurance) company, the chief accountant and the deputy of the first head of an insurance broker for at least two years;
      3) for candidates for the post of other executives of the insurance (reinsurance) company, carrying out the coordination and (or) control over the structural subdivisions of the insurance (reinsurance) company and having the right to sign the documents on the basis of which the insurance and (or) investment activity is held, not less one year.
      The presence of work experience as provided in subparagraph 2) of paragraph 2 of this Article for candidates for the post of members of the board of directors, as well as members of the board, supervising only the security matters of the insurance (reinsurance) company, administrative and economic matters, shall not be required.
      The work in the subdivisions of the financial institution, related with carrying out of economic activities shall not be included in the work experience, as defined in this paragraph.
      5. The executive shall have the right to hold his position without the consent of the authorized body no more than sixty calendar days from the date of his appointment (election).
      At the end of the period, specified in this paragraph, and in the case of failure to submit the complete package of documents for approval to the authorized body or in the case of refusal of the authorized body to approval, an insurance (reinsurance) company and an insurance broker shall terminate the employment contract with the person, or in the absence of employment contract take measures to terminate the authority of the executive.
      Performance of duties (replacing of a temporarily absent) of the executive of an insurance (reinsurance) company and an insurance broker without the consent of the authorized body beyond the period, specified in this paragraph shall be prohibited.
      The authorized body shall consider the documents, submitted to issue the consent for the appointment (election) of executives of the insurance (reinsurance) company, insurance broker within thirty calendar days from the date of their submission.
      6. The order for granting the consent of the authorized body for the appointment (election) of the executive of an insurance (reinsurance) company and an insurance broker, the documents, required to obtain the consent shall be established by the regulatory legal acts of the authorized body.
      7. In the case of refusal of the authorized body to grant the consent for the appointment (election) of the executive of the insurance (reinsurance) company, insurance broker, or his dismissal from the post of executive of the insurance (reinsurance) company, insurance broker or his transfer to another post in the insurance (reinsurance) company, in the insurance broker, the person may be re- appointed (elected) to the post of the executive of this insurance (reinsurance) company, this insurance broker, not earlier than ninety calendar days after the receipt of the refusal to grant the consent for the appointment (election) or dismissal or transfer to another position, but not more than twice during the twelve consecutive months.
      8. In the case of two consecutive refusals of the authorized body to grant the consent for the appointment (election) to the post of the executive of the insurance (reinsurance) company, insurance broker, the person may be appointed (elected) by the executive employee of the insurance (reinsurance) company, insurance broker at the end of twelve consecutive months from the date of the authorized body makes the decision on the second refusal to grant the consent for his appointment (election) in the insurance (reinsurance) company, insurance broker.
      9. The authorized body shall have the right to withdraw the consent for the appointment (election) to the post of the executive of the insurance (reinsurance), insurance broker for the following reasons:
      1 ) discovery of inaccurate data, on the basis of which the consent was issued;
      2) systematic (three or more times within the last twelve consecutive months) application of sanctions to the executive by the authorized body;
      3) removal from performance of duties of the persons, specified in this article, on the basis of sufficient evidence for the recognition of the actions of this executive (executives) of the insurance ( reinsurance) organization as not complying with the requirements of the legislation of the Republic of Kazakhstan;
      4) the presence of unexpunged or outstanding conviction.
      Withdrawal of consent by the authorized body for the appointment (election) of the executive of the insurance (reinsurance) company, insurance broker shall be the ground for withdrawal of a previously granted consent to this executive in other financial institutions.
      In case of withdrawal of consent by the authorized body for the appointment (election) to the post of the executive of the insurance (reinsurance) company, insurance broker, the insurance (reinsurance) company, insurance broker shall terminate the employment contract with the person, or in the absence of an employment contract take measures to stop the authority of the executive.
      10. In case of adoption of a decision by the authorized body on the forced redemption of shares of the insurance (reinsurance) company in the manner prescribed by this Law, the insurance (reinsurance) company shall terminate the employment contract with the executives, that are the first head of the board of directors, the first head of the board and his deputies and the chief accountant or in the absence of the employment contract take steps to terminate the powers of the executive.
      11. The requirements of subparagraph 4) of paragraph 2 and paragraph 10 of this Article shall not apply to the insurance (reinsurance) companies, more than fifty percent of the outstanding shares of which are owned by the state and (or) the national management holding company.
      12. Executives of the insurance holding company shall be the first head and members of the governing bodies, the executive body, the chief accountant, and other heads of the insurance holding company, carrying out the coordinate and (or) control over the activities of subsidiaries and organizations, in which the insurance holding company has major participation in the capital.
      13. The requirements of this Article shall apply to executives of insurance holding companies, except for:
      1) executives of insurance holding companies - non-residents of the Republic of Kazakhstan, in the implementation of one of the following conditions:
      the presence of an insurance holding company an individual credit rating not lower rated A of one of the rating agencies, the list of which is established by the authorized body, as well as a written confirmation from the financial supervisory authority of the country of origin of the insurance holding company that it shall be subject to the consolidated supervision;
      the existence of an agreement between the authorized body and the relevant supervisory authority of a foreign state for the exchange of information, as well as the minimum required rating of one of the rating agencies. Minimum rating and list of rating agencies shall be established by the regulatory legal act the authorized body;
      2) executives that received the consent of the authorized body for the appointment (election) of the executive in accordance with the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”, insurance holding companies that are bank holding companies that are members of the banking conglomerates.
      Footnote. Article 34 is in the wording of the Law of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), as amended by the Laws of the Republic of Kazakhstan dated 12.01.2007 No. 222 (shall be enforced upon expiry of 6 months from the date of its official publication), dated 19.02.2007 No. 230 (the order of enforcement see Art. 2), dated 23.10.2008 No. 72-IV (shall be enforced from 01.01.2009), dated 20.11.2008 No. 88-IV (the order of enforcement see Art.2), dated 15.07.2010 No. 338-IV ( the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (the order of enforcement see Art. 2); dated 26.12.2012 No. 61-V (shall be enforced from 04.02.2012).

      Article 35. Additional requirements for insurance (reinsurance) company with the participation of non-resident of the Republic of Kazakhstan

      1. Is excluded by the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2).
      2. Insurance (reinsurance) company with the participation of non-residents of the Republic of Kazakhstan shall be the insurance (reinsurance) company, more than twenty-five percent of voting shares (net of preferred) of which in the aggregate shall be owned or managed by:
      1) non-resident of the Republic of Kazakhstan;
      2) legal entity - resident of the Republic of Kazakhstan, more than fifty percent of the stakes in the authorized capital or the outstanding shares of which are owned and (or) managed by non-residents of the Republic of Kazakhstan;
      3) residents of the Republic of Kazakhstan that are nominee holders of the securities of non-residents of the Republic of Kazakhstan.
      Footnote. Article 35, as amended by the Laws of the Republic of Kazakhstan dated 08.07.2005 No. 72 (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 36. Insurance broker

      Footnote. Article 36 is excluded by the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2).

Chapter 7. Licensing

      Article 37. Licensing of insurance (reinsurance) company and insurance broker

      1. The applicant shall submit the following documents to the authorized body to obtain a license to engage in insurance activities:
      1) an application for a license within the classes of insurance, specified in the business plan that submitted in receiving the permission for establishment of an insurance company or to engage in activities of reinsurance;
      1-1) documents, showing the performance of all organizational and technical measures, including of accounting and automation of accounting, that complying with the relevant requirements of the regulatory legal acts of the authorized body;
      2) a document, confirming the payment of license fee to the budget;
      3) a certificate of the state registration (re-registration ) of a legal entity;
      4) a copy of the taxpayer certificate;
      5) a notarized copy of the charter with all amendments and supplements to it (if any);
      5-1) documents of the persons that proposed to the positions of executives of insurance (reinsurance) company, in accordance with the requirements of Article 34 of this Law;
      6) copies of documents, confirming the payment of the authorized capital, the minimum size of which is set by the regulatory legal act of the authorized body;
      7) internal rules for carrying out the insurance activities;
      8) report on the implemented organizational measures in accordance with the business plan, submitted in receiving the permission to open the insurance (reinsurance) company;
      9) data on the presence of actuary in the staff of the applicant;
      10) provisions on the internal audit service;
      11) a notarized copy of the contract of participation in the organization that guarantees the insurance payments to policyholders (insured persons, beneficiaries) under the compulsory liquidation of an insurance company under insurance contracts, if the mandatory participation of the insurance company in such an organization is established by the legislative acts of the Republic of Kazakhstan on compulsory types of insurance or by this Law;
      11-1) an extract from the personal account of an insurance company that is open in the shareholders registers system of an organization that guarantees the insurance payments to policyholders (insured persons, beneficiaries) under the compulsory liquidation of an insurance company under insurance contracts, if the legislative act of the Republic of Kazakhstan on compulsory types of insurance or this Law provides for the mandatory participation as a shareholder of the organization;
      12) documents, confirming the participation in the database in accordance with the requirements of this Law and the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      13) a document, confirming the existence of a major participant – an individual or an insurance holding company (to obtain a license to engage in compulsory types of insurance), except in cases, where more than fifty percent of the outstanding shares of the insurance (reinsurance) company directly or indirectly owned or transferred in trust administration to the state or the national management holding company.
      The requirements, set out in this paragraph shall not apply to the existing insurance (reinsurance) companies, with the exception of subparagraph 13) of this paragraph.
      2. The insurance company shall submit the following documents to the authorized body to obtain a license to engage in insurance activities in additional classes of insurance:
      1) an application;
      2) a business plan for the class (classes) of insurance that signed by an actuary;
      3) a notarized copy of the contract of participation in an organization that guarantees the insurance payments to policyholders (insured persons, beneficiaries) under the compulsory liquidation of insurance companies, if the mandatory participation of the insurance company in such an organization is established by the legislative acts of the Republic of Kazakhstan on compulsory types of insurance or by this Law;
      3-1) an extract from the personal account of an insurance company that is open in the shareholders registers system of an organization that guarantees the insurance payments to policyholders (insured person, beneficiaries) under the compulsory liquidation of an insurance company under insurance contracts, if the legislation of the Republic of Kazakhstan on compulsory types of insurance or this Law provides for compulsory participation as a shareholder of the organization;
      4) a copy of the payment document, confirming the payment of the license fee;
      5) a document, confirming the existence of a major participant – an individual or an insurance holding company (to get a license to engage in compulsory types of insurance ), except in cases, where more than fifty percent of the outstanding shares of an insurance (reinsurance) company directly or indirectly owned or transferred in trust administration of the state or the national management holding company;
      6) documents, confirming participation in the database in accordance with the requirements of this Law and the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      7) documents, confirming the fulfillment of the requirements established by the authorized body in terms of the availability of risk management systems and internal controls.
      3. The business plan for the class of insurance shall contain the following information:
      1) the main features:
      covered risks by insurance class;
      share of the class of insurance in the structure of the insurance portfolio;
      segment of the market for providing the services for the insurance class (market size, potential policyholders, the geographical area);
      ways to implement the insurance products within the class of insurance;
      2) the requirements for the procedures of calculation of insurance rates and their economic feasibility;
      3) the forecast for the next two years on profits, losses, calculation of insurance reserves for given class of insurance, losses forecast, risk assessment in the worst and best situations, the forecast of compliance with prudential standards;
      4) the policy of reinsurance (reinsurance forms and methods, assessment criteria of reinsurance companies);
      5) the investment policy.
      4. Insurance company shall not have the right to apply to the authorized body for a license to engage in insurance activities on additional classes of insurance before the expiration of the period of performance the conditions, specified in the business plan for obtaining the permission to establish an insurance company.
      The requirement of this paragraph shall not apply in the cases of adoption of the legislative acts of the Republic of Kazakhstan providing for:
      1) the introduction of new classes and types of insurance;
      2) changing the order and conditions of the insurance activities for the individual classes and types of insurance.
      5. In the case of exclusion of individual classes of insurance from license, the license shall be subject to renewal with the exception of those classes of insurance.
      6. To exclude the individual classes of insurance from the license to engage in insurance activities, the insurance company shall submit the following documents to the authorized body:
      1) an application;
      2) a copy of the payment document, confirming payment of the license fee;
      3) documents, confirming the transfer of the insurance portfolio in the manner, provided by Article 37-1 of this Law.
      7. To obtain a license to engage in reinsurance activity, a licensee shall submit the following documents to the authorized body:
      1) an application;
      2) a business plan for the implementation of reinsurance activity for the next two years, signed by an actuary that is licensed to operate as an actuary in the insurance market;
      3) internal rules of the insurance company, revealing the procedure for the acceptance of insurance risks to reinsurance;
      4) a copy of the payment document, confirming the payment of the license fee.
      8. To obtain a license to engage in the activities of an insurance broker, an applicant shall submit the following documents to the authorized body:
      1) an application;
      2) a certificate of the state registration (re-registration) of a legal entity and a notarized copy of the taxpayer certificate;
      3) a notarized copy of the charter that passed the state registration;
      4) documents, confirming full payment of the authorized capital;
      5) documents for approval of executives of the insurance broker, in accordance with the requirements of Article 34 of this Law;
      6) internal rules of operating, providing for the procedure of mediation on the conclusion of contracts of insurance and reinsurance;
      7) procedure for documentation and terms of customer service;
      8) a copy of the payment document, confirming the payment of the license fee;
      9) a state registration document, a written notice of the authorized body (for financial institutions - supervisors) of the corresponding state that the founder - a non-resident legal entity of the Republic of Kazakhstan shall be allowed to participate in the authorized capital of the insurance broker - resident of the Republic of Kazakhstan, or a statement that under the legislation of the corresponding state, such approval is not required;
      10) a document of the authorized body of the corresponding state, indicating the absence of the founder – an individual non-resident of the Republic of Kazakhstan of the conviction for economic and corruption crimes and offences, work as an executive of the insurance (reinsurance) company, insurance broker or other financial institution in a period not exceeding one year from the date of withdrawal of the license in accordance with legislation, the decision on the compulsory liquidation, forced redemption of shares of the insurance (reinsurance) company, insurance broker.
      The above requirement shall apply within five years after the withdrawal of the license, the date of the decision on the compulsory liquidation, forced redemption of shares of the insurance (reinsurance) company, insurance broker.
      9. For the issue (renewal) of the license, the license fee is charged, the amount and method of payment shall be determined by the legislation of the Republic of Kazakhstan.
      10. The license application shall be considered by the authorized body within thirty days from the date of submission of a complete set of documents, corresponding to the requirements of the legislation of the Republic of Kazakhstan.
      11. The information about the license shall be published in periodicals of the authorized body in the state and Russian languages.
      12. The procedure and conditions for issuing a license to engage in insurance (reinsurance) activities and activities of an insurance broker, as well as the requirements for the content of the documents, specified in paragraphs 1 - 3, 6 - 8 of this Article, including the order for calculation of insurance rates and their economic feasibility shall be established by the regulatory legal acts of the authorized body.
      Footnote. Article 37, as amended by the Laws of the Republic of Kazakhstan dated 12.01.2007 No. 222 (shall be enforced upon expiry of 6 months from the date of its official publication), dated 07.05.2007 No. 244, dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009), dated 30.12.2009 No. 234-IV; dated 19.03.2010 No. 258-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 05.07.2012 No.30-V (shall be enforced upon expiry of ten calendar days after its first official publication), dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 37-1. Transfer of the insurance portfolio

      1. An insurance (reinsurance) company with the consent of a policyholder shall have the right to transfer of the insurance portfolio in one or more classes of insurance to other insurance (reinsurance) company, licensed under this class (classes) of insurance.
      2. With the exclusion of individual classes of insurance from the license in accordance with Article 37 of this Law, an insurance company with the consent of a policyholder shall transfer the insurance portfolio in this class (classes, types) of insurance or terminate the insurance contracts with policyholders under this class (classes, types) of insurance.
      In case of voluntary return of the reinsurance license, an insurance company shall transfer the insurance portfolio to another insurance (reinsurance) company, licensed for reinsurance.
      With the exclusion of individual classes of insurance from the license, voluntary return of a license to engage in reinsurance activities, an insurance company shall not have the right to carry out the activities, related to the conclusion and execution of contracts under this class (classes, types) of insurance.
      3. An insurance (reinsurance) company that receives the insurance portfolio shall comply with all prudential standards and other mandatory standards and limits at the time of its acceptance, as well as in view of the newly received insurance portfolio.
      4. The order for transfer of the insurance portfolio shall be defined by the regulatory legal act of the authorized body.
      Footnote. Section is supplemented by Article 37-1 – by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 38. Refusal to issue a license to engage in the insurance activities, the activities of reinsurance and insurance broker

      1. Refusal to issue (renewal) a license to engage in the insurance activity, the activities of reinsurance and insurance broker shall be on the following grounds:
      1) failure to comply with the requirements, established in Article 37 of this Law;
      1-1) failure to comply with the established prudential standards and other mandatory standards and limits by the insurance group, that includes an insurance (reinsurance) company during the period of six months prior to the filing of the application;
      2) If an applicant within six months from the date of the state registration did not address to the authorized body for a license in accordance with the legislation of the Republic of Kazakhstan;
      3) non-compliance of the submitted documents with the requirements of the legislation of the Republic of Kazakhstan;
      4) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012 );
      5) discordance of an executive from the number of the elected by the bodies of a company (for the newly established insurance (reinsurance) company, the insurance broker).
      2. Refusal to issue a license to engage in insurance activities for additional classes of insurance or a license to engage in reinsurance activity, in addition to the grounds set out in paragraph 1 of this Article, shall be made on the following grounds:
      1) forecast of non-compliance with the prudential standards, in view of the obtained additional class of insurance;
      2) failure to comply with the prudential standards within the last three months prior to the date of application and during the period of its consideration;
      3) presence of a valid sanction in the form of suspension of the license to engage in insurance activity on the filing date of the application.
      Footnote. Article 38 is in the wording of the Law of the Republic of Kazakhstan dated 23 December, 2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), as amended by the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 39. Licensing of the activities of an authorized auditor

      (Article is excluded by the Law of the Republic of Kazakhstan dated 5 May, 2006 No. 139 (the order of enforcement see Art. 2 of the Law No. 139).

      Article 40. Licensing of actuarial activities

      1. Licensing of actuarial activities in the insurance market of the Republic of Kazakhstan shall be carried out by the authorized body.

      2. An applicant shall submit the following documents to the authorized body to obtain a license to engage in actuarial activities in the insurance market:
      1) an application for a license in the form, prescribed by the regulatory legal act of the authorized body;
      2) data about the applicant for a license in the form, prescribed by the regulatory legal act of the authorized body;
      3) a copy of the identity document;
      4) a notarized copy of the higher education diploma;
      5) a copy of the document, confirming the payment of a license fee;
      Note of the RCLI!
      Subparagraph 6) is valid until 01.01.2012 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      6) a notarized copy of the applicant’s registration with the tax authority;
      7) copies of documents, certifying that the applicant for a license has been trained and has successfully passed the corresponding exams at the minimum mandatory training program of actuaries, established by the regulatory legal act of the authorized body, or a copy of a master’s degree diploma in business administration with specialization “actuary” in accordance with the requirements of the regulatory legal act of the authorized body;
      8) for non-resident individuals of the Republic of Kazakhstan - copies of documents, confirming the status of an actuary and membership in the International Actuarial Association, the list and requirements for which shall be established by the authorized body.
      The license application shall be considered by the authorized body within one month from the date of submission of a complete set of documents, corresponding to the requirements of the legislation of the Republic of Kazakhstan.
      3. The license to engage in the actuary activities in the insurance market shall be issued to the applicant after passing him a test on knowledge of the legislation of the Republic of Kazakhstan on insurance and insurance activities. The order of testing shall be established the regulatory legal act of the authorized body.
      After obtaining the license, an actuary shall submit, within fourteen calendar days of receipt of the license for actuarial activities, a document, confirming his membership in the association of actuaries to the authorized body.
      4. An actuary shall pass a qualifying examination every three years in accordance with the regulatory legal act of the authorized body.
      5. The grounds for refusal to issue a license shall be the following cases:
      1) if an applicant did not submit all the documents for a license, established by paragraph 1 of this Article;
      2) availability of data on the revocation of the license on the grounds, specified in subparagraphs 2), 3) and 4) of paragraph 1 of Article 60 of this Law;
      3) a negative test result, conducted by the authorized body.
      6. Information about issuing a license shall be published in periodicals of the authorized body in the Kazakh and Russian languages.
      Footnote. Article 40 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), as amended by the Law of the Republic of Kazakhstan dated 27.04.2012 No.15-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 8. The authorized body and the state regulation, control and supervision over the insurance activities

      Footnote. Title of Chapter 8 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 41. The tasks of the state regulation in the field of insurance

      1. The main tasks of the state regulation in the field of insurance shall be:
      1) the establishment and maintenance of a stable insurance system in the Republic of Kazakhstan and the formation of the infrastructure of the national insurance market;
      2) the regulation of the insurance market, the control and supervision over the insurance activities;
      3) the legislative recognition of the bases of insurance, the establishment of compulsory insurance, the principles of participation of the Republic of Kazakhstan in the system of international insurance;
      4) the protection of the rights and legitimate interests of the policyholders, the insured persons and beneficiaries.
      2. The implementation of the state policy in the field of insurance, including the provision of the state control over the situation on the insurance market, shall be carried out by the authorized body and other state bodies within their competence.
      Powers of other state bodies that are not regulated by this Law may be provided by the relevant legislative acts on the types of compulsory insurance.
      The interference of state bodies and their officials in the activities of an insurance (reinsurance) company and an insurance broker, except the cases that directly provided for by the legislative acts of the Republic of Kazakhstan, shall be prohibited.
      Footnote. Article 41, as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 42. The authorized body

      The state regulation, control and supervision over the insurance activities shall be carried out by the authorized body in accordance with the powers, provided by the legislation of the Republic of Kazakhstan.
      The legal status of the authorized body shall be defined by the Laws of the Republic of Kazakhstan and the acts of the President of the Republic of Kazakhstan.
      Footnote. Article 42 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 43. The competence of the authorized body

      Footnote. Title is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      The authorized body shall:
      1) implement the state policy on the functioning of the insurance system in the Republic of Kazakhstan and the formation of the infrastructure of the national insurance market, the protection of the legitimate interests of policyholders and other participants of the insurance market;
      2) define the principles and methods of regulation of the insurance market, the order of organization of control and supervision over the insurance activities;
      3) issue permissions for the establishment of insurance (reinsurance) companies;
      3-1) identify with the requirements of this Law the procedure for issuing and revoking of the consent for acquisition of the status of a major participant of an insurance (reinsurance) company or an insurance holding company, issue the permission for the acquisition of the status of a major participant of an insurance (reinsurance) company or an insurance holding company, establish the shares of direct and (or) indirect ownership of a major participant by voting (net of preferred shares) shares of an insurance (reinsurance) company or an insurance holding company;
      3-2) give the consent to the transaction with shares of the insurance (reinsurance) company;
      3-3) give the consent for voluntary reorganization and liquidation of the insurance (reinsurance) company;
      3-4) issue the permission for the establishment of a subsidiary of the insurance (reinsurance) company, for a major participation in the authorized capital of legal entities to the insurance holding company;
      3-5) establish the requirements on the risk management system for insurance (reinsurance) companies and insurance groups;
      4) determine with the requirements of this Law the procedure for issuing and issue the licenses to engage in insurance (reinsurance) activities, insurance broker activities, actuary activities in the insurance market;
      4-1) define the procedure for the transfer of the insurance portfolio;
      5) establish the prudential standards and other mandatory standards and limits for the insurance (reinsurance) company and insurance group, including the minimum size of the authorized capital, guarantee fund, solvency margin, and provide the control over compliance with them;
      6) supervise over the activities of the liquidation commissions of the liquidated insurance (reinsurance) companies;
      6-1) in the case of suspension of the license on the grounds, specified in subparagraph 2) of paragraph 1 of Article 54 of this Law, have the right to limit the increase of costs, including the administrative costs, of the insurance (reinsurance) company;
      7) give the consent to the election (appointment) of the executives of the insurance (reinsurance) companies, insurance holding companies and insurance brokers;
      8) analyze, evaluate and control of the financial stability and solvency of the insurance (reinsurance) company;
      9) establish the procedure for accounting of insurance contracts (insurance policies) by the insurance companies;
      9-1) impose the requirements for the methods of assessment and the principles of calculating of insurance rates by classes (types) of insurance of the insurance (reinsurance) companies;
      9-2) define the procedure for calculating the coefficients, characterizing the loss ratio (loss ratio, ratio of expenses, combined ratio) of the insurance (reinsurance) company;
      9-3) establish the procedure for calculating the redemption amount;
      10) maintain a register of insurance (reinsurance) companies, insurance brokers branches and representative offices of the insurance (reinsurance) companies and insurance brokers, actuaries;
      11) (paragraph is excluded – by the Law of the Republic of Kazakhstan dated 11 June, 2004 No. 562);
      11-1) establish the requirements for automation of the insurance (reinsurance) company;
      11-2) establish the requirements for the organization’s activities on the provision and maintenance of the database, including the requirements to:
      The information process;
      the formation of the security service and the establishment of minimum requirements for the electronic equipment;
      keeping the database;
      premises;
      12) (paragraph is excluded – by the Law of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January, 2004);
      13) adopt the regulatory legal acts, binding to the insurance (reinsurance) companies and other participants of the insurance market;
      14) conduct the inspections of insurance entities, insurance brokers, separate subdivisions of insurance entities and insurance brokers;
      14-1) control over the compliance of the insurance (reinsurance) companies and insurance brokers with the requirements, stipulated by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime and financing of terrorism;
      15) impose the sanctions on the professional participants of the insurance market;
      16) decide on the suspension of the license and revocation of the license, issued by the professional participants of the insurance market;
      16-1) confirm the decision of the temporary administration on the transfer of the insurance portfolio with the conservation or revocation of the license of the insurance (reinsurance) company;
      17) make the decision to appeal to the courts with a lawsuit concerning the termination of the activities of the insurance (reinsurance) company on the grounds, stipulated by the legislation of the Republic of Kazakhstan;
      18) have the right to receive information on the activities of the insurance (reinsurance) company, on the legal status and financial condition of its founders, as well as for those that are subsidiaries or separate subdivisions in relation to the insurance (reinsurance) company, and its founders;
      19) have the right to receive from the professional participants of the insurance market and their associations, insurance agents the necessary data to carry out its monitoring and supervisory functions in accordance with this Law;
      20) is excluded by the Law of the Republic of Kazakhstan dated 11.06.2004 No. 562;
      21) have the right to receive from the state bodies and organizations, the data necessary to carry out its monitoring and supervisory functions, including the data that constitutes the business or trade secret;
      22) establish the requirements for the content and production of forms of insurance policies, as well as develop a single form of insurance police for certain types of compulsory insurance;
      22-1) apply the early response measures;
      23) have the right to apply the limited measures, necessary for the execution, for the professional participants of the insurance market;
      24) in accordance with the legislation of the Republic of Kazakhstan, take measures for the compulsory redemption of shares of the insurance (reinsurance) company;
      25) perform the cooperation and necessary exchange of information with other authorized bodies for supervision of the financial market of the Republic of Kazakhstan;
      26) represent the interests of the Republic of Kazakhstan in the relationship with the insurance supervisory authorities of other countries, as well as with the international organizations in the insurance market regulation and supervision of insurance activities;
      27) perform other functions under this Law, other Laws of the Republic of Kazakhstan and the acts of the President of the Republic of Kazakhstan.
      Footnote. Article 43, as amended by the Laws of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January 2004), dated 11 June, 2004 No. 562, dated 23 December, 2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), dated 31 January, 2006 No. 125, dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2), dated 5 May, 2006 No. 139 (the order of enforcement see Art. 2 of the Law No. 139), dated 12 January, 2007 No. 222 (shall be enforced upon expiry of 6 months from the date of its official publication), dated 19 February, 2007 No. 230 (the order of enforcement see Art. 2), dated 7 May, 2007 No. 244, dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 28.08.2009 No. 192-IV (shall be enforced from 08.03.2010), dated 30.12. 2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 44. Checking the activities of insurance (reinsurance) companies, insurance broker, insurance holding companies and insurance groups

      1. Checking the activities of insurance (reinsurance) companies, insurance brokers, insurance holding companies and insurance groups shall be carried out by the authorized body independently or with the assistance of other state bodies and (or) organizations.
      2. Insurance (reinsurance) companies, insurance brokers, insurance holding companies, insurance groups and their affiliated persons shall assist the inspection body on the matters, specified in the task of the authorized body for review, as well as provide the ability to interview any officials and employees, and access to any sources needed to check the information.
      3. Persons, performing the inspection shall be liable for the disclosure of information, obtained in the course of checking of activities of the insurance (reinsurance) companies, insurance brokers, insurance holding companies and insurance groups that constitutes the insurance secrecy or a trade secret.
      4. Employees of the authorized body shall be prohibited from disclosing or transfer to third parties the information, obtained during the checking of activities of the insurance (reinsurance) companies, insurance brokers, insurance holding companies and insurance groups.
      5. The state bodies, performing the checking of activities of the insurance (reinsurance) companies, insurance brokers, separate subdivisions of the insurance (reinsurance) companies, insurance brokers, insurance holding companies and insurance groups within the powers, granted to them by the legislation of the Republic of Kazakhstan, shall inform the authorized body of the identified violations of the legislation of the Republic of Kazakhstan on insurance and insurance activities.
      6. The requirements of paragraphs 1 and 2 shall not apply to non-residents of the Republic of Kazakhstan that are insurance holding company, a person with characteristics of an insurance holding company, in performing any of the following conditions:
      the presence of an individual’s credit rating not lower rated A of one of the rating agencies, the list of which is established by the authorized body, as well as a written confirmation from the financial supervisory authority of the country of origin of the insurance holding company, the person having the characteristics of the insurance holding company, the fact that the persons – non-residents of the Republic of Kazakhstan shall be subject to the consolidated supervision;
      the existence of an agreement between the authorized body and the relevant supervisory authority of a foreign state for the exchange of information, as well as the minimum required rating of one of the rating agencies. Minimum rating and list of rating agencies shall be established by the regulatory legal act the authorized body.
      Footnote. Article 44 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), as amended by the Law of the Republic of Kazakhstan dated 26.12.2012 No. 61-V (shall be enforced from 04.02.2012).

Chapter 9. Regulation of the activities of an insurance (reinsurance) company

      Article 45. Solvency and financial stability of an insurance (reinsurance) company

      Footnote. Article 45 is excluded by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 46. Prudential standards and other mandatory norms and limits

      1. Control and supervision of solvency and financial stability of the insurance (reinsurance) company and individuals, that are subject to the supervision on a consolidated basis shall be made by means of the control and supervision over the execution or compliance with the established by the authorized body prudential standards and (or) other mandatory norms and limits.
      2. Prudential standards for insurance (reinsurance) companies shall include:
      minimum amount of the authorized capital;
      adequacy of solvency margin;
      adequacy of highly liquid assets;
      standards of asset diversification.
      Prudential standards for insurance groups shall be an adequacy of solvency margin.
      The authorized body shall have the right to establish the additional prudential standards, including the investment of assets, covering the insurance reserves for annuity insurance.
      The authorized body in accordance with the legislation of the Republic of Kazakhstan shall take measures to bring to justice the insurance (reinsurance) companies and (or) insurance holding companies or their officials, and (or) the major participants of the insurance (reinsurance) companies or insurance holding companies for breach of the prudential standards and (or) other mandatory standards and limits by the insurance (reinsurance) company.
      3. In the case of a breach of the solvency margin adequacy standards established by the regulatory legal acts of the authorized body by the insurance (reinsurance) company, insurance group, the insurance (reinsurance) company, insurance holding company shall submit a recapitalization plan to the authorized body. The plan shall be submitted within one month from the date of violation of adequacy solvency margin with a detailed description of events and deadlines for the correction of violations.
      4. Insurance holding companies, as well as major participants of the insurance (reinsurance) companies shall take measures under the regulatory legal acts of the authorized body for the maintenance of adequacy standards of solvency margin of the insurance (reinsurance) company and (or) the insurance group.
      In case of deterioration of the financial situation of the insurance (reinsurance) company or the insurance group, the insurance holding company, the major participant of the insurance (reinsurance) company shall, including at the request of the authorized body, take measures to improve the financial situation of the insurance (reinsurance) company or the insurance group, to increase the equity of the insurance (reinsurance) company or the insurance group in an amount sufficient to ensure the financial stability of the insurance (reinsurance) company or the insurance group.
      5. The solvency margin shall be the excess of assets over the liabilities of the insurance (reinsurance) company.
      6. The guarantee fund shall be established in order to ensure the financial stability and solvency of the insurance (reinsurance) company by reducing the solvency margin below the minimum specified amount.
      7. The requirements for the calculation of the amount of self-retention of the insurance (reinsurance) company under the contract (contracts) of insurance and (or) reinsurance, including those that concluded with an affiliated person (affiliated persons) of the insurance (reinsurance) company, as well as for an individual class (type) of insurance and reinsurance, shall be established by the regulatory legal acts of the authorized body.
      8. The authorized body shall have the right to establish additional requirements for the minimum level of solvency margin for insurance company, operating in mortgage insurance and compulsory insurance of the civil liability of owners of vehicles, as well as to the order of calculation of insurance reserves for insurance company, operating in mortgage insurance.
      9. Insurance (reinsurance) company shall submit the data on the availability and restriction of the use of derivative financial instruments, not included in the financial statements to the authorized body.
      10. Normative values ??and methods of calculation of the prudential standards of insurance (reinsurance) company and insurance group and other mandatory norms and limits, shall be established by the regulatory legal acts of the authorized body.
      11. In case of failure of the insurance (reinsurance) company, the participant of an insurance group the requirements of the authorized body, specified in a written prescription, to adjust the data in the financial and (or) other accounting, the calculation of prudential standards and other mandatory norms and limits shall be carried out by the authorized body on the basis of the statements, corrected by it.
      Footnote. Article 46 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 46-1. The obligation of major participants

      1. The authorized body in accordance with the legislation of the Republic of Kazakhstan shall take measures to bring to justice the insurance (reinsurance) company and (or) insurance holding companies for breach of the prudential standards and (or) other mandatory norms and limits by the insurance ( reinsurance) organization.
      2. The insurance holding company, as well as the major participants of the insurance (reinsurance) company – individuals that own directly or indirectly, more than twenty-five percent of the voting (less of preferred) shares of the insurance (reinsurance) company shall take measures, stipulated by the regulatory legal acts of the authorized body for the maintenance of the prudential standards at a level no lower than the set.
      3. The insurance holding company shall ensure the solvency margin of the insurance (reinsurance) company at the level, established by the regulatory legal acts of the authorized body.
      The authorized body shall have the right to establish the individual prudential standards and their normative values for insurance (reinsurance) companies that do not have an insurance holding company?.
      4. In the case of reducing the level of the prudential standards of the insurance (reinsurance) company, the insurance holding company shall, at the request of the authorized body, take measures to improve the financial situation of the insurance (reinsurance) company, including an increase in the solvency margin of the insurance (reinsurance) company in an amount sufficient to ensure the financial stability of the insurance (reinsurance) company.
      5. The measures, provided for in this article, may also apply to affiliated persons of the major participants of the insurance (reinsurance) company, if the authorized body finds that the violations, wrongful act or omission of such persons, their officers or employees worsened the financial condition of the insurance (reinsurance) company.
      Footnote. Section is supplemented by Article 46-1, in accordance with the Law of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Art. 2), is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 47. Insurance reserves

      1. To ensure the fulfillment of obligations under the existing insurance and reinsurance contracts, the insurance (reinsurance) company shall have the generated insurance reserves in the amount, calculated by an actuary.
      2. Funds of insurance reserves are intended solely for making by the insurance company the insurance payments, related to the performance of its obligations under the existing insurance and reinsurance contracts.
      3. The requirements for the formation, method of calculation of insurance reserves and their structure, including for the companies whose activities are subject to licensing, shall be established by regulatory legal acts of the authorized body.
      Footnote. Article 47 as amended – by the Law of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January 2004), dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2), dated 5 July, 2006 No. 164 (the order of enforcement see Art. 2).

      Article 48. The activities, prohibited or restricted for insurance (reinsurance) companies and insurance holding companies

      1. Insurance (reinsurance) companies shall be prohibited from purchasing the stakes in the authorized capital or shares of legal entities, establishing and participating in the activities of non-commercial organizations, except as provided by this Law, and transactions with securities in the cases provided for in paragraph 4 of this Article.
      2. Insurance holding companies shall be prohibited from implementation of operations and transactions as entrepreneurial activity, as well as purchase of stakes in the authorized capital or shares of legal entities, establishing and participating in the activities of non-commercial organizations, except as provided by this Law, and implementation of transactions in securities in cases provided for in paragraph 4 of this article.
      3. The prohibition, in paragraphs 1 and 2 of this Article shall not apply to the following cases of establishment, as well as purchase of shares or stakes in the authorized capital:
      1) by insurance (reinsurance) companies:
      organization for the formation and maintenance of the database;
      legal entities, carrying out activities of an insurance agent as an exclusive activity;
      organizations, that guarantee the insurance payments to policyholders (insured persons, beneficiaries) in the case of the compulsory liquidation of insurance companies;
      legal entities in the amount of ten percent of the outstanding (net of preferred and repurchased by the company shares) shares (stakes in the authorized capital), subject to the compliance of the purchased shares (stakes in the authorized capital) with the requirements of the regulatory legal act of the authorized body;
      financial institutions, as well as non-resident legal entities of the Republic of Kazakhstan, having the status of banks, insurance companies, pension funds, professional participants of the securities market, in the amount of ten or more percent of the outstanding (net of preferred and repurchased by the company shares) shares (stakes in the authorized capital) if it has an insurance holding company;
      2) by insurance holding companies:
      financial institutions;
      non-resident legal entities of the Republic of Kazakhstan, having the status of banks, insurance companies, pension funds, professional participants of the securities market.
      The purchase of the stakes in the authorized capital or shares of the legal entities, specified in paragraph 1) of the first part of this paragraph by the insurance (reinsurance) company, shall not exceed the per legal entity ten percent of the equity capital of the insurance (reinsurance) company.
      This restriction shall apply to the ownership of the insurance (reinsurance) company of the stakes in the authorized capital or shares of the specified legal entities, including in cases of their establishment.
      The total value of stakes of the insurance (reinsurance) company in the authorized capital of legal entities or shares shall not exceed fifty percent of the equity capital of the insurance (reinsurance) company.
      Subsidiaries of insurance (reinsurance) companies shall have the right to purchase only the shares or stakes in the authorized capital of legal entities that meet the requirements, established by the regulatory legal act of the authorized body. This requirement shall not apply to subsidiary banks - residents of the Republic of Kazakhstan.
      Subsidiaries of an insurance holding company shall have the right to purchase only the shares or stakes in the authorized capital of legal entities that meet the requirements, established by the regulatory legal act of the authorized body. This requirement shall not apply to:
      affiliated insurance (reinsurance) companies - residents of the Republic of Kazakhstan;
      subsidiary banks - residents of the Republic of Kazakhstan;
      legal entities, in which the insurance holding company shall be the parent organization through the ownership (the availability to vote, make decisions and (or) influence on the decisions, made by virtue of a contract or otherwise) of shares of the insurance (reinsurance) company or bank-residents of the Republic of Kazakhstan that directly own (having the ability to vote, make decisions and (or) influence on the decisions, made by virtue of a or otherwise) the shares or stakes in the authorized capital of these entities;
      non-residents of the Republic of Kazakhstan that are subsidiaries of non-residents of the Republic of Kazakhstan that is an insurance holding company, in case of implementation of any of the following conditions:
      the presence of an insurance holding company an individual credit rating not lower rated A of one of the rating agencies, the list of which is established by the authorized body, as well as a written confirmation from the financial supervisory authority of the country of origin of these persons that they are subject to the consolidated supervision;
      the existence of an agreement between the authorized body and the relevant supervisory authority of a foreign state for the exchange of information, as well as the minimum required rating of one of the rating agencies. Minimum rating and list of rating agencies shall be established by the regulatory legal act of the authorized body.
      4. The prohibition, in paragraphs 1 and 2 of this Article shall not apply in cases of purchase to the ownership:
      1) by insurance holding companies:
      bonds of international financial institutions, the list of which is set by the authorized body;
      bonds with a minimum required rating. The minimum required rating and list of rating agencies shall be established by the regulatory legal act of the authorized body;
      2) by insurance (reinsurance) companies:
      financial instruments (except for shares and stakes in the authorized capital), the list of which shall be established by the regulatory legal acts of the authorized body.
      The restrictions, established by this Article shall not apply to the cases of purchase by the insurance (reinsurance) company, insurance holding company the bonds, instead of the previously purchased, the organizations that are in the process of restructuring, subject to the inclusion of obligations on the previously issued bonds in the list of the restructured obligations of the organization.
      5. Insurance (reinsurance) companies shall be prohibited to:
      1) issue other types of securities than shares;
      2) raise borrowed funds from banks for a period, exceeding three months, in the amount, excessing of the amount of equity capital;
      3) provide financial assistance on a grant basis, except for financial assistance to officials and employees of the insurance (reinsurance) company in an amount, not exceeding hundred times of the monthly calculation index;
      4) provide loans by any means, except for the cases, established by the legislation of the Republic of Kazakhstan.
      6. In addition to the activities specified in paragraph 2 of this Article, the insurance holding companies shall have the right to engage in the following activities:
      1) the purchase of property from a person other than an affiliated person of an insurance holding company, purchased for its own needs;
      2) the provision of advisory services on matters related to the financial activities;
      3) the sale of own property to a person that is a non- affiliated person of an insurance holding company.
      7. Insurance (reinsurance) companies and insurance holding companies shall be prohibited from transactions with the derivative securities, except for transactions in order to hedge risks.
      8. The total percentage of shares (stakes in the authorized capital) of the parent organization of group insurance, the insurance (reinsurance) company or the insurance holding company, owned by subsidiaries of the insurance (reinsurance) company or the insurance holding company, the organizations, in which the insurance (reinsurance) company or the insurance holding company has a major participation, shall not exceed the limits defined by the regulatory legal act of the authorized body.
      9. The requirements of this article shall not apply to:
      1) non-residents of the Republic of Kazakhstan that are an insurance holding company, a person with characteristics of an insurance holding company, in the implementation of any of the following conditions:
      the presence of an individual’s credit rating not lower rated A of one of the rating agencies, the list of which shall be established by the authorized body, as well as a written confirmation from the financial supervisory authority of the country of origin of the insurance holding company, the person having the characteristics of the insurance holding company, the fact that the persons - non -residents of the Republic of Kazakhstan shall be subject to the consolidated supervision;
      the existence of an agreement between the authorized body and the relevant supervisory authority of a foreign state for the exchange of information, as well as the minimum required rating of one of the rating agencies. Minimum rating and list of rating agencies shall be established by the regulatory legal act the authorized body;
      2) insurance holding companies, that are bank holding companies, including to the banking conglomerates;
      3) on the insurance holding companies, indirectly owning (having the ability to vote, make decisions and (or) influence on the decisions, made by virtue of a contract or otherwise) the shares of the insurance (reinsurance) company through the ownership of (the possibility to vote, make decisions and (or) influence on the decisions, made by virtue of a contract or otherwise) shares or stakes in the authorized capital of the insurance holding company - resident of the Republic of Kazakhstan, that directly owns (having the ability to vote, make decisions and (or) influence on the decisions, made by virtue of a contract or otherwise) the shares of the specified insurance (reinsurance) company;
      4) insurance holding companies - residents of the Republic of Kazakhstan, that are financial institutions.
      10. Insurance (reinsurance) company shall transfer the part of its accepted insurance risks from affiliates of insurance (reinsurance) company, exceeding the amount of the self-retention of the insurance (reinsurance) company to the insurance (reinsurance) companies with an international credit rating not lower the sovereign rating of the Republic of Kazakhstan. The list of rating agencies shall be established by the regulatory legal act of the authorized body.
      The aggregate amount of self-retention for insurance (reinsurance) contracts, concluded by the insurance (reinsurance) company with one affiliated person of the insurance (reinsurance) company, shall not exceed ten percent of the equity capital of the insurance (reinsurance) company.
      11. The requirements of this article shall not apply to the investment of assets of the internal reserve fund of the insurance (reinsurance) company.
      Footnote. Article 48 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (the order of enforcement see Art. 2), as amended by the Law of the Republic of Kazakhstan dated 26.12.2012 No. 61 -V (shall be enforced from 04.02.2012).

      Article 49. Major transactions for insurance

      1. The transaction on insurance (reinsurance) shall be recognized as major, if the liability limit (the insured amount or self-retention) of the insurance (reinsurance) company exceeds the norm, established by the regulatory legal act of the authorized body.
      2. A decision on a major transaction shall be approved by the board of directors of the insurance (reinsurance) company based on the preliminary advice of an actuary.

      Article 50. Transactions with securities and promissory notes

      1. Transactions, made with the shares of insurance (reinsurance) company shall be registered in accordance with the legislation of the Republic of Kazakhstan with the specifications, prescribed in this Law.
      2. The insurance (reinsurance) company shall not issue a golden share.
      Footnote. Article 50 as amended –by the Law of the Republic of Kazakhstan dated 23 December, 2005 No. 107 (the order of enforcement see Article 2 of the Law No. 107), dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

      Article 51. Control over the transactions with shares of the insurance (reinsurance) company

      1. The person, receiving the right of ownership or control over the voting (net of preferred) shares of the insurance (reinsurance) company in an amount more than five percent of the total number of the voting (net of preferred) shares, shall submit a written notice within ten calendar days to the authorized body on making the transaction with supporting documents.
      2. Is excluded by the Law of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004).
      3. Is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).
      4. The requirements of this Article shall apply to all types of transactions with shares of insurance (reinsurance) companies and depositary receipts, issued for shares of insurance (reinsurance) companies.
      Footnote. Article 51, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 52. Participation of the insurance (reinsurance) company in joint activities

      1. The insurance (reinsurance) company shall have the right to participate in the establishment of a consortium or a partnership.
      2. The joint activity agreement with participation of the insurance (reinsurance) company shall be subject to registration by the authorized state body within ten calendar days from the date of its conclusion.
      3. Supervision over the activities of the insurance (reinsurance) company, affiliated with it and its founders, individuals and organizations, involved in consortium and partnerships with participation of insurance (reinsurance) companies, may be carried out on a consolidated basis. The consolidated supervision rules shall be established by the authorized body.
      Footnote. Article 52, as amended by the Law of the Republic of Kazakhstan dated 27.04.2012 No.15-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 52-1. The system of risk management and internal control

      1. Insurance (reinsurance) companies form a system of risk management and internal control that shall include:
      1) the powers and functional responsibilities for risk management and internal control of the board of directors, governing body, subdivisions of insurance (reinsurance) company, their responsibilities;
      2) internal policies and procedures for risk management and internal controls;
      3) limits on the permissible extent of risks, separately by types of activities of the insurance (reinsurance) company;
      4) internal reporting procedures for risk management and internal control to the bodies of the insurance (reinsurance) company;
      5) internal criteria for evaluating the effectiveness of the risk management system.
      The order for formation of the system of risk management and internal control shall be established by the regulatory legal act of the authorized body.
      2. Insurance group shall have a system of risk management and internal control, corresponding to the requirements, established by the regulatory legal act of the authorized body.
      The parent organization of the insurance group shall ensure the compliance with the requirements of the system of risk management and internal control on a consolidated basis.
      The parent organization of the insurance group shall be responsible for compliance of the participants of the insurance group with the requirements of the system of risk management and internal controls.
      Footnote. Chapter 9 is supplemented by Article 52-1 in accordance with the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 52-2. Prohibition on advertising that do not correspond to reality

      1. Insurance (reinsurance) companies shall be prohibited from advertising and their activities that do not correspond to reality on the day of its publication.
      2. The authorized body shall have the right to require the insurance (reinsurance) company to make the changes in the advertising that do not correspond to reality, its termination or publication of its denial.
      In the case of non-fulfillment of the requirements in the established by the authorized body term, the authorized body may publish the information on inaccurate data, contained in the advertising, or define them at the expense of the insurance (reinsurance) company that published such advertising.
      3. It is prohibited to act as an advertiser of services, provided by insurance (reinsurance) companies, to the following persons:
      legal entities that are not licensed by the authorized body in the field “life insurance” or “general insurance”, as well as carrying out the activity on reinsurance;
      individuals that are not employees of the insurance (reinsurance) company and not authorized insurance (reinsurance) companies.
      Footnote. Chapter 9 is supplemented by Article 52-2 in accordance with the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 10. Sanctions and other enforcement actions

      Article 53. Early response measures

      1. In order to protect the legitimate interests of policyholders, ensuring the financial stability of insurance (reinsurance) company, prevent a worsening of their financial situation and increase the risks, related with the insurance activities, the authorized body shall carry out an analysis of insurance (reinsurance) companies activities to identify the following factors that affect the worsening of the financial situation of insurance (reinsurance) companies:
      1) reducing the adequacy of the solvency margin;
      2) reducing the adequacy of highly liquid assets;
      3) other factors, affecting the worsening of the financial situation of the insurance (reinsurance) company, established by the regulatory legal act of the authorized body.
      2. In order to ensure the financial stability of the insurance group, prevent a worsening of its financial situation and increase the risks, related with the activities of the insurance group, the authorized body shall carry out an analysis of the activities of the insurance group to identify the following factors that affect the worsening of the financial situation of the insurance group:
      1) reducing the adequacy of the solvency margin of the insurance group;
      2) use of early response measures for financial institutions that are participants of the insurance group;
      3) other factors that affect the worsening of the financial situation of the insurance group, established by the regulatory legal act of the authorized body.
      3. In the case of identifying the factors, specified in paragraph 1 of this article, as the result of analysis of the financial situation of the insurance (reinsurance) company and (or) on the results of its inspection, the authorized body shall send the request, in writing, to provide a plan of actions, providing for early response measures to improve the financial stability of the insurance (reinsurance) company, prevent the worsening of its financial situation and increase the risks, related with the insurance activities, to the insurance (reinsurance) organization and (or) its shareholders.
      Insurance (reinsurance) company and (or) its shareholders shall within no more than five business days from the date of receipt of the requirements, develop and submit to the authorized body a plan of actions, with indication the deadlines for execution of each paragraph and the responsible officials.
      With the approval of the action plan by the authorized body, the insurance (reinsurance) company and (or) its shareholders shall start its implementation, notifying the authorized body of the results of its implementation within the period, specified in the plan.
      In case of disapproval of the action plan, the authorized body shall apply to the insurance (reinsurance) company and (or) its shareholders of one or more following measures of early response by presenting the requirements to:
      1) change the organizational structure and (or) staff number of the insurance (reinsurance) company;
      2) limit the acceptance of obligations under the contracts of insurance (reinsurance), including by limiting the insurance activities for some classes of insurance with a high degree of risk;
      3) termination of accruals and (or) payment of dividends for a period, specified by the authorized body;
      4) dismissal from office the executives or other employees of the insurance (reinsurance) company;
      5) an increase in the solvency margin of the insurance (reinsurance) company in an amount sufficient to ensure the financial stability of the insurance (reinsurance) company;
      6) reduce the administrative costs, including through the termination or limitation of hiring additional employees, reduce the commissions to insurance brokers, closing the subsidiaries.
      4. In the case of identifying the factors, specified in paragraph 2 of this article, as a result of analysis of the financial situation of the insurance group, and (or) on the audit of the insurance holding company or participants of the insurance group, the authorized body shall send the claim in writing to provide a plan of action, providing for the early response measures to improve the financial stability of the insurance group, prevent the worsening of its financial situation and increase the risks, related with the activities of the insurance group, to the insurance holding company and (or) its major participant.
      The insurance holding company and (or) its major participants shall, within a period not exceeding five business days of receipt of the requirements, develop and submit to the authorized body the action plan with indication the deadlines for execution of each paragraph and the responsible officials.
      With the approval of the action plan by the authorized body, the insurance holding company and (or) its major participants shall start its implementation, notifying the authorized body of the results of its implementation within the period, specified in the plan.
      In case of disapproval of the action plan, the authorized body shall apply to the insurance (reinsurance) holding company and (or) its major participants of one or more following measures of early response by presenting the requirements to:
      1) termination of accruals and (or) payment of dividends on common shares (net income distribution) between the parties of the insurance group their shareholders (participants), respectively, for a period specified by the authorized body;
      2) dismissal from office the executives or other employees;
      3) increase in equity capital of the insurance group in an amount sufficient to ensure the financial stability of the insurance group, including by increasing the authorized capital of the insurance group;
      4) restructuring of assets of the insurance group;
      5) reduce the administrative costs, including through the termination or limitation of hiring additional employees, as well as reducing the share in the authorized capital of affiliated companies on the territory of the Republic of Kazakhstan and abroad;
      6) suspension of operations (direct and indirect) that put the insurance holding company and participants of the insurance group to the risk between them.
      5. In case of failure to submit within the time prescribed by paragraphs 3 and 4 of this Article, an action plan aimed at improving the financial stability of the insurance (reinsurance) company (insurance group), or untimely implementation of measures of the plan, as well as non-performance or untimely performance of the early response measures in accordance with the requirement of the authorized body, the enforcement measures and (or) the sanctions, as well as the coercive measures under the Laws of the Republic of Kazakhstan shall apply to the insurance (reinsurance) company (insurance group), and (or) its shareholders (major participants).
      6. The order of application of the early response measures and the methods of determining the factors that affect to the worsening of the financial situation of the insurance (reinsurance) company (insurance group) shall be established by the regulatory legal act of the authorized body.
      Footnote. Article 53 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 53-1. Enforcement measures applicable to persons with characteristics of the major participant or the insurance holding company, as well as to the major participants of the insurance (reinsurance) company, the insurance holding company and the legal entities that are part of an insurance group

      1. The authorized body shall have the right to use the coercive measures to persons, with characteristics of the major participant or the insurance holding company, to the major participants of the insurance (reinsurance) company, the insurance holding company, as well as the legal entities that are part of an insurance group, in the following cases:
      1) non-receipt of the consent of the authorized body for purchase the status of the major participant of the insurance (reinsurance) company and the insurance holding company;
      2) occurrence of circumstances, specified in paragraph 1 of Article 26-1 of this Law after obtaining the status of the major participant of the insurance (reinsurance) company and the insurance holding company;
      3) failure to comply with the written instructions of the authorized body in accordance with paragraph 7 of Article 53-2 of this Law;
      4) commission of actions by a person with characteristics of the major participant or the insurance holding company, as well as the major participant of the insurance (reinsurance) company (including organizations, on which the major participant has control), the insurance holding company or the legal entity that is part of an insurance group, in result of which, the insurance (reinsurance) company is harmed or is likely to be harmed;
      5) unstable financial position of the person, having the characteristics of the major participant or the insurance holding company, as well as the major participant of the insurance (reinsurance) company (including organizations, on which the major participant has control), the insurance holding company, legal entities that are part of an insurance group, as a result of which the insurance (reinsurance) company is harmed or is likely to be harmed;
      6) worsening of the financial situation of the insurance (reinsurance) company or insurance group in relation with the identification of the factors, specified in Article 53 of this Law;
      7) systematically non-performance of the prudential standards (two or more times during the year) by the insurance holding company.
      To insurance holding companies and major participants of the insurance (reinsurance) company – individuals that own, directly or indirectly, more than twenty-five percent of the voting (net of preferred) shares of the insurance (reinsurance) company, the authorized body shall have the right to apply the enforcement measures for their action or omission that led to non-compliance with the requirements of paragraph 2 of Article 46-1 of this Law.
      2. In the cases, provided for in paragraph 1 of this Article, the authorized body shall:
      1) require any person, having the characteristics of the major participant, as well as the major participant of the insurance (reinsurance) company to reduce the share of its direct or indirect ownership to less than ten percent of the voting shares of the insurance (reinsurance) company;
      2) require any person, having the characteristics of the insurance holding company, as well as the insurance holding company to reduce the share of its direct or indirect ownership to less than twenty-five percent of the voting shares of the insurance (reinsurance) company and suspend the operations (direct or indirect) between it and the insurance (reinsurance) company, that expose the insurance (reinsurance ) organization to risk;
      3) require the insurance (reinsurance) company and insurance holding company in relation to the organizations, in which the insurance (reinsurance) company or the insurance holding company shall be a shareholder (participant), as well as the organizations that are part of an insurance group, to suspend the operations (direct and indirect) between them, that expose the insurance (reinsurance) company and (or) the insurance holding company or the organizations, that are part of the insurance group to risk;
      4) require the insurance (reinsurance) company or the person, having the characteristics of the insurance holding company, as well as the insurance holding company to alienate his share of ownership or control over a subsidiary or organizations in the capital of which they have a major participation;
      5) demand the organizations that are part of an insurance group, to suspend the operations (direct or indirect) between them and their affiliated persons that expose the organizations that are part of an insurance group to the risk;
      6) in order 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, to require the insurance holding company, the major participant of the insurance (reinsurance) company to take the measures to further capitalization of the insurance (reinsurance) company or insurance group.
      3. In the case of non- performance by the major participant of the insurance (reinsurance) company, insurance holding company or the person, having the characteristic of the major participant of the insurance (reinsurance) company or insurance holding company, of the requirements provided for in paragraph 2 of this Article, as well as paragraph 10 of Article 20 of this Law, based on the decision of the authorized body the trust management of shares of the insurance (reinsurance) company, owned by the major participant of the insurance (reinsurance) company, insurance holding company or the person, having the characteristics of the major participant of the insurance (reinsurance) company, insurance holding company, shall be established. These shares shall be transferred in trust management to the authorized body for up to three months.
      The authorized body shall have the right to decide on the transfer of shares of the insurance (reinsurance) company, owned by the major participant of the insurance (reinsurance) company, by the insurance holding company or the person with characteristics of the major participant of the insurance (reinsurance) company or the insurance holding company, to the trust management of the national management holding company.
      In the case of transfer of shares of the insurance (reinsurance) company, owned by the major participant of the insurance (reinsurance) company, by the insurance holding company or the person with characteristics of the major participant of the insurance (reinsurance) company, the insurance holding company, in trust management of the national management holding company for a period for which the trust management of shares is established, shall be determined in the decision of the authorized body on the establishment of trust management.
      During the period of trust management of shares of the insurance (reinsurance) company by the authorized body or the national management holding company, the owner of shares shall not be entitled to take any action in respect of the shares, held in trust management.
      The major participant of the insurance (reinsurance) company, the insurance holding company or the person with characteristics of the major participant of the insurance (reinsurance) company, the insurance holding company, shall have the right to apply to the authorized body for the sale of all of their shares of the insurance (reinsurance) company to the persons, specified in the application.
      The authorized body shall meet the application in the case of fulfillment of the requirements of the legislative acts of the Republic of Kazakhstan by the purchasers of the shares, specified in the application.
      In case of failure to eliminate the reasons for the transfer of shares of the insurance (reinsurance) company, owned by the major participant of the insurance (reinsurance) company, the insurance holding company or the person with characteristics of the major participant of the insurance (reinsurance) company or the insurance holding company, in trust management until the expiration of the term for which the trust management established, the authorized body or the national management holding company shall alienate the shares of the insurance (reinsurance) company, held in trust management by their sale on the organized securities market at the market price, prevailing at the date of the decision on the sale of the shares. In the absence of information on the market price of the shares, the price of the shares may be determined by the appraiser in accordance with the legislation of the Republic of Kazakhstan. The money raised from the sale of the shares shall be transferred to the persons, whose shares transferred in trust management.
      Events for the sale of shares of the insurance (reinsurance) company, owned by the major participant of the insurance (reinsurance) company, the insurance holding company or the person with characteristics of the major participant of the insurance (reinsurance) company, the insurance holding company, shall be covered by the insurance (reinsurance) company.
      The order of the trust management of shares of the insurance (reinsurance) company, owned by the major participant of the insurance (reinsurance) company, the insurance holding company or the person with characteristics of the major participant of the insurance (reinsurance) company, the insurance holding company, as well as the actions of the authorized body or the national management holding company during the period of trust management, shall be established by the regulatory legal act of the authorized body.
      4. The procedure for application of enforcement measures shall be determined by the regulatory legal acts of the authorized body.
      Footnote. Article 53-1is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524 -IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 53-2. Restrictive measures of influence

      1. In cases of detection by the authorized body of the violations of the prudential standards and other mandatory norms and limits by the insurance (reinsurance) company or insurance group, the violations of the legislation of the Republic of Kazakhstan, the identification of wrongful acts or omissions of officials and employees of the insurance (reinsurance) company and an insurance broker, the authorized body shall have the right to apply to the insurance (reinsurance) company and the insurance broker one of the following restrictive measures:
      1) to require a letter of commitment;
      2) to give a binding written instruction;
      3) to issue a written warning;
      4) to make a written agreement.
      In the case of identification by the authorized body of violations of the legislation on insurance and insurance activity by an actuary, the authorized body shall have the right to apply the restrictive measures, specified in sub-paragraphs 1), 2) and 3) of this paragraph.
      2. Letter of commitment of the insurance (reinsurance) company or an insurance broker shall include the recognition of the existing violations of the legislation of the Republic of Kazakhstan, as well as the warranty of the administration of the insurance (reinsurance) company or insurance broker to prevent the identified violations of the legislation the Republic of Kazakhstan in the future.
      3. Written instruction is an indication to the insurance (reinsurance) company or insurance broker to adopt the binding corrective measures to address the identified violations of the legislation of the Republic of Kazakhstan, as well as the violations of contractual obligations, in strictly defined terms and preventing the identified violations of the legislation of the Republic of Kazakhstan in the future.
      Written instruction may also be imposed by the authorized body in the cases of violation of the obligations within six consecutive months, taken by the insurance (reinsurance) company or insurance broker under a written commitment.
      In this case, the insurance (reinsurance) company, within seven calendar days from the date of receipt of a written instruction shall submit the action plan for financial recovery within the time specified in the written instruction, to the authorized body. In the performance of planned activities, the insurance (reinsurance) company shall submit a report on the implementation of the activities, identified in the plan to the authorized body.
      In case of further reducing the prudential standards within the period of performance of a written instruction, the alienation of assets by the insurance (reinsurance) company shall be made with the consent of the authorized body.
      The insurance (reinsurance) company or insurance broker shall notify the authorized body on the execution of a written instruction within the time, specified in it.
      The appeal of a written instruction of the authorized body in the court shall not suspend its execution.
      4. Written warning is a notification of the authorized body on the possibility of applying the sanctions provided for in Article 53-3 of this Law to the insurance (reinsurance) company or insurance broker, if the existing violation of legislation of the Republic of Kazakhstan shall not be eliminated in the period established by the authorized body, as well as in the case of non-fulfillment of the obligations accepted by the insurance (reinsurance) company or insurance broker within the period, specified in the written commitment and (or) the written instruction of the authorized body.
      5. Written agreement is an agreement between the authorized body and the insurance (reinsurance) company or insurance broker about the need to eliminate the violations and (or) the deficiencies and approval of the priority measures to eliminate the violations and (or) deficiencies. The written agreement shall be made in the case where both parties come to the conclusion that the elimination of the existing violations and (or) the deficiencies, required for more than two months after they are discovered by the authorized body.
      6. The authorized body shall have the right to apply to the insurance (reinsurance) company or insurance broker any of the restrictive measures, defined in this Article, regardless of the measures, previously applied to it.
      7. The measures, provided for in this article, may also apply to the insurance holding company, organizations that are part of the insurance group, the major participants of the insurance (reinsurance) companies, in cases of their violation of the requirements of the legislation of the Republic of Kazakhstan, including the occurrence after acquiring the status of the insurance holding company, the major participant of the insurance (reinsurance) company of signs of an unstable financial situation, as well as in the case if the authorized body finds that the violations, wrongful acts or omissions of these entities, their officials or employees worsened the financial situation of the insurance (reinsurance) company or the insurance group.
      7-1. In cases of detection of the violations of the legislation of the Republic of Kazakhstan, the identification of wrongful acts or omissions of officials and employees of the organization for the formation and maintenance of the database by the authorized body, as well as failure to comply with other requirements of the authorized body under this Law, the authorized body shall apply to the organization for the formation and maintenance of the database the restrictive measures, specified in subparagraphs 2) and 4) of paragraph 1 of this article.
      8. Is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).
      The insurance (reinsurance) company or insurance broker shall notify the National Bank on the implementation of the letter of commitment, the written instruction or written agreement in the terms, set out in them.
      Footnote. Section is supplemented by Article 53-2, in accordance with the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), as amended by the Laws of the Republic of Kazakhstan dated 19.02.2007 No. 230 (the order of enforcement see Art. 2), dated 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 53-3. Sanctions

      1. The authorized body shall have the right to impose sanctions on the insurance (reinsurance) company, insurance holding company, organizations that are part of the insurance group, major participants of the insurance (reinsurance) company, the insurance broker, regardless of the measures, previously applied to them.
      2. The authorized body may apply the following measures as sanctions:
      1) the imposition of an administrative fine on the grounds and in the order, established by the Laws of the Republic of Kazakhstan;
      2) the suspension of the license on the grounds, specified in Article 54 of this Law;
      2-1) the introduction of conservation on the grounds and in the order, established by Articles 55-1, 55-2, 55-3, 55-4 and 55-5 of this Law;
      3) the termination of the license on the grounds, specified in Article 55 of this Law;
      4) make the decision on the compulsory redemption of shares of the insurance (reinsurance) company from its shareholders and sell them to a new investor in accordance with the terms of Article 61 of this Law;
      5) the suspension from duty of persons, specified in Article 34 of this Law, on the basis of sufficient data for the recognition of actions of the executive employee (employees) of the insurance (reinsurance) company as not complying with the requirements of the current legislation with the simultaneous consent to the appointment (election) for the position of the executive employee of the insurance (reinsurance) company.
      3. The authorized body shall apply the sanction of suspension from duty of the official of the organization for the formation and maintenance of a database on one of the following grounds:
      1) failure to comply with restrictive measures, applied by the authorized body;
      2) violation of the order and timing of insurance reports and information, provided by this Law;
      3) failure to provide or providing the false information to the authorized body, provided in subparagraph 11) of paragraph 1 of Article 82 of this Law;
      4) disclosure or transfer of the information contained in the insurance reports, except as provided in this Law to third parties.
      Footnote. Section is supplemented by Article 53-3, in accordance with the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), as amended by the Laws of the Republic of Kazakhstan dated 12.01.2007 No. 222 (shall be enforced upon expiry of 6 months from the day of its official publication), dated 19.02.2007 No. 230 (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 54. Suspension of the license of an insurance (reinsurance) company and an insurance broker

      1. The license of an insurance (reinsurance) company and an insurance broker may be suspended for a period of up to six months in one of the following grounds:
      1) failure to comply with restrictive measures, applied by the authorized body;
      1-1) review the status of the insurance holding company, the major participant of the insurance (reinsurance) company from an individual that owns twenty-five or more percent of the outstanding (net of preferred and bought by the insurance (reinsurance) company shares) shares of the insurance (reinsurance) company, in the absence of the insurance (reinsurance) company of another insurance holding company or a major participant – an individual that owns twenty-five or more percent of the shares of the insurance (reinsurance) company;
      2) failure to comply with prudential standards and other mandatory norms and limits, set by the legislation of the Republic of Kazakhstan;
      2-1) identify the violation of the legislative acts of the Republic of Kazakhstan, regulating the compulsory types of insurance, summed up in the use of unreasonable insurance rates, unjustified refusal in the insurance payments, late insurance payment, non-fulfillment or improper fulfillment of the obligations, arising from the conditions and procedures for compulsory types of insurance;
      2-2) violation of the prohibition, specified in Article 15-1 of this Law, for provision of the preferential conditions to persons, affiliated with the insurance (reinsurance) company;
      2-3) violation of the prohibition, specified in paragraph 3-1 of Article 11 of this Law;
      3) failure to submit the report to the authorized body within two consecutive reporting periods, established by the legislation of the Republic of Kazakhstan;
      4) refusal to provide the documents and information, requested by the authorized body within its jurisdiction in connection with the verification of the insurance activities and the activities of an insurance broker;
      5) violation of the requirements, relating to the coordination of the executives of an insurance (reinsurance) company, an insurance broker;
      6) (Is excluded – dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2);
      7) identification of violation of the legislation, related to the improper reflection in the accounting of financial transactions for insurance (reinsurance), as well as conducting other forms of mandatory accounting forms;
      8) establishment of the fact for providing the inaccurate information in the documents that were the basis for issuance of the license;
      8-1) willful failure to eliminate by the insurance (reinsurance) company of the violations, specified in the report of the audit organization on the conducted audit, within the time, specified in paragraph 10 of Article 20 of this Law;
      9) non-payment, late payment or payment of mandatory or extraordinary contributions, as well as additional contributions in an incomplete amount two or more times during the last twelve months to the organization that guarantees the insurance payments to policyholders (insured persons, beneficiaries) under the compulsory liquidation of an insurance company for insurance contracts;
      10) implementation of the insurance agent activity by the insurance broker;
      11) systematic (three or more times during the twelve consecutive calendar months) violation of the requirements, stipulated by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime and financing of terrorism;
      Note of the RCLI!
      Subparagraph 12) shall be enforced from 01.01.2011 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      12) absence of the insurance (reinsurance) company the contract of participation in the database in the cases, provided for in this Law;
      13) absence of the insurance (reinsurance) company the contract of participation or absence of shares of the organization that guarantee the insurance payments to policyholders (insured persons, beneficiaries) in the case of the compulsory liquidation of insurance companies, the presence of which is provided by this Law or other legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      Note of the RCLI!
      Subparagraph 14) shall be enforced from 27.01.2011 (see Art. 2 of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV).
      14) failure to comply with the requirements of this Law and the legislative acts of the Republic of Kazakhstan on compulsory types of insurance by the insurance agent;
      15) failure to comply with the requirements of the authorized body to increase the equity capital of the insurance (reinsurance) company, as well as the requirements in accordance with paragraph 2 of Article 53-1 of this Law by the insurance holding company, the major participant of the insurance (reinsurance) company – an individual that owns directly or indirectly more than twenty-five percent of the voting (net of preferred) shares of the insurance (reinsurance) company.
      1-1. The license of the insurance (reinsurance) company may be suspended in all classes and for individual classes of insurance.
      2. Suspension of the license of the insurance (reinsurance) company entails a prohibition on the conclusion of the new insurance (reinsurance) contract by it, including the extension of the existing insurance (reinsurance) contracts and their changes, provided for the increase in insurance premiums, extent of the liability of the insurance (reinsurance) company, as well as the implementation of the insurance mediation as an insurance agent. The insurance (reinsurance) company shall meet its obligations under the previously concluded insurance (reinsurance) contracts.
      3. The decision to suspend the license shall contain the grounds and the period of suspension of the license.
      The license shall be considered as suspended from the date of bring such decision to the attention of the executive body of the licensee.
      4. The requirements of subparagraph 2) of paragraph 1 of this Article shall not apply in respect of an insurance broker.
      Footnote. Article 54, as amended by the Laws of the Republic of Kazakhstan dated 11 June, 2003 No. 436, dated 23 December, 2005 No. 107 (the order of enforce see Art. 2 of the Law No. 107), dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2), dated 19 February, 2007 No. 230 (the order of enforcement see Art. 2), dated 7 May, 2007 No. 244, dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 28.08.2009 No. 192-IV (shall be enforced from 08.03.2010), dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 54-1. Transfer of the insurance portfolio in the conservation or revocation of the license

      1. Transfer of the insurance portfolio may be carried out by the temporary administration of the insurance (reinsurance) company on the stage of conservation or before the entry into force of a court decision on the compulsory liquidation of the insurance (reinsurance) company in order to improve its financial situation or protect the rights of policyholders.
      Transfer of the insurance portfolio to other insurance (reinsurance) company (insurance (reinsurance) companies) shall be allowed in the case of sufficient assets to secure the insurance contracts.
      The decision of the temporary administration on the transfer of the insurance portfolio in the conservation or revocation of the license of the insurance (reinsurance) company shall be agreed with the authorized body.
      2. After coordination of the decision on transfer of the insurance portfolio with the authorized body, the temporary administration shall publish the announcement on the transfer of the insurance portfolio not later than five business days. The announcement on the transfer of the insurance portfolio shall be published in periodicals that are distributed throughout the territory of the Republic of Kazakhstan, in the Kazakh and Russian languages.
      In case of the transfer of the insurance portfolio at the stage of conservation, the order, the deadline for submission of objections and addresses to which the objections of policyholders are taken in the case of their disagreement with the transfer of the insurance contract, shall be indicated in the announcement.
      3. At the stage of conservation, the temporary administration in consultation with the authorized body shall take the decision on the partial or complete transfer of the insurance portfolio in one or more classes of insurance with the consent of the policyholder to transfer the insurance contract.
      The absence of a written objection of the policyholder within ten calendar days from the date of publication of the announcement shall be considered as consent of the policyholder to transfer the insurance portfolio.
      The temporary administration shall form a list of policyholders that agree to transfer the insurance portfolio within three calendar days from the date of the expiration of the period, established by the second part of this paragraph for the presentation of a written objection by the policyholder.
      4. At the revocation of the license of the insurance company, the transfer of the insurance portfolio shall be carried out without the consent of the policyholder in full.
      5. The order and features of the transfer of the insurance portfolio in conservation or revocation of the license of the insurance (reinsurance) company shall be determined by the regulatory legal acts of the authorized body.
      Footnote. Law is supplemented by Article 54-1, in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 55. Revocation of the license of an insurance (reinsurance) company and an insurance broker

      1. The authorized body shall have the right to make the decision on the revocation of the license for one of the following grounds:
      1) failure to eliminate in the specified period, the circumstances, giving rise to the suspension of the license;
      2) repeated (twice in the last twelve months) suspension of the license;
      2-1) repeated (two or more times during the twelve consecutive calendar months) non-compliance with the restrictive measures of the authorized body to eliminate the violations of the legislation of the Republic of Kazakhstan on insurance and insurance activities;
      2-2) repeated (two or more times during the twelve consecutive calendar months) violations of the legislative acts of the Republic of Kazakhstan, regulating the compulsory types of insurance;
      2-3) repeated (two or more times during the twelve consecutive calendar months) non-compliance with the requirements of the prudential standards and other mandatory norms and limits, set by the legislation of the Republic of Kazakhstan;
      3) the court’s decision on the termination of the activities of the insurance (reinsurance) company or the insurance broker;
      4) failure to exercise the licensed activities by the insurance (reinsurance) company or the insurance broker within twelve months from the date of issuance of the license;
      5) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2);
      6 ) inconsistency of the final predicted results in the business plan, submitted by the insurance (reinsurance) company in the issuance of the permission for its creation with the changes and additions to it, either in the business plan for the class (classes) of insurance with the changes and additions to it by the actual final results of the insurance (reinsurance) company at the end of the period of execution of the business plan;
      7) repeated violation during the last twelve consecutive months of the requirements, stipulated by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime and financing of terrorism, for which a sanction of suspension of the license on the grounds specified in subparagraph 11) of paragraph 1 of article 54 of this Law is applied;
      8) participation of an insurance (reinsurance) company, an insurance broker in transactions, related to money laundering or financing of terrorism.
      1-1. The insurance company may be revoked a license for all classes, and for individual classes of insurance.
      2. The decision on the revocation of the license shall specify the ground of its revocation.
      3. The insurance (reinsurance) company that is revoked of a license, shall not be entitled to carry out the insurance or other activity, shall cease all operations on the existing bank accounts, with the exception of the operations, a list of which is determined by the authorized body.
      4. An insurance broker, that is revoked a license, shall not be entitled to carry out its activity, shall cease all operations on the existing bank accounts, except in cases related to the current maintenance costs, transfer of money flowing to the insurance broker.
      Footnote. Article 55, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 12.01.2007 No. 222 (shall be enforced upon expiry of 6 months from the date of its official publication), dated 07.05.2007 No. 244, dated 28.08.2009 No. 192-IV (shall be enforced from 08.03.2010), dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 55-1. The concept of conservation of insurance (reinsurance) company

      1. Conservation of insurance (reinsurance) company is the forced conduct under the decision of the authorized body of the range of administrative, legal, financial, organizational, technical and other measures and procedures in respect of the insurance (reinsurance) company to the rehabilitation of its financial position and improvement of the quality of work.
      2. Insurance (reinsurance) company may be subject to conservation for any of the following grounds:
      1) failure to comply with the adequacy of the solvency margin;
      2) on the grounds, provided for in paragraph 1 of Article 54 of this Law.
      3. The establishment of conservation involves the appointment of the temporary administration by the authorized body for administering the insurance (reinsurance) company for a limited (up to one year) period of time.
      4. Conservation of insurance (reinsurance) company shall be funded at the expense of the insurance (reinsurance) company.
      5. The decision of the authorized body on the conservation may be appealed to the court by the shareholders of the insurance (reinsurance) company within ten days. Appeal of the decision shall not suspend the conservation of the insurance (reinsurance) company.
      Footnote. Law is supplemented by Article 55-1 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 55-2. Temporary administration for administering the insurance (reinsurance) company

      1. Temporary administration shall be appointed by the authorized body from the number of its employees or other persons that meet the requirements, set forth in paragraph 2 of Article 34 of this Law.
      2. The rights and responsibilities, as well as the conditions of payment for the head and members of the temporary administration (except for the employees of the authorized body) shall be established by a separate agreement, concluded between the authorized body and the temporary administration.
      3. The temporary administration shall be governed by this Law, regulatory legal acts of the authorized body and other legislation of the Republic of Kazakhstan.
      4. The authorized body shall have the right to replace the members of the temporary administration at any time.
      5. The head and members of the temporary administration shall be liable for damage, caused by the insurance (reinsurance) company in accordance with the laws of the Republic of Kazakhstan. Laying on the head and members of the temporary administration the responsibility for any damage that may be classified as normal business risks shall not be allowed.
      Footnote. Law is supplemented by Article 55-2 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 55-3. The decision to conduct the conservation of the insurance (reinsurance) company

      1. The decision of the authorized body to conduct the conservation of insurance (reinsurance) company shall contain:
      1) the name of the insurance (reinsurance) company and its location;
      2) the grounds for decision on the conservation of the insurance (reinsurance) company;
      3) beginning of action and period of conservation;
      4) the list of restriction of activity, imposed on the insurance (reinsurance) company;
      5) the personal composition of the temporary administration;
      6) the order to the executives of the insurance (reinsurance) company that is in conservation mode, on the preparation of a report on its work, the income statement, data about the existence and size of the property and submission of these documents to the temporary administration;
      7) recommendations of the temporary administration.
      2. The decision to conduct the conservation of the insurance (reinsurance) company shall be published by the authorized body in two periodicals that are distributed throughout the Republic of Kazakhstan.
      Footnote. Law is supplemented by Article 55-3 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 55-4. Features of administering the insurance (reinsurance) company in the conservation period. Powers of the temporary administration for administering the insurance (reinsurance) company

      1. With the beginning of conservation and its term:
      1) the rights of the shareholders of the insurance (reinsurance) company on the use and disposal of shares, issued by the insurance (reinsurance) company shall be suspended;
      2) the powers of the bodies of the insurance (reinsurance) company shall be suspended and its executives shall be suspended from work;
      3) all powers to manage the insurance (reinsurance) company, as well as the rights of shareholders of the insurance (reinsurance) company for use the shares, issued by the insurance (reinsurance) company shall be moved to the temporary administration;
      4) all transactions, made on behalf of and at the expense of the insurance (reinsurance) company, without the knowledge and written consent of the temporary administration shall be deemed as invalid.
      2. The temporary administration shall have the right:
      1) to make decisions on all matters of the insurance (reinsurance) company in accordance with Article 55-5 of this Law;
      2) if necessary, to completely or partially suspend the obligations of the insurance (reinsurance) company under the concluded contracts of insurance during the conservation period;
      3) if necessary, to terminate the concluded by the insurance (reinsurance) company contracts, providing the investment of the insurance (reinsurance) company funds, or make the unilaterally changes and additions to them, including the change of rates, tariffs and expiry dates;
      4) to sign any contracts and documents on behalf of the insurance (reinsurance) company;
      5) to submit the claims on behalf of and in the interests of the insurance (reinsurance) company;
      6) to issue orders, including the orders of dismissal, demotion in a post or temporary suspension from office, the division of responsibilities between the employees of the insurance (reinsurance) company;
      7) to set off the mutual claims due to coincidence of the creditor and the debtor in one person;
      8) to transfer the insurance portfolio in part or in full, to other insurance (reinsurance) company in accordance with the regulatory legal acts of the authorized body.
      Footnote. Law is supplemented by Article 55-4 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 55-5. Control over the activity of the temporary administration (temporary manager) of the insurance (reinsurance) company

      1. Control over the activity of the temporary administration (temporary manager) of the insurance (reinsurance) company shall be carried out by the authorized body during the conservation period of the insurance (reinsurance) company. And the authorized body shall have the right to:
      1) make recommendations about the main activities in the conservation period of the insurance (reinsurance) company (offering a plan of basic measures);
      2) give the binding written instructions;
      3) request the information on its activities and the insurance (reinsurance) company activities;
      4) hear a report on the executed work;
      5) extend the conservation period;
      6) decide on the termination of the conservation of the insurance (reinsurance) company.
      2. The detailed regulation of activities of the temporary administration (temporary manager) of the insurance (reinsurance) company and the principles of its relations with third parties shall be determined by the regulatory legal acts of the authorized body.
      Footnote. Law is supplemented by Article 55-5 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 55-6. Termination of conservation

      1. Conservation of the insurance (reinsurance) company shall be terminated on the following grounds:
      1) the expiration of the conservation period, established by the decision of authorized body;
      2) the adoption of the decision on the early termination of conservation by the authorized body.
      2. Termination of conservation of the insurance (reinsurance) company (including the early termination) in connection with the recovery of the financial position and improvement of the quality of work entails the abolition of all restrictions with respect to this insurance (reinsurance) company, established by the authorized body or the temporary administration. The changes and additions, made during the conservation period in the constituent documents, the governing bodies and the composition of the insurance (reinsurance) company shall remain in force.
      3. If conservation of the insurance (reinsurance) company does not lead to rehabilitation of its financial position and improvement of the quality of work, the authorized body shall have the right to revoke a license to engage in insurance activities, reinsurance activity on the grounds, stipulated by this Law.
      Footnote. Law is supplemented by Article 55-6 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 56. Consequences of withdrawal of the license of the insurance entities and insurance broker

      1. The decision to withdraw the license of the insurance entities and insurance broker shall enter into force on the date of its adoption by the authorized body. The information about the withdrawal of the license shall be published in no less than two periodicals that are distributed throughout the Republic of Kazakhstan, in the Kazakh and Russian languages.
      2. The authorized body shall apply to the court for the compulsory termination of the activity (liquidation) of the insurance broker in accordance with legislation within fifteen days from the date of withdrawal of the license.
      3. The authorized body shall appoint the temporary administration of the insurance (reinsurance) company from the date of entry into force of the decision on the withdrawal of the license and the powers of all bodies of the insurance (reinsurance) company shall transfer to it.
      Powers of the previously existing bodies of the insurance (reinsurance) company shall be suspended. Shareholders of the insurance (reinsurance) companies shall have the right to appeal the decision on withdrawal of the license in court.
      3-1. Temporary administration of the insurance (reinsurance) company, within ten business days from the date of withdrawal of the license of the insurance (reinsurance) company, shall make the decision on the transfer of the insurance portfolio, that subject to the agreement with the authorized body, in the manner provided in Article 54-1 of this Law and by the regulatory legal act of the authorized body.
      The authorized body after the transfer by the temporary administration of the insurance (reinsurance) company of the insurance portfolio or rejection of its decision to transfer the insurance portfolio in the period, established by the first part of this paragraph, shall apply to the court for compulsory termination of the activity (liquidation) of the insurance (reinsurance) company in manner established by the legislation of the Republic of Kazakhstan.
      4. The temporary administration shall carry out its activities in the period before the appointment of the liquidation commission of the insurance (reinsurance) company by the authorized body.
      Control over the activities of the temporary administration of the insurance (reinsurance) company shall be carried out by the authorized body before the appointment of the liquidation commission of the insurance (reinsurance) company.
      5. Report of the temporary administration (temporary manager) of the insurance (reinsurance) company on the executed work shall be submitted to the authorized body for approval.
      Acceptance-transfer of documents and property of the insurance (reinsurance) company from the temporary administration to the chairman of the liquidation commission shall be executed by ??an act that is made in four copies. One copy of the acceptance-transfer act shall be sent to the authorized body, the other – to the court, ordered the liquidation of the insurance (reinsurance) company.
      6. The temporary administration of the insurance (reinsurance) company shall not be entitled to carry out debit transactions, except as provided for in paragraph 3 of Article 55 of this Law during its activity.
      7. Operation of the insurance (reinsurance) company during the period of appointment of the temporary administration shall be determined by the regulatory legal acts of the authorized body.
      8. Financing the costs by the authorized body to terminate the activities of the insurance (reinsurance) company on the grounds of compulsory liquidation, except for the costs related to the remuneration of employees of the authorized body, included in the temporary administration (temporary manager) of the insurance (reinsurance) company and the liquidation commission, as well as the costs of publication in the official periodicals of the central body of justice the information about the court’s decision on the compulsory liquidation of the insurance (reinsurance) company and the costs, related with the state registration of the termination of the insurance (reinsurance) company on the grounds of the compulsory liquidation by the judicial authority, and the delivery of documents to be stored in archive, after the liquidation of the insurance (reinsurance) company in cases of absence of property the insurance (reinsurance) company, or if its value is insufficient to cover these costs, shall be prohibited.
      Footnote. Article 56, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 12.01.2007 No. 222 (shall be enforced upon expiry of 6 months from the date of its official publication), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 57. Suspension of a license of the authorized auditor

      (Is excluded by the Law of the Republic of Kazakhstan dated 5 May, 2006 No. 139 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 139)

      Article 58. Withdrawal of a license of the authorized auditor

      (Is excluded by the Law of the Republic of Kazakhstan dated 5 May, 2006 No. 139 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 139).

      Article 59. Suspension of the actuary license

      1. The license of an actuary may be suspended by the authorized body for up to six months in one of the following grounds:
      1) refusal to present the compulsory actuarial reports and other documents, requested by the authorized body within its jurisdiction;
      1-1) failure to comply with the restrictive measures, applied by the authorized body;
      1-2) failure to perform the requirements of the second part of paragraph 3 of Article 40 of this Law;
      2) implementation of actuarial activities in violation of the legislation on insurance and insurance activities, that led to a breach of the legislation of the Republic of Kazakhstan on insurance and insurance activities by the insurance (reinsurance) company;
      3) establishment of the fact of presenting the inaccurate information in the documents, that were the basis for the issuance of the license;
      4) failure to pass by an actuary the qualification examination in accordance with paragraph 4 of Article 40 of this Law;
      5) failure to implement the licensed activity in the insurance market during the last two years;
      6) failure to pass by an actuary within the period, established by the authorized body the examinations in terms of minimum mandatory training program of actuaries, approved the regulatory legal act of the authorized body.
      2. The decision to suspend the license shall specify the grounds and the period of the license suspension. The license shall be deemed as suspended from the date of bringing such a decision to the licensee.
      Footnote. Article 59, as amended by the Laws of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 19.02.2007 No. 230 (the order of enforcement see Art. 2), dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2012), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 60. Withdrawal of the actuary license

      1. The authorized body shall have the right to decide on the withdrawal of the license for one of the following grounds:
      1) failure to remove the circumstances in a timely manner, that giving rise to the suspension of the license;
      2) repeated (twice in the last twelve months) suspension of the license;
      3) disclosure or transfer to third parties (except the authorized body) the data obtained in the course of actuarial calculations, as well as acting as an independent actuary and those that are the subject of security secrets or commercial secrets;
      4) failure to meet the requirements of paragraph 6 of Article 19 of this Law;
      5) the court decision on the termination of entrepreneurial activity of an actuary.
      2. The decision on the withdrawal of the license shall specify the ground of its withdrawal. Licensee shall be deemed to be withdrawing of the license from the date of bringing such a decision to the licensee.
      Footnote. Article 60, as amended by the Laws of the Republic of Kazakhstan dated 12 January, 2007 No. 222 (shall be enforced upon expiry of 6 months from the date of its official publication), dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2012).

      Article 61. Compulsory redemption of shares

      1. In establishing of the negative difference in the insurance (reinsurance) company by the authorized body between the value of assets, calculated in accordance with their classification according to quality and liquidity, and liabilities, the authorized body shall have the right to decide on the compulsory redemption of shares of the insurance (reinsurance) company from its shareholders and sale them to new investor, that wished to purchase them under the conditions that guarantee the performance by the latest of all liabilities under the insurance and reinsurance contracts.
      2. Compulsory redemption of shares of the insurance (reinsurance) company by the authorized body shall be made at a price determined on the basis of the size of its solvency margin at the date of its decision to compulsory redemption of shares (shareholders’ shares) of the insurance (reinsurance) company to their subsequent sale to a new investor.
      3. Sale of the purchased shares of the insurance (reinsurance) company shall be carried out by the authorized body at their purchase price.
      Rights and obligations of owners of all compulsorily purchased shares of the insurance (reinsurance) companies shall move to a new investor.
      4. The procedure for compulsory redemption of shares of the insurance (reinsurance) company and their subsequent sale to a new investor shall be established by the authorized body.
      Footnote. Article 61, as amended by the Law of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January, 2004), dated 20 February, 2006 No. 128 (the orders of enforcement see Art. 2).

Chapter 11. Reorganization

      Article 62. Voluntary reorganization of the insurance (reinsurance) company and insurance holding company

      1. Voluntary reorganization (merger, consolidation, split-up, spin-off, transformation) of the insurance (reinsurance) company (insurance holding company) shall be carried out in accordance with the legal acts of the Republic of Kazakhstan with the specifications, established by this Law and the regulatory legal acts of the authorized body.
      2. Voluntary reorganization of the insurance (reinsurance) company (insurance holding company) can be carried out with the permission of the authorized body.
      The insurance (reinsurance) company shall, within one week return all the previously issued licenses to the authorized body in obtaining the permission for voluntary reorganization into a legal entity, not carrying out the insurance activities.
      3. The ground for filing an application for permission to conduct a voluntary reorganization of the insurance (reinsurance) company (insurance holding company) shall be a decision of the general meeting of shareholders (participants) of the insurance (reinsurance) company (insurance holding company).
      4. An application for permission of the authorized body to conduct the voluntary reorganization of the insurance (reinsurance) company ( insurance holding company) shall be accompanied by the following documents:
      1) decision of the supreme body of the insurance (reinsurance) company (insurance holding company) on its voluntary reorganization;
      2) documents, describing the assumed conditions, forms, procedures and terms of voluntary reorganization of the insurance (reinsurance) company (insurance holding company);
      3) financial forecast for consequences of the voluntary reorganization, including the balance of payments of the insurance (reinsurance) company (insurance holding company) after its voluntary reorganization and (or) legal entities, formed as a result of the voluntary reorganization of the insurance (reinsurance) company (insurance holding company).
      5. Application for permission to conduct the voluntary reorganization of the insurance (reinsurance) company (insurance holding company) shall be considered by the authorized body within two months from the date of submission of all required documents.
      6. The reorganized insurance (reinsurance) company (insurance holding company) within two weeks of receipt of approval of the authorized body to conduct the reorganization shall inform about the upcoming changes all its policyholders through the 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.
      7. State registration or re-registration of the legal entities, formed as a result of the reorganization shall be carried out, in accordance with the legislative acts of the Republic of Kazakhstan.
      8. The procedure for issuing the permission for voluntary reorganization of the insurance (reinsurance) company (insurance holding company) or refusal to issue this permission shall be determined by the regulatory legal act of the authorized body.
      9. The requirements of this article shall not apply to non-residents of the Republic of Kazakhstan that are an insurance holding company, a person with characteristics of the insurance holding company, subject to one of the following conditions:
      availability of an individual credit rating not lower than A rated of one of the rating agencies, the list of which is established by the authorized body, and a written confirmation from the financial supervision authority of the country of origin of the insurance holding company, the person having the characteristics of the insurance holding company, that these non-residents of the Republic of Kazakhstan shall be subject to the consolidated supervision;
      existence of an agreement between the authorized body and the relevant supervisory authority of the foreign state on information exchange, as well as the minimum required rating of one of the rating agencies. Minimum rating and list of rating agencies shall be established by the regulatory legal act of the authorized body.
      Footnote. Article 62 is in the wording of the Law of the Republicio of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), as amended by the Law of the Republic of Kazakhstan dated 26.12.2012 No. 61-V (shall be enforced from 04.02.2012).

      Article 63. Refusal to issue a permission for voluntary reorganization

      1. Refusal to issue a permission for voluntary reorganization of the insurance (reinsurance) company (insurance holding company) shall be made by the authorized body for the following reasons:
      1) breach of the legitimate interests of policyholders and other creditors as a result of the assumed voluntary reorganization;
      2) violation of the minimum conditions to ensure the financial sustainability and other mandatory norms and limits and other requirements, established by this Law and the regulatory legal acts of the authorized body as a result of the assumed reorganization;
      2-1) absence of the relevant decisions of the supreme bodies of the reorganized insurance (reinsurance) companies (insurance holding companies);
      2-2) violation of the requirements of the antimonopoly legislation of the Republic of Kazakhstan as a result of the assumed reorganization;
      3) failure to submit the documents, stipulated by regulatory legal acts of the authorized body;
      4) inconsistency of the submitted documents with the legislation of the Republic of Kazakhstan.
      2. The authorized body shall notify the applicant on the refusal to issue the permission for its voluntary reorganization with indication of the reasons.
      Footnote. Article 63, as amended by Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 64. Specific aspects of the forced reorganization of the insurance (reinsurance) company

      Footnote. Article is excluded by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2).

Chapter 12. Liquidation

      Article 65. Grounds for liquidation of the insurance (reinsurance) company

      1. Liquidation of the insurance (reinsurance) company, including the reason of bankruptcy, shall be carried out in accordance with the legislative acts of the Republic of Kazakhstan with the specifications, established by this Law and the regulatory legal acts of the authorized body.
      2. Insurance (reinsurance) company may be liquidated on the following grounds:
      1) by the decision of its shareholders with the permission of the authorized body (voluntary liquidation);
      2) by the court’s decision in the cases, stipulated by the legislation of the Republic of Kazakhstan.

      Article 66. The creditors’ committee of the voluntarily and compulsorily liquidated insurance (reinsurance) companies

      1. The committee of creditors shall be created in order to ensure the interests of creditors and making the decision with their participation in the procedures for voluntary and compulsory liquidation of the insurance (reinsurance) company.
      The committee of creditors of the liquidated insurance (reinsurance) company shall be approved by the authorized body by the representation of the liquidation commission of the insurance (reinsurance) company.
      2. Features of formation and activities of the creditors’ committee shall be established by the regulatory legal acts of the authorized body.
      Footnote. Article 66, as amended by the Law of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January, 2004).

      Article 67. Specific aspects of voluntary liquidation of the insurance (reinsurance) company

      1. After adoption the decision by the general meeting of shareholders of the insurance (reinsurance) company for its voluntary liquidation, the insurance (reinsurance) company shall take measures for the transfer of the insurance portfolio, consisting of the obligations of the insurance (reinsurance) company for the concluded insurance (reinsurance) contracts to another insurance (reinsurance) company, having the license to the transmitted insurance classes and that is a member of the guarantee insurance payments.
      The procedure for issuing the permission for voluntary liquidation of the insurance (reinsurance) companies or refusal to issue this permission, as well as the order of transfer of the insurance portfolio shall be determined by the regulatory legal act of the authorized body.
      After the transfer of the insurance portfolio, the insurance (reinsurance) company shall have the right to apply to the authorized body with the application for the permission for its voluntary liquidation.
      2. Application for the permission to conduct the voluntary liquidation shall be accompanied by the documents, the list of which is determined by the regulatory legal acts of the authorized body.
      3. Application for the permission to conduct the voluntary liquidation of the insurance (reinsurance) company shall be considered by the authorized body within two months from the date of receipt of all required documents.
      4. The insurance (reinsurance) company upon receiving the permission for voluntary liquidation shall return all previously issued licenses to the authorized body within one week.
      5. After receiving the permission of the authorized body for voluntary liquidation, the insurance (reinsurance) company shall create a liquidation commission, including the branches and representative offices of the insurance (reinsurance) company, to which the powers to manage the property and affairs of the insurance (reinsurance) company shall move in accordance with the legislation.
      6. The liquidation commission of the voluntarily liquidated insurance (reinsurance) company shall provide the authorized body on its request any data about its activities and data, relating to the liquidated insurance (reinsurance) company.
      7. The liquidation commission shall, within ten days from the date of approval of the report on liquidation and liquidation balance of the insurance (reinsurance) company, submit them to the judicial bodies and the authorized body.
      Upon completion of the liquidation of the insurance (reinsurance) company, the liquidation commission shall in the prescribed manner deposit the documents in the archive and notify the authorized body about it.
      8. If funds are insufficient to satisfy the claims of creditors, the insurance (reinsurance) company shall be subject to compulsory liquidation on the grounds of bankruptcy.
      9. Control over the activities of the liquidation commission of the voluntarily liquidated insurance (reinsurance) company shall be carried out by the authorized body.
      Specific aspect of the activities of the liquidation commission of the voluntarily liquidated insurance (reinsurance) company shall be determined by regulatory legal acts of the authorized body.
      10. Due to the impossibility of completion of the voluntary liquidation of the insurance (reinsurance) company, the authorized body shall have the right to apply to the court for its compulsory liquidation.
      Footnote. Article 67, as amended by the Laws of the Republic of Kazakhstan dated 10 July, 2003 No. 483 (shall be enforced from 1 January, 2004), dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2), dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 68. Refusal to issue the permission for voluntary liquidation

      1. Refusal to issue the permission for voluntary liquidation of the insurance (reinsurance) company shall be made ??by the authorized body for the following reasons:
      1) breach of the legitimate interests of policyholders and other creditors as a result of the assumed voluntary liquidation;
      2) failure to submit the documents, stipulated by the regulatory legal acts of the authorized body;
      3) inconsistency of the submitted documents with the legislation of the Republic of Kazakhstan;
      4) insufficiency of funds of the insurance (reinsurance) company to settle its obligations;
      5) failure to take measures to transfer the insurance portfolio to another insurance (reinsurance) company.
      2. The authorized body shall notify the applicant of the refusal to issue the permission for its voluntary liquidation, with indication of the reasons.
      Footnote. Article 68, as amended by Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 69. Specific aspects of compulsory liquidation of the insurance (reinsurance) company

      1. Temporary administration shall lay down its powers and transfer the documents and property of the insurance (reinsurance) company to the chairman of the liquidation commission within a period not exceeding a month. If the compulsorily liquidated insurance company is a member of the guarantee insurance payments, the temporary administration shall provide to the organization that guarantees the insurance payments to policyholders (insured persons, beneficiaries) in the case of compulsory liquidation of the insurance company, the information in the amount and timing, that are provided by the regulatory legal act of the authorized body.
      2. From the date of withdrawal of the insurance (reinsurance) company license:
      1) founders (participants) of the insurance (reinsurance) company shall not have the right to dispose of property of the insurance (reinsurance) company;
      2) execution of previous decisions of courts in respect of the liquidated insurance (reinsurance) company shall be suspended;
      3) claims of creditors against the liquidated insurance (reinsurance) company may be brought only in the liquidation proceedings, except the requirements, relating to the costs as provided in paragraph 3 of Article 55 of this Law;
      4) recovery of money from the bank accounts of the insurance (reinsurance) company under the claims of creditors, the tax bodies, including those that are subject to the satisfaction of an undisputable (uncontested) procedure, as well as access to the property of the insurance (reinsurance) company, shall not be allowed;
      5) officials of the insurance (reinsurance) company shall be prohibited from alienation of their shares of the insurance (reinsurance) company;
      6) executives, and if necessary, other employees shall be suspended from work in accordance with the labour legislation of the Republic of Kazakhstan.
      3. In the case of compulsory liquidation of the insurance (reinsurance) company the court shall notify the authorized body and within ten calendar days send it a copy of the decision on the compulsory liquidation of the insurance (reinsurance) company.
      3-1. From the date of entry into force of the court decision on the compulsory liquidation of the insurance (reinsurance) company, the powers of the previously existed bodies of the insurance (reinsurance) company shall be terminated, the executives and if necessary, other employees shall be dismissed in the manner prescribed by the labour legislation of the Republic of Kazakhstan.
      3-2. From the date of entry into force of the court decision on the compulsory liquidation of the insurance (reinsurance) company, the consequences provided for in subparagraphs 1) -5) of paragraph 2 of this Article shall occur.
      4. If the court makes the decision on the compulsory liquidation of the insurance (reinsurance) company on the grounds, not involving the withdrawal of the licenses by the authorized body, the authorized body shall consider the question of withdrawing its license in the manner, prescribed by the legislation of the Republic of Kazakhstan.
      5. Liquidation of the insurance (reinsurance) company on the grounds of bankruptcy shall be based on the requirements of this Law.
      Footnote. Article 69 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 69-1. Transfer of the insurance portfolio from the date of entry into force of the court decision on the compulsory liquidation of the insurance ( reinsurance) company

      1. From the date of entry into force of the court decision on the compulsory liquidation of the insurance (reinsurance) company, the liquidation commission of the compulsorily liquidated insurance (reinsurance) company shall transfer the insurance portfolio without the consent of the policyholder for the guaranteed types of insurance, included in the system to guarantee the insurance payments, in full.
      The measures, provided for in this Article shall be made within three months from the date of entry into force of the court decision on the compulsory liquidation of the insurance (reinsurance) company.
      2. Insurance portfolio of the compulsorily liquidated insurance (reinsurance) company may be transferred by the liquidation commission of the compulsorily liquidated insurance (reinsurance) company to one or several insurance (reinsurance) companies with a license for the guaranteed type of insurance and (or) under the reinsurance, and in accordance with its (their) requirements, established by the regulatory legal act of the authorized body.
      Transfer of the insurance portfolio shall be carried out at the expense of the organization, guaranteeing the insurance payments to policyholders (insured persons, beneficiaries) in the compulsory liquidation of the insurance company under the insurance contracts.
      2-1. If none of the insurance companies operating in the field “life insurance” does not correspond to the requirements, established by the regulatory legal act of the authorized body, or none of the insurance companies, operating in the field “life insurance” does not declare the intentions to take the insurance portfolio of the compulsorily liquidated insurance company, the transfer of the insurance portfolio shall be carried out by the insurance company, operating in the field “life insurance”, with the participation of the state.
      3. Insurance contracts, for which the obligations of the compulsorily liquidated insurance (reinsurance) company for insurance payments of the insured events are occurred, the occurrence of which is announced and for which the insurance payments are not made or not made in full, shall not be included in the transmitted insurance portfolio.
      In the absence of the insurance contract in the register of insurance contracts and (or) database of the compulsorily liquidated insurance (reinsurance) company, a policyholder under the insurance contract, concluded with the compulsorily liquidated insurance company (original, copy, duplicate), the validity of which has not expired, shall apply to the liquidation commission of the compulsorily liquidated insurance (reinsurance) companies with the right to claim a part of the insurance premium in proportion to the remaining period of time, during which the contract shall be valid.
      At the same time the insurance contract, concluded with the compulsorily liquidated insurance (reinsurance) company shall be prematurely terminated on the basis of the application to refund the insurance premium, submitted by a policyholder to the liquidation commission of the compulsorily liquidated insurance (reinsurance) company.
      4. From the date of transmission (reception) of the insurance portfolio of the compulsorily liquidated insurance (reinsurance) company, the obligations, arising under the received insurance contracts shall be performed by the received insurance (reinsurance) company (received insurance (reinsurance) companies).
      The transmitted insurance contract shall be valid until the end of the period, specified in it.
      Conclusion of a new insurance contract with policyholders of the compulsorily liquidated insurance (reinsurance) company or making changes in the insurance contract, concluded with policyholders of the compulsorily liquidated insurance (reinsurance) company, shall not be required.
      5. The announcement on the transfer of the insurance portfolio shall be published by the liquidation commission of the compulsorily liquidated insurance (reinsurance) company in periodicals, that are distributed throughout the Republic of Kazakhstan, in the Kazakh and Russian languages ??within five business days after receiving the insurance portfolio of the compulsorily liquidated insurance (reinsurance) company by the insurance (reinsurance) company (insurance (reinsurance) companies).
      The announcement shall include the information about:
      1) the date of transfer of the insurance portfolio;
      2) the name of the insurance (reinsurance) company (insurance (reinsurance) companies) that take the insurance portfolio of the compulsorily liquidated insurance (reinsurance) company, and the location with the contact phone numbers;
      3) the location of the liquidation commission of the compulsorily liquidated insurance company and organization, guaranteeing the insurance payments to policyholders (insured persons, beneficiaries) under the compulsory liquidation of the insurance company, with the contact phone numbers.
      6. The order and features of transfer of the insurance portfolio from the date of entry into force of the court decision on the compulsory liquidation of the insurance (reinsurance) company shall be established by the regulatory legal act of the authorized body.
       Footnote. Law is supplemented by Article 69-1 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), as amended by the Law of the Republic of Kazakhstan dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 70. The liquidation commission of the compulsorily liquidated insurance (reinsurance) company

      1. After deciding on the liquidation of the insurance (reinsurance) company, including the reason of bankruptcy, the court shall initiate the liquidation proceedings and assign the duty to the authorized body to establish the liquidation commission of the insurance (reinsurance) company with regard to its branches and representative offices.
      The procedure for appointment and dismissal of the liquidation commission of the compulsorily liquidated insurance (reinsurance) companies and the requirements for the chairman and members of the liquidation commission shall be determined by regulatory legal acts of the authorized body.
      The rights and obligations of the chairman and a member of the liquidation commission, including the right to compensation, the amount of powers to manage the affairs and property of the compulsorily liquidated insurance (reinsurance) company shall be governed by the regulatory legal acts of the authorized body and the agreement, concluded between it and the creditors’ committee, subject to the requirements established by the legislation of the Republic of Kazakhstan.
      2. The interim liquidation balance sheet and the register of creditors’ requirements of the liquidated insurance (reinsurance) company shall be approved by the authorized body.
      3. The liquidation commission of the liquidated insurance (reinsurance) company shall provide reports on its work to the authorized body and on its written request for the additional information, data about its activities and data, relating to the liquidated insurance (reinsurance) company.
      4. The liquidation bankruptcy assets of the insurance (reinsurance) company shall be formed in the order, established by the legislation of the Republic of Kazakhstan, with the specifications established by this Law.
      Assets, acquired at the expense of internal reserve fund shall not be included in the bankruptcy (liquidation) assets of the liquidated insurance (reinsurance) companies.
      Distribution of the internal reserve fund between the policyholders that concluded the insurance contract, providing for a condition of participation in the investments, shall be made out of turn, under paragraph 1 of Article 72 of this Law.
      Monthly amount of remuneration paid to the chairman, members of the liquidation commission of the insurance (reinsurance) company and other attracted employees shall not exceed for each of them ten times of the amount of the minimum wage, established to the corresponding financial year by the law on the republican budget.
      Sale of assets of the liquidated insurance (reinsurance) company shall be made by the liquidation commission in the manner, specified by the regulatory legal acts of the authorized body.
      Control over the activities of the liquidation commission of the insurance (reinsurance) company shall be carried out by the authorized body.
      5. The liquidation commission shall submit to the court the agreed with the authorized body report on the liquidation and the liquidation balance.
      Court shall approve the report of liquidation and the liquidation balance and make a ruling on the completion of the liquidation proceedings.
      The liquidation commission shall send a copy of the court ruling to the corresponding judicial body, carrying out the state registration of legal entities, the registration of branches and representative offices, as well as to the authorized body.
      The liquidation commission shall, within thirty calendar days after approval of the liquidation balance and the liquidation report, submit them to judicial body, carrying out the state registration of legal entities, and the copies of these documents to the authorized body.
      Order of liquidation and requirements to the liquidation commission of the compulsorily liquidated insurance (reinsurance) company shall be determined by the regulatory legal acts of the authorized body.
      Upon completion of the liquidation of the insurance (reinsurance) company, the liquidation commission shall in the prescribed manner pass the documents to the archive and notify the authorized body about it.
      6. Is excluded by the Law of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004).
      7. After registration of the termination of the insurance (reinsurance) company, the liquidation commission shall, within five business days, submit a copy of the order for registration of the termination of the insurance (reinsurance) company to the authorized body.
      Footnote. Article 70, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 20.02.2006 No. 128 (the order of enforcement, see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 71. Recognition of insurance (reinsurance) company as bankrupt

      1. Financial insolvency and bankruptcy of the insurance (reinsurance) company shall be established taking into account the appropriate conclusion of the authorized body.
      2. Rehabilitation procedures for insurance (reinsurance) company may be assigned by the court in the presence of the appropriate conclusion of the authorized body.
      3. Rehabilitation procedures for insurance (reinsurance) company may be in the form of financial rehabilitation or in the form of transfer of insurance liabilities and their corresponding amount of assets to the concerned insurance (reinsurance) companies through a public auction, conducted in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
      4. Insurance (reinsurance) company may be declared as bankrupt by the court only in the manner prescribed by the legislation. Extrajudicial liquidation procedure of the insolvent insurance (reinsurance) company under the decision of its creditors and the insurance (reinsurance) company shall not be permitted.
      5. Conclusion of a settlement agreement by the parties shall not be permitted in the bankruptcy case of the insurance (reinsurance) company.

      Article 72. Priority of creditors of the insurance (reinsurance) company

      1. Claims of creditors of the insurance company, recognized in the manner, established by the legislation, shall be satisfied in the following order:
      1) Firstly, the claims of creditors on insurance payments on the insurance events, occurring prior to the entry into force of the court decision on the liquidation of the insurance (reinsurance) company shall be satisfied;
      1-1) in the second, the claims for payment of withheld wages, and (or) other maintenance income, as well as the demands of citizens to whom the liquidated insurance company is responsible for damage to life or health, through the capitalization of the corresponding time payments on the grounds, not related to the liability under the insurance contracts, shall be satisfied;
      2) in the third, the calculations on payment of wages and compensation to persons, who worked under an employment contract, outstanding social contributions to the State Social Insurance Fund, payment of mandatory pension contributions withheld from wages, as well as royalties under the copyright contracts shall be paid;
      3) in the fourth stage, the claims of creditors under the insurance contracts, related to the insured person shall be satisfied;
      4) in the fifth stage, the claims of creditors - individuals under the contracts, concluded by them on property insurance and other types of insurance, not related to the insured person, shall be satisfied;
      5) in the sixth stage, the claims of creditors under the concluded insurance contracts other than those, specified in paragraphs 3) and 4) of this paragraph, as well as the requirements of the organization that guarantee the insurance payments to policyholders (insured persons, beneficiaries) under the compulsory liquidation of insurance companies, under the insurance contracts, under the implemented guarantee payments, costs related with the payment of the insurance portfolio of the compulsorily liquidated insurance (reinsurance) company, transferred to another insurance (reinsurance) company in the manner and under the conditions, stipulated by the legislation of the Republic of Kazakhstan on insurance and insurance activity, and other costs related with their implementation shall be satisfied;
      6) in the seventh stage, the claims of creditors under the obligations, secured by a pledge of assets of the liquidated insurance company within the amount of security, shall be satisfied;
      7) in the eighth stage, the liabilities for taxes, duties and other obligatory payments to the budget, as well as the repayment of loans, granted from the republican budget shall be paid;
      8) in the ninth stage, the settlements with other creditors shall be carried out in accordance with the legislative acts of the Republic of Kazakhstan.
      2. Costs, associated with the liquidation procedure of the insurance (reinsurance) company shall be paid ??out of turn.
      3. Claims of creditors of the reinsurance companies, recognized in the manner, established by the legislation, shall be satisfied in the following order:
      1) Firstly, the claims for payment of withheld wages, and (or) other maintenance income, as well as the demands of citizens to whom the liquidated reinsurance company is responsible for damage to life or health, through the capitalization of corresponding time payments for grounds, not related to the liability under the reinsurance contracts, shall be satisfied;
      2) in the second, the calculation on payment of wages and compensation to persons, who work under an employment contract, outstanding social contributions to the State Social Insurance Fund, the payment of mandatory pension contributions withheld from wages, as well as the royalties under copyright contracts, shall be paid;
      3) in the third, the claims of assignors, arising out of contracts for “life insurance” shall be satisfied;
      4) in the fourth stage, the claims of assignors, arising out of contracts for “general insurance” shall be satisfied;
      5) in the fifth stage, the claims of creditors under the obligations, secured by a pledge of assets of the liquidated reinsurance company within the amount of security, shall be satisfied;
      6) in the sixth stage, the liabilities for taxes, duties and other obligatory payments to the budget, as well as the repayment of loans granted from the republican budget shall be paid;
      7) in the seventh stage, the settlements with other creditors shall be carried out in accordance with the legislative acts of the Republic of Kazakhstan.
      4. The claims of each subsequent turn shall be satisfied after full satisfaction of the previous turn.
      When addressing the claims of creditors of one queue, the funds shall be apportioned between them in proportion to the amounts of claims, subject to satisfaction.
      5. Upon the occurrence of the relevant queue, the claim of the creditor with his consent can be satisfied in ways, not contrary to the legislation of the Republic of Kazakhstan, including in cash and (or) through the transfer of assets in kind in compliance with the principle of proportionality calculations.
      Footnote. Article 72, as amended by the Laws of the Republic of Kazakhstan dated 11.06.2003 No. 436, dated 10.07.2003 No. 483 (shall be enforced from 01.01.2004), dated 20.02.2006 No.128 (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 73. Supervisory powers of the authorized body in the process of liquidation of insurance (reinsurance) companies

      1. In order to exercise control over the activities of the liquidation commissions of voluntarily and compulsorily liquidated insurance (reinsurance) companies, including the reason of bankruptcy, the authorized body shall:
      1) receive the progress reports from the liquidation commissions, and if necessary the additional information;
      2) establish the form, terms and periodicity of submission of reports and additional information by the liquidation commissions;
      3) conduct inspections of liquidation commission activities, in the manner prescribed by the Laws of the Republic of Kazakhstan;
      4) in identifying in the activity of the liquidation commission the violations of the legislation of the Republic of Kazakhstan, the rights and legitimate interests of creditors, make the written orders binding to the liquidation commissions to eliminate the violations and set deadline for their implementation;
      5) in case of failure to perform the written order by the liquidation commission within the prescribed period, apply the measures, specified in the legislation of the Republic of Kazakhstan, as well as go to court or to the prosecuting authorities for the protection of the rights and legitimate interests of creditors;
      6) establish the specific aspects and the procedure for formation and approval of estimates of liquidation expenses;
      7) define the requirements for the implementation by the liquidation commissions the rules of storage of cash on hand, commission of credit and debit transactions with cash, conducting of cash instruments to ensure the expenditure of cash, cash balances limits and terms of delivery of cash in the current account of the liquidation commission.
      2. In the case of breach of the legislation of the Republic of Kazakhstan by the liquidation commission, the chairman, the head of unit of the liquidation commission shall be liable in accordance with the Laws of the Republic of Kazakhstan.
      Footnote. Article 73 is in the wording of the Law of the Republic of Kazakhstan dated 10.07.2003 No. 483 (shall be enforced from 1 January, 2004), as amended by the Laws of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Article 2 of the Law No. 107), dated 31.01.2006 No. 125, dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 13. Reporting and other issues

      Article 74. Financial and other reports

      1. An insurance (reinsurance) company and an insurance broker shall perform the registration of their operations in accordance with international financial reporting standards, the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      2. The list, forms or requirements for forms, the terms and procedure for submission of financial and other reports of an insurance (reinsurance) company and an insurance broker, including financial and other reporting on a consolidated basis, shall be established by the authorized body.
      2-1. Is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).
      3. An insurance (reinsurance) company and an insurance broker shall submit to the authorized body, upon its request, the data about their property, including outside the Republic of Kazakhstan, about the size of the taken risks, provided guarantees and warranties, on the concluded and concluding transactions on insurance and reinsurance, the data about the participation in the authorized capital of legal entities, including the data constituting the insurance secret, in order to implement the controlling and supervisory functions.
      4. Is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).
      Footnote. Article 74, as amended by the Laws of the Republic of Kazakhstan dated 11.06.2004 No. 562, dated 08.07.2005 No. 69, dated 20.02.2006 No. 128 (the order of enforcement see Art. 2), dated 05.05.2006 No. 139 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 139), dated 28.02.2007 No. 235 (the order of enforcement see Art. 2), dated 19.03.2010 No. 258-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 74-1. Reporting of a major participant of the insurance (reinsurance) companies and insurance holding companies

      Footnote. Title, as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      1. A major participant of the insurance (reinsurance) company that is a legal entity shall annually submit statements and its explanatory note to the authorized body, within one hundred twenty calendar days after the end of the financial year, and a report on transactions with affiliated persons.
      2. A major participant of the insurance (reinsurance) company that is an individual shall, within one hundred twenty calendar days after the end of the financial year, submit to the authorized body statements, including the information about income and assets, as well as the information:
      1) on its influence jointly with other persons on the decisions, made by the insurance (reinsurance) company by virtue of a contract between them or otherwise, including the description of the delegation of powers, determining the possibility of such influence;
      2) about his positions in the organizations, indicating his stakes in the authorized capital (shares);
      3) about his stakes in the authorized capital (shares) of organizations, as well as the sources of their acquisition;
      4) about close relatives, spouse and close relatives of spouse (wife), as well as the organizations, controlled by these persons;
      5) on income and property, a copy of the declaration of personal income tax, submitted to the tax authorities by a major participant of the insurance (reinsurance) company, if it is available.
      2-1. The order of presentation and reporting forms shall be established by the regulatory legal acts of the authorized body.
      3. Insurance holding company shall submit to the authorized body:
      1) the quarterly consolidated financial statements and its explanatory note within ninety calendar days following the reporting quarter, and the quarterly non-consolidated financial statements and its explanatory note within thirty calendar days following the reporting quarter;
      2) the consolidated and non-consolidated annual financial statements and explanatory note to it, not certified by the audit organization, within one hundred twenty calendar days after the end of the financial year;
      3) the quarterly report on transactions with affiliated persons.
      4. The explanatory note to the annual financial statements of a major participant of the insurance (reinsurance) company that is a legal entity, as well as the notes to the quarterly and annual financial statements of the insurance holding company shall contain the following information:
      1) the description of types of activities of a major participant of the insurance (reinsurance) company, insurance holding company;
      2) the name of each organization, in which a major participant (insurance holding company) is a participant (shareholder), the size of a stake in its authorized capital (number of shares owned), description of the type or types of activities, the financial statements of organizations in which a major participant of the insurance (reinsurance) company, insurance holding company is a major participant (major shareholder), the report on the structure of the insurance group;
      3) the name of each organization that is a major participant (shareholder ) of a major participant of the insurance (reinsurance) company, insurance holding company, the size of its share in the authorized capital (the number of its shares), the description of the type or types of activities and financial statements of the organization, as well as the information about the affiliated persons, about the persons exercising control over a major participant, about the subsidiaries and related organizations of the person, controlling a major participant of the insurance (reinsurance) company;
      4) a report about all the liabilities of the insurance group to third parties (group of persons) that make up ten or more percent of the equity capital of the insurance group.
      In the absence of insurance (reinsurance) company, insurance holding company, a major participant of the insurance (reinsurance) company shall provide the financial statements and the information, specified in this paragraph, on a quarterly basis, not later than forty-five calendar days following the reporting quarter.
      In the case of changes in the composition of the executives of a major participant of the insurance (reinsurance) company - legal entity or insurance holding company, a major participant of the insurance (reinsurance) company - legal entity or an insurance holding company shall submit to the authorized body within thirty calendar days from the date of these changes the details of impeccable business reputation of the executives, with the supporting documents.
      5. Is excluded by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).
      6. Insurance holding company - non-resident of the Republic of Kazakhstan within one hundred eighty days after the end of the financial year, shall submit to the authorized body the annual financial statements in accordance with the requirements of the regulatory legal act of the authorized body.
      The requirements of paragraph 1 of this Article shall apply to a major participant of the insurance (reinsurance) company that is a non-resident individual of the Republic of Kazakhstan.
      The requirements, provided for in respect of insurance holding company -non-resident of the Republic of Kazakhstan shall apply, in accordance with this paragraph, to a major participant of the insurance (reinsurance) company that is a nonresident legal entity of the Republic of Kazakhstan.
      7. Is excluded by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).
      Footnote. Section is supplemented by Article 74-1 in accordance with the Law of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Art. 2 of the Law No. 107), as amended by the Laws of the Republic of Kazakhstan dated 19.02.2007 No. 230 (the order of enforcement see Art. 2), dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2), dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2), dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 75. Obligatory actuarial report

      1. Obligatory actuarial report on insurance reserves is an integral part of the annual financial statements of the insurance (reinsurance) company and shall be subject to the provision of the authorized body.
      2. The requirements for the content and the order of presentation of an obligatory actuarial report shall be established by the regulatory legal acts of the authorized body.

      Article 75-1. Coefficients, characterizing the unprofitability

      1. Insurance (reinsurance) companies in order to analyze their activities during all or certain classes (types) of insurance shall calculate the coefficients, characterizing unprofitability (loss ratio, cost ratio, combined ratio).
      2. Coefficients, characterizing the unprofitability (loss ratio, cost ratio, combined ratio) are the relative indicators, reflecting the unprofitability of the insurance (reinsurance) company activity in the implementation of all or certain classes (types) of insurance.
      Procedure for calculating the coefficients, characterizing the unprofitability (loss ratio, cost ratio, combined ratio) shall be established by the regulatory legal acts of the authorized body.
      Footnote. Section is supplemented by Article 75-1 – by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (the order of enforcement see Art. 2). Article is in the wording of the Law of the Republic of Kazakhstan dated 7 May, 2007 No. 244.

      Article 76. Publication of the basic indicators of the insurance (reinsurance) company, insurance broker and insurance holding company

      Insurance (reinsurance) company and insurance broker shall publish the consolidated annual financial statements, and in the absence of a subsidiary (subsidiaries) organization (s) – the non-consolidated annual financial statements and the audit report in the manner and within the time, established by the authorized body, after an independent audit validation of their submitted information and approval of the annual financial statements by the annual meeting of shareholders of the insurance (reinsurance) company.
      Insurance (reinsurance) companies shall quarterly publish a balance sheet, profit and loss statement, corresponding to the international accounting standards, in the manner and terms, established by the authorized body, without their audit confirmation.
      Insurance holding companies shall publish their consolidated annual financial statements, and in the absence of a subsidiary (subsidiaries) organization(s) – the non-consolidated financial statements, as well as the audit report in the manner and terms, set by the authorized body.
      The requirements of this section shall not apply to non-residents of the Republic of Kazakhstan that are insurance holding companies.
      Footnote. Article 76 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 77. Procedure and terms of document storage

      1. Professional participants of the insurance market, insurance agents, engaged in entrepreneurial activities shall generate data on insurance (reinsurance), insurance mediation and provide the registration and storage of documents, related to their activities in accordance with the legislation of the Republic of Kazakhstan.
      Insurance (reinsurance) company shall maintain a register of insurance (reinsurance) contracts in the manner, prescribed by the regulatory legal act of the authorized body. Contract of insurance (reinsurance) shall be entered in the register of insurance (reinsurance) contracts within one business day from the date of its conclusion.
      Information about a policyholder (insured person) (surname, first name, middle name (if available) or name of a legal entity, the number of the insurance contract, the date of its conclusion, the entry into force of the insurance contract and the expiration period, personal identification number or business identification number), contained in the register of insurance contracts and in the database shall match.
      2. The list of documents, subject to the mandatory storage, the order and terms of their storage by the professional participants of the insurance market, insurance agents, engaged in entrepreneurial activities, shall be established by the authorized body in consultation with the authorized body for managing the archives and documentation.
      Footnote. Article 77 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 78. Appeal against a decision of the authorized body

      1. A decision of the authorized body may be appealed by the concerned person within ten days from the date of its entry into force in accordance with the legislative acts of the Republic of Kazakhstan.
      2. Appeal against a decision of the authorized body shall not entail the suspension of execution of the decision on the imposition of sanctions.

Chapter 14. Activity on the formation and maintenance of the database

      Footnote. The Law is supplemented by Chapter 14 in accordance with the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Art. 2).

      Article 79. The establishment procedure and main functions of organization for the formation and maintenance of database

      1. Organization for the formation and maintenance of the database (hereinafter - the organization) is a noncommercial organization, established in the legal form of a joint stock company.
      The organization shall carry out the formation and maintenance of a database on the compulsory insurance of civil liability of owners of vehicles under this Law and legislative acts of the Republic of Kazakhstan on compulsory insurance.
      2. Shareholders of the organizations are the insurance (reinsurance) companies and the authorized body.
      The share of each shareholder of the organization jointly with its affiliates may not exceed five percent of the total outstanding (net of purchased) shares of the organization, except the case when the shareholder is the authorized body.
      The share of the authorized body is not less than twenty-five percent of the total voting shares of the organization.
      Each shareholder of the organization shall vote on the principle “one share - one vote”, except for the cases, stipulated by legislative acts of the Republic of Kazakhstan.
      3. Besides the issues, referred by the legislation of the Republic of Kazakhstan on joint stock companies to the competence of the board of directors, the competence of the board of directors of the organization shall include the following issues:
      1) approval of the annual budget of the organization;
      2 ) use of the reserve and other funds of the organization;
      3) approval of the rates of contributions, payable to the organization.
      A representative of the authorized body shall on a permanent basis enter to the board of directors of the organization with the right to vote.
      4. The authorized body shall approve the rate of contributions, payable to the organization by the insurance (reinsurance) companies.
      The grounds for refusal of the authorized body to agree with the rates of contribution, payable to the organization by the insurance (reinsurance) companies, is its failure to perform the requirements of the organization, established by this Law.
      In case of refusal of the authorized body to agree with the rates of contribution, payable by the insurance (reinsurance) companies, its size shall be determined by the authorized body.
      5. The input order of the database by classes (types) of insurance consists of the following stages:
      1) conclusion of a contract on provision of information with providers of information, referred to in subparagraph 1) of paragraph 3 of Article 80 of this Law;
      2) putting into service the management system of database;
      3) organization of information process on the formation of database;
      4) testing of the information process, referred to in subparagraph 3) of this paragraph, with information providers who concluded a contract on the provision of information with them.
      Verifying the implementation by the database the necessary arrangements for putting into service of the management system shall be carried out by the commission of the authorized body, formed jointly with the state authorized body in the field of information, the results of which shall be reflected in the act of putting into service of the management system of database in the form, prescribed by the authorized body.
      Implementation of the activities of the organization shall be allowed only if the act of putting into service of the management system of the database and the internal rules are available.
      The requirements for the content of internal rules, establishing the procedure for the organization shall be determined by the regulatory legal act of the authorized body. The regulatory legal act of the authorized body shall be binding on providers of information, referred to in subparagraph 1) of paragraph 3 of Article 80 of this Law, in respect of their activities as information providers to participate in the creation and protection of databases.
      6. The organization in its activities shall:
      1) have the technical and other facilities for safe storage and operation of information systems, databases;
      2) in the formation and use of information systems for the database and means of protection of the specified information systems, use the certified hardware and software;
      3) conduct an annual audit of the software and hardware of the organization, including the information, communication systems and the technologies, used by the organization in its activities;
      4) comply with other requirements, established by legislation of the Republic of Kazakhstan and (or) contracts for provision of information and (or) receipt of insurance reports.
      7. The main functions of the organization are:
      1) collection of information under paragraphs 1 and 2 of Article 81 of this Law;
      2) formation and delivery of insurance reports, the requirements to the content of which, are established by this Law and the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      3) formation of insurance statistics;
      4) automatic calculation of insurance premiums on the contracts of compulsory insurance in accordance with the legislative acts of the Republic of Kazakhstan on compulsory types of insurance.
      8. In order to ensure the quality and timely performance of the functions for the implementation of the requirements, stipulated by legislative acts of the Republic of Kazakhstan and this Law, the organization shall have the right to receive the information, including those that constitute the insurance secret from individuals and legal entities, as well as the state bodies.
      Employees of the organization shall be responsible for the disclosure of information, obtained in the exercise of their functions, constituting the official, commercial secrets, insurance secret or other secret, protected by law in accordance with the laws of the Republic of Kazakhstan.
      Footnote. Article 79, as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 80. Database

      1. The database structure is defined by the organization in coordination with the provider of information, referred to in subparagraph 1) of paragraph 3 of this Article, taking into account the requirements of this Law.
      2. Insurance report is divided into the following types:
      1) an insurance report of the limited access is the insurance report, containing the data about the double insurance, insurance payments, the paid insurance premiums, about the size of the insured amount and other data, relating to the identity of the policyholder, the insured person or the beneficiary;
      2) an insurance report of the standard access is the insurance report, containing the data about the insurance events, insurance object, and other data that is not related to the insurance secret.
      3. Providers of the information for database shall be:
      1) insurers on the basis of the contracts concluded with the organization for provision of information;
      2) the authorized bodies, exercising the state control over the subjects of the database in accordance with the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      3) other persons on the basis of the contracts for provision of information.
      4. Recipients of the insurance report shall be:
      1) the authorized body;
      2) the authorized state bodies, exercising the state control over the subjects of the database in accordance with the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      3) insurers on the basis of the contracts concluded with the organization on the receipt of insurance reports;
      4) subjects of the database (the policyholder, the insured person, the beneficiary);
      5) consulting and research organizations, providing for the consulting services in the field of insurance and actuarial calculations;
      6) other persons in accordance with the procedure, established by the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      7) the insurance ombudsman;
      8) the persons, referred to in subparagraphs 1) - 4) of paragraph 5 of Article 830 of the Civil Code of the Republic of Kazakhstan.
      Provision of information to other persons, not specified in this paragraph shall not be permitted.
      5. Issuance of insurance reports from the database to the recipients of insurance report, referred to in paragraph 4 of this Article, shall be carried out depending on the access levels and types of insurance reports:
      1) recipients of insurance reports, referred to in subparagraphs 1) - 3) of paragraph 4 of this Article, shall be entitled to receive the insurance reports of limited access and standard access on all subjects of the database;
      2) recipients of insurance report, referred to in subparagraph 4) of paragraph 4 of this Article, shall be entitled to receive the insurance report of limited access and standard access only to themselves;
      3) recipients of insurance report, referred to in subparagraph 5) of paragraph 4 of this Article, shall be entitled to receive the insurance reports of limited access and standard access, containing the summary information on the number of concluded insurance contracts, the amount of insurance premiums, insurance events, as well as the amounts of insurance payments (in terms of payment for property and health);
      4) recipients of insurance report, referred to in subparagraph 6) of paragraph 4 of this Article shall be entitled to receive the insurance reports, containing the information, prescribed by the legislative acts of the Republic of Kazakhstan on compulsory types of insurance;
      5) the recipient of insurance report, referred to in subparagraph 7) of paragraph 4 of this Article, shall be entitled to receive the insurance reports of limited access and standard access on the subjects of the database, in resolving the issues in the order, established by the legislative acts of the Republic of Kazakhstan on compulsory types of insurance.
      Recipients of insurance reports, referred to in subparagraphs 1), 2), 3), 6) and 7) of paragraph 4 of this Article, shall be liable for the disclosure of information, obtained in the exercise of their functions, constituting the official, commercial secrets, insurance secret or other secret protected by law in accordance with the Laws of the Republic of Kazakhstan.
      6. The basis for issuing the insurance report shall be the request of recipients of the insurance report, referred to in paragraph 4 of this article.
      Request is filed on behalf of recipients of the insurance reports, referred to in subparagraphs 4) and 5) of paragraph 4 of this Article, by the authorized person, responsible for submitting the request to the database, the information about which is contained in the registry of recipients of the database.
      Presentation of the insurance report by the organization to the recipients, specified in subparagraphs 1), 2) and 5) of paragraph 4 of this Article, shall be made on the basis of their request on paper or in electronic form, certified by the digital signature.
      Subject of the database shall be represented the insurance report on its request on paper or in electronic form, certified by the digital signature in accordance with the legislation of the Republic of Kazakhstan on informatization, electronic document and digital signature.
      Footnote. Article 80, as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 81. Information, provided for the formation of a database

      1. Providers of information, referred to in subparagraph 1) of paragraph 3 of Article 80 of this Law, shall provide the information on each concluded insurance contract, on the amount of insurance premiums, on insurance events, as well as the amounts of insurance payments (in terms of payments for property and health) in the manner, terms and to the extent, provided by the contract for provision of information and (or) receipt of insurance reports, taking into account the requirements of this Law and the regulatory legal act of the authorized body.
      2. Regulatory legal act of the authorized body may establish the additional requirements for the content of information, provided by the providers of information, referred to in subparagraph 1) of paragraph 3 of Article 80 of this Law, in the database.
      3. Information, listed in paragraphs 1 and 2 of this Article, shall be provided by the providers of information, referred to in subparagraph 1) of paragraph 3 of Article 80 of this Law, in electronic form with using information systems, united by the appropriate software, in the terms established by the regulatory legal act of the authorized body.

      Article 82. Rights and obligations of persons, involved in the formation and maintenance of a database

      1. The organization shall:
      1) carry out the formation of insurance reports;
      2) provide insurance reports in the manner, prescribed by this Law and the regulatory legal acts of the authorized body;
      3) not prevent the disclosure of information, contained in the insurance reports, except as provided in this Law;
      4) provide to the recipient of the insurance report and the subject of the database the corrected insurance report, if the insurance report presented to the recipient, as a result of actions or omissions of the employees of the organization contain the information, not corresponding to the information, provided to the organization by the providers of information, within five business days from the date of detection of the specified mismatch.
      If necessary the confirmation by the provider of information of the fact of discrepancy of the insurance report, issued by the organization, the calculation of the term for provision of the information of the corrected insurance report to the recipient of the insurance report and the subject of a database, shall be carried out from the time of receipt by the organization of the relevant information from the provider of information in the period specified in subparagraph 7) of paragraph 3 of this Article;
      5) at the request of the subject of a database, provide it with information about the provider of information, that provided the information, contested by the subject of a database;
      6) refuse to represent the insurance report, if the request on its submission is made in violation of the requirements, established by the legislation of the Republic of Kazakhstan;
      7) keep records of requests for presentation of insurance reports and record of the presented insurance reports;
      8) contact the provider of information with the requirement for an adjustment, supplement of the received information, that shall be subject to reissuance or clarification in the presence of relevant grounds;
      9) use the information resources and information systems in accordance with the legislation of the Republic of Kazakhstan;
      10) ensure the equal conditions for participation of providers of information referred to in paragraph 3 of Article 80 of this Law, in the creation of and access to the information resources of a database;
      11) provide the information, requested by the authorized body for the implementation of its powers, stipulated by the legislation of the Republic of Kazakhstan, including:
      the information on failure to provide, untimely provision or provision of incomplete information by the providers of information, referred to in subparagraph 1) of paragraph 3 of Article 80 of this Law, which provision is required by this Law, the regulatory legal act of the authorized body and the contracts for provision of information and (or) receiving the insurance reports;
      the information on the amount of insurance premiums, calculated by the providers of information referred to 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;
      12) provide the access to a database to the authorized body;
      13) within two business days from the date of request of the subject of a database, provide him the information about the availability in a database of the information about the contract for compulsory types of insurance, concluded by the policyholder with the insurer (provider of information), which is responsible for entering data into a database under the contract for compulsory types of insurance;
      14) within three business days from the date of receipt of the written request of the injured or the person, who is entitled under the Laws of the Republic of Kazakhstan to compensation in connection with the death of the injured, submit in writing the information on the presence or absence of the insurance policy in the cases, stipulated by legislation of the Republic of Kazakhstan on compulsory types of insurance;
      15) comply with other requirements, established by the legislation of the Republic of Kazakhstan and (or) by contracts for provision of information and (or) receipt of insurance reports.
      2. Organization shall have the right to:
      1) conclude the contracts for the provision of information with providers of information and (or) the receipt of insurance reports with the recipients of insurance reports;
      2) require from the providers of information the complete and accurate information, providing for the formation of a database;
      3) return the information, provided by the provider of information without using it in the database, due to its improper or incomplete design, inconsistency of the data of the provider of information, the recipient of the insurance report, the subject of a database with the requirements of the used information system;
      4) have other rights, stipulated by legislative acts of the Republic of Kazakhstan and the contracts, concluded in accordance with this Law.
      3. Providers of information shall:
      1) conclude the contract with the organization for the provision of information and (or) the receipt of insurance reports;
      2) provide the information to the database for its formation in the volume, manner and time as defined by the contracts for provision of information and (or) receipt of insurance reports;
      3) make corrections to the information, transmitted to the organization, at the request of the subject of a database;
      4) provide the information to the organization in strict accordance with the data, available on the subject of a database;
      5) use the information resources and information systems in accordance with the legislation of the Republic of Kazakhstan;
      6) provide the appropriate conditions for obtaining and processing the information at their own expense;
      7) provide, within three business days, the information to the organization in the cases, stipulated by subparagraph 4) of paragraph 1 of this Article.
      4. Provider of information shall have the right to:
      1) require the use by the organization of the information, provided in accordance with this Law;
      2) have other rights in accordance with the legislative acts of the Republic of Kazakhstan and (or) the contract for provision of information and (or) receipt of information.
      5. Recipients of insurance reports, referred to in subparagraphs 3) and 5) of paragraph 4 of Article 80 of this Law shall:
      1) report on the changes in the data, submitted by them in the register as a recipient of the information;
      2) comply with the confidentiality of the received information and not disclose it to third parties;
      3) use the received information only for the purposes, provided in this Law;
      4) introduce the subject of a database at its request with the content of the information or provide him a copy of this information in accordance with the internal regulations;
      5) pay for services to provide the information from a database in the order, amount and terms that are defined by the contract for provision and (or) receipt of insurance reports;
      6) have other duties in accordance with the legislative acts of the Republic of Kazakhstan and (or) the contract for provision of information and (or) receipt of insurance reports.
      6. Recipient of information shall have the right to receive the insurance report and have other rights in accordance with the legislative acts of the Republic of Kazakhstan.
      7. Subject of a database shall have the right to:
      1) receive in accordance with the requirements, established by this Law, the insurance report of itself;
      2) in the conclusion of the insurance contract, require the recipient of the insurance report, referred to in subparagraph 3) of paragraph 4 of Article 80 of this Law, the acquaintance with the insurance report or issue him a copy of the insurance report, obtained by this recipient from the database;
      3) disagree with the information, contained in the insurance report, with obtaining the information about the provider of information;
      4) contact the provider of information and the organization, demanding the correction of incorrect information;
      5) have other rights in accordance with the legislative acts of the Republic of Kazakhstan.

      Article 83. Mandatory terms of the contract for provision of information and (or) receive of insurance reports

      Contract for provision of information and (or) receipt of insurance reports shall contain:
      1) full name of the parties, data about their location and bank details;
      2) indication of the subject matter of the contract in accordance with this Law;
      3) list and forms of insurance reports, submitted from the database;
      4) rights and obligations of the parties, in accordance with this Law;
      5) procedure for payment of services to provide the information from the database;
      6) types, amount, periods (frequency), procedure for provision of information for the formation of a database;
      7) types, periods (frequency), volume of information, contained in the insurance reports, and the order to obtain the insurance reports;
      8) term of the contract, grounds and procedure for its changing, termination at the unilateral refusal to perform the contract in the cases, provided by this Law, as well as the size of the forfeit for non-fulfillment or improper fulfillment of obligations under the contract;
      9) obligation of the provider of information on compliance with the confidentiality in respect of all information, sent to the organization;
      10) obligation of the organization on compliance with the confidentiality in respect of all the received information;
      11) provisions for the responsibilities of the parties for breach of contract.
      Unilateral refusal on performance of the contract for provision of information shall be possible only in cases of voluntary return, and deprivation of a license of the insurance company to conduct the insurance activities. At the same time the insurance company shall, prior to the expiration of the insurance contract, provide to the organization the information, prescribed in Article 81 of this Law.
      When concluding a contract for provision of information and (or) receive of insurance reports with providers of information, referred to in subparagraph 1) of paragraph 3 of Article 80 of this Law, the following conditions shall be included in the contract for provision of information and (or) receive the insurance reports:
      1) on the list and forms of information, required by paragraph 2 of Article 81 of this Law;
      2) on mandatory joint implementation of organizational, technical measures and technological requirements for the protection of software, used in the formation and operation of information systems, used to create the database and the protection means of the specified information systems.

      Article 84. Registration in the organization

      For registration in the organization, the providers of information, referred to in paragraph 3 of Article 80 of this Law, shall submit the following documents:
      1) an application for registration in the organization;
      2) a certificate of the state registration (reregistration) of a legal entity;
      3) the information about the surname, first name, middle name (if any) of the officials, authorized to make the requests to the database in the order, established by the organization.
      If necessary, this information shall be certified by a digital signature of these individuals.
      Footnote. Article 84, as amended by Law of the Republic of Kazakhstan dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 85. Reorganization and liquidation of the organization

      Reorganization and liquidation of the organization shall be carried out in accordance with the legislation of the Republic of Kazakhstan.
      When reorganizing of the organization, a database shall be transferred to the assignee, formed as a result of split up, merger, consolidation, separation or transformation.
      When liquidation of the organization, a database shall be transferred to another organization for the formation and maintenance of a database on a grant basis, in accordance with Article 79 of this Law.
      Footnote. Article 85, as amended by Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

      The President
      of the Republic of Kazakhstan