On Insurance Payments Guarantee Fund

The Law of the Republic of Kazakhstan dated 3 June 2003 No. 423

Unofficial translation

      This Law determines legal status, procedure for creation and the activity of Insurance Payments Guarantee Fund, as well as conditions of participation of insurance organizations in the Insurance Payments Guarantee Fund and principles of ensuring the control of its activity.
      Footnote. The Preamble is in the wording of the Law of the Republic of Kazakhstan dated 07.05.2007 No. 244; as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.

Chapter 1. general provisions

Article 1. Basic definitions, used in this Law

      The following basic definitions are used in this Law:
      1) agent bank – a bank or organization, carrying out separate types of banking operations, rendering the services on carrying out of guarantee payments to creditors on the basis of agency agreement with the Insurance Payments Guarantee Fund;
      2) injured person – a person, life, health of which is inflicted by harm in the result of vehicle operation by other person;
      3) reserve of compensation for harm – a sum of money, formed by the Insurance Payments Guarantee Fund at the expense of initial non-recurrent contributions and additional contributions, used exclusively for compensation for harm of life, health of an injured person and (or) expenses for burial in cases, provided by this Law;
      3-1) guaranteed types of insurance – types of compulsory or voluntary insurance, on which the legislative act of the Republic of Kazakhstan on compulsory insurance or the Law of the Republic of Kazakhstan “On insurance activity” provides compulsory participation in the Insurance Payments Guarantee Fund;
      4) guarantee payment – a sum of money, paid by the Insurance Payments Guarantee Fund in the manner and on conditions, provided by this Law and regulatory legal acts of the authorized body to an insurant (insured person, gain acquirer) on matured insured accident under the insurance agreement compulsorily liquidated insurance organization in cases, provided by the Law of the Republic of Kazakhstan “On insurance activity”;
      5) a creditor – an insurant (insured person, gain acquirer) having the right to receive guarantee payments upon occurrence of insured accident under the insurance agreement compulsorily liquidated insurance organization, as well as other person, compensated inflicted harm to an injured person (person, having the right to compensation for harm) within the volume of responsibility of an insurer, established by the insurance agreement and legislative acts of the Republic of Kazakhstan on compulsory insurance, and received the right to insurance payment;
      6) participant agreement – the participant agreement in insurance payments guarantee system, concluded between the Insurance Payments Guarantee Fund and insurance organization-participant in the manner and on conditions, determined by this Law;
      7) additional contribution – a sum of money in the form of part of accrued insurance premiums on compulsory insurance of civil responsibility of the vehicle owners, paid by insurance organization to the Insurance Payments Guarantee Fund in the manner, provided by this Law;
      8) compulsorily liquidated insurance organization – insurance organization-participant, in respect of which the court decision on compulsory liquidation is enforced;
      9) shareholder's investment – assets of the Insurance Payments Guarantee Fund, reduced for its obligations and insurance payments guarantee reserve;
      10) compulsory contributions – a sum of money in the form of part of accrued insurance premiums on guaranteed types of insurance, paid by insurance organization-participant to the Insurance Payments Guarantee Fund in the manner, determined by this Law and other regulatory legal acts of the Republic of Kazakhstan;
      11) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2);
      12) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2);
      13) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2);
      14) an applicant – a legal entity, registered as insurance organization in accordance with the Republic of Kazakhstan, or insurance organization, intended to receive a license and (or) carry out the activity on guaranteed types of insurance;
      15) insurance payments guarantee system – the set of organizational and legal measures, provided by this Law, oriented to protection of rights and legal interests of insurants (insured persons, gain acquirers) upon occurrence of insured accident under the insurance agreement in case of compulsory liquidation of insurance organization-participant;
      16) insurance organization, being a participant of insurance payments guarantee system (insurance organization-participant) – insurance organization, concluded participant agreement with the Insurance Payments Guarantee Fund and being its shareholder;
      17) payments of the Insurance Payments Guarantee fund on compensation for harm of life, health of injured person and (or) expenses for burial – a sum of money, paid to injured person, the life, health of which is inflicted by harm, and persons, mentioned in paragraphs 4 and 5 of Article 17-1 of this Law in cases, provided by this Law;
      18) insurance payments guarantee reserve – a sum of money, formed by the Insurance Payments Guarantee Fund at the expense of compulsory contributions, as well as money, received by it from compulsorily liquidated insurance (reinsurance) organization in the manner of satisfying the requirements of the Insurance Payments Guarantee Fund and used in the cases, provided by paragraph 2-2 of Article 12 of this Law;
      18-1) insurance agreement – the agreement, concluded by an insurant with insurance organization on the guaranteed types of insurance;
      19) emergency contributions – a sum of money, additionally paid by insurance organization-participant to the Insurance Payments Guarantee Fund in cases, provided by this Law;
      20) 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).
      21) conditional obligations – the obligations of insurance organization-participant before Insurance Payments Guarantee Fund, formed by it for paying the emergency contributions.
      Footnote. Article 1 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 Article 2); dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 2. Legislation on Insurance Payments Guarantee Fund

      Legislation on Insurance Payments Guarantee Fund is based on the Constitution of the Republic of Kazakhstan and consists of Civil Code of the Republic of Kazakhstan, Law of the Republic of Kazakhstan “On insurance activity”, this Law and other regulatory legal acts of the Republic of Kazakhstan.

Chapter 2. State regulation and control of the activity of the Insurance Payments Guarantee Fund

Article 3. State regulation and control of the activity of Insurance Payment Guarantee Fund

      1. State regulation and control of the activity of the Insurance Payments Guarantee Fund (hereinafter – Fund) shall by carried out by the National Bank of the Republic of Kazakhstan (hereinafter – the authorized body).
      2. The authorized body shall apply restricted enforcement actions and sanctions to the Fund and its civil servants in the manner, provided by this Law.
      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 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 3-1. Restricted enforcement actions

      1. In cases of detecting the violation by the authorized body of the legislation of the Republic of Kazakhstan by the Fund, detection of illegal actions or omission of civil servants and workers of the Fund, as well as non-fulfillment of other requirements of the authorized body, provided by this Law, the authorized body shall apply one of the following restricted enforcement actions to the Fund:
      1) give written prescription compulsory for fulfillment;
      2) draw up written agreement.
      2. Written prescription is instruction to the Fund on acceptance of remedial measures that are compulsory for fulfillment, oriented to elimination of detected violations of the legislation of the Republic of Kazakhstan and on non-admission of detected violations of the legislation of the Republic of Kazakhstan in the following.
      The Fund shall be obliged to notify the authorized body on fulfillment of written prescription within the term, mentioned in it.
      Contestation of written prescription of the authorized body in court shall not suspend its fulfillment.
      3. Written prescription is an agreement, concluded between the authorized body and the Fund, on necessity of eliminating the detected violations and (or) shortages and on approval of high priority measures on elimination of these violations and (or) shortages. Written agreement shall be drawn up in case, when both parties arrive to conclusion that foe elimination of available violations and (or) shortages, the term that is more than two months from the date of their detection by the authorized body is required.
      4. The authorized body shall apply any of restricted enforcement actions to the Fund, determined by this Law, independently from enforcement actions previously applied to it.
      5. Measures, listed in this Article may be also applied in relation of insurance organizations-participants, if the authorized body establishes that the violations, illegal action or omission of insurance organizations-participants and their civil servants or workers deteriorated financial condition of the Fund.
      Footnote. The Law is supplemented by Article 3-1 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV; 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 3-2. Sanctions

      The authorized body shall apply a sanction in the form of dismissal from fulfillment of official duties of the persons, mentioned in subparagraph 8) of Article 4 of this Law, with simultaneous revocation of consent on appointment (election) to office of a leading employee of the Fund according to one of the following grounds:
      1) repeated (two and more times within twelve successive calendar months) non-fulfillment of requirements of restricted enforcement actions, applied by the authorized body;
      2) repeated (two and more times within twelve successive calendar months) violation of the procedure and amount of investing the assets of the Fund;
      3) violation of the procedure and terms for carrying out guarantee payments, payment of insurance portfolio of compulsorily liquidated insurance (reinsurance) organization, transferred to insurance organization-participant in the manner and on conditions, provided by the legislation of the Republic of Kazakhstan on insurance and insurance activity, as well as the payments on compensation for harm to life, health of injured person and (or) expenses for burial;
      4) non-presentation of reporting (including financial reporting), established by the legislation of the Republic of Kazakhstan to the authorized body within two successive months;
      5) repeated (two and more times within twelve successive calendar months) detection of the fact of violating the legislation of the Republic of Kazakhstan, linked with improper reflection of operations in business accounting on carrying out of the Fund’s activity, provided by this Law, as well as maintenance of other compulsory forms of accounting;
      6) repeated (two and more times within twelve successive calendar months) establishment of the fact by the authorized body of representing inaccurate details and reporting, established by the legislation of the Republic of Kazakhstan;
      7) repeated (two and more times within twelve successive calendar months) non-notifying the authorized body on the facts became known to it of violating the legislation of the Republic of Kazakhstan on insurance and insurance activity by insurance organizations-participants;
      8) disclosure or transfer of details, received in the process of carrying out of own functions on the activity of insurance organizations-participants to third parties (with the exception of the authorized body);
      9) non-elimination of violations, mentioned in report of audit organization on conducted audit by the Fund, within three months from the date of receiving audit report by the Fund.
      Footnote. The Law is supplemented by Article 3-2 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV; as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 4. Competence of the authorized body

      1. The authorized body shall:
      1) accept regulatory acts, regulating the activity of the Fund and insurance organizations-participants, as well as regulating the issues of the procedure for carrying out guarantee payments;
      2) determine the conditions of participant agreement, being standard for all insurance organizations-participants;
      3) establish procedure and amount of investing the assets of the Fund;
      4) determine the volume, procedure and terms of representing the report of the Fund (with the exception of financial reporting);
      5) issue and refuse in issuance of permit for voluntary reorganization and liquidation of the Fund, as well as determine procedure for issuance of such permit;
      6) establish the procedure and conditions of acquisition, as well as placement of the Fund’s shares of stock;
      7) coordinate the rates of compulsory and additional contributions, as well as conditional obligations of insurance organizations-participants for each calendar year, subject to payment by insurance organizations-participants to Fund, established by the board of directors of the Fund;
      8) issue and revoke the agreement to election (appointment) of leading employees of the Fund, as well as establish procedure for issuance and revocation of the agreement and qualification requirements to leading employees of the Fund;
      9) take restricted enforcement actions and sanctions to insurance organizations-participants in the manner and on the grounds, provided by the legislation of the Republic of Kazakhstan;
      10) coordinate changes and additions, made into the charter of the Fund;
      11) carry out other powers, provided by this Law and the legislation of the Republic of Kazakhstan.
      2. The authorized body shall hold the veto right to decisions of general meeting of shareholders and board of directors of the Fund on the following issues:
      1) increase of the quantity of authorized shares of stock of the Fund;
      2) participation of the Fund in creation and the activity of other legal entities by transferring a part or several parts of assets, equal to ten and more percent from all the assets belonged to the Fund;
      3) increase of obligations of the Fund in the amount constituting ten and more percent from the amount of its own capital;
      4) redemption of own placed shares of stock by the Fund and prices for their redemption;
      5) consummation of main transactions and transactions, in consummation of which the fund is interested.
      3. Decisions adopted by the general meeting of shareholders and board of directors of the Fund shall be subject to coordination with the authorized body on the issues, in respect of which paragraph 2 of this Article establishes veto right in the manner and terms, provided by the regulatory legal acts of the authorized body.
      4. Non-compliance with requirements of paragraphs 2 and 3 of this Article by the Fund shall entail recognition of these transactions as invalid.
      Footnote. Article 4 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV; as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Chapter 3. Creation of the Fund and its activity

Article 5. Procedure for creation of the Fund and its bodies

      1. The fund is non-commercial organization in the form of joint stock company and shall carry out its activity on the basis of this Law and constitutive documents.
      The Fund is the only organization in the territory of the Republic of Kazakhstan, guaranteeing carrying out of insurance payments to insurants (insured persons, gain acquirers) upon compulsory liquidation of insurance organization under the agreements of compulsory insurance.
      2. Competence of the general meeting of shareholders shall be determined in accordance with the legislation of the Republic of Kazakhstan on joint stock companies and non-commercial organizations in recognition of special aspects, provided by this Law.
      3. Quantity of shares of stock of each shareholder of the Fund may not be more than ten percent from the total quantity of the Fund’s placed shares of stock.
      4. General management of the Fund’s activity shall be carried out by the board of directors that is composed of nine persons.
      The composition of the Fund’s board of directors shall include a representative of the authorized body with the right to vote.
      5. Bank accounts of the Fund shall be opened in the authorized body. For carrying out of current financial and economic and investment activity by the Fund, the bank accounts of the Fund may be opened in second-tier banks.
      Footnote. Article 5 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV; 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 6. Competence of the board of directors of the Fund

      Within the limits, established by the charter of the Fund, the following issues shall be referred to the competence of the Fund’s board of directors:
      1) establishment of the rates of compulsory and additional contributions, as well as conditional obligations, provided by this Law, insurance organizations-participants for each calendar year, amount of emergency contributions, subject to payment by insurance organizations-participants to the Fund;
      1-1) is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV;
      2) adoption of decision on application before the authorized body on conducting inspectoral verification of insurance organization-participant and (or) application of restricted enforcement actions and sanctions to it, provided by the legislation on insurance and insurance activity, including suspension or deprivation of a license to the right of carrying out the insurance activity;
      3) adoption of decision on payment of compensation to creditors of compulsorily liquidated insurance organization-participant;
      4) selection of an agent-bank;
      4-1) establishment of limited amounts of procured loans and borrowings by the Fund;
      5) other powers in accordance with this Law and charter of the Fund.
      Footnote. Article 6 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Article 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.

Article 7. Guarantees of the Fund

      1. From the date of enforcement of court decision on compulsory liquidation of insurance organization-participant, the Fund shall assume obligations on:
      1) payment of insurance portfolio of compulsorily liquidated insurance (reinsurance) organization, transferred to insurance organization-participant in the manner and on conditions, provided by the legislation of the Republic of Kazakhstan on insurance and insurance activity;
      2) carrying out of guarantee payments to creditors on all occurred insured accidents under the insurance agreements, on which the compulsorily liquidated insurance (reinsurance) organization refused (fully or partially) illegally or didn’t carry out insurance payment in full measure, up to the date of transferring (receipt) insurance portfolio to compulsorily liquidated insurance (reinsurance) organization in the manner, provided by the Law of the Republic of Kazakhstan “On insurance activity”.
      2. Insurance agreements on guaranteed types of insurance, not included in register of the insurance agreements of compulsorily liquidated insurance (reinsurance) organization and (or) single data base on insurance shall not be covered by the guarantees of the Fund in accordance with requirements of the legislative acts of the Republic of Kazakhstan on compulsory insurance or Law of the Republic of Kazakhstan “On insurance activity”.
      In this case, a creditor shall apply to liquidation commission of compulsorily liquidated insurance (reinsurance) organization.
      3. The Fund shall assume the obligations on carrying out of payments on compensation for harm to life, health of injured person and (or) expenses for burial in cases, provided by subparagraph 2) of paragraph 1 of Article 8 of this Law.
      Footnote. Article 7 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 8. Main objectives and functions of the Fund

      1. Main objectives of the Fund are:
      1) protection of rights and legal interests of creditors upon compulsory liquidation of insurance organization-participant;
      2) ensuring of protection of rights and legal interests of persons, the life, health of which are inflicted by harm by other person in the result of traffic accident, in cases, provided by this Law.
      2. For performance of main objectives, the Funs shall carry out the following functions:
      1) carrying out of guarantee payments in accordance with this Law;
      1-1) payment of insurance portfolio of compulsorily liquidated insurance (reinsurance) organization, transferred to insurance organization-participant in the manner and on conditions, provided by the legislation of the Republic of Kazakhstan on insurance and insurance activity;
      2) attracting compulsory and emergency contributions of insurance organizations-participants;
      3) attracting additional contributions of insurance organizations-participants;
      4) carrying out of payments on compensation for harm to life, health of injured person and (or) expenses for burial in accordance with this Law;
      5) investment activity in the manner, determined by the legislation of the Republic of Kazakhstan.
      3. For the purpose of ensuring qualitative and well-timed performance of own functions, the Fund shall have the right to receive information within its competence from individuals and legal entities, as well as from state bodies, including information that is the insurance secrecy.
      Received details shall not be subject to the following disclosure.
      4. Workers of the Fund shall bear responsibility for disclosing the details, received in the course of carrying out their own functions by them, that are service, commercial secret, insurance secrecy or other secrets protected by the Law, in accordance with the Laws of the Republic of Kazakhstan.
      Footnote. Article 8 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Chapter 4. Procedure for participation in the Fund

Article 9. Procedure for participation and conditions of acquisition of the Fund’s shares of stock

      1. An applicant shall be obliged to acquire the shares of stock of the Fund, as well as conclude the participant agreement in the manner, provided by this Law for receiving a license for the right of carrying out of insurance activity on guaranteed types of insurance.
      2. For acquisition of the Fund’s shares of stock and conclusion of the participant agreement, an applicant shall represent the following documents to the Fund:
      1) application on state registration (reregistration) of a legal entity;
      2) notarized copy of the charter.
      3. From the moment of acquisition of the Fund’s shares of stock before receiving a license by him (her) to the right of carrying out insurance activity on guaranteed types of insurance, the applicant shall not have the right to determine decisions of the Fund and vote by the shares of stock belonged to the Fund.
      4. In case of termination of the activity by insurance organization-participant of the Fund on guaranteed types of insurance and termination of the validity of insurance agreements, the insurance organization-participant shall be obliged to carry out alienation of the shares of stock belonged to it by their selling to shareholders of the Fund. In case of refuse of the shareholders in acquisition of the Fund’s shares of stock, the Fund shall be obliged to ransom the shares of stock at the price, determined in accordance with methods of determining the prices of the shares of stock.
      5. Form, content and conditions of the participant agreement shall conform to requirements of the Civil Code of the Republic of Kazakhstan and this Law.
      Footnote. Article 9 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 19.03.2010 No. 258-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2); dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 10. Compulsory conditions of participant agreement

      Participant agreement shall contain:
      1) full name of parties, details on their location area and banking details;
      2) specification on the subject of agreement, conforming to this Law;
      3) rights and obligations of parties, conforming to this Law;
      4) procedure for payment of compulsory and emergency contributions, as well as formation of conditional obligations;
      5) conditions and procedure for determination of amount and carrying out of guarantee payment to a creditor;
      6) procedure and conditions of conclusion of the compulsory insurance agreements with insurants of compulsorily liquidated insurance organization in compliance with requirements of Article 16 of this Law;
      7) is excluded by the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Article 2);
      8) conditions on transfer of rights of a creditor to the Fund, fulfilled the obligations of compulsorily liquidated insurance organization;
      9) conditions of termination of the participant agreement;
      10) conditions on responsibility of parties for violation of the participant agreement;
      11) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).
      In existence of a license for carrying out of compulsory insurance of civil responsibility of the vehicle owners belonged to insurance organization-participant, the following conditions shall be subject to compulsory inclusion in participant agreement:
      1) procedure for payment of additional contributions;
      2) responsibility of parties.
      Footnote. Article 10 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 11. Termination of participant agreement

      Participant agreement shall be terminated:
      1) on general basis, provided by civil legislation of the Republic of Kazakhstan;
      2) in case of terminating the activity by insurance organization-participant of the Fund on guaranteed types of insurance and termination of validity of insurance agreements on such types of insurance.
      Footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 12. Compulsory and emergency contributions, procedure for their payment. Borrowings of the Fund

      1. Insurance organization-participant shall be obliged to pay compulsory and emergency contributions in accordance with the participant agreement.
      Rate of compulsory contributions shall be determined by the Fund of an annual basis.
      Method of calculating the rate of compulsory contributions, procedure and terms of their payment shall be established by the regulatory legal acts of the authorized body.
      2. Amount of compulsory contributions shall be calculated proceeding from the volume of accrued insurance premiums by insurance organization on compulsory guaranteed types of insurance and rate of compulsory contributions.
      2-1. In case of violating the prudential regulations and other regulations and limits compulsory for compliance, established by the legislation of the Republic of Kazakhstan by insurance organization-participant, the rate of compulsory contribution for such insurance organization shall be subject to increase in the manner, provided by the regulatory legal act of the authorized body.
      2-2. Reserve of guarantee of insurance payments shall be used for covering:
      1) the obligations on guarantees of the Fund, provided by Article 7 of this Law;
      2) expenses, linked with carrying out the functions by the Fund, provided by subparagraphs 1) and 1-1) of paragraph 2 of Article 8 of this Law, as well as payments on compensation for harm to life, health of injured person and (or) expenses for burial in the cases, provided by this Law.
      3. In case of deficiency of the reserve of guarantee of insurance payments for carrying out the functions, provided by subparagraphs 1) and 1-1) of paragraph 2 of Article 8 of this Law, the fund shall use its own capital. By this the expense of the Fund on carrying out of the functions, provided by subparagraphs 1) and 1-1) of paragraph 2 of Article 8 of this Law, exceeding the reserve of guarantee of insurance payments shall be subject to compensation at the expense of emergency contributions of insurance organizations-participants within their conditional obligations.
      In case of deficiency of the reserve of compensation for harm for carrying out the payments on compensation for harm to life, health of injured person and (or) expenses for burial, provided by this Law, the Fund shall have the right to use the funds of the reserve of guarantee of insurance payments till the end of current quarter in amount, established by the board of directors of the Fund. For restoration of the reserve of guarantee of the insurance payments, the Fund shall attract emergency contributions in amount of used sum of the reserve of guarantee of insurance payments.
      4. Amount of emergency contributions of insurance organization-participant shall be determined proportionally to the share of insurance premiums on insurance agreements concluded by it in general volume of insurance premiums of all insurance organizations-participants of the Fund on guaranteed types of insurance in current reporting period.
      Procedure and terms of paying emergency contributions shall be established by the regulatory legal acts of the authorized body.
      5. For carrying out of the functions, provided by subparagraphs 1) and 1-1_ of paragraph 2 of Article 8 of this Law, the Fund shall have the right to attract loans from the authorized body, Government of the Republic of Kazakhstan, other organizations or borrowings under their guarantee at the rate not more than official rate of refinancing of the authorized body. Loans shall be subject to redemption at the expense of emergency contributions of insurance organizations-participants.
      6. Suspension of the validity of a license for the right to carry out the insurance activity shall not release insurance organization-participant from payment of compulsory and emergency contributions.
      7. From the date of deprivation of a license by insurance organization-participant for the right to carry out insurance activity, the obligations of insurance organization-participant on paying the compulsory and emergency contributions shall be suspended before enforcement of court decision on compulsory liquidation of insurance organization-participant.
      Obligations of insurance organization-participant on payment of compulsory and emergency contributions shall be terminated from the date of enforcement of court decision on its compulsory liquidation.
      Compulsory and emergency contributions, paid by insurance organizations-participants in accordance with this Law shall not be subject to return.
      Footnote. Article 12 as amended by the Laws of the Republic of Kazakhstan dated 07.05.2007 No. 244 (shall be enforced from 01.10.2008); dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2); dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 13. Formation of conditional obligations

      1. Insurance organization-participant shall be obliged to form and keep records of conditional obligations.
      Size of conditional obligations shall be calculated by insurance organization-participant of the Fund proceeding from its volume of insurance premiums on guaranteed types of insurance and rate of conditional obligations.
      2. Rate of conditional obligations shall be determined by the Fund on an annual basis on the basis of maximal amount of monthly insurance premiums on guaranteed types of insurance on all insurance organizations-participants of the Fund for expired financial year.
      Methods of calculating the rate of conditional obligations, procedure for their formation and accounting shall be established by the regulatory legal acts of the authorized body.
      Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 14. Improper fulfillment of obligations on payment of compulsory and emergency contributions

      1. In case of non-payment, undue payment or payment of compulsory or emergency contributions in incomplete volume, the Fund shall be obliged to notify the authorized body on improper fulfillment of the obligations by insurance organization-participant according to this Law within seven business days.
      2. Upon receipt of notification of the Fund on improper fulfillment of obligations on payment of compulsory and emergency contributions by insurance organization-participant, the authorized body shall apply sanctions and other enforcement actions to such insurance organization, provided by the Laws of the Republic of Kazakhstan.
      Footnote. Article 14 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 5. Guarantee payments and other protective measures

Article 15. Grounds and procedure for carrying out of guarantee payment

      1. Right of demand of a creditor to the Fund on carrying out of guarantee payment shall be created from the date of enforcement of court decision on compulsory liquidation of insurance organization-participant.
      Creditors shall have the right to receive the guarantee payment:
      1) on all occurred insured accidents during the period of enforcement of court decision on its compulsory liquidation under insurance agreements, on which the compulsorily insurance organization refused illegally (fully or partially) or didn’t carry out insurance payment in full measure;
      2) on insured accidents, occurred in the period from the date of enforcement of court decision on compulsory liquidation of insurance organization up to the date of transfer (receipt) of insurance portfolio of compulsorily liquidated insurance (reinsurance) organization in the manner, provided by the Law of the Republic of Kazakhstan “On insurance activity”.
      2. Upon creation of creditor’s right of demand to the Fund on the grounds, provided by subparagraph 1) of paragraph 1 of this Article, the creditor shall have the right to apply to the Fund with written application on carrying out of guarantee payment within two months from the date of enforcement of court decision on compulsory liquidation of insurance organization-participant.
      In case of absence of confirming documents, a creditor shall have the right to apply to liquidation commission of compulsorily liquidated insurance organization with application (claim) on carrying out of insurance payment.
      3. Upon occurrence of insured accident under the insurance agreement in case, provided by subparagraph 2) of paragraph 1 of this Article, a creditor shall have the right to apply with requirement on carrying out of insurance (guarantee) payment directly to the Fund or insurance organization-participant of the Fund.
      After receipt of requirement of the creditor, insurance organization-participant or the Fund shall conduct the work on determination of insured accident and size of inflicted harm in the manner, provided by the legislative acts on compulsory insurance or insurance agreement.
      4. After representing complete package of documents by the creditor or insurance organization-participant, required for carrying out of guarantee payment, the Fund shall adopt decision on carrying out of guarantee payment or on refusal in carrying out of guarantee payment.
      5. The Fund shall compensate for expenses of insurance organizations-participants, linked with carrying out of arrangements, including the expenses for evaluating harmed property, provided by paragraph 3 of this Article in amount of factual expenses, but no more than seven monthly calculated indices.
      6. Special aspects, procedure and amount of guarantee payments shall be determined in accordance with this Law and regulatory legal acts of the authorized body.
      7. Guarantee payment shall not cover moral damage, creditor’s loss of profit, penalty under insurance agreement and other expenses, previously charged in a judicial proceeding from compulsorily liquidated insurance (reinsurance) organization.
      8. Guarantee payment to creditors shall be carried out by the Fund immediately or through the agent-bank in non-cash form on banking account of the creditor or by cash money under agreement of parties.
      9. From the date of carrying out of guarantee payment to a creditor of compulsorily liquidated insurance organization, the creditor’s right of demand under insurance agreement shall be transferred to the Fund in the volume of carried out guarantee payment.
      Transferred right of demand of a creditor, as well as requirement on compensation of expenses, linked with carrying out of guarantee payment shall be submitted by the Fund to liquidation commission of compulsorily liquidated insurance organization (hereinafter – liquidation commission) in the manner, provided by the legislation of the Republic of Kazakhstan.
      10. The Fund shall publish statement on carrying out of guarantee payments to creditors of compulsorily liquidated insurance (reinsurance) organization on occurred insured accidents in periodical printed publications, distributed over the whole territory of the Republic of Kazakhstan in Kazakh and Russian languages within ten business days from the date of receiving a copy of enforced court decision on compulsory liquidation of insurance organization-participant.
      Footnote. Article 15 is in the wording of the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (the order of enforcement see Article 2); as amended by the Laws of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 16. Additional methods of protection of the insurants’ rights

      Footnote. Article 16 is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 17. Termination of guarantees of the Fund

      Guarantees of the Fund shall be terminated in cases of:
      1) carrying out of guarantee payment in accordance with this Law;
      2) expiration of terms of creditor’s applying, established by Article 15 of this Law;
      3) expiration of the term of validation of insurance agreement;
      4) payment of insurance portfolio of compulsorily liquidated insurance (reinsurance) organization, transferred to insurance organization-participant in the manner and on conditions, provided by the legislation of the Republic of Kazakhstan on insurance and insurance activity.
      Footnote. Article 17 is in the wording of the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Chapter 5-1. Payments of the Fund on compensation of harm, inflicted to life, health of injured person and (or) expenses for burial

      Footnote. The Law is supplemented by chapter 5-1 in accordance with the Law of the Republic of Kazakhstan dated 7 May 2007 No. 244 (shall be enforced from 1 October 2008).

Article 17-1. Right of receiving payments on compensation for harm, inflicted to life, health of injured person and (or) expenses for burial

      1. Payments on compensation for harm, inflicted to life, health of injured person (hereinafter – payment on compensation for harm) and (or) expenses for burial shall be performed by the Fund in cases of non-identification of a person, evaded from the place of traffic accident and responsible for infliction of harm, to injured person.
      Payments on compensation for harm to life of injured personshall be carried out by the Fund only upon infliction of gross harm to health.
      2. Citizens of the Republic of Kazakhstan, as well as foreign persons and stateless persons shall have the right to receiving payments on compensation for harm.
      This right shall not apply to foreign persons and stateless persons that do not have available insurance agreement against the accidents.
      3. Requirement of injured person or persons, mentioned in paragraph 4 of this Article on carrying out of payment on compensation for harm, as well as requirement of persons, mentioned in paragraph 5 of this Article, on compensation of expenses for burial shall be submitted to the Fund within one year from the moment of occurrence of case, provided by paragraph 1 of this Article.
      4. In case of death of injured person, the right of demand on carrying out of payment on compensation for harm shall be transferred to a person (persons) having the right to compensation for harm due to death of injured person according to the legislative acts of the Republic of Kazakhstan.
      5. The Fund shall compensate actual expenses for burial to person, carried out burial of injured person, not exceeding the amount, established by the board of directors of the Fund, on the basis of written application with attachment of documents, provided by subparagraphs 1), 4), 6), 7) of paragraph 2 of Article 17-2 of this Law.

Article 17-2. Carrying out of payments on compensation for harm and (or) expenses for burial by the Fund

      1. Injured person or persons, mentioned in paragraphs 4 and 5 of Article 17-1 of this Law shall apply with application with attachment of documents, required for carrying out of payments on compensation for harm and (or) expenses for burial, directly to the Fund.
      2. The application on payments on compensation for harm and (or) expenses for burial shall be enclosed by the following documents:
      1) document, confirming the fact of occurrence of the case, provided by paragraph 1 of Article 17-1 of this Law;
      2) copy of opinion of public health organization in which the injured person was provided by medical assistance due to inflicted harm to life in the result of traffic accident, with the specification of nature of injuries and mains, diagnosis, period of temporary disability received by injured person;
      3) copy of opinion of the institutions of medical and social or forensic medical examination;
      4) notarized copy of death certificate of injured person;
      5) document, confirming the right of a person, having the right to compensation for harm (in case of death of injured person) according to legislative acts of the Republic of Kazakhstan;
      6) documents or their copies, confirming actual expenses for burial;
      7) copy of identity document.
      3. After representing the complete package of documents, required for carrying out of payments on compensation for harm and (or) expenses for burial by injured persons or persons, provided by paragraphs 4 and 5 of Article 17-1 of this Law, the Fund shall adopt decision on carrying out of payment on compensation for harm and (or) expenses for burial or on refusal in their carrying out.
      4. Decision on payment on compensation for harm and (or) expenses for burial shall be adopted by the Fund within thirty business days from the date of receiving the documents, provided by paragraph 2 of this Article. Payment on compensation for harm and (or) expenses for burial shall be carried out by the Fund within five business days from the date of adoption of decision on payment on compensation for harm and (or) expenses for burial.
      5. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.
      6. Payments on compensation for harm to life, health of injured person and (or) expenses for burial shall be carried out in the following amounts (in monthly calculation indices):
      1) upon infliction of harm to life – 250;
      2) upon infliction of gross harm to health – 150;
      3) expenses on burial – 15.
      7. Payment on compensation for harm shall not cover moral damage, as well as harm, inflicted to property, loss of profit of injured person or persons, provided by paragraph 4 of Article 17-1 of this Law, environmental damage.
      8. Payments on compensation for harm and (or) expenses on burial shall be carried out immediately by the Fund or through the agent-bank in non-cash form on banking account of injured person or persons, provided by paragraphs 4 and 5 of Article 17-1 of this Law.
      9. The Fund shall have the right to refuse in payments on compensation for harm and (or) expenses for burial in the following cases:
      Note of RCLI!
      Subparagraph 1) is provided to be in the wording of the Law of the Republic of Kazakhstan dated 03.07.2014 No. 227-V (shall be enforced from 01.01.2015).
      1) actions of injured person are recognized as intentional crimes or administrative infractions, being in causal connection with traffic accident in the manner, established by the legislative acts of the Republic of Kazakhstan;
      2) application of the Fund or insurance organization-participant upon expiry of one year from the moment of occurrence of the case, provided by paragraph 1 of Article 17-1 of this Law;
      3) traffic accident occurred due to insuperable force, in other words emergency and unavoidable circumstances in these conditions, such as influence of atomic explosion, radiation or radioactive contamination, military activities, civil war, meetings, rallies, marches, picketings and demonstrations, mass disorders and strikers;
      4) non-presentation of complete package of documents or presentation of unreliable documents, provided by paragraph 2 of this Article.
      In existence of grounds for refuse in carrying out of payments on compensation for harm and (or) expenses for burial, the Fund shall be obliged to refer notification in written form with substantiated explanation of the reasons for refusal within thirty business days from the date of receiving complete package of documents.
      10. For carrying out of function by the Fund, provided by subparagraph 4) of paragraph 2 of Article 8 of this Law, the Fund shall request information in the Ministry of Internal Affairs of the Republic of Kazakhstan and General Prosecutor’s Office of the Republic of Kazakhstan.
      Procedure, volume and terms of providing information shall be established by the act of the Ministry of Internal Affairs of the Republic of Kazakhstan and order of the General Prosecutor’s Office of the Republic of Kazakhstan.
      Details received by the Fund shall not be subject to disclosure.
      Footnote. Article 17-2 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.

Article 17-3. Right of counter demand to a person inflicted harm

      The Fund shall have the right of counter demand to a person inflicted harm to injured person within the payment on compensation for harm and (or) expenses for burial in recognition of expenses, incurred by the Fund due to considering the requirement of injured person or persons, provided by paragraphs 4 and 5 of Article 17-1 of this Law, on carrying out of payments on compensation for harm and (or) expenses for burial.

Article 17-4. Creation of reserve of compensation for harm

      1. Carrying out of payments on compensation for harm and (or) expenses for burial shall be performed by the Fund at the expense of funds from reserve of compensation for harm.
      In case of deficiency of the funds from reserve of compensation for harm for carrying out of payments on compensation for harm and (or) expenses for burial, the Fund shall use the insurance payments guarantee reserve in the manner, provided by this Law.
      2. Source of formation of the reserve of compensation for harm are initial original contributions in amount, established by the authorized body, and additional contributions paid by insurers in accordance with participant agreement, concluded with the Fund.
      Method of calculating the rate of additional contributions, procedure and terms of their paying shall be established by the regulatory legal acts of the authorized body.
      3. Amount of additional contributions shall be calculated proceeding from the volume of accrued premiums by insurance organization-participant on compulsory insurance of civil responsibility of the vehicle owners and rate of additional contributions.
      4. Suspension of validity of a license for the right of carrying out of insurance activity shall not release insurance organization-participant from payment of additional contributions.
      5. From the date of depriving insurance organization-participant of a license for carrying out of compulsory insurance of civil responsibility of vehicle owners, the obligations of insurance organization-participant on paying additional contributions shall be suspended before enforcement of court decision on compulsory liquidation of insurance organization-participant.
      Obligation of insurance organization-participant on paying additional contributions shall be terminated from the date of enforcement court decision on its compulsory liquidation.
      Additional contributions paid by insurance organizations-participants shall not be subject to return in accordance with this Law.
      Footnote. Article 17-4 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.

Article 17-5. Non-fulfillment or improper fulfillment of obligations on paying additional contributions

      1. In case of non-paying, undue paying or payment of additional contributions in incomplete volume, the Fund shall be obliged to notify the authorized body on non-fulfillment or improper fulfillment of the obligations by insurance organization-participant according to this Law within seven business days.
      2. Upon receiving notification of the Fund on non-fulfillment or improper fulfillment of obligations by insurance organization-participant on paying additional contributions, the authorized body shall have the right to apply sanctions and other enforcement actions to such insurance organization, provided by the legislative acts of the Republic of Kazakhstan.

Chapter 6. Rights and obligations of participants of insurance payments guarantee system

Article 18. Rights and obligations of the Fund

      1. The Fund shall have the right to:
      1) demand payment of compulsory, emergency and additional contributions in the manner, provided by the legislation of the Republic of Kazakhstan;
      2) apply before authorized body on inclusion of its representative into composition of liquidation commission and participant in liquidation proceeding of compulsorily liquidated insurance organization in the manner, provided by the legislation of the Republic of Kazakhstan;
      3) demand representation of information and documents, required for implementing the tasks of the Fund from liquidation commission and a creditor;
      4) request details from authorized body on financial condition of insurance organizations-participants, quantity of concluded insurance agreements by insurance organization-participant and other required information, with the exception of details, constituting insurance secrecy and other secrets protected by the Law of the Republic of Kazakhstan;
      5) refuse the creditor in carrying out of guarantee payment in cases, provided by this Law, insurance agreement or legislative act of the Republic of Kazakhstan on compulsory insurance.
      2. The Fund shall be obliged to:
      1) conclude the participant agreement with insurance organization that is imposed by the obligation to participate in the Fund in accordance with the legislative act of the Republic of Kazakhstan on compulsory insurance or the Law of the Republic of Kazakhstan “On insurance activity”;
      2) invest the assets in financial instruments in the manner, determined by the legislation of the Republic of Kazakhstan;
      3) represent details on the Fund’s activity and reporting (with the exception if financial reporting of the Fund) to the authorized body in the manner, volumes and terms, determined by the authorized body;
      4) represent own financial reporting to insurance organizations-participants on their requests in the volume, determined in accordance with the participant agreement;
      5) publish own annual bookkeeping balance sheet in periodical printed publications in official and Russian languages, distributed over the whole territory of the Republic of Kazakhstan;
      6) carry out control of the procedure for paying compulsory, emergency and additional contributions by insurance organizations-participants, as well as of formation of conditional obligations by them;
      7) carry out guarantee payments to creditors on obligations of compulsorily liquidated insurance organization in the manner, provided by this Law and regulatory legal acts of the authorized body;
      8) conduct an audit;
      9) notify the authorized body on the facts of violating the legislation of the Republic of Kazakhstan on insurance and insurance activity became known to it by insurance organizations;
      10) notify liquidation commission on carrying out of guarantee payment to a creditor;
      11) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2);
      12) use all information on activity of insurance organizations became known to it exclusively for business purposes in the course of carrying out its own functions;
      13) compensate the expenses of insurance organizations-participants in the manner, provided by paragraph 5 of Article 15 of this Law.
      2-1. The Fund shall carry out recording of operations conducted by it on business accounting and financial reporting in accordance with the legislation of the Republic of Kazakhstan.
      3. The Fund shall have other rights and bear other obligations, provided by the Laws of the Republic of Kazakhstan and participant agreement.
      Footnote. Article 18 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; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 19. Rights and obligations of insurance organization-participant

      1. In accordance with participant agreement, the insurance organization-participant shall have the right to:
      1) publish information of own participation in insurance payments guarantee system in periodical printed publications in state and Russian languages, distributed over the whole territory of the Republic of Kazakhstan;
      2) receive information from the Fund, related to carrying out of guarantee payments to creditors;
      3) demand representation of financial reporting of the Fund from the Fund.
      2. In accordance with participant agreement, insurance organization-participant shall be obliged to:
      1) pay compulsory and emergency contributions, as well as form conditional obligations in the manner, provided by the legislation of the Republic of Kazakhstan;
      2) represent information on quantity of concluded insurance agreements and total sum of insurance premiums, subject to payment on them to the Fund;
      3) inform the Fund on occurrence of own non-creditworthiness and facts of applying the sanctions of the authorized body;
      4) notify the Fund on termination of insurance activity on guaranteed types of insurance, upon which the obligation of participation in the Fund is imposed on insurance organization in accordance with the legislative act of the Republic of Kazakhstan on compulsory insurance or the Law of the Republic of Kazakhstan “On insurance activity”;
      4-1) carry out alienation of the Fund’s shares of stock belonged to it in cases, provided by this Law;
      5) notify the Fund on bringing of statement of claim in court on compulsory liquidation, as well as on adoption of decision by court on compulsory liquidation of insurance organization;
      6) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2);
      7) carry out arrangements, provided by paragraph 3 of Article 15 of this Law.
      Insurance organization-participant having a license for the right to carry out compulsory insurance of civil responsibility of the vehicle owners shall be obliged to pay additional contributions in the manner, provided by the legislation of the Republic of Kazakhstan.
      3. Insurance organization-participant shall have other rights and incur other obligations, provided by the Laws of the Republic of Kazakhstan and participant agreement.
      Footnote. Article 19 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; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 20. Rights and obligations of liquidation commission

      1. Liquidation commission shall have the right to:
      1) receive notifications from the Fund on carrying out of guarantee payments to creditors of compulsorily liquidated insurance organization;
      2) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).
      2. Liquidation commission shall be obliged to:
      1) ensure access of authorized representatives of the Fund to information and documentation, concerning the process of liquidation, with the right of receiving copies and abbreviates from documents;
      2) notify the Fund immediately on termination of own obligations before a creditor;
      3) represent information and documents, concerning concluded insurance agreements required by the Fund.
      3. Liquidation commission shall have other rights and incur other obligations, provided by the Laws of the Republic of Kazakhstan.
      Footnote. Article 20 as amended by the Laws of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 21. Rights and obligations of a creditor

      1. A creditor shall have the right to:
      1) demand carrying out of guarantee payment from the Fund in the manner, provided by this Law;
      2) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2);
      3) demand satisfying the requirements from liquidation commission in amount, exceeding guarantee payment received from the Fund.
      2. A creditor shall be obliged to:
      1) represent the documents to the Fund, provided by the legislative act of the Republic of Kazakhstan on compulsory insurance or insurance agreement, confirming the fact of occurrence of insured accident and amount of losses under the insurance agreement;
      2) transfer all documents, required for implementing the rights of a creditor transferred to him (her) by the Fund in accordance with the legislation of the Republic of Kazakhstan.
      3. A creditor shall have other rights and incur other obligations, provided by the Laws of the Republic of Kazakhstan.
      Footnote. Article 21 as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Chapter 7. Final and transitional provisions

Article 22. Liquidation or reorganization of the Fund

      1. Liquidation or reorganization of the Fund shall be carried out in accordance with the legislation of the Republic of Kazakhstan in recognition of special aspects, established by this Law.
      2. The Fund may be liquidated in case of exclusion of requirements on compulsory participation of insurance organizations in the Fund, provided by the legislative acts of the Republic of Kazakhstan on compulsory insurance or the Law of the Republic of Kazakhstan “On insurance activity”.
      3. Funds of the insurance payments guarantee reserve and reserve of compensation for harm, formed as from the date of liquidating the Fund shall be distributed among insurance organizations-participants of the Fund proportionally to the share of their participation in these reserves of the Fund.
      4. Voluntary reorganization of the Fund may be carried out under decision of general meeting of shareholders upon authorization of the authorized body.
      The ground for filing application on receipt of permission for conducting voluntary reorganization of the Fund is existence of decision of the general meeting of shareholders of this Fund.
      5. The application on receiving permission of the authorized body on conduct of voluntary reorganization of the Fund shall be accompanied by the following documents:
      1) decision of the general meeting of shareholders of the Fund on its voluntary reorganization;
      2) documents describing suggested conditions, forms, procedures and terms of voluntary reorganization of the Fund, provided by the regulatory legal act of the authorized body.
      6. Application on receiving permission for conducting voluntary reorganization of the Fund shall be considered by the authorized body within two months from the date of its receipt.
      7. In case of refuse in giving permission for liquidation of the Fund, the authorized body shall render substantiated decision about this that shall be brought to notice of the Fund.
      8. Within two weeks from the date of receiving permission of the authorized body for conducting reorganization, the reorganized Fund shall be obliged to publish the relevant announcements in no less than two periodical printed publications, distributed over all the whole territory of the Republic of Kazakhstan.
      Footnote. Article 22 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV; as amended by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 23. Responsibility for violation of the legislation of the Republic of Kazakhstan on the Fund

      Persons guilty in violation of the legislation of the Republic of Kazakhstan on the Fund shall bear responsibility, provided by the Laws of the Republic of Kazakhstan.

Article 24. Transitional provisions

      Footnote. Article 24 is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.

      The President
      of the Republic of Kazakhstan