Article 11-1. General conditions for insurance (reinsurance) activities of the Insurance Law

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

1-1. Excluded by the Law of the Republic of Kazakhstan dated 29.03.2016 No. 479-V (effective twenty-one calendar days after the date of its first official publication).

1-2. The insurance organization must become a member of the Council of representatives of the Insurance Ombudsman within thirty calendar days from the date of receipt of the license for the right to carry out insurance activities.

2. The internal rules of an insurance (reinsurance) organization should determine:

1) the structure, tasks, functions and powers of the divisions of the insurance (reinsurance) organization;

2) the structure, number of members, tasks, functions and powers of the internal audit service and other permanent bodies;

3) a risk management system that discloses the policy of an insurance (reinsurance) organization for managing technical (insurance), investment, credit, operational, market and other risks;

4) the rights and duties of heads of structural divisions;

5) the powers of officials and employees of an insurance (reinsurance) organization when they carry out transactions on its behalf and at its expense;

6) the procedure for registration of written and oral appeals from policyholders (insured), victims (beneficiaries) and their representatives, as well as incoming applications and documents on insurance claims;

7) the procedure and time limits for reviewing and submitting responses to policyholders (insured), victims (beneficiaries) and their representatives on applications and documents on insurance claims;

The period of consideration of the application of the policyholder (insured), the victim (beneficiary) and his representative should not exceed fifteen working days from the date of receipt of the application by the insurance company.

The period for consideration of an application may be extended by fifteen working days due to the need to establish factual circumstances relevant to the proper consideration of the application, which the policyholder (insured), the victim (beneficiary) and his representative are notified about within three working days from the date of extension of the period for consideration of the application.;

IZPI's note!

Paragraph 2 is provided to be supplemented by subparagraph 7-1) in accordance with the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective twelve months after the date of its first official publication).

7-1) regulations on the procedure for working with clients, including the procedure for providing services to persons with disabilities and low-mobility groups of the population, taking into account the requirements of the national standard in the field of accessibility of branches of financial organizations for the provision of services to persons with disabilities and other low-mobility groups of the population;

8) the procedure for making a decision on insurance payment, indicating the timing of its implementation or providing a reasoned justification for the reasons for refusal of insurance payment;

9) the procedure for assessing insurance risks (including property accepted for insurance) and the amount of damage caused by the insured event;

10) powers of the underwriter, adjuster and surveyor;

11) requirements for the assessment procedure when accepting insurance risks for reinsurance (in the case of reinsurance activities);

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

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

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

The insurance company is obliged to post the insurance rules for the types of insurance, which provide for the possibility of concluding an insurance contract in electronic form, on the insurer's Internet resource.

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

3-1. The insurance rules and internal rules of an Islamic insurance (reinsurance) organization are approved by the board of directors if there is a positive opinion of the Council on the principles of Islamic finance, and a branch of an Islamic insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan is approved by the relevant governing body of an Islamic insurance (reinsurance) organization that is a non–resident of the Republic of Kazakhstan if there is a positive opinion of the Council on the principles of Islamic finance.

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

An actuary who is on the staff of an insurance (reinsurance) organization must not be an affiliated person of this insurance (reinsurance) organization and (or) its shareholder and (or) its senior employee.

An actuary licensed to carry out actuarial activities in the insurance market is not entitled to combine his activities in other insurance (reinsurance) organizations, except in cases where he is engaged as an independent actuary.

5. An insurance (reinsurance) organization shall engage an independent actuary to verify the activities of an actuary on the staff of an insurance (reinsurance) organization established by this Law, in accordance with the procedure and terms established by a regulatory legal act of the authorized body.

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

6. An independent actuary must meet the following requirements:

1) not to be an employee of the insurance (reinsurance) organization under review;

2) have at least three years of actuarial experience and at least two years in the insurance industry in which the audited insurance (reinsurance) organization operates, and be a member of the association of actuaries;

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

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

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

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

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

President

Republic of Kazakhstan

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