Article 11. Activities of an insurance (reinsurance) organization of the Insurance Law

Home / RLA / Article 11. Activities of an insurance (reinsurance) organization of the Insurance Law

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

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

1) investment activity subject to the restrictions established by this Law;

1-1) investment portfolio management activities in respect of assets formed from a portion of insurance premiums (insurance premiums) received from policyholders for investment purposes and income (expenses) received (incurred) from their investment under insurance contracts providing for the condition of the policyholder's participation in investments, based on a business license on investment portfolio management in the securities market in cases and in accordance with the procedure provided for by the legislation of the Republic of Kazakhstan;

2) issuing loans to its policyholders within the limits of the redemption amount stipulated by the relevant cumulative insurance contract (for an insurance company operating in the life insurance industry);

3) the sale of specialized software used to automate the activities of insurance (reinsurance) organizations;

4) the sale of specialized literature on insurance and insurance activities on any type of media;

5) sale or lease of property acquired for its own needs (for an insurance (reinsurance) organization) or placed at its disposal in connection with the conclusion of insurance contracts (for an insurance organization);

6) provision of consulting services on issues related to insurance activities;

7) organization and conduct of training in order to improve the skills of specialists in the field of insurance (reinsurance);

8) insurance mediation as an insurance agent;

9) the activities specified in paragraph 1 of Article 52 of this Law;

10) excluded by the Law of the Republic of Kazakhstan dated 07/15/2010 No. 338-IV (for the procedure of entry into force, see art. 2);

11) assistance provided on the basis of a joint activity agreement between insurance organizations or between insurance organizations and other legal entities providing assistance services;

12) activities provided for by the legislative acts of the Republic of Kazakhstan within the framework of participation in the insurance benefit guarantee system.

3. An insurance (reinsurance) organization is prohibited from carrying out transactions and operations as an entrepreneurial activity not provided for in paragraphs 1 and 2 of this Article.

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

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

A branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan operating in the life insurance industry, except for insurance activities, has the right to provide services for issuing loans to its policyholders by a non-resident insurance organization of the Republic of Kazakhstan within the redemption amount stipulated by the relevant cumulative insurance contract.

3-1. An insurance organization is not entitled to carry out insurance activities for types of insurance guaranteed in accordance with the Law of the Republic of Kazakhstan "On the Insurance Benefit Guarantee Fund" in the absence of a major participant - an individual or an insurance holding company.

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

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

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

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

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

The provision of the first part of this paragraph does not apply to branches of insurance (reinsurance) organizations that are non–residents of the Republic of Kazakhstan.

5. Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).

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

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases