Article 12. Mandatory and extraordinary contributions, and the procedure for their payment. Borrowings from the Insurance Benefit Guarantee Fund Act

Home / RLA / Article 12. Mandatory and extraordinary contributions, and the procedure for their payment. Borrowings from the Insurance Benefit Guarantee Fund Act

1. The participating insurance company is obliged to pay mandatory and extraordinary contributions in accordance with the participation agreement.

The mandatory contribution rate is determined by the Fund annually.

The methodology for calculating the rate of mandatory contributions, the procedure and deadlines for their payment are established by regulatory legal acts of the authorized body.

2. Under cumulative insurance contracts within the framework of guaranteed types (classes) The amount of mandatory contributions specified in paragraph 2-1 of Article 7 of this Law is calculated based on the amount of insurance reserves formed and the rate of mandatory contributions.

The amount of mandatory contributions for other guaranteed types of insurance is calculated based on the amount of insurance premiums accrued by the insurance company and the rate of mandatory contributions.

2-1. In case of violation by the participating insurance company of prudential standards and other mandatory standards and limits established by the legislation of the Republic of Kazakhstan, the mandatory contribution rate for such insurance company is subject to increase in accordance with the procedure provided for by the regulatory legal act of the authorized body.

2-2. The insurance benefit guarantee reserve is used to cover:

1) obligations under the guarantees of the Fund provided for in Article 7 of this Law;

2) expenses related to the Fund's performance of the functions provided for in subitems 1) and 1-1) of paragraph 2 of Article 8 of this Law, as well as payments for compensation for harm to the life and health of the victim and (or) funeral expenses in cases provided for by this Law.

3. In the event that the reserve for guaranteeing insurance payments is insufficient to carry out the functions provided for in subparagraphs 1) and 1-1) of paragraph 2 of Article 8 of this Law, the Fund shall attract emergency contributions from participating insurance organizations within the limits of their contingent obligations.

If the reserve for guaranteeing insurance payments and emergency contributions of participating insurance organizations is insufficient to perform the functions provided for in subparagraphs 1) and 1-1) of paragraph 2 of Article 8 of this Law, the Fund's equity capital shall be used in accordance with the procedure determined by the Fund's Board of Directors in agreement with the authorized body.

If the damage compensation reserve is insufficient to make payments for damage to the life and health of the victim and (or) funeral expenses provided for by this Law, the Fund may use the funds of the insurance benefit guarantee reserve in the amount established by the Fund's Board of Directors until the end of the current quarter. To restore the insurance benefit guarantee reserve, the Fund attracts emergency contributions from participating insurance organizations in the amount of the used amount of the insurance benefit guarantee reserve.

It is allowed to use the funds of the reserve for guaranteeing insurance payments in the general insurance industry in order to fulfill obligations in the life insurance industry and, conversely, to use the funds of the reserve for guaranteeing insurance payments in the life insurance industry in order to fulfill obligations in the general insurance industry in accordance with the procedure determined by the Board of Directors of the Fund, taking into account the replenishment the amount used, including by attracting emergency contributions from participating insurance organizations in the general insurance or life insurance industries, depending on which insurance industry the guarantee is provided for.

4. The amount of emergency contributions of the participating insurance organization under cumulative insurance contracts within the guaranteed types (classes) insurance specified in paragraph 2-1 of Article 7 of this Law is determined in proportion to the share of insurance reserves formed by the participating insurance organization in the total amount of insurance reserves formed by all insurance organizations participating in the Fund for these types of insurance as of the last reporting date.

The amount of emergency contributions of a participating insurance organization for other guaranteed types of insurance is determined in proportion to the share of insurance premiums for insurance contracts concluded by it in the total insurance premiums of all participating insurance organizations for these types of insurance in the current reporting period.

5. If the reserve for guaranteeing insurance payments, emergency contributions and the Fund's own capital is insufficient to perform the functions provided for in subparagraphs 1) and 1-1) of paragraph 2 of Article 8 of this Law, the National Bank of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan and other organizations may provide the Fund with a loan, which is repayable through emergency contributions from insurance participating organizations.

6. The suspension of the license for the right to carry out insurance activities does not exempt the participating insurance company from paying mandatory and emergency contributions.

7. From the date of withdrawal of the participant insurance organization (with the exception of a branch of a non-resident insurance organization of the Republic of Kazakhstan) of the license for the right to carry out insurance activities, the obligations of the participating insurance organization to pay mandatory and emergency contributions are suspended until the court decision on the compulsory liquidation of the participating insurance organization enters into force.

The obligations of the participating insurance organization (with the exception of a branch of a non-resident insurance organization of the Republic of Kazakhstan) for the payment of mandatory and extraordinary contributions are terminated from the date of entry into force of the court decision on its compulsory liquidation.

The obligations of a branch of a non-resident insurance organization of the Republic of Kazakhstan to pay mandatory and extraordinary contributions are terminated from the date the authorized body makes a decision to revoke the license of a branch of a non-resident insurance organization of the Republic of Kazakhstan for the right to carry out insurance activities.

Mandatory and extraordinary contributions paid by participating insurance organizations in accordance with this Law are non-refundable..

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

This Law defines the legal status, the procedure for the establishment and operation of the Insurance Benefit Guarantee Fund, as well as the conditions for the participation of insurance organizations, branches of insurance organizations that are non-residents of the Republic of Kazakhstan in the Insurance Benefit Guarantee Fund and the principles of ensuring control over its activities.

President

Republic of Kazakhstan

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