Article 12. The specifics of carrying out life insurance activities of the Insurance Law

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1. An insurance organization engaged in accumulative insurance activities, with the exception of an Islamic insurance organization, has the right to provide loans to its policyholders within the limits of the purchase amount, taking into account the requirements of regulatory legal acts of the authorized body.

A branch of a non-resident insurance organization of the Republic of Kazakhstan that carries out accumulative insurance activities, with the exception of a branch of an Islamic insurance organization that is a non-resident of the Republic of Kazakhstan, has the right to provide services for the provision of loans by a non-resident insurance organization of the Republic of Kazakhstan to its policyholders within the redemption amount, subject to the requirements of regulatory legal acts of the authorized body.

2. An insurance company has the right to increase the amount of regular insurance payments during the term of the annuity insurance contract based on the conclusion of an actuary in accordance with the procedure provided for by regulatory legal acts of the authorized body.

3. Excluded by the Law of the Republic of Kazakhstan dated 04/27/2015 No. 311-V (effective ten calendar days after the date of its first official publication).

4. An insurance organization has the right to develop types of insurance within the insurance classes specified in paragraph 2 of Article 6 of this Law, providing for insurance payments in the event of the policyholder's participation in investments, as well as the insurer's profits.

5. The procedure and specifics of the policyholder's participation in investments or profits of the insurer, the conclusion by a branch of a non–resident insurance organization of the Republic of Kazakhstan of an insurance contract providing for the condition of the policyholder's participation in investments or profits of the insurer, as well as the requirements for the content of the insurance contract providing for the condition of the policyholder's participation in investments or profits of the insurer, are determined by a regulatory legal act of the authorized body.

When concluding an insurance contract providing for the condition of the policyholder's participation in investments, the insurance organization has the right to manage 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., independently, if the insurance company has a license to operate an investment portfolio in the securities market and (or) transfer them to the investment management of an investment portfolio manager who is not an insurance company.

Conditions and procedure for the transfer by an insurance company 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, to investment management by an investment portfolio manager who is not insurance organization, are determined by the regulatory legal act of the authorized body.

Conditions and procedure for the transfer by a branch of a non–resident insurance organization of the Republic of Kazakhstan 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 to the investment management of a non–resident insurance organization of the Republic of Kazakhstan licensed to operate on investment portfolio management in the securities market of the state in which the insurance company is a resident – non-resident of the Republic of Kazakhstan, are determined by a regulatory legal act of the authorized body.

Insurance organizations that conclude insurance contracts providing for the condition of the policyholder's participation in investments keep accounting records and submit financial statements and primary statistical data separately on their own funds and 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, to the National Bank in accordance with the procedure, established by the legislation of the Republic of Kazakhstan.

The investment risks of assets formed from a portion of the insurance premium (insurance premiums) received (received) from the policyholder for investment purposes and income (expenses) received (incurred) from her (their) investment under an insurance contract providing for the condition of the policyholder's participation in investments are borne by the policyholder.

5-1. Seizure or foreclosure 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, on debts of an insurance organization, a custodian bank, and investment portfolio managers are not allowed, including in cases of liquidation and (or) bankruptcy of the listed entities.

5-2. The value 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 is determined on the terms, according to the methodology and in accordance with the procedure established by regulatory legal acts. by an act of the authorized body.

5-3. Specifics of the distribution 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 between policyholders, including cases of voluntary, compulsory liquidation or voluntary reorganization of the insurance company The transformation of an organization into a legal entity that does not carry out insurance activities is established by a regulatory legal act of the authorized body.

6. Payments in connection with the policyholder's participation in investments or the insurer's profits, taking into account the accumulated amounts, are made in the following cases:

1) the occurrence of an insured event as part of an insurance payment;

2) the end of the term of cumulative insurance as part of the insurance payment;

3) early termination of the insurance contract as part of the purchase amount.

It is not allowed to conclude an insurance contract providing for the condition of the policyholder's participation in the insurer's profits with the shareholders (sole shareholder) and (or) affiliated persons of the insurance company.

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

President

Republic of Kazakhstan

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