Article 13. Co-insurance and joint reinsurance activities of the Insurance Law

Home / RLA / Article 13. Co-insurance and joint reinsurance activities of the Insurance Law

1. When insuring (reinsuring) risks through the creation of an insurance (reinsurance) pool, a co-insurance (reinsurance) contract may be concluded on the terms of an insurance (reinsurance) organization that assumes the functions and powers of a leading insurance (reinsurance) organization.

2. The agreement on joint activities must contain the following information::

1) the name of the insurance (reinsurance) organization that is leading in the activities of the insurance (reinsurance) pool, or the insurance broker involved in managing the activities of the insurance (reinsurance) pool;

2) classes (types) of insurance and the list of insurance risks that are the subject of the insurance (reinsurance) pool;

3) the maximum amount of the total obligations of the insurance (reinsurance) pool and its participants, including the maximum amount of obligations under a separate co-insurance (joint reinsurance) agreement, the maximum share of responsibility of each pool participant for the risks assumed;

4) conditions, procedure for concluding and executing coinsurance (joint reinsurance) contracts;

Note from <url>! Paragraph 2 is provided to be supplemented with subparagraph 4-1) in accordance with the Law of the Republic of Kazakhstan dated 04/19/2024 No. 74-VIII (effective six months after the date of its first official publication).

5) the term of the contract;

6) rights and obligations of the parties;

6-1) functions and powers of the leading insurance (reinsurance) organization, including the authority to conclude co-insurance (joint reinsurance) contracts;

6-2) the procedure and terms of settlements between the parties to the agreement on joint activities for insurance premiums, insurance payments under co-insurance (joint reinsurance) agreements, as well as remuneration of the leading insurance (reinsurance) organization;

7) Dispute resolution procedure;

8) signatures of the parties.

The insurance (reinsurance) organization, within ten calendar days from the date of conclusion of the agreement on joint activities with the participation of the insurance (reinsurance) organization, notifies the authorized body of its conclusion with a copy of this agreement attached.

3. The co-insurance (joint reinsurance) agreement must meet the requirements set by the legislation of the Republic of Kazakhstan for the insurance (reinsurance) agreement.

4. A co-insurance (joint reinsurance) agreement concluded within the framework of the activities of an insurance (reinsurance) pool must contain the number and date of conclusion of the joint activity agreement, information about the participants of the insurance (reinsurance) pool, as well as the signature of an authorized person of the insurance (reinsurance) organization leading the activities of the insurance (reinsurance) pool, or an insurance broker engaged to manage the activities of an insurance (reinsurance) pool.

5. Insurance reserves are formed by each participant of the insurance (reinsurance) pool in accordance with the amount of obligations assumed.

6. It is prohibited to participate in the insurance pool of an insurance company whose license does not specify the appropriate insurance class.

7. It is prohibited to participate in the reinsurance pool of an insurance (reinsurance) organization that does not have a license to carry out reinsurance activities in the relevant insurance industry.

IZPI's note! Paragraph 8 is provided for in the wording of the Law of the Republic of Kazakhstan dated 04/19/2024 No. 74-VIII (effective six months after the date of its first official publication).

8. The insurance (reinsurance) pool is not liable for the obligations of its participants that arose outside the scope of the pool's activities, just as the participants in the insurance (reinsurance) pool are not liable for the obligations of other participants that arose outside the scope of the pool's activities.

9. Insurance brokers licensed by an authorized body may be involved in managing the activities of an insurance (reinsurance) pool, provided that there is an agreement between the participants in the insurance (reinsurance) pool and the insurance broker, the terms of which are established by a joint operation agreement.

When concluding an agreement on joint activities with the participation of an insurance broker, the insurance broker performs the functions of a leading insurance (reinsurance) organization established by this article.

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

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