Article 18. Intermediary activity of an insurance agent and the requirements imposed on it by the Law on Insurance Activity

Home / RLA / Article 18. Intermediary activity of an insurance agent and the requirements imposed on it by the Law on Insurance Activity

 1. The powers of an insurance agent to carry out intermediary activities in the insurance market are determined by the contract of assignment, taking into account the requirements of this Law and regulatory legal acts of the authorized body.

The requirements for an assignment agreement concluded between an insurance company and an insurance agent are established by a regulatory legal act of the authorized body.

The insurance agent personally performs actions that are authorized by the insurance company, and has no right to entrust their commission to another person.

Activity as an insurance agent in the absence of his authority is not allowed.

1-1. An insurance agent, with the exception of an insurance agent who is a financial institution, is not entitled to mediate insurance contracts without a valid insurance contract for his civil liability to third parties, the object of which is the risks associated with the professional responsibility of the insurance agent.

The insurance contract of the insurance agent's civil liability to third parties must be concluded with an insurance company that does not have a valid contract of assignment with this insurance agent to carry out intermediary activities in the insurance market.

2. An insurance company is obliged to fulfill obligations under an insurance contract concluded by an insurance agent on its behalf and on its behalf.

The insurance company is responsible for the following actions performed by the insurance agent:

1) the conclusion of insurance contracts, as well as the commission of actions of the insurance agent that go beyond the limits of the established authority;

2) conclusion of insurance contracts for classes (types) of insurance for which the insurance company does not have a license from an authorized body;

3) intentionally misleading the policyholder on the terms of the insurance contract;

4) non-compliance with the requirements stipulated by the legislation of the Republic of Kazakhstan on registration of the insurance contract and the documents on the basis of which the insurance contract is concluded;

5) other violations of the requirements of the legislation of the Republic of Kazakhstan on insurance and insurance activities.

The insurance company is not responsible for the actions of the insurance agent that are not related to the implementation of intermediary activities provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities.

3. The conditions that must be observed by the insurance agent, including accounting and storage of insurance reporting forms, working with cash, are established by the internal documents of the insurance company, taking into account the requirements of the legislation of the Republic of Kazakhstan.

4. An insurance agent is prohibited from accepting a cash payment from an insured person who is a legal entity in payment of an insurance premium when concluding insurance contracts on behalf of and on behalf of an insurance company.

Insurance premiums (insurance premiums) received by the insurance agent must be paid to the insurance company in full by transfer to a bank account or to the insurance company's cash desk.

Payment of the commission fee to the insurance agent by the insurance company is carried out only after the insurance company receives the insurance premium (insurance premium) in full, paid by the policyholder under the relevant insurance contract.

5. An insurance agent is prohibited from deducting from insurance premiums received from policyholders the remuneration due to him under the contract of assignment.

6. It is not allowed to carry out intermediary activities of insurance agents within the limits of the powers provided for in Article 18-2 of this Law under one insurance contract by two or more insurance agents.

It is not allowed to carry out intermediary activities of insurance agents under contracts:

pension annuity, concluded in accordance with the Social Code of the Republic of Kazakhstan;

insurance contracts concluded within the framework of public procurement in accordance with the Law of the Republic of Kazakhstan "On Public Procurement";

insurance companies for which the policyholders are the national managing holding, national holdings, national management companies, national companies, the National Bank;

insurance companies for which the policyholders are government agencies, government agencies, state-owned enterprises, and legal entities with fifty percent or more of the voting shares (stakes in the authorized capital) owned by the state, and legal entities affiliated with them;

compulsory insurance.

6-1. The amount of commission paid by the insurer to the insurance agent for the provision of intermediary services for the conclusion of an insurance contract, under which the beneficiary is a second-tier bank and (or) an organization engaged in microfinance activities, and (or) the conclusion of which follows from the terms of the financial product of the second-tier bank and (or) an organization engaged in microfinance activities, for the provision of a bank loan and (or) a micro-loan, as well as another insurance contract, which is concluded upon receipt of a bank loan and (or) a micro-loan, may not exceed ten percent of the amount of the accrued insurance premium payable under this insurance contract.

7. The commission fee includes all types of expenses incurred by the insurance company in relation to the insurance agent who mediated the conclusion of the insurance contract, including the cost of paying rent, any type of remuneration, as well as the provision of any property or material benefits.

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