Article 3-1. Supervisory response measures The Law on the Insurance Benefit Guarantee Fund

Home / RLA / Article 3-1. Supervisory response measures The Law on the Insurance Benefit Guarantee Fund

1. In cases where the authorized body establishes violations by the Fund, insurance organizations participating in the Fund of the requirements of the legislation of the Republic of Kazakhstan, illegal actions or inaction of officials or employees of the Fund, insurance organizations participating in the Fund, which worsened the financial condition of the Fund, the authorized body has the right to apply supervisory response measures to the Fund, insurance organizations participating in the Fund, provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities.

2. In order to eliminate the identified deficiencies, risks or violations, the authorized body applies measures to improve the financial condition and (or) minimize the risks of the Fund in the form of dismissal from official duties of persons specified in paragraph 1 of Article 4-1 of this Law, while revoking consent to the appointment (election) to the position of a senior employee of the Fund for one of the following grounds:

1) repeated (two or more times within twelve consecutive calendar months) violation of the procedure and amount of investment of the Fund's own assets, funds of the insurance benefit guarantee reserves and the damage compensation reserve;

2) violation of the procedure and deadlines for making guarantee payments, payment of the insurance portfolio of a forcibly liquidated insurance (reinsurance) organization, transferred to the participating insurance organization in accordance with the procedure and on the terms provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities, as well as payments for compensation for damage to the life, health of the victim and (or) funeral expenses;

3) repeated (two or more times within twelve consecutive calendar months) failure to notify the authorized body of the facts of violations by insurance organizations participating in the legislation of the Republic of Kazakhstan on insurance and insurance activities that have become known to it.;

4) disclosure or transfer to third parties (with the exception of the authorized body) of information about the activities of participating insurance organizations obtained in the course of performing their functions;

5) failure by the Fund to remedy the deficiencies indicated in the audit report within three months from the date of receipt by the Fund of the audit report;

6) failure to comply with the requirements of the authorized body imposed within its competence established by the legislation of the Republic of Kazakhstan.

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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