Article 3. The basic concepts used in this Law of the Law on Insurance Activity

Home / RLA / Article 3. The basic concepts used in this Law of the Law on Insurance Activity

Article 3. Basic concepts used in this Law

The following basic concepts are used in this Law:

1) adjuster - an employee of an insurance (reinsurance) organization whose functions include reviewing an insurance claim and assessing damage from an insured event;

1-1) actuary – an individual who has passed the exams for the minimum mandatory actuarial training program established by the regulatory legal act of the authorized body;

1-2) professional judgment of an actuary – the judgment of an actuary based on his professional training, knowledge and experience in actuarial activities;

1-3) the association of actuaries is a self–regulating organization based on the voluntary membership of actuaries, created to ensure and protect the interests of its members, create conditions for professional activity and perform other functions;

1-4) underwriter is an employee of an insurance (reinsurance) organization whose functions include assessing insurance risks accepted for insurance and determining the terms of insurance (reinsurance) contracts;

2) assistance - provision by insurance organizations and legal entities of assistance to the policyholder (insured, beneficiary) who finds himself in a difficult situation during his journey or his stay far from his place of residence, in the form of money and (or) in physical form through technical or medical assistance due to the occurrence of an insured event;

3) control - the ability to determine the decisions of a legal entity, arising in the presence of one of the following conditions:

direct or indirect ownership by one person alone or jointly with one or more persons of more than fifty percent of the shares in the authorized capital or outstanding (minus preferred and repurchased by the company) shares of a legal entity, or the ability to vote independently with more than fifty percent of the shares of a legal entity;

the ability of one person to independently elect at least half of the composition of the governing body or executive body of a legal entity;

inclusion of the financial statements of a legal entity, with the exception of the financial statements of a special financial company established in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, in the financial statements of another legal entity in accordance with the audit report;

the possibility of one person independently or jointly with one or more persons to determine the decisions of a legal entity by virtue of a contract (supporting documents) or otherwise in cases provided for by a regulatory legal act of the authorized body;

4) parent organization - a legal entity that has control over another legal entity;

5) subsidiary organization - a legal entity in relation to which another legal entity has control;

6) indirect ownership of shares in the authorized capital or ownership (voting) of shares of a legal entity - the ability to determine the decisions of a legal entity, a major participant in a legal entity, or persons who are jointly a major participant in a legal entity through ownership (voting) of shares (shares in the authorized capital) of other legal entities;

7) a major participant in a legal entity is an individual or legal entity that owns, directly or indirectly, ten percent or more of the shares in the authorized capital or voting (minus preferred) shares of the legal entity (except in cases where such owner is the state or a national managing holding);

7-1) Islamic insurance (reinsurance) organization – an insurance (reinsurance) organization engaged in Islamic insurance activities, taking into account the specifics established by the legislation of the Republic of Kazakhstan on insurance and insurance activities, on the basis of an appropriate license from an authorized body;

8) significant equity participation - ownership, directly or indirectly, independently or jointly with one or more persons, of twenty or more percent of voting (minus preferred) shares (stakes in the authorized capital) or the ability to vote with twenty or more percent of shares;

8-1) a branch of a non-resident insurance broker of the Republic of Kazakhstan is a separate subdivision of a non–resident insurance broker of the Republic of Kazakhstan, which is not a legal entity located in the territory of the Republic of Kazakhstan and carries out the activities of an insurance broker on the basis of a license from an authorized body;

8-2) a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is a separate subdivision of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, which is not a legal entity located in the territory of the Republic of Kazakhstan and carries out insurance activities (reinsurance activities) on the basis of a license from an authorized body;

9) reinsurance - an activity and related relationships arising in connection with the transfer by the reinsurer of all or part of the insurance risks to reinsurance, on the one hand, and the acceptance of these risks by the reinsurance organization, on the other hand, in accordance with the reinsurance agreement concluded between them.;

10) reinsurance organization (reinsurer) - a legal entity engaged in the conclusion and execution of reinsurance contracts on the basis of the relevant license of the authorized body;

11) reinsurer (assignor) - an insurance or reinsurance organization that transfers the insurance risks assumed by it to reinsurance;

IZPI's note! Subparagraph 12) is provided for in the wording of the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

12) impeccable business reputation – the presence of facts confirming professionalism, integrity, the absence of an outstanding or outstanding criminal record, including the absence of a court decision on the application of a criminal penalty in the form of deprivation of the right to hold the position of a senior employee of a financial institution, banking and (or) insurance holding and to be a major participant (major shareholder) a financial institution for life;

13) co–insurance (joint reinsurance) - activities and related relationships arising in connection with the acceptance of insurance risks under a co-insurance (joint reinsurance) agreement simultaneously by several insurance (reinsurance) organizations with the distribution of their liability in accordance with a joint activity agreement concluded between them;

13-1) co–insurance (joint reinsurance) agreement - an insurance (reinsurance) agreement concluded between the participants of the insurance (reinsurance) pool and the policyholder (assignor) within the framework of the agreement on joint activities of the participants of the insurance (reinsurance) pool;

14) own retention is a part of the scope of liability, within which the insurer or reinsurer (assignor) is responsible for his own account in accordance with the insurance or reinsurance contract;

15) prudential standards - standards established by the authorized body and mandatory for compliance by insurance (reinsurance) organizations;

16) insurance agent - an individual or legal entity, a branch of a non–resident bank of the Republic of Kazakhstan, included in the register of insurance agents and engaged in intermediary activities for concluding insurance contracts on behalf of and on behalf of one or more insurance organizations on the basis of an assignment agreement;

17) insurance broker – a legal entity representing the policyholder in relations related to the conclusion and execution of insurance contracts with the insurer on behalf of the policyholder, or carrying out on its behalf intermediary activities for the conclusion of insurance contracts on behalf of the policyholder and (or) reinsurance contracts on behalf of the reinsurer (assignor);

18) insurance rules - a document of an insurance company defining the conditions of insurance for a certain type of insurance;

18-1) insurance report - a form of full or partial issuance of information contained in the database;

18-2) unified insurance database (hereinafter referred to as the database) - a set of information (including in electronic form) about the insurer, policyholder, insured and beneficiary;

18-3) insurance (reinsurance) pool is an association of insurance (reinsurance) organizations that jointly carry out insurance activities for a particular class, type of insurance or a certain insurance risk on the basis of a joint activity agreement concluded for a certain period between its participants or between its participants and an insurance broker;

19) subjects of insurance activity - insurance and reinsurance organizations;

20) professional participants in the insurance market – an insurance (reinsurance) organization, an insurance broker, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan, an actuary who carry out their activities on the basis of relevant licenses of the authorized body;

21) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (effective ten calendar days after the date of its first official publication);

22) insurance portfolio – the total obligations of an insurance (reinsurance) organization for risks assumed under insurance (reinsurance) contracts, including those under insurance (reinsurance) contracts that have expired, for which the insurance (reinsurance) organization has obligations or there is a possibility of obligations to policyholders (insured, beneficiaries, reinsurers);

23) insurance reserves - obligations of an insurance (reinsurance) organization under insurance (reinsurance) contracts, estimated on the basis of actuarial calculations;

23-1) insurance risk - the probability of occurrence of an insured event;

23-2) insurance group – a group of legal entities that are not a banking conglomerate, consisting of an insurance holding company (if any) and an insurance (reinsurance) organization, as well as subsidiaries of the insurance holding company and (or) subsidiaries of the insurance (reinsurance) organization and (or) organizations in which the insurance holding company and (or) its subsidiaries and (or) an insurance (reinsurance) organization have significant equity participation.

The insurance group does not include the national managing holding, the non-resident insurance holding of the Republic of Kazakhstan, as well as subsidiaries and organizations in which the non-resident insurance holding of the Republic of Kazakhstan has a significant equity interest that are non-residents of the Republic of Kazakhstan.;

24) insurance organization (insurer) - a legal entity engaged in the conclusion and execution of insurance contracts on the basis of the relevant license of the authorized body;

25) indirect ownership (voting) of shares of an insurance (reinsurance) organization is the ability to determine the decisions of an insurance (reinsurance) organization, a major participant in an insurance (reinsurance) organization, an insurance holding company, or persons who are jointly a major participant in an insurance (reinsurance) organization, an insurance holding company, through ownership of shares (stakes in the authorized capital) of legal entities persons;

25-1) association of insurance (reinsurance) organizations, insurance brokers - a non-profit organization established in the form of an association (union) to ensure the protection of the interests of its members and the coordination of their professional activities;

26) a major participant in an insurance (reinsurance) organization is an individual or legal entity (except in cases where such owner is the state or a national managing holding, as well as in cases provided for by this Law), which, in accordance with the written consent of the authorized body, may own directly or indirectly ten percent or more of the outstanding shares (minus preferred shares and shares of an insurance (reinsurance) organization purchased by an insurance (reinsurance) organization, or have the opportunity to:

to vote directly or indirectly with ten or more percent of the voting (minus preferred) shares of an insurance (reinsurance) organization;

to influence decisions taken by an insurance (reinsurance) organization by virtue of a contract or otherwise in accordance with the procedure determined by regulatory legal acts of the authorized body;

26-1) insurance holding company – a legal entity (except in cases where such owner is the state or a national managing holding company, as well as cases provided for by this Law), which, in accordance with the written consent of the authorized body, may own directly or indirectly twenty-five or more percent of the placed (minus preferred and repurchased insurance (reinsurance) an organization) shares of an insurance (reinsurance) organization or have the opportunity to:

to vote directly or indirectly with twenty-five percent or more of the voting shares of an insurance (reinsurance) organization;

determine decisions made by an insurance (reinsurance) organization, by virtue of a contract or otherwise, or have control over;

27) redemption amount - the amount of money that the policyholder is entitled to receive upon early termination of the cumulative insurance contract;

28) surveyor - an employee of an insurance (reinsurance) organization or a legal entity providing services to an insurance (reinsurance) organization in accordance with a contract for the provision of paid services, whose functions include a preliminary inspection and assessment of the insurance object accepted for insurance;

29) independent actuary – an individual who meets the requirements of this Law and is engaged to evaluate the actuary's calculations.;

29-1) affiliated persons – individuals or legal entities (with the exception of state bodies exercising control and supervisory functions within the scope of their powers, and the national managing holding, as well as legal entities, one hundred percent of the voting shares (participation shares in the authorized capital) of which belong to such a national managing holding), having the opportunity to directly and (or) indirectly determine decisions and (or) influence decisions made by each other (one of the persons), including by virtue of a concluded transaction. Affiliated companies of an insurance (reinsurance) organization, of which the national managing holding is a major shareholder, do not include:

the national managing holding company, which is a major shareholder of an insurance (reinsurance) organization;

legal entities, one hundred percent of the voting shares (participation shares in the authorized capital) of which belong to the specified national management holding;

officials of the said national managing holding and legal entities, one hundred percent of the voting shares (participation shares in the authorized capital) of which belong to such national managing holding.

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