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

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

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 or an organization that is not a legal entity, arising in the presence of one of the following conditions:

direct and (or) indirect ownership and (or) use and (or) disposal by one person of more than fifty percent of voting shares, participation interests, units or other forms of equity participation in a legal entity or an organization that is not a legal entity;

the possibility for one person to directly or indirectly elect at least half of the composition of the governing body or executive body of a legal entity or an organization that is not 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, or an organization that is not a legal entity, in the financial statements of another legal entity or organization that is not a legal entity, in accordance with the audit report;

the ability of one person independently or jointly with one or more persons to determine the decisions of a legal entity or an organization that is not a legal entity by virtue of a contract (supporting documents) or otherwise in cases established by the authorized body;

4) parent organization – a legal entity (an organization that is not a legal entity) exercising (exercising) control over another legal entity or another organization that is not a legal entity;

4-1) data showcase is a structured data set of an insurance (reinsurance) organization, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, organized and updated in accordance with the requirements of the authorized body, intended for storage and transfer in a prescribed format to the authorized body for the purpose of overseeing the activities of an insurance (reinsurance) organization, a branch of an insurance (reinsurance) organization.) a non–resident organization of the Republic of Kazakhstan and (or) compliance with reporting requirements;

5) subsidiary organization – a legal entity (an organization that is not a legal entity) in relation to which another legal entity or an organization that is not a legal entity exercises control;

6) indirect ownership – the ability to influence the decision of a legal entity or an organization that is not a legal entity, a major participant in a legal entity or an organization that is not a legal entity, and (or) persons who are jointly a major participant in a legal entity or an organization that is not a legal entity, through ownership of voting shares, participation shares, shares or other forms of equity participation in a legal entity or an organization that is not a legal entity;

7) an organization that is not a legal entity is a foundation, partnership, trust, company, partnership, organization or other corporate entity established (registered) in accordance with the legislation of a foreign state, considered as independent organizational and legal forms regardless of whether they have the status of a legal entity in a foreign state.;

7-1) Islamic insurance (reinsurance) organization – an insurance (reinsurance) organization that carries out 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;

7-2) indirect participation in capital is the ability to determine the decisions of a legal entity or an organization that is not a legal entity, a major participant in a legal entity or an organization that is not a legal entity, and (or) persons who are jointly a major participant in a legal entity or an organization that is not a legal entity, through ownership and (or) use, and (or) disposal of voting shares, participation shares, shares or other forms of equity participation in another legal entity or other organization that is not a legal entity;

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;-Excluded by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII SAM

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 - activities 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 contract 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;

11-1) trust management agreement for rights (claims) – a trust management agreement for rights (claims) under a bank loan agreement, a micro-loan agreement concluded between a service company and a person specified in paragraph 1 of Article 63 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", or a person specified in part The first is paragraph 5 of Article 9-1 of the Law of the Republic of Kazakhstan "On Microfinance Activities", or an insurance (reinsurance) organization;

12) impeccable business reputation – professionalism and integrity of a person, confirmed, among other things, by the absence of facts:

the commission by the specified person of illegal actions (inaction) that led to insolvency, which led to the compulsory liquidation of a financial institution, or to the application of a settlement regime to the bank;

the person's outstanding or outstanding criminal record, including the absence of a judicial act that has entered into legal force on the application of criminal punishment to a person in the form of deprivation of the right to hold the position of a senior employee of a financial institution, a banking and (or) insurance holding company and to be a major participant (major shareholder) of a financial institution for life;

the existence of relations with third parties (control and influence of third parties), whose actions contributed to the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, based on information from the authorized financial monitoring body;

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 the 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 and organizations that are not 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 an 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; -Excluded by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII SAM

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 a natural or legal person who, in accordance with the written consent of the authorized body, has the right:

directly and (or) indirectly own, use and dispose of a total of ten or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign country, the underlying asset of which are voting shares of an insurance (reinsurance) organization;

to directly and (or) indirectly influence decisions taken by an insurance (reinsurance) organization (to vote) with ten or more percent of the voting shares of an insurance (reinsurance) organization by virtue of a contract (supporting documents) or otherwise in cases provided for by a regulatory legal act of the authorized body.

They are not recognized as a major participant in an insurance (reinsurance) organization:

Government of the Republic of Kazakhstan;

National managing Holding Company;

a single accumulative pension fund that manages an investment portfolio that owns voting shares of an insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign country, the underlying asset of which is voting shares of an insurance (reinsurance) organization, at the expense of pension assets;

a person performing the functions of a nominee holder of voting shares of an insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is voting shares of an insurance (reinsurance) organization, as well as the issuer of these derivative securities;

a person who has the right exclusively to receive dividends and (or) other income on shares of an insurance (reinsurance) organization without the ability to influence decisions made by an insurance (reinsurance) organization;

other persons specified in paragraph 19 of Article 9-5 of the Law of the Republic of Kazakhstan "On State Regulation, Control and Supervision of the Financial Market and Financial Organizations";

26-1) insurance holding is a legal entity that, in accordance with the written consent of the authorized body, has the right:

directly and (or) indirectly own, use and dispose of a total of twenty-five or more percent of the voting shares of an insurance (reinsurance) organization, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign country, the underlying asset of which are voting shares of an insurance (reinsurance) organization;

to directly and (or) indirectly influence decisions taken by an insurance (reinsurance) organization (to vote) with twenty-five or more percent of the voting shares of an insurance (reinsurance) organization by virtue of a contract (supporting documents) or otherwise in cases provided for by a regulatory legal act of the authorized body.

They are not recognized as an insurance holding company:

Government of the Republic of Kazakhstan;

National managing Holding Company;

other persons specified in paragraph 19 of Article 9-5 of the Law of the Republic of Kazakhstan "On State Regulation, Control and Supervision of the Financial Market and Financial Organizations;

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

27-1) a service company is an organization for the management of stress assets, a collection agency that has, under a trust management agreement, rights (claims), powers for the trust management of rights (claims) under a bank loan agreement, a micro–loan agreement, including in relation to:

changes in the terms of the bank loan agreement, the micro-loan agreement;

representation in court of the interests of the person with whom the contract of trust management of rights (claims) is concluded;

receiving money and (or) other property from the debtor;

other powers provided for by the laws of the Republic of Kazakhstan and (or) the contract of trust management of rights (claims)

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.

29-2) significant participation in the capital of an organization is the direct and (or) indirect ownership and (or) use and (or) disposal, independently or jointly with one or more persons, by virtue of an agreement (supporting documents) or otherwise, in cases established by the authorized body, of twenty or more percent of voting shares, participation interests, shares or other forms of equity participation in a legal entity or an organization that is not a legal entity.

A person with significant participation in the capital of an organization is not recognized:

Government of the Republic of Kazakhstan;

National managing Holding Company;

subsidiaries of the National Bank of the Republic of Kazakhstan;

other persons in cases stipulated by this Law;

29-3) major participant – an individual, a legal entity, or an organization other than a legal entity that directly and (or) indirectly owns and (or) uses and (or) disposes of ten or more percent of voting shares, participation interests, units, or other forms of equity participation in a legal entity or organization that does not which is a legal entity.

A major participant in a legal entity or an organization that is not a legal entity is not recognized:

Government of the Republic of Kazakhstan;

National managing Holding Company;

subsidiaries of the National Bank of the Republic of Kazakhstan;

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