Article 54. Suspension of the license of an insurance (reinsurance) organization and insurance broker of the Insurance Law

Home / RLA / Article 54. Suspension of the license of an insurance (reinsurance) organization and insurance broker of the Insurance Law

1. The license of an insurance (reinsurance) organization and an insurance broker may be suspended for up to six months on one of the following grounds:

1) failure to comply with the requirements of the supervisory response measures applied by the authorized body;

1-1) revocation of the status of an insurance holding company, a major participant-an individual in the absence of an insurance (reinsurance) organization of another insurance holding company or a major participant-an individual;

2) non-compliance with the requirements of prudential standards and other mandatory standards and limits established by the legislation of the Republic of Kazakhstan;

2-1) identification of the fact of violation of the legislative acts of the Republic of Kazakhstan regulating compulsory types of insurance, expressed in the application of unjustified insurance premium amounts, unjustified refusal to make insurance payments, late payment of insurance payments, non-fulfillment or improper fulfillment of obligations arising from the conditions and procedure for compulsory types of insurance;

2-2) violation of the prohibition established by Article 15-1 of this Law on granting preferential terms to persons connected with an insurance (reinsurance) organization by special relations;

2-3) Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).

2-4) violation of the prohibition established by paragraph 4 of Article 17 of this Law;

2-5) non-compliance by the insurance broker with the requirements for the minimum amount of equity capital established by the regulatory legal act of the authorized body;

IZPI's note! Subparagraph 2-6) is amended by 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).

2-6) identification of the insurance broker's participation in public procurement for the provision of services related to the conclusion of an insurance contract;

2-7) failure to comply with the conditions and procedures for the insurance broker's activities, as defined by the regulatory legal act of the authorized body;

3) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019);

4) refusal to provide documents and information requested by the authorized body within its competence in connection with the audit of insurance activities and activities of the insurance broker;

5) violation of the requirements related to the approval of senior officials of an insurance (reinsurance) organization, insurance broker;

6) (deleted - dated February 20, 2006, No. 128 (for the procedure of entry into force, see art. 2);

7) identification of the fact of violation of legislation related to improper accounting of financial transactions in insurance (reinsurance), as well as the maintenance of other mandatory forms of accounting;

8) establishing the fact of providing false information in the documents that were the basis for issuing the license;

8-1) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019); 9) Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).

10) the insurance broker carries out the activities of an insurance agent;

10-1) the insurance broker carries out intermediary activities for concluding insurance (reinsurance) contracts without a valid insurance contract for its civil liability to third parties, the object of which is the risks associated with the professional responsibility of the insurance broker;

11) systematic (three or more times within twelve consecutive calendar months) violation of the requirements stipulated by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons of mass destruction;

12) the insurance (reinsurance) organization does not have a participation agreement in the database in the cases provided for by this Law.;

13) an insurance (reinsurance) organization does not have a contract of participation in an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, the existence of which is provided for by the laws of the Republic of Kazakhstan;

13-1) an insurance (reinsurance) organization does not have a major participant, an individual or an insurance holding company, when carrying out mandatory types of insurance, except for the cases provided for in part two of paragraph 3-1 of Article 11 of this Law.;

14) 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);

15) failure by an insurance holding company, a major participant in an insurance (reinsurance) organization, to comply with the requirements of the authorized body for increasing the equity capital of an insurance (reinsurance) organization, as well as the requirements set out in accordance with paragraph 2 of Article 53-4 of this Law;

16) non-compliance of the risk management and internal control system with the requirements of the authorized body.

1-1. The license of an insurance (reinsurance) organization may be suspended for all classes of insurance and (or) types of activity, as well as for individual classes of insurance and (or) type of activity.

1-2. The license of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan and a branch of a non-resident insurance broker of the Republic of Kazakhstan may be suspended for up to six months on one of the following grounds:

1) on the grounds provided for in the sub-paragraphs 1), 2), 2-1), 2-2), 2-4), 2-6), 2-7), 4), 5), 7), 8), 10), 10-1), 11), 12), 13) and 16) of paragraph 1 of this article;

2) non-compliance by a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan or a branch of a non-resident insurance broker of the Republic of Kazakhstan with the requirements for the amount of assets accepted as a reserve established by a regulatory legal act of the authorized body in accordance with paragraph 4 of Article 16-4 and paragraph 12 of Article 46 of this Law;

3) non–fulfillment by a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan of the requirements of the authorized body submitted in accordance with paragraph 12 of Article 46 and paragraph 7 of Article 53-3 of this Law;

4) carrying out activities prohibited for a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan in accordance with paragraph 3 of Article 11 of this Law;

5) non-compliance in the course of the activities of 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 with the requirements imposed on senior employees of 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;

6) suspension of the license of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities, a non-resident insurance broker of the Republic of Kazakhstan for the activity of an insurance broker by a financial supervisory authority or a court of the state of which the non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a non-resident insurance broker of the Republic of Kazakhstan are residents.

2. The suspension of the license of an insurance (reinsurance) organization entails a ban on the conclusion of new insurance (reinsurance) contracts, including the extension of existing insurance (reinsurance) contracts and their modification, providing for an increase in insurance premiums, the amount of liability of the insurance (reinsurance) organization, as well as insurance intermediation as an insurance agent. Under previously concluded insurance (reinsurance) contracts, the insurance (reinsurance) organization is obliged to fulfill its obligations.

3. The decision to suspend the license must specify the grounds and the period of suspension of the license.

The license is considered suspended from the date of notification of such decision to the executive body of the licensee.

Information about the decision to suspend the license is published on the authorized body's Internet resource in Kazakh and Russian.

4. The requirements of subparagraph 2) of paragraph 1 of this article shall not apply to an insurance broker.

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

President

Republic of Kazakhstan

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