Article 62. Voluntary reorganization of an insurance (reinsurance) organization and an insurance holding company Chapter 11. Reorganization of the Insurance Law

     1. Voluntary reorganization (merger, affiliation, division, separation, transformation) of an insurance (reinsurance) organization (insurance holding) is carried out in accordance with the procedure provided for by legislative acts of the Republic of Kazakhstan, taking into account the specifics established by this Law and regulatory legal acts of the authorized body.

     2. Voluntary reorganization of an insurance (reinsurance) organization (insurance holding company) may be carried out with the permission of the authorized body.

     Upon receipt of a permit for voluntary reorganization into a legal entity that does not carry out insurance activities, the insurance (reinsurance) organization is obliged to return all previously issued licenses to the authorized body within one week.

     3. The basis for submitting an application for permission to conduct a voluntary reorganization of an insurance (reinsurance) organization (insurance holding company) is the existence of a resolution of the general meeting of shareholders (participants) of this insurance (reinsurance) organization (insurance holding company).

     The decision of the general meeting of shareholders (participants) of an insurance (reinsurance) organization (insurance holding company) on its (his) voluntary reorganization is sent by the insurance (reinsurance) organization (insurance holding company) to the authorized body within five working days from the date of such decision.

     If the general meeting of shareholders of an insurance (reinsurance) organization decides to voluntarily reorganize it into a legal entity that does not carry out insurance (reinsurance) activities, it is prohibited to conclude new insurance (reinsurance) contracts, including the extension of existing insurance (reinsurance) contracts and their amendment, providing for an increase in insurance premiums, the amount of liability of the insurance (reinsurance) company. organizations. This prohibition is effective from the date of notification to the authorized body in accordance with part two of this paragraph.

     When the general meeting of shareholders of an insurance (reinsurance) organization decides to cancel the previously adopted decision of the general meeting of shareholders of an insurance (reinsurance) organization on its voluntary reorganization into a legal entity that does not carry out insurance (reinsurance) activities, the insurance (reinsurance) organization must, within five calendar days from the date of signing the minutes of the general meeting of shareholders, submit to authorized body business plan in accordance with subparagraph 2) paragraph 2 and paragraph 3 of Article 37 of this Law.

     The business plan of an insurance (reinsurance) organization is reviewed by the authorized body within ten working days.

     In this case, the prohibition specified in part three of this paragraph is valid until the authorized body approves the business plan specified in part four of this paragraph.

     4. The following documents must be attached to the application for permission from the authorized body to conduct a voluntary reorganization of an insurance (reinsurance) organization (insurance holding company):

     1) the decision of the supreme body of an insurance (reinsurance) organization (insurance holding company) on its voluntary reorganization (in the absence of information on the Internet resource of the financial reporting depository);

     2) an action plan for the reorganization of an insurance (reinsurance) organization (insurance holding company).

     3) excluded by the Law of the Republic of Kazakhstan dated 25.11.2019 No. 272-VI (effective ten calendar days after the date of its first official publication).  

     5. An application for permission to conduct a voluntary reorganization of an insurance (reinsurance) organization (insurance holding company) must be considered by the authorized body within thirty-five working days from the date of submission of the full package of documents.

     6. The reorganized insurance (reinsurance) organization (insurance holding), within two weeks from the date of receipt of the authorized body's permission to reorganize, is obliged to inform all its policyholders about the upcoming changes by direct notification and publication of the relevant announcement in at least two periodicals distributed throughout the Republic of Kazakhstan, in Kazakh and Russian languages and on the Internet resource of the insurance (reinsurance) organization.

     7. The state registration or re-registration of legal entities formed as a result of reorganization is carried out in accordance with the legislative acts of the Republic of Kazakhstan.

     8. The procedure for issuing a permit for the voluntary reorganization of an insurance (reinsurance) organization (insurance holding) or for refusing to issue such a permit is determined by a regulatory legal act of the authorized body.

     9. The requirements of this article do not apply to non-residents of the Republic of Kazakhstan who are an insurance holding company, a person with the characteristics of an insurance holding company, if one of the following conditions is met:

     the presence of an individual credit rating not lower than the A rating of one of the rating agencies, the list of which is established by the authorized body, as well as written confirmation from the financial supervisory authority of the country of origin of the insurance holding company, a person with the characteristics of an insurance holding company, that these non-resident persons of the Republic of Kazakhstan are subject to consolidated supervision;

     the existence of an agreement between the authorized body and the relevant supervisory authority of a foreign state on the exchange of information, as well as the minimum required rating of one of the rating agencies. The minimum rating and the list of rating agencies are established by a regulatory legal act of the authorized body.

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

President    

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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