Article 69. Features of the compulsory liquidation of an insurance (reinsurance) organization of the Insurance Law

Home / Laws / Article 69. Features of the compulsory liquidation of an insurance (reinsurance) organization of the Insurance Law

1. The interim administration resigns its powers and transfers the documents and property of the insurance (reinsurance) organization to the chairman of the liquidation commission after the court makes a decision on the compulsory liquidation of the insurance (reinsurance) organization and completes the procedures provided for by the regulatory legal act of the authorized body.

1-1. The chairman and members of the liquidation commission of an insurance (reinsurance) organization being forcibly liquidated are appointed by the authorized body, who may be appointed from among:

1) employees of the authorized body;

2) employees of an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations;

3) its shareholders (the sole shareholder) or persons authorized by them (them) in accordance with the procedure established by the Civil Code of the Republic of Kazakhstan.

2. From the date of revocation of the insurance (reinsurance) organization license:

1) its shareholders (the sole shareholder) or persons authorized by them (them), in accordance with the procedure established by the Civil Code of the Republic of Kazakhstan, the bodies of an insurance (reinsurance) organization are not entitled to dispose of the property of an insurance (reinsurance) organization, except for the liquidation of the insurance (reinsurance) organization and ensuring settlements with its creditors, in the case of appointment of the chairman of the liquidation commission of a forcibly liquidated insurance (reinsurance) organization from among its shareholders (sole shareholder) or persons, authorized by them (them), in accordance with the procedure established by the Civil Code of the Republic of Kazakhstan;

2) the execution of previously adopted court decisions in respect of an insurance (reinsurance) organization being liquidated is suspended, with the exception of court decisions on insurance payments (insurance payments) for guaranteed classes (types) of insurance provided for by the Law of the Republic of Kazakhstan "On the Insurance Benefit Guarantee Fund", which is (are) made by the organization guaranteeing making insurance payments to policyholders (insured, beneficiaries) in case of liquidation of insurance companies, in accordance with the Law of the Republic of Kazakhstan "On Insurance Benefit Guarantee Fund";

3) creditors' claims against an insurance (reinsurance) organization being liquidated may be filed in liquidation proceedings, with the exception of claims related to expenses provided for in paragraph 3 of Article 55 of this Law, as well as payments for guaranteed classes (types) of insurance provided for by the Law of the Republic of Kazakhstan "On the Insurance Benefit Guarantee Fund";

4) it is not allowed to recover money from the bank accounts of an insurance (reinsurance) organization based on the claims of creditors, state revenue authorities, including those subject to satisfaction in an undisputed (non-acceptance) manner, as well as foreclosure on the property of an insurance (reinsurance) organization and assets formed from a portion of insurance premiums (insurance premiums), received from policyholders for investment purposes, and income (expenses) received (incurred) from their investment under insurance contracts, stipulating the condition of the policyholder's participation in investments;

5) shareholders of an insurance (reinsurance) organization are prohibited from alienating their shares in an insurance (reinsurance) organization;

6) managers and, if necessary, other employees are suspended from work in accordance with the labor legislation of the Republic of Kazakhstan.

3. In case of compulsory liquidation of an insurance (reinsurance) organization, the court notifies the authorized body and the organization guaranteeing insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, and within ten calendar days from the date of the decision on compulsory liquidation of the insurance (reinsurance) organization sends them a copy of such decision.

3-1. From the date of entry into force of the court's decision on the compulsory liquidation of the insurance (reinsurance) organization, the powers of the previously operating bodies of the insurance (reinsurance) organization are terminated, the management and, if necessary, other employees are dismissed in accordance with the procedure established by the labor legislation of the Republic of Kazakhstan.

3-2. From the date of entry into force of the court's decision on the compulsory liquidation of an insurance (reinsurance) organization, the consequences provided for in subparagraphs 1)-5) of paragraph 2 of this Article shall occur.

3-3. From the date of entry into force of the court's decision on the compulsory liquidation of an insurance (reinsurance) organization, insurance (reinsurance) contracts concluded with an insurance (reinsurance) organization being forcibly liquidated terminate prematurely in accordance with the procedure established by the Civil Code of the Republic of Kazakhstan, with the exception of contracts for guaranteed types (classes) of insurance provided for by the Law of the Republic of Kazakhstan."About the Insurance Benefit Guarantee Fund".

4. If a court decides to forcibly liquidate an insurance (reinsurance) organization on grounds unrelated to the revocation of the license by the authorized body, the authorized body shall consider the issue of revocation of its license in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

5. Excluded by the Law of the Republic of Kazakhstan dated 07.03.2014 No. 177-V (effective ten calendar days after the date of its first official publication).

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

The Debtor’s Insolvency Recognized by a Court Decision as Grounds for Its Liquidation

The Debtor’s Insolvency Recognized by a Court Decision as Grounds for Its Liquidation📘 Article 52 of the Civil Code of the Republic of Kazakhstan: BANKRUPTCY🔹 1. GENERAL CHA...