Article 72-1. Termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan Law on Insurance Activities

Home / RLA / Article 72-1. Termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan Law on Insurance Activities

1. Termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is carried out in accordance with this Law and other regulatory legal acts of the Republic of Kazakhstan.

Termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan may be carried out:

1) by decision of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan on the basis of a permit from the financial supervisory authority of the state of which the non–resident insurance (reinsurance) organization is a resident of the Republic of Kazakhstan, or a statement from the financial supervisory authority of the relevant state stating that such a permit is not required by the legislation of the non–resident insurance (reinsurance) organization of the Republic of Kazakhstan (voluntary termination of activity);

2) on the basis of a decision of the authorized body to revoke the license (compulsory termination of activities).

2. After a decision is made by a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan to voluntarily terminate the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan must:

1) send to the authorized body a copy of such a decision within three working days from the date of drawing up and signing the protocol of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, accompanied by a permit from the financial supervisory authority of the state of which the non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident, or a statement from the financial supervisory authority of the relevant state stating that what is a permit under the legislation of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is not required.

The decision of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan on the voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan entails a ban on the conclusion of 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 a branch of an insurance (reinsurance) organization – a non–resident of the Republic of Kazakhstan, from the date of notification of the authorized body in accordance with this subparagraph, which, in case of refusal by the authorized body to grant permission for the voluntary termination of the activities of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, is valid until such refusal.;

2) transfer the insurance portfolio to another (other) an insurance (reinsurance) organization (insurance (reinsurance) organizations), another (other) branch (branches) of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, which has (has, have) a license (licenses) for the transferred classes (types) of insurance and is (is, are) a participant (participants) in the insurance benefit guarantee system.

The procedure for issuing a permit for the voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan or refusal to issue the specified permit, as well as the procedure for transferring the insurance portfolio, are determined by a regulatory legal act of the authorized body.

After the transfer of the insurance portfolio in accordance with the procedure provided for in Article 37-1 of this Law and the regulatory legal act of the authorized body, as well as the repayment of all obligations, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan must apply to the authorized body with a request for permission to voluntarily terminate the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan.

3. When making a decision by a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan to cancel an earlier decision by a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan on the voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, the branch of an insurance (reinsurance) organization of the Republic of Kazakhstan is obliged, within three calendar days from the date of compilation and signing of the protocol of the insurance (reinsurance) organization – a non-resident of the Republic of Kazakhstan should submit a business plan to the authorized body in accordance with subparagraph 2) paragraph 2 and paragraph 3 of Article 37 of this Law.

The business plan of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan is reviewed by the authorized body within ten working days.

In this case, the prohibition specified in the second part of subparagraph 1) of paragraph 2 of this article is valid until the authorized body approves the business plan specified in the first part of this paragraph.

The application for a permit for the voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan must be accompanied by documents, the list of which is established by regulatory legal acts of the authorized body.

An application for permission to conduct a voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan must be considered by the authorized body within two months from the date of receipt of all necessary documents.

After obtaining permission for the voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, the branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is obliged to return the license and (or) the appendix to the license to the authorized body within ten working days.

Assets of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan accepted as a reserve are returned to the non–resident insurance (reinsurance) organization of the Republic of Kazakhstan after obtaining permission from the authorized body to voluntarily terminate the activities of the branch of the non–resident insurance (reinsurance) organization of the Republic of Kazakhstan and returning the license and (or) an appendix to the license to the authorized body.

After obtaining permission from the authorized body for the voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, the termination of activities is carried out by an insurance (reinsurance) organization of the Republic of Kazakhstan or persons authorized by them, in accordance with the procedure established by the Civil Code of the Republic of Kazakhstan.

IZPI's note! Paragraph 3 is provided to be supplemented with Part nine in accordance with 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).

After de–registration of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, the non–resident insurance (reinsurance) organization of the Republic of Kazakhstan notifies the authorized body within ten working days of the completion of the process of voluntary termination of the branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan.

4. The refusal to issue a permit for the voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is made by the authorized body on the following grounds:

1) provided for in sub-paragraphs 2), 3) and 5) of paragraph 1 of Article 68 of this Law;

2) violation of the legitimate interests of policyholders and other creditors as a result of the alleged voluntary termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan;

3) insufficient funds of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan to settle the obligations of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan.

5. The compulsory termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is carried out in connection with the deprivation of a branch of an insurance (reinsurance) organization of a non–resident of the Republic of Kazakhstan by an authorized body of a license for the right to carry out insurance (reinsurance) activities on the grounds provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities, including in connection with the decision of the competent the body of the state of which the insurance (reinsurance) organization is a resident – a non–resident of the Republic of Kazakhstan, on the deprivation of an insurance (reinsurance) organization that is a non–resident of the Republic of Kazakhstan of a license for the right to carry out insurance (reinsurance) activities and (or) compulsory liquidation (termination of activity) of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan.

If a court decides to forcibly terminate the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan on grounds unrelated to the revocation of its 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.

In case of compulsory termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, the authorized body notifies the organization that guarantees 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 termination of the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan sends She will receive a copy of this decision.

6. From the date of revocation of the license of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan for the right to carry out insurance (reinsurance) activities, the authorized body appoints a temporary administration that performs the functions and powers established by Article 55-2 of this Law and transfers the insurance portfolio in accordance with the procedure and terms provided for in Article 54-1 of this Law, taking into account the specifics of this article.

From the date of the decision to revoke the license of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, insurance (reinsurance) contracts concluded with a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan that is being forcibly terminated prematurely, with the exception of contracts for guaranteed types (classes) of insurance provided for by the Law of the Republic of Kazakhstan "On Insurance Benefit Guarantee Fund".

The transfer of the insurance portfolio of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan that is being forcibly terminated is carried out only at the expense of assets of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan accepted as a reserve, and money in bank accounts opened for the activities of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan.

In case of insufficient assets of a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan accepted as a reserve and money in bank accounts opened for the activities of a branch of an insurance (reinsurance) organization of a non–resident of the Republic of Kazakhstan, the transfer of the insurance portfolio for guaranteed types (classes) of insurance is carried out at the expense of the organization guaranteeing insurance payments policyholders (insured, beneficiaries), in case of liquidation of insurance companies.

After the interim administration completes the procedure for transferring the insurance portfolio and terminating insurance contracts (reinsurance), the interim administration terminates its powers and transfers documents related to the transfer of the insurance portfolio and termination of insurance contracts (reinsurance) to the founders (participants) and (or) the body of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan and (or) the management employees of a branch of a non–resident insurance (reinsurance) organization that is forcibly ceasing operations in the Republic of Kazakhstan. The founders (participants) and bodies of an insurance (reinsurance) organization that is a non–resident of the Republic of Kazakhstan are required to complete the process of compulsory termination of the branch's activities, including satisfying creditors' claims of the branch that is forcibly terminating the activities of an insurance (reinsurance) organization that is a non–resident of the Republic of Kazakhstan, in accordance with the civil legislation of the Republic of Kazakhstan.

The exchange of information between the authorized body and the financial supervisory authority of the state of which the non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is a resident on the progress and results of the liquidation procedure of the non–resident insurance (reinsurance) organization of the Republic of Kazakhstan is carried out on the basis and in accordance with the procedure provided for by the agreement specified in subparagraph 4) of paragraph 1 of Article 30-1 of this Law.

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

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Republic of Kazakhstan

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