LAW OF THE KYRGYZ REPUBLIC

of April 29, 2025 No. 89

About insurance and insurance activity

Accepted by Jogorku Kenesh of the Kyrgyz Republic on March 20, 2025

Chapter 1. General provisions

Article 1. Regulation of insurance and insurance activity

1. The legislation on insurance and insurance activity is based on the Constitution of the Kyrgyz Republic, consists of the civil legislation of the Kyrgyz Republic, the legislation of the Kyrgyz Republic on offenses, this Law and other regulatory legal acts of the Kyrgyz Republic.

2. This Law does not govern the relations connected with compulsory social medical insurance and compulsory social insurance.

3. If other rules are determined, than those which are stipulated by the legislation the Kyrgyz Republic in the area insurance, rules of international treaties in the field of insurance are applied.

4. This Law determines basic provisions by insurance implementation as type of business activity, feature of creation, licensing, regulation, termination of activities of the insurance (reinsurance) organizations, activities condition in the insurance market of other physical persons and legal entities, tasks on state regulation of functioning of the insurance market and the relations on control and supervision of activities of participants of the insurance market.

5. The regulatory legal acts adopted according to this Law are obligatory for execution by all participants of the insurance market.

6. In the Kyrgyz Republic the insurance activity according to the Islamic principles of insurance can be performed. Features of legal regulation of insurance activity according to the Islamic principles of insurance are established by the legislation of the Kyrgyz Republic on insurance, the laws in insurance field and the regulatory legal acts of the Cabinet of Ministers of the Kyrgyz Republic adopted according to them (further - the Cabinet of Ministers), decisions of authorized state body on regulation, control and supervision of the financial market (further - authorized body).

Article 2. Relations of the insurance (reinsurance) organizations and state

1. The insurance (reinsurance) organizations do not answer for obligations the state, and the state - for obligations of the insurance (reinsurance) organizations.

2. The state provides observance and protection of the rights and legitimate interests of consumers of services - participants of the insurance market, the insurance (reinsurance) organizations, conditions of free competition in implementation of insurance activity.

3. Illegal intervention in the solution of the questions connected with insurance activity is forbidden to public authorities and their officials.

4. Decisions (acts), the instructions of authorized body accepted according to this Law and the legislation of the Kyrgyz Republic in insurance field are obligatory for execution by all participants of the insurance market.

5. For violation of requirements of the legislation of the Kyrgyz Republic in insurance field there comes responsibility, stipulated by the legislation the Kyrgyz Republic about offenses and the civil legislation of the Kyrgyz Republic.

Article 3. The concepts used in this Law

In this Law the following basic concepts are used:

1) the average commissioner - the worker or insurance authorized representative (reinsurance) organization, or the independent expert who is rendering assistance, drawing up and establishing the reason, nature and the size of the insurance losses caused to vehicles including under the agreement with the insurer;

2) the automated information center - the national organization performing functions on forming, replenishment, change and exchange of information of the database on compulsory insurance between subjects of insurance;

3) adzhaster (the specialist of insurance estimate of losses and risks) - the physical person or legal entity representing the interests of the insurance (reinsurance) organization in settlement of the declared claims of the insurer in connection with insured event, performing risks assessment after insured event, determining the amount of insurance indemnity proceeding from obligations of the insurance (reinsurance) organization and the constituting expert opinion;

4) the act of event - the document constituted by the insurer in case of receipt of the notification on insurance event;

5) the actuary (the expert in insurance mathematics) - the physical person performing the actuarial activities connected with carrying out economic-mathematical calculations of the sizes of obligations, rates of insurance premiums according to insurance contracts and reinsurance, and also making assessment of profitability and profitability of the types of insurance of the insurance (reinsurance) organization which are carried out and planned to carrying out for the purpose of ensuring necessary level of solvency and financial stability of the insurance (reinsurance) organization, having the appropriate certificate of authorized body registered in the Unified state register of actuaries and insurance brokers;

6) actuarial activities - activities for the analysis and quantitative, financial risks assessment and/or the risks of financial liabilities caused by availability, and also development and efficiency evaluation of financial risk management methods;

7) the underwriter (insurance contract specialist of risks assessment) - the specialist of the insurance (reinsurance) organization as whom enter assessment of the insurance risks accepted on insurance, and determination of conditions of insurance contracts (reinsurance);

8) underwriting (assessment of insurance risk) - set of methods and actions according to the insurance risk and its factors characterizing the insurer (insured) and its financial condition, object of insurance, condition of insurable property and justification of insurance interest, other factors provided by internal documents of the insurer, conditions of Rules of insurance and the insurance contract for assessment of possibility of the conclusion of the insurance contract and calculation of insurance rate and insurance premium;

9) ассистанс (person providing services to the insurer) - provision by insurance company and/or persons authorized by insurance company to the insurer (insured, to the beneficiary) technical and/or medical, and/or financial aid and assistance, including in the form of money and/or in natural and material form, owing to loss occurrence;

10) the unconditional franchize - compensation of damage by the insurer in case of loss occurrence less the franchize amount;

11) бордеро (the document of the reporting in insurance) - the documentary list of the insured persons or property accepted on insurance and which are subject to reinsurance;

12) type of insurance - set of the conditions of insurance combined by homogeneous objects of insurance (valuable interests) and risks on which case of approach the insurance contract is signed;

13) temporary administration (the temporary administrator) - persons (person) designated by authorized body for ensuring safety of property and implementation of actions for ensuring management of the insurance (reinsurance) organization;

14) inward reinsurance - the agreement of reinsurance signed with the purpose to assume the responsibility complete or partial, other insurance company;

15) the beneficiary - person for benefit of whom the insurance contract is signed;

16) the redemption amount - the part of reserves of insurance premiums which is subject to payment to the insurer on the date of early termination of the agreement of accumulative (long-term) life insurance by him. The size of the redemption amount is determined by the special tables constituted by the insurer and depends on duration of the expired period of insurance and term for which the agreement was signed. The redemption amount is subject to payment only if the possibility of its payment is provided in the contract with the insurer;

17) voluntary insurance - the insurance performed on declaration of will of the parties;

18) the affiliated organization - the legal entity who is under control of other legal entity;

19) the Single database on insurance (further - the database) - set of information (in electronic form) on participants of the insurance market (participants of the insurance market, the insurer, insured object and the beneficiary);

20) the Unified information system of insurance pool (further - EIS) - set of information, information technologies and technical means which create perform transactions selling policies of compulsory insurance, and also process, store and provide information on types of compulsory insurance, including without limitation information on the signed insurance contracts, notifications on insured events, statements for insurance payments, the paid insurance indemnities and refusals in insurance payment;

21) insured - person concerning whom insurance is performed;

22) valuable interest - the lawful interest of person (physical or legal) connected with the property right, other corporeal rights and obligations and also the interest directed to preserving and providing life, health, working capacity of physical person. The insurance contract of property contains the interest in preserving insured property based on the laws, other legal acts or the agreement. Insurance interest shall be lawful, and only that interest which does not contradict the operating law and order can be equally insured;

23) the Islamic insurance (reinsurance) organization - the insurance (reinsurance) organization performing insurance activity by the Islamic principles of insurance taking into account the features established by this Law based on the corresponding license of authorized body;

24) Islamic window - one of divisions of insurance company performing insurance activity according to the Islamic principles of insurance;

25) outward reinsurance - risks according to insurance contracts and the insurance premiums transferred to reinsurance;

26) the combined (complex) type of insurance - the type of insurance providing insurance of additional valuable interests it is integral connected with the main object of insurance, one insurance contract;

27) the large member of the insurance (reinsurance) organization - physical person or legal entity which according to written consent of authorized body can own directly or indirectly ten or more percent placed (less exclusive and redeemed by the insurance (reinsurance) organization) shares of the insurance (reinsurance) organization (except as specified when such owner is the state, and also the cases provided by this Law) or to have opportunity:

- vote directly or indirectly in ten or more percent voting (less exclusive) shares of the insurance (reinsurance) organization;

- exert impact on the decisions made by the insurance (reinsurance) organization owing to the agreement or according to the procedure, determined by regulatory legal acts of the Cabinet of Ministers;

28) insurer liability limit - the greatest possible amount of insurance indemnity on one insured event and/or for the entire period of insurance;

29) obligatory reinsurance - reinsurance in case of which the reinsurer shall transfer to the reinsurance organization to reinsurance the obligation or its part on insurance payment (insurance indemnity) for the signed basic agreement and the reinsurance organization shall assume the specified obligation or its part in reinsurance;

30) object of insurance - the valuable interest of the insurer which is not contradicting the legislation of the Kyrgyz Republic which can be insured or is subject to insurance;

31) compulsory insurance - the type of insurance for which obligation of the insurer to sign the insurance contract is established by the legislation of the Kyrgyz Republic in the field of compulsory insurance;

32) merging of the insurance (reinsurance) organizations - the non-profit organization created for ensuring consumer protection, services - participants of the insurance market, interests of the members and coordination of their professional activity;

33) reinsurance (cession) - activities for insurance by one insurer (overcautious person) of the valuable interests of other insurer (reinsurer) connected with the obligation accepted by the last according to the insurance contract (basic agreement) on insurance payment;

34) the reinsurer (assignor) - the insurer who signed with the overcautious person the agreement of reinsurance for the purpose of acquisition of reinsurance covering and participation of the overcautious person in insurance payments for insurance contracts on the conditions and according to the procedure provided by such agreement of reinsurance;

35) reinsurance reservoir - the maximum amount determined in the agreement of reinsurance within which the overcautious person will shall pay to the insurer the losses falling to its share;

36) Rules of voluntary insurance - the document of insurance company determining conditions of implementation of insurance on certain type of voluntary insurance;

37) Rules of compulsory insurance - the document determining conditions of implementation of insurance on certain type of compulsory insurance, approved by the Cabinet of Ministers according to the civil legislation of the Kyrgyz Republic and the legislation in the field of compulsory insurance;

38) illegal interests - the valuable interests contradicting the legislation of the Kyrgyz Republic, including penalties and penalty fee, and also violating the law of the Kyrgyz Republic of action of the interested person as a result of which of subject of interest it is benefited (advantage);

39) professional participants of the insurance market - the insurance (reinsurance) organizations performing the activities based on the corresponding licenses and inclusion in the Unified register of the insurance (reinsurance) organizations of authorized body;

40) prudential standard rates - the standard rates established by the Cabinet of Ministers obligatory for observance by the insurance (reinsurance) organizations;

41) own deduction - part of scope of responsibility within which the insurer or the reinsurer (assignor) bears responsibility according to the insurance contract or reinsurance;

42) joint insurance - insurance of object of insurance under one agreement several insurers performing solidary duties on insurance payment before the insurer (beneficiary);

43) the co-insurer - each of insurers participating in joint insurance;

44) insurer - the physical person or legal entity which signed the insurance contract with insurance company (insurer);

45) the insurance act - the document constituted by the insurer in case of recognition of loss occurrence by it and forming the basis for payment of insurance indemnity;

46) insurance premium - the payment caused by the agreement which the insurer shall pay to the insurer according to the procedure and the terms established by the insurance contract;

47) insurance rate - rate of insurance premium from unit of insurance sum taking into account object of insurance and nature of insurance risk, and also other conditions of insurance;

48) insurance (reinsurance) pool - merging of the insurance (reinsurance) organizations jointly performing insurance activity on separate types of insurance or certain insurance risks based on the cooperation agreement signed between his participants;

49) insurance sum - amount of money for which object of insurance and which represents limiting scope of responsibility of the insurer in case of loss occurrence is insured;

50) insurance indemnity - the amount paid by the insurer according to the insurance contract in case of loss occurrence;

51) insured event - event in case of which approach by law or the insurance contract the insurer shall make insurance payment;

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