Insurers, Foreign Insurance Companies
Insurers, Foreign Insurance Companies

Insurers, Foreign Insurance Companies

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Law of the Russian Federation of November 27, 1992, N 4015-1 (as amended on April 1, 2022) “On the organization of insurance business in the Russian Federation”

Insurers

1. Insurers – insurance companies, foreign insurance companies, mutual insurance companies.

Insurance company – a legal entity established in accordance with the legislation of the Russian Federation to carry out insurance and (or) reinsurance activities and has received a license to carry out the relevant type of insurance activity in accordance with the procedure established by this Law.

Foreign insurance organization – a foreign legal entity that meets the requirements established by paragraph 1 of Article 33.1 of this Law,

which has a commercial presence in the territory of the Russian Federation by creating a branch (branches) and has received a license to carry out the relevant type of insurance activity in the territory of the Russian Federation in accordance with the procedure established by this Law. 

The provisions of this Law shall apply to foreign insurance organizations in terms of activities carried out on the territory of the Russian Federation through their affiliates.

Insurance companies and foreign insurance companies carrying out exclusively reinsurance activities are respectively reinsurance companies and foreign reinsurance companies.

Mutual Insurance Society – a legal entity established in accordance with the legislation of the Russian Federation to carry out mutual insurance activities and has received a license to carry out mutual insurance in accordance with the procedure established by this Law.

Insurance companies, including reinsurance companies, and mutual insurance companies are not entitled to carry out entrepreneurial activities not related to insurance activities (insurance business).

Foreign insurance companies, including foreign reinsurance companies, are not entitled to carry out business activities in the territory of the Russian Federation that is not related to insurance activities (insurance business).

Insurers have the right to invest their own funds (capital) and funds of insurance reserves, and carry out transactions with property in order to ensure their activities, including the sale of property acquired in order to ensure their activities,

and property acquired as a result of the insurant’s (beneficiary’s) renunciation of the rights to insured property in favor of the insurer in order to receive from him an insurance payment in the amount of the full sum insured.

(Clause 1 as amended by Federal Law No. 343-FZ of July 2, 2021)

(see text in the previous edition )2. Insurers assess the insurance risk, receive insurance premiums (insurance premiums), form insurance reserves, invest assets, determine the amount of loss or damage, make insurance payments, and perform other actions related to the fulfillment of obligations under the insurance contract. Insurers have the right to carry out either only insurance of objects of personal insurance provided for in paragraphs 1 – 3 of Article 4 of this Law or only insurance of objects of property and personal insurance provided for, respectively, in paragraphs 2 – 6 of Article 4 of this Law.

(as amended by the Federal Laws of December 10, 2003, N 172-FZ, of July 23, 2013, N 234-FZ )

(see text in the previous edition )

ConsultantPlus: note.

The requirements of par. 3 p. 2 art. 6 in terms of the annual audit of the actuarial opinion, the report on the results of such an audit are applied to actuarial opinions prepared on the basis of the results of the mandatory actuarial assessment of the activities of an insurance company after 12/31/2022 ( Decision of the Board of Directors of the Bank of Russia dated 04/14/2022).

Based on the results of each reporting year, the activities of an insurance organization, with the exception of a medical insurance organization that provides exclusively compulsory medical insurance, mutual insurance companies are subject to mandatory actuarial assessment by a responsible actuary. 

In the cases stipulated by the legislation of the Russian Federation, the insurance company is also obliged to ensure the verification of the actuarial report prepared on the basis of the results of the mandatory actuarial valuation. 

An actuarial opinion prepared on the basis of the results of a mandatory actuarial valuation is submitted by an insurance organization, a mutual insurance company to the insurance supervisory authority together with the annual accounting (financial) statements unless another deadline for submission of such an actuarial opinion is established by the insurance supervisory authority, but no later than July 1 of the year following the reporting year. 

The report on the results of the verification of the actuarial opinion shall be submitted by the insurance company to the insurance supervisory authority no later than July 1 of the year following the reporting year, unless otherwise the term for submission of such a report is not established by the insurance supervisory authority.

(The paragraph was introduced by Federal Law No. 234-FZ of 23.07.2013, as amended by Federal Laws No. 39-FZ of 08.03.2015, No. 194-FZ of 23.06.2016, No. 194-FZ of 11.06.2021, No. 194-FZ of 02.07.2021 N 343-FZ )

(see text in the previous edition )

Insurers must keep separate records of expenses by type of compulsory insurance in accordance with the procedure established by the insurance supervisory authority.

(the paragraph was introduced by Federal Law No. 234-FZ on July 23, 2013)Insurance organizations, with the exception of those providing compulsory health insurance, approve the regulation on the assessment of insurance risks and their management,

which contains the objectives of the assessment of insurance risks, forms and methods of such assessment, methods of risk management, classification of objects and risks subject to insurance (reinsurance), provisions on inspection of the insured and (or) subject to insurance (reinsurance) objects,

provisions on the diversification of insurance risks, other provisions that do not contradict the legislation of the Russian Federation and are aimed at making a decision by the insurer on the possibility of concluding an insurance (reinsurance) contract, its conditions, and transferring risks to reinsurance.

(the paragraph was introduced by Federal Law No. 251-FZ on July 29, 2018)2.1. Insurers must create conditions for ensuring the safety of documents, the list of which and the requirements for ensuring the safety of which are established by the insurance supervisory authority, as well as information contained in information systems, the maintenance of which is provided for in Article 29.1 of this Law.

(Clause 2.1 was introduced by Federal Law No. 65-FZ of April 22, 2010, as amended by Federal Laws No. 362-FZ of November 30, 2011, and No. 222-FZ of June 23, 2016 )

(see text in the previous edition )2.2. In the event, that information contained in the Unified State Register of Real Estate is required for the implementation of insurance, the insurance company, or foreign insurance company is not entitled to demand from policyholders, insured persons, beneficiaries, as well as persons intending to conclude an insurance contract, to provide such information. 

In this case, an insurance company, a foreign insurance company, in the manner and methods established by the Federal Law of July 13, 2015, N 218-FZ “On State Registration of Real Estate”,

within three working days from the date of the application of a citizen, his representative or representative of a legal entity request and receive in accordance with the specified federal law terms in the federal executive body authorized by the Government of the Russian Federation to carry out state cadastral registration, state registration of rights,

maintaining the Unified State Register of Real Estate and providing the information contained in the Unified State Register of Real Estate, its territorial bodies, or a state budgetary institution subordinate to it,

endowed with appropriate powers in accordance with the decision of such a body, the information contained in the Unified State Register of Real Estate, is only in electronic form.

(as amended by Federal Laws of 07/03/2016 N 361-FZ, of 07/02/2021 N 343-FZ )

(see text in the previous edition )3. Insurance organizations that are subsidiaries of foreign investors (main organizations) or that have a share of foreign investors in their authorized capital of more than 49 percent cannot carry out insurance for life,

health, and property of citizens in the Russian Federation at the expense of funds allocated for these purposes from the budgets of the budgetary system of the Russian Federation to executive authorities (insurers), insurance related to the procurement of goods, works, services to meet state and municipal needs, as well as insurance of property interests of state organizations and municipal organizations.

(as amended by Federal Law No. 343-FZ of July 2, 2021)

(see text in the previous edition )The paragraph became invalid as of August 22, 2017. – Federal Law of July 23, 2013, N 234-FZ.

(see text in the previous edition )For the purposes of this Law, foreign investors are recognized as foreign organizations and foreign citizens who have the right to make investments in the territory of the Russian Federation in the authorized capital of an insurance company established or newly created in the territory of the Russian Federation in the manner and under the conditions established by the legislation of the Russian Federation.

(as amended by Federal Law No. 343-FZ of July 2, 2021)

(see text in the previous edition )Paragraphs four-eight became invalid on August 22, 2021. – Federal Law of July 2, 2021, N 343-FZ.

(see text in the previous edition )Foreign insurance organizations cannot carry out compulsory insurance in the Russian Federation (with the exception of compulsory insurance carried out in accordance with the Federal Law dated April 25, 2002, N 40-FZ “On compulsory insurance of civil liability of vehicle owners”),

insurance related to the procurement of goods works, services to meet state and municipal needs, insurance of property interests of state organizations and municipal organizations, insurance of objects requiring a license to carry out work related to the use of information constituting a state secret,

other insurance at the expense of funds allocated for these purposes from the budgets of the budgetary system of the Russian Federation to executive authorities (insured persons).

(the paragraph was introduced by Federal Law No. 343-FZ of July 2, 2021)

(Clause 3 as amended by Federal Law No. 234-FZ of July 23, 2013)

(see text in the previous edition )3.1. If the amount (quota) of participation of foreign capital in the authorized capital of insurance organizations exceeds 50 percent,

the insurance supervisory authority stops issuing licenses to carry out insurance activities to insurance organizations that are subsidiaries in relation to foreign investors (main organizations) or that have a share of foreign investors more than 49 percent in its authorized capital and also ceases to make decisions on the issuance

(replacement) of licenses for insurance activities to foreign insurance organizations and on accreditation of branches of foreign insurance organizations.

The amount (quota) of participation of foreign capital in the charter capitals of insurance companies is calculated by the insurance supervisory authority annually as of January 1 of the current year in the manner prescribed by it,

based on data on the charter capitals of insurance companies and data on the minimum amounts of guarantee deposits of branches of foreign insurance companies established by clause 1 article 33.4 of this Law.

Information on the amount (quota) of participation of foreign capital in the charter capitals of insurance companies,

on the introduction of termination of the restrictions on foreign investment provided for in paragraphs one and five of this clause is subject to publication by the insurance supervisory authority in a print publication determined by it and is posted on the official website of the insurance supervisory authority in the information –

telecommunications network “Internet” within ten days from the date of adoption of the relevant decision.

The insurance company is obliged to obtain prior permission from the insurance supervisory authority to increase the size of its authorized capital at the expense of foreign investors

(except for cases of an increase in the share of a foreign investor in the authorized capital of the insurance company in nominal terms as a result of an increase in the authorized capital of the insurance company at the expense of its own funds),

for the alienation in favor of foreign investors (including the sale to foreign investors) of their shares (stakes in the authorized capital), and Russian shareholders (participants) are required to obtain prior permission from the insurance supervisory authority for the alienation of their shares (stakes in the authorized capital) of the insurance company in favor of foreign investors. The validity of these prior authorizations is one year.

If the amount (quota) of participation of foreign capital in the authorized capital of insurance companies established by this paragraph is exceeded, the insurance supervisory authority shall refuse to issue preliminary permits specified in paragraph four of this paragraph.

Payment by foreign investors for their shares (stakes in charter capitals) of insurance organizations shall be made exclusively in cash in the currency of the Russian Federation.

(Clause 3.1 was introduced by Federal Law No. 343-FZ on July 2, 2021)4. An insurance organization that is a subsidiary of a foreign investor (main organization) or has a share of foreign investors in its authorized capital of more than 49 percent shall have the right to carry out insurance activities in the Russian Federation if the foreign investor

(main organization) has is an insurance company operating in accordance with the legislation of the relevant state.

(as amended by Federal Law No. 234-FZ of July 23, 2013)

(see text in the previous edition )The paragraph is invalid. – Federal Law of July 23, 2013, N 234-FZ.

(see text in the previous edition )

(Clause 4 was introduced by Federal Law No. 204-FZ on November 20, 1999)4.1. The preliminary permit of the insurance supervisory body in the cases provided for in paragraph 3.1 of this article shall be issued within thirty days from the date of receipt

by the insurance supervisory body of the application and documents attached to the application and corresponding to the list of documents approved by the insurance supervisory body required to obtain the specified preliminary permit.

(as amended by Federal Law No. 343-FZ of July 2, 2021)

The procedure for issuing a preliminary permit of the insurance supervisory authority is specified in paragraph 3.1 of this article, the form of an application for obtaining the said preliminary permit, as well as the procedure for submitting such an application and the documents attached to it, shall be established by the insurance supervisory authority.

(the paragraph was introduced by Federal Law No. 343-FZ of July 2, 2021)

(Clause 4.1 was introduced by Federal Law No. 234-FZ on July 23, 2013)5. Has expired. – Federal Law of July 23, 2013, N 234-FZ.

(see text in the previous edition )6. In order to inform policyholders, insured persons, beneficiaries, and persons intending to conclude an insurance contract, information about its activities,

the insurer must have its own website on the Internet information and telecommunication network (hereinafter referred to as the official website of the insurer), on which the following information in Russian:

1) full name, address (location), telephone numbers, working hours of the insurer, its branches, and representative offices;2) information about managers, shareholders (participants, members) of the insurer;

3) information about title documents, including information about the main state registration number (with the exception of a foreign insurance organization), taxpayer identification number,

registration number in the unified state register of insurance business entities, as well as information about all licenses of the insurer and their validity periods;4) a list of types of insurance carried out;5) insurance rules and insurance rates;

ConsultantPlus: note.

Until December 31, 2022, insurance organizations and mutual insurance companies have the right not to disclose information subject to disclosure in accordance with paragraphs. 6 p. 6 art. 

6 ( Decision of the Board of Directors of the Bank of Russia dated April 14, 2022).6) annual accounting (financial) statements of the insurer and an auditor’s report confirming its reliability for the previous three reporting years;

ConsultantPlus: note.

Until December 31, 2022, insurance organizations and mutual insurance companies have the right not to disclose information subject to disclosure in accordance with paragraphs. 7 p. 6 art. 6 ( Decision of the Board of Directors of the Bank of Russia dated April 14, 2022).7)

annual consolidated financial statements and an audit report confirming its reliability for the previous three reporting years;8) information on the credit ratings assigned to the insurer (if assigned), as well as on their confirmation, revision, or withdrawal;9) information about the activities of the insurer, about the experience of his work by types of insurance;

10) information on participation in associations (unions), including self-regulatory organizations in the financial market and professional associations of insurers;

11) information about the operators of financial platforms (their names and websites in the information and telecommunications network “Internet”) if the insurer has joined the agreements on the provision of services of operators of financial platforms;

12) other information, the need for publication of which is provided for by the legislation of the Russian Federation or follows from customs.

(Clause 6 as amended by Federal Law No. 343-FZ of July 2, 2021)

(see text in the previous edition )

6.1. The requirement to post the information specified in subparagraphs 1, 6, and 7 of paragraph 6 of this article does not apply to foreign insurance organizations.

(Clause 6.1 was introduced by Federal Law No. 343-FZ on July 2, 2021)

6.2. A foreign insurance organization, in addition to the information specified in paragraph 6 of this article, places the following information in Russian on its official website:

1) the full name of the foreign insurance company, the address (location) in the state (on the territory) where the foreign insurance company is registered,

and information on the right to carry out insurance and (or) reinsurance on the territory of the state (on the territory) – a member of the World Trade Organization, provided in accordance with the national legislation of this state (this territory), telephone numbers, hours of operation;

2) annual accounting (financial) statements of a foreign insurance company for the previous three years of its activity, drawn up in accordance with International Financial Reporting Standards or other internationally recognized rules other than International Financial Reporting Standards, with copies of audit reports confirming the reliability of these statements (in the presence of);

3) full name of the branch of the foreign insurance company, address (location), telephone numbers, working hours;

4) information about the heads of the branch of the foreign insurance company;

5) regulations on the branch of the foreign insurance company, information on the identification number of the taxpayer, on the code of the reason for registration with the tax authority, the number of the entry on accreditation of the branch of the foreign insurance company in the state register of accredited branches, representative offices of foreign legal entities and the date of its entry.

(Clause 6.2 was introduced by Federal Law No. 343-FZ on July 2, 2021)7. The information on the activities of the insurer specified in paragraphs 6 and 6.2 of this article shall be posted on its official website within five working days from the date the insurer,

the authorized body or organization makes the relevant decision, and, if necessary, its registration or notification of the decision of the authorized bodies from the date of registration, notification respectively.

(as amended by Federal Law No. 343-FZ of July 2, 2021)

(see text in the previous edition )The requirements for the procedure for the placement by the insurer of the information specified in clauses 6 and 6.2 of this article shall be established by the insurance supervisory authority.

(as amended by Federal Law No. 343-FZ of July 2, 2021)

(see text in the previous edition )

(Clause 7 was introduced by Federal Law No. 234-FZ on July 23, 2013)8. The insurer is obliged to store the documents containing the information specified in clauses 6 and 6.2 of this article on electronic media within the time limits stipulated by the legislation on archiving in the Russian Federation and submit them at the request of the insurance supervisory authority within fifteen working days from the date of receipt of a request.

(Clause 8 was introduced by Federal Law No. 234-FZ on July 23, 2013; as amended by Federal Law No. 343-FZ on July 2, 2021)

(see text in the previous edition )9. For the purposes of this Law, an insurance group is an association of legal entities that is not a legal entity, in which one legal entity or several legal entities (hereinafter referred to as members of the insurance group) are under the control or significant influence of one insurance company (hereinafter referred to as the parent insurance company of the insurance group). ). Control and significant influence to determine the members of the insurance group and the parent insurance company of the insurance group are determined in accordance with International Financial Reporting Standards recognized in the Russian Federation.

(Clause 9 was introduced by Federal Law No. 234-FZ on July 23, 2013)10. The restrictions established by paragraphs one and two of paragraph 3 and paragraph 4 of this article do not apply to insurance companies that are subsidiaries in relation to foreign investors (main organizations) or have a share of foreign investors in their authorized capital of more than 49 percent, created or reorganized before August 22, 2012, and, in accordance with the legislation of the Russian Federation in force on that date, we’re entitled to carry out the insurance activities specified in paragraphs one and two of clause 3 and clause 4 of this article.

(Clause 10 was introduced by Federal Law No. 234-FZ of July 23, 2013)

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