Regulation on State Inspection for Insurance Supervision under the Ministry of Finance of the Republic of Uzbekistan

Appendix No. 2 to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of 8 July 1998 No. 286 "On measures on state regulation of insurance activity"

1. The State Inspection for Insurance Supervision (hereinafter State Inspection) under the Ministry of Finance is a state agency exercising control over the activity of the insurance organizations on the territory of the Republic of Uzbekistan with the purpose of protecting the rights and legal interests of all parties in insurance relations.

2. The State Inspection's activity is guided by the Constitution and the laws of the Republic of Uzbekistan, the Resolutions of the Oliy Majlis (parliament) of the Republic of Uzbekistan, the decrees and orders of the President of the Republic of Uzbekistan, the resolutions and decrees of the Cabinet of Ministers of the Republic of Uzbekistan, the decisions of the Ministry of Finance of the Republic of Uzbekistan as well as the present Regulation.

3. The main tasks of the State Inspectino are:

- establishment of the mandatory solvency norms and the order of their determination; the methodology of calculation of the maximum allowable size of obligations of the insurance companies for particular types of risks and the aggregate size of the obligations, the order and time of reporting on the solvency of the insurance companies;

- control over the insurance market professional participants' compliance with the legislation on insurance activity, and the established solvency norms and other requirements regulating their financial stability;

- establishment of the order of record-keeping and reporting on the formation and distribution of insurance reserves by the insurance companies;

- establishment of mandatory qualification requirements for the executive managers and the chief accountant of insurance companies;

- establishment of forms, order and deadlines for the financial reporting by insurance companies;

- establishment of the procedure and terms of formation and distribution of reserves by insurance companies;

- establishment of the procedure and terms of financing of measures on prevention of insurance cases by insurance companies;

- inspection, compliant with legislation, of the activity of professional participants of the insurance market and issuance of mandatory directives to eliminate the violations identified;

- suspension of the licenses of insurance companies and insurance brokers fully or partially (for specific types of insurance (classes) for the period of the maximum of ten working days, request from the court to suspend for the period of longer than ten days or annul the said licenses as a measure of legal pressure;

- publication of half-year and yearly reports on the regulation and supervision of the insurance activity, as well as statistical data on the activity of the insurance market in the financial year;

- performance of other functions according to the legislation.

4. According to the tasks laid upon it, the State Inspection performs the following functions:

- checking for insurance companies' compliance with the legislation of the Republic of Uzbekistan on insurance activity and trustworthiness of their reports, as well as ensuring compliance with the established solvency indicators and other financial stability requirements;

- licensing the insurance activity of insurance companies and insurance brokers; performance, within the limits of its competence, of the methodological support of the insurance companies;

- preparing the recommendations on the rules (conditions) of insurance and establishment of insurance tariffs for mandatory types of insurance;

- developing the regulatory acts and methodological materials on the implementation of the legislation on insurance activity, mandatory for all parties in the insurance relations from the moment of their approval by the State Inspection;

- developing the drafts for legislative acts on the issues concerning insurance activity and submitting them for consideration to the administration of the ministry;

- protecting the interests of insurers in case of liquidation and reorganization of insurance companies;

- analyzing the condition and development trends of the insurance activity in the republic;

- implementing measures on professional preparation and training of staff on insruance activity, organizing seminars and conferences on insurance activity;

- carrying out information-explanatory and awareness-raising works on the issues of insurance activity through mass media;

- considering the recommendations and requests of citizens on the issues within its competence;

- performing publishing activity.

5. State inspection has the right to:

- receive the required reports on insurance activity and information on financial condition from the insurance companies, as well as information required for the performance of its tasks and functions from the enterprises, institutions, organizations, banks (excluding small and medium-sized enterprises and microfirms), and citizens;

- inspect the activity of insurance companies with the purpose of controlling their compliance with the legislation on insurance, creating, when necessary, commissions and task groups;

- receive information and statistical reports necessary for the performance of its tasks and functions from the state executive agencies on non-refundable basis.

6. The State Inspection is headed by the director appointed by the Cabinet of Ministers of the Republic of Uzbekistan on the recommendation of the Ministry of Finance. The Director of the State Inspection is personally responsible for the performance of the tasks and functions laid on the State Inspection.

7. The main issues concerning the organisation of work on insurance supervision and other issues within the competence of the activity of the State Inspection are ruled upon by the administrative staff of the Ministry of Finance of the Republic of Uzbekistan.

8. State Inspection organizes its work in accordance with the plan approved by the Ministry of Finance of the Republic of Uzbekistan.

9. the Actions of the members of staff of the State Inspection may be appealed according to the procedure established by the legislation.