On Introducing Changes And Additions Into The Law Of The Russian Federation "on The Organization Of Insurance Business In The Russian Federation"

Original Language Title: О внесении изменений и дополнений в Закон Российской Федерации "Об организации страхового дела в Российской Федерации"

Read the untranslated law here: http://pravo.gov.ru/proxy/ips/?doc_itself=&infostr=x&backlink=1&fulltext=1&nd=102062970

RUSSIAN FEDERATION FEDERAL LAW on amendments and additions to the law of the Russian Federation "on the Organization of insurance business in the Russian Federation" adopted by the State Duma on October 27, 1999 the year approved by the Federation Council of the year November 11, 1999 (as amended by federal law from day of arrival N 234-FZ), Article 1. To the law of the Russian Federation dated November 27, 1992 N 4015-(I) on the Organization of insurance business in the Russian Federation "(records of the Congress of people's deputies of the Russian Federation and the Supreme Soviet of the Russian Federation, 1993, N 2, p. 56; collection of laws of the Russian Federation, 1998, N 1, p. 4) the following amendments and supplements: 1. Article 6 supplemented by paragraphs 3 and 4 as follows:" 3. Insurance companies which are subsidiaries vis-à-vis foreign investors (the primary organizations) or having a share of foreign investors in its authorized capital of more than 49 per cent may not carry in the Russian Federation life insurance, compulsory insurance, compulsory national insurance, property insurance, related to the supplies or the execution of contract works for public use, as well as insurance of the property interests of the State and municipal organizations.
If the size (quota) participation of foreign capital in authorized capitals of the insurance organizations exceeds 15 per cent, the Federal Executive authority for the supervision of insurance activity stops issuing licenses to conduct insurance business insurance subsidiaries organizations vis-à-vis foreign investors (the primary organizations) or with foreign investors in its authorized capital of more than 49 per cent.
Indicated above size (quota shown above) is calculated as the ratio of total capital, owned by foreign investors and their subsidiaries in the Charter capital of insurers, to the total authorized capital of insurance companies.
Insurance company must obtain prior authorization from the Federal Agency for supervision of insurance activities on increasing the size of its Charter capital at the expense of foreign investors and/or their subsidiaries, the alienation in favor of foreign investors (including foreign investors for sale) of its shares (interests in Charter capital) and Russian shareholders (participants)-to dispose of their shares (interests in Charter capital) insurance organization in favour of foreign investors and/or its subsidiaries. In the specified prior authorization refuses to insurance companies that are subsidiaries vis-à-vis foreign investors (the primary organizations) or with foreign investors in their Charter capital of more than 49 percent, or becoming established as a result of these transactions, if installed this paragraph the size (quota) exhausted or will be exceeded.
Payment by foreign investors of their shares (interests in Charter capital) insurance organizations is made exclusively in cash in the currency of the Russian Federation.
Persons carrying out the functions of the sole executive body and Chief Accountant of an insurance organization with foreign investments shall have the nationality of the Russian Federation.
4. Insurance Organization, a subsidiary of society vis-à-vis the foreign investor (the main organization), has the right to perform insurance activities in the Russian Federation, if the foreign investor (the main organization) not less than 15 years is an insurance organization, carries out its activities in accordance with the legislation of the State concerned, and not less than two years involved in the activities of insurance undertakings established on the territory of the Russian Federation. (Repealed-Federal Act of arrival N 234-FZ)
2. Article 25 supplement part 3 as follows: "the minimum size of the paid authorized capital, formed at the expense of cash on the day of filing of documents for obtaining a license to carry out insurance activities of the insurance undertaking which is a subsidiary of society vis-à-vis the foreign investor (the main organization) or with foreign investors in its authorized capital of more than 49 per cent, shall be not less than 250 thousand minimum wages and when carrying out exclusively reinsurance is not less than 300 thousand times the minimum wage. "
3. Article 26 shall be amended with paragraph 4 as follows: "4. The Federal Executive authority for the supervision of insurance activities may establish additional requirements to the procedure and conditions of education and placement of insurance reserves of insurance companies with foreign investments".
4. paragraph 1 of article 27 paragraph be supplemented as follows: "the Federal Executive authority for the supervision of insurance activities may establish additional requirements for normative correlations between assets and insurance obligations assumed by insurance companies with foreign investments".

5. in paragraph 3 of article 30: complement a new subparagraph (e) reading: "d) extradition in cases stipulated by the present law permits to increase the size of statutory capital of insurance companies at the expense of foreign investors to conduct transactions with foreign investors on alienation of shares (interests in Charter capital) insurance companies, as well as the opening of branches of insurance companies with foreign investments";
subparagraphs "d" and "e" respectively considered sub-items "e" and "f".
Article 2. In paragraph 5 of the resolution of the Supreme Soviet of the Russian Federation dated November 27, 1992 N 4016-I "on the entry into force of the law of the Russian Federation" on insurance "(Gazette of the Congress of people's deputies of the Russian Federation and the Supreme Soviet of the Russian Federation, 1993, N 2, art. 57) delete the last sentence.
Article 3. The rules established by paragraph 1, paragraph 1 article eighth of this federal law, shall not apply to insurance companies with foreign investments, created prior to the date of entry into force of this federal law.
Activities of insurance companies with foreign investments, the share of foreign investments in the Charter capital exceeding 49 per cent is allowed, unless otherwise provided by law.
The rules established by the second paragraph of article 1, paragraph 1 of the present Federal law in relation to the ban on the exercise of individual types of insurance do not apply to insurance companies which are subsidiaries vis-à-vis foreign investors (the primary organizations) on the date of the entry into force of this federal law, if the implementation of the relevant types of insurance allowed them to licenses issued before the specified day.
Article 4. The President of the Russian Federation and to entrust the Government of the Russian Federation to bring its normative acts in compliance with this federal law.
Article 5. This federal law shall enter into force on the day of its official publication, except for provisions for which the present article establishes deadlines for the entry into force.
Article 2 of this federal law shall enter into force from June 24, 1999 year.
For insurance organizations established prior to the date of entry into force of this federal law, the provisions of this federal law shall enter into force on the expiry of one year from the day of its official publication, except for provisions relating to the issuance of permits for the opening of branches, to increase the size of statutory capital of insurance companies at the expense of foreign investors to conduct transactions with foreign investors on alienation of shares (interests in Charter capital) of insurance organizations.
The President of the Russian Federation, b. Yeltsin, Kremlin, Moscow, N November 20, 1999 204-FZ