Article 72. The order of satisfaction of creditors' claims of the insurance (reinsurance) organization of the Law on Insurance Activity

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1. The claims of creditors of the insurance company, recognized in accordance with the procedure established by law, must be satisfied in the following order::

1) first of all, creditors' claims for insurance payments for insured events that occurred prior to the entry into force of the court decision on the liquidation of the insurance company are satisfied.;

1-1) secondarily, the claims for payment of alimony deducted from wages and (or) other income, as well as the claims of citizens to whom the insurance company being liquidated is responsible for causing harm to life or health, are satisfied by capitalizing the corresponding time-based payments on grounds unrelated to liability under insurance contracts.;

2) in the third turn, calculations are made on wages and compensation for persons working under an employment contract, arrears in social contributions to the State Social Insurance Fund, payment of mandatory pension contributions withheld from wages, as well as remuneration under copyright agreements;

3) the fourth priority is to satisfy creditors' claims under concluded insurance contracts related to the identity of the insured;

4) the fifth priority is to satisfy the claims of individual creditors under property insurance contracts concluded by them and other types of insurance not related to the identity of the insured;

5) in the sixth turn, creditors' claims under concluded insurance contracts other than those specified in subitems 3) and 4) of this paragraph, as well as the claims of the organization guaranteeing insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, insurance contracts, guarantee payments, expenses related to payment of the insurance portfolio of the insurance company being liquidated, transferred to another insurance company in accordance with the procedure and on the terms, provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities, and other expenses related to their implementation;

6) in the seventh turn, creditors' claims for obligations secured by a pledge of the property of the insurance organization being liquidated are satisfied within the amount of the collateral.;

7) in the eighth turn, arrears on taxes, fees and other mandatory payments to the budget, as well as on repayment of loans issued from the republican budget, are repaid.;

8) in the ninth turn, settlements with other creditors are carried out in accordance with the legislative acts of the Republic of Kazakhstan.

2. Expenses related to the liquidation of an insurance (reinsurance) organization are incurred out of turn.

3. The claims of creditors of a reinsurance organization, recognized in accordance with the procedure established by law, must be satisfied in the following order::

1) first of all, the claims for payment of alimony deducted from wages and (or) other income, as well as the claims of citizens to whom the reinsurance organization being liquidated is responsible for causing harm to life or health, are satisfied by capitalizing the corresponding time-based payments on grounds unrelated to liability under reinsurance contracts;

2) secondarily, payments are made for wages and compensation to persons working under an employment contract, arrears of social contributions to the State Social Insurance Fund, payment of mandatory pension contributions withheld from wages, as well as remuneration under copyright agreements;

3) third, the claims of assignors arising from contracts in the life insurance industry are satisfied;

4) in the fourth row, the claims of assignors arising from contracts in the general insurance industry are satisfied;

5) the fifth priority is to satisfy creditors' claims for obligations secured by a pledge of the property of the reinsurance organization being liquidated within the amount of the collateral.;

6) in the sixth turn, arrears on taxes, fees and other mandatory payments to the budget, as well as on repayment of loans issued from the republican budget, are repaid.;

7) in the seventh turn, settlements with other creditors are carried out in accordance with the legislative acts of the Republic of Kazakhstan.

4. The requirements of each subsequent queue are satisfied after the requirements of the previous queue are fully satisfied.

When creditors of one queue are satisfied, funds are distributed among them in proportion to the amounts of claims to be satisfied.

5. Upon the occurrence of the appropriate queue, the creditor's claim, with his consent, may be satisfied in ways that do not contradict the legislation of the Republic of Kazakhstan, including in cash and (or) through the transfer of property in kind in compliance with the principle of proportionality of payments.

6. Creditors' claims denominated in foreign currency are satisfied in tenge at the exchange rate set by the National Bank of the Republic of Kazakhstan as of the effective date of the court's decision on the compulsory liquidation of an insurance (reinsurance) organization.

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

President

Republic of Kazakhstan

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