Legislative Chamber of Oliy Majlis of Uzbekistan passed the law on 2 November 2010 and Senate passed the document on 3 December 2010.

The document is directed at further improving legislation of Uzbekistan on insurance activity in the country.

The reforms, carried out in insurance market of Uzbekistan and necessity to harmonize some clauses of the law “On insurance activity” with modern trends of development of industry, stipulated to adopt the law.

The analysis of the law showed that in line with the second part of article 15, the licenses are issued to insurer to carry out insurance activity in life insurance or general insurance. At the same time, with clause 8 of regulation on licensing insurance activity of insurers and insurance brokers, approved by the government from 27 November 2010, envisages re-insurance activity.

Besides, the presidential resolutions “On measures on further reforming and developing insurance service market” from 10 April 2007 and “On additional measures on further reforming and developing insurance service market” from 21 May 2008 set the minimal sizes of charter capital for insurance companies, engaged only in re-insurance activity.

While the six part of article 18 of the Law “On insurance activity” envisages issuing licenses to newly created companies in the result of re-organizations of insurer in simplified order. At the same time, the law “On licensing of separate types of activities” does not have simplified order. At the same time, the first paragraph of the article 20 of the law “On licensing of separate types of activities” envisages re-registration of license in reorganization of licensee.

At the reorganization in form of merge, division, and reorganization, the license abolished. But, the part three of article 23 of the Law “On licensing of separate types of activities” sets that the license abolished in case of closure of legal entity in the result of reorganization.

So, this rule says that reorganization of legal entity does not ends license power, but should be re-issued, which contradicts to part six of the article 18 of the law “On insurance activity”. In line with the it, during reorganization period in form of merge, division and reorganization and receiving new license, the insurer cannot sign new insurance agreement or prolong existing once. But they can implement their obligations on earlier signed agreements, on which the company is assignee.

The new law will eliminate contradictions and ensure single implementation of legislation on insurance activity, as well as strengthen current licensing practice of insurance companies.