A three-stage regulatory system is being formed in Russia

insurance market:

Civil and Tax Codes of the Russian Federation;

Special laws on insurance activities;

Regulatory acts of the government and ministries on the insurance business.

The legal regulation of insurance relations covers the rights and obligations of the insurer, the policyholder, the insured and the benefits of the purchaser. In addition, other persons, control, tax and law enforcement authorities, executive and legislative authorities acting on

basis of laws.

Legal relations regulating the process of formation and use of the insurance fund, i.e. insurance itself belongs to the sphere of civil law. The objects of insurance relations are property interests associated with the preservation of property and financial well-being, as well as intangible personal benefits of a person - his life, health, and ability to work. A person's personal goods have no price. But loss leads either to unforeseen expenses (for example, for treatment), or to a sharp deterioration in the quality of one’s own life in the event of loss of ability to work or the quality of life of loved ones in the event of the death of the breadwinner. Restoring the previous quality of life can be assessed in money. This amount is the basis for calculating the sum insured for life insurance and personal insurance.

It should be noted that the regulatory framework for insurance, which regulates the financial and economic activities of insurance companies and includes several codes (civil, customs, merchant shipping, air, tax, labor, etc.) and more than forty federal laws, changes quite often. The provisions of certain laws do not fully correspond to the current stage of development of the insurance market, and in some cases contradict the rapidly changing economic situation in Russia. Therefore, quite often these laws have to be revised.

The main legislative acts on insurance are Ch. 48 of the Civil Code of the Russian Federation and the already known Law on Insurance.

The main content of chapter. 48 of the Civil Code of the Russian Federation constitutes the rules governing the relationship between the policyholder and the insurer under insurance contracts. The Civil Code of the Russian Federation requires written registration of insurance contracts. It defines the concept of compulsory insurance both at the expense of the state budget (compulsory state insurance) and at the expense of the persons specified in the law, including the policyholders themselves. The Civil Code of the Russian Federation specifies interests the insurance of which is not permitted.

The Insurance Law provides basic definitions of participants in the insurance business and establishes requirements for them, as well as for state supervision of the insurance business.

Relations in the insurance business are also regulated by federal laws, decrees of the President of the Russian Federation, and decrees of the Government of the Russian Federation adopted in accordance with the Insurance Law.

Insurance activities in all countries are under state supervision. This is determined by two circumstances. Firstly, the state is interested in the development of insurance, since it solves important national economic problems, providing compensation for damage and replenishing investment resources. Second, policyholders need protection because they trust insurance companies with their money, often without being able to judge the safety of their investment.

In Russia, insurance supervision is carried out by the Federal Insurance Supervision Service (Rosstrakhnadzor).

For the effective functioning of a market economy, its primary business links must be based on an adequate (market) legal framework. For a market economy, such a basis is considered to be civil law, the subject of which is property and related non-property relations regulated by the civil legislation of the country.

In 1992, when the Law of the Russian Federation “On the organization of insurance business in the Russian Federation” was adopted, it was planned to build a hierarchical system of legislation regulating insurance relations, headed by this law. However, the situation changed with the adoption of the Civil Code of the Russian Federation (Civil Code of the Russian Federation), as it became the top of the hierarchy. Since Chapter 48 of the Civil Code of the Russian Federation regulates some relations arising during insurance differently, the Law of the Russian Federation “On the organization of insurance business in the Russian Federation” is valid to the extent that does not contradict it.

Currently, a three-stage system of legal regulation of insurance has been formed:

1) Civil Code of the Russian Federation and some laws and legal acts that have the status of a code;

2) special laws on the insurance business (“On the organization of the insurance business in the Russian Federation”, “On medical insurance in the Russian Federation”, pension, social insurance, regulating these types of insurance in a fundamentally different way);

3) regulations on certain types of insurance (restrictions and requirements for the implementation of insurance activities).

The Civil Code of the Russian Federation (Chapter 48) regulates the basic provisions relating to voluntary and compulsory insurance, co-insurance, reinsurance and mutual insurance, establishes the rights and obligations of the parties to an insurance transaction, determines the requirements for the form of the insurance contract, the procedure for its conclusion and termination.

The Law of the Russian Federation “On the organization of insurance business in the Russian Federation” formulates the basic concepts in the field of insurance and insurance activities, defines the objects, subjects and participants of insurance relations, guarantees for ensuring the financial stability of the insurance organization, and the content of state supervision over the activities of insurers. In particular, the procedure for licensing and terminating the activities of insurance business entities is described in detail.

In the legislation regulating the activities of insurers, a special place is occupied by the system of by-laws and departmental regulations. These include the conditions for licensing insurance activities, the Accounting Plan for the financial and economic activities of the organization and the Instructions for its application, the rules for the formation of insurance reserves and their placement. The rules for the formation of reserves for types of insurance other than life insurance establish a uniform composition and procedure for the formation of insurance reserves. Currently, insurers form the following insurance reserves:

• unearned premium reserve (hereinafter referred to as RNP);
• loss reserves: declared but unresolved losses (hereinafter - RLU) and occurred but unreported losses (hereinafter - RNR);
• stabilization reserve (hereinafter - STR);
• loss equalization reserve for compulsory civil liability insurance of vehicle owners (hereinafter referred to as RVU);
• reserve for compensation of expenses for making insurance payments for compulsory civil liability insurance of vehicle owners in subsequent years (hereinafter referred to as the stabilization reserve for compulsory motor liability insurance (ST);
• other insurance reserves.

The regulation of investment activities of insurance organizations is based on the rules for placing insurance reserves. To ensure the stability of insurance organizations and guarantee insurance payments, the placement of insurance reserves should be carried out on the principles of diversification, repayment, profitability and liquidity. To comply with the principles, the rules regulate the structure of investments and introduce a list of prohibited areas of investment. For example, shares, deposits and shares in the joint or authorized capital of insurers, as well as assets acquired with funds received under loan agreements and credit agreements are not accepted to cover insurance reserves.

One of the most important regulations is the Instruction on the procedure for applying the methodology for calculating the standard ratio between the assets and liabilities of the insurer. To assess solvency, the amount of free assets of the insurer is determined, which must meet a certain standard. If, at the end of the reporting period, the actual amount of free assets is below the standard by more than 30%, then the insurer must submit a financial recovery program to the supervisory authorities within 30 days. Failure by the insurer to comply with the accepted program entails suspension of the license and termination of insurance operations.

The fundamental legal act regulating insurance activities in our country is the Law of the Russian Federation “On the organization of insurance business in the Russian Federation”, basic in relation to other laws specifically dedicated to insurance, as well as laws regulating other relations, but containing insurance norms. It creates an interconnected system of legal regulation of relations between insurance participants, insurers and the state.

The law establishes the main forms of insurance - voluntary and compulsory. Compulsory insurance is carried out on the basis of special regulations (laws, decrees of the President of the Russian Federation, decrees of the Government of the Russian Federation, etc.) establishing the mandatory life and health insurance of certain categories of citizens or certain types of property.

Voluntary insurance is possible only on the basis of an agreement between the policyholder and the insurer. The contract is concluded on the basis of rules developed by the insurer independently, but these rules must comply with the relevant laws.

An insurance contract is an agreement by virtue of which the insurer is obliged, in the event of an insured event, to make a payment to the policyholder or another person in whose favor the contract is concluded, and the policyholder is obliged to pay contributions within the agreed time frame.

To conclude an agreement, the policyholder submits to the insurer a written statement of his intention to enter into an insurance agreement. The application becomes the beginning of formal interaction between the policyholder and the insurer. The stages of concluding a contract mark the transition from the formal (legal) to the real (economic) beginning of interaction between the parties.

The insurance contract comes into force from the moment it is signed and (or) payment of the insurance premium or the first insurance premium. The fact of concluding an insurance contract can be certified by a policy (insurance certificate, certificate) issued to the policyholder, which indicates:

• Title of the document;
• name, legal address and bank details of the insurer;
• the policyholder, his data;
• object of insurance;
• the amount of the insured amount;
• insurance risk;
• size, terms and procedure for payment of insurance premiums;
• validity period, procedure for changing and terminating the contract;
• other conditions;
• signatures of the parties.

In accordance with Art. 940 of the Civil Code of the Russian Federation, an insurance contract is concluded in writing (with the exception of compulsory state insurance contracts, where written form is not required) and contains a number of essential conditions of Art. 942 Civil Code of the Russian Federation:

• the nature of the insured event;
• the amount of the insured amount;
• contract time;
• property or property interest that is insured (for property insurance);
• insured person (for personal insurance).

Non-essential conditions include: the procedure for drawing up an agreement, the procedure for the entry into force of the agreement, the procedure for paying insurance premiums, the consequences of non-payment, etc.

The conclusion of a contract is preceded by an agreement between the parties, achieved through negotiations. The basis for their initiation is an oral or written statement from the policyholder. In Russian insurance practice, a written statement is not always used; it is often limited to an oral agreement. Abroad, a written application is mandatory and serves as a document on the basis of which the insurance organization draws up an insurance contract, issues a certificate or policy.

When concluding an insurance contract, there is a kind of information asymmetry. The policyholder knows everything about his risks, and the insurer knows only what he is told. However, for a correct risk assessment, it is important to know all the essential circumstances (risk conditions that could influence the decision of the insurance organization to enter into an insurance contract or to introduce appropriate agreed conditions into its content).

The insured is obliged to provide truthfully and completely all the necessary information on the risk (the principle of the highest integrity in insurance). Failure to comply with this condition gives the insurer grounds to refuse insurance protection to the client. In life insurance, the obligation to disclose all material factors concerns the moment of conclusion of the contract due to the long-term validity of the contract. In property and liability insurance, this obligation exists not only at the time the contract is concluded, but also when it is renewed after a year. In addition, during the course of insurance, the client must notify the organization of changes in the degree of risk.

An important component of the contract is the policyholder’s own will regarding the conclusion of the contract, expressed in the text of the application or contract and the signature of the policyholder. The presence of only a signature does not serve as the basis for the obligations of the policyholder under this agreement. The name and address of the policyholder must be clearly stated. The desired type of insurance specified in the text of the contract must be clarified if necessary. For example, when insuring property, you can take into account the coverage of additional risks.

The contract must specify the amount insured both in the event of accumulation of the amount and in the event of damage insurance. We can talk about one sum insured, as with life insurance, or different amounts for different types of damage compensation. For example, in accident insurance, one amount may be provided in case of death, another in case of disability. Determining the amount is important for calculating the insurance premium, as well as for limiting the insurer’s obligations upon the occurrence of an insured event.

The contract must indicate the beginning and duration of the insurance period, the amount of the insurance premium, the type and method of its payment (monthly, quarterly, once a year).

The amount of risk assumed by the insurer is limited to the inclusion of a force majeure clause in the text of the contract. These emergency circumstances cannot be foreseen, prevented or eliminated by any measures and are excluded from the scope of responsibility of the parties under the contract.

In particular, the insurer’s liability, unless otherwise specified in the contract, excludes events caused by:

• commission by the insured of an act recognized by the court as an intentional crime that resulted in the occurrence of an insured event;
• the performance of actions by the policyholder or the insured in order to obtain compensation for the insured risk;
• military actions, armed conflicts, riots and other illegal socio-political acts;
• exposure to nuclear or ionizing radiation.

Rights and obligations of the parties under the insurance contract. Under the insurance contract, the policyholder has the right:

• to receive the insured amount under a life insurance contract, or insurance compensation in the amount of damage in property insurance, or for compensation for damage caused to third parties in case of civil liability insurance - within the limits of the insured amount and taking into account the specific conditions of the contract;
• changing the terms of insurance in the contract in terms of changing the insured amount or the scope of liability, unless otherwise specified in the insurance rules;
• early termination of the insurance contract in the manner prescribed by the insurance rules.

Along with the rights, the policyholder bears under the contract certain responsibilities(the first of them is the payment of insurance premiums in the amount and manner specified in the contract). Insurance protection begins from the moment of payment of the first insurance premium, even if the text of the contract specifies an earlier start date for insurance. This is a legal obligation of the policyholder, since failure to fulfill it can be appealed in court. All other obligations of the policyholder are not subject to judicial appeal. The policyholder fulfills them in his own interests in order to ensure insurance protection for himself, since if they are not fulfilled, the amount of insurance compensation in the event of an insured event may be reduced. These responsibilities are divided into pre-contractual and those occurring during the contract period. Among the latter, those that come into force upon or after the occurrence of an insured event are especially distinguished.

Pre-contractual obligations include providing information about the risk. During the period of validity of the contract, when insuring damage, the policyholder is obliged to inform the insurance organization about factors increasing the risk, about the conclusion of other insurance contracts regarding the same object, about the facts of alienation of the insured property, about a change in place of residence.

In addition, during the period of validity of the contract, the policyholder is obliged to comply with the obligations specifically agreed upon or contained in the insurance rules aimed at reducing risk or preventing danger (installation of a security alarm in the premises, anti-theft devices in the car, etc.).

If damage occurs, the policyholder contacts the insurer with a claim for payment of insurance compensation. The policyholder is obliged:

• take the necessary measures to prevent and eliminate the causes contributing to additional damage;
• notify the insurer of the incident within the prescribed period;
• submit a written application in the established form for payment of insurance compensation;
• provide the insurer with all the necessary information about the damage, as well as documents to establish the fact of the insured event and determine the amount of damage. If he does not have such information, then the policyholder must assist the insurer in obtaining the necessary documents;
• give the insurer the opportunity to inspect and examine the insured object, as well as an investigation into the causes of the insured event and the amount of losses.

The policyholder should pay special attention to how the contract and the insurance rules define the period and method of notifying the insurer of the occurrence of an insured event. In accordance with Art. 961 of the Civil Code of the Russian Federation, notification must be made immediately after becoming aware of the insured event. If the contract specifies a notice period and method, they must be respected. The beneficiary must also take care of this, since, as in the case of paying the premium, the law also imposes this obligation on the beneficiary who is aware of the conclusion of the insurance contract.

It is not necessary to report the insured event to the insurer itself. Article 961 of the Civil Code of the Russian Federation obliges to notify the insurer or its representative, therefore the contract must clearly indicate the representative of the insurer, who must be notified of the insured event if the insurer itself cannot be notified. We must remember that Art. 961 of the Civil Code of the Russian Federation exempts the insurer from the obligation to make a payment if the policyholder or beneficiary, who is aware of the conclusion of the insurance contract in his favor, has not fulfilled this obligation.

The obligation to pay contributions is established not only for the policyholder, but also for the beneficiary (Article 954 of the Civil Code of the Russian Federation). The parties to the contract can choose which of the participants in the insurance relationship should fulfill it. By establishing the obligation to pay contributions not only for the policyholder, but also for the beneficiary, the legislator emphasizes that insurance is a paid service, and those wishing to receive insurance protection must be prepared to pay.

Responsibilities and rights of the insurer. The insurance organization, in turn, has numerous obligations and rights in accordance with the insurance contract. The insurer's responsibilities are divided into obligations to bear the risk and to pay insurance compensation (sum insured).

When accepting obligations to bear risk, the insurer must clearly and clearly describe the insured risk in the contract. When insuring damage, it is necessary to clearly outline the boundaries of the insurable interest (the relationship of the policyholder to the insured item).

When describing the risk, the insurer is obliged to indicate the primary exceptions not covered by insurance protection. Secondary exceptions must also be specified. If doubts arise about where the boundary of the insured risk lies, then the insurance conditions must clearly define the so-called boundary risks of two categories, i.e. those not subject to insurance and those included in the insurance coverage.

Under concluded contracts, the insurer guarantees the proper fulfillment of its obligations and is liable for them with all its property. For its part, the insurer is also obliged to ensure non-disclosure of information that has become known to it in connection with the conclusion, execution or termination of an insurance contract and contains the policyholder’s trade secret.

Upon receipt of a claim from the policyholder for payment of insurance compensation, the insurer is obliged to:

• ensure inspection of the insurance object by your expert;
• draw up an insured event report with the participation of the insured;
• calculate the damage;
• make payment of insurance compensation (sum insured).

If necessary, the insurer sends a request to the competent authorities to provide relevant documents and information confirming the fact and reason for the occurrence of the insured event. The insurer also has the right to participate in the rescue and preservation of the insured object, taking the necessary measures for this or indicating to the insured the need to take them. At the same time, these actions of the insurer cannot be clearly regarded as recognition of its obligation to pay insurance compensation.

When bearing the risk, the insurer has the right to check the condition of the insured object, as well as the compliance of the information about the insured object communicated to him by the policyholder with the actual circumstances, regardless of whether the insurance conditions have changed or not.

When insuring civil liability, the insurer has the right to represent the interests of the insured in negotiations and agreements on compensation to third parties for damage caused by him, as well as when considering cases brought by third parties against the insured in an arbitration or arbitration court.

In a number of cases, the insurer has the right to refuse to fulfill contractual obligations or change the conditions regarding compensation for damage or payment of the insured amount. This is possible in cases where the policyholder:

• reported incorrect, i.e. deliberately false or incomplete, information about circumstances that are significant for assessing the degree of risk;
• failed to notify the insurer of significant changes in risk;
• did not notify the insurer in the prescribed manner about the insured event or interfered with the representative of the insurance organization in determining the circumstances, nature and amount of damage;
• did not provide the documents necessary to determine the amount of damage;
• did not take measures to prevent damage or reduce its size, which led to the opposite results.

If the insurer has paid insurance compensation to the policyholder, then the right to claim compensation for damage within the limits of the amount paid from the person responsible for causing the damage is transferred to him. The transfer of the right to claim compensation for damage is called regression.

Termination of the insurance contract. When terminating an insurance contract, one should distinguish between the grounds that liquidate it for the future and those for which it is considered invalid from the very beginning.

An insurance contract may be terminated at the request of the policyholder or insurer ahead of schedule, if this is provided for by the terms of the contract, as well as by agreement of the parties. If one of the parties intends to terminate the contract early, it must notify the other party of this at least 30 days before the expected date of termination of the contract.

If the contract is terminated at the request of the policyholder, the insurer returns to him the amount of insurance premiums paid for the expired period minus the expenses incurred. If the early termination of the contract is justified by a violation of the insurance rules on the part of the insurer, then the latter must return the paid insurance premiums to the policyholder without deductions.

In case of early termination of the insurance contract at the initiative of the insurer, the paid insurance premiums must be paid to the policyholder in full. If the insurer’s demand for early termination of the contract is justified by violations of the insurance rules on the part of the policyholder, then the insurance organization returns to him the paid insurance premiums minus the expenses incurred.

The grounds for early termination of the insurance contract are given in Art. 958 of the Civil Code of the Russian Federation: “The insurance contract is terminated before the expiration of the period for which it was concluded, if after its entry into force the possibility of the occurrence of an insured event has disappeared and the existence of the insured risk has ceased due to circumstances other than the insured event.”

Fulfillment by the insurer of all obligations to the policyholder does not entail termination of the contract. This means that the insurer, having fulfilled all its obligations, does not lose the right to demand from the other party compliance with obligations that it has not fulfilled.

The consequences of late payment of premiums by the policyholder are regulated by Art. 954 Civil Code of the Russian Federation. The parties may provide for the corresponding consequences in the contract, and in some cases the insurer is allowed to withhold the next insurance premium from the amount of the insurance payment payable.

There is no unconditional right of the insurer to terminate the contract early. The corresponding right of the policyholder is formulated in Art. 958 of the Civil Code of the Russian Federation: “The policyholder (beneficiary) has the right to cancel the insurance contract at any time, if by the time of refusal the possibility of the occurrence of an insured event has not disappeared...”

The insurance contract is terminated:

• if the established period of validity of the insurance contract has expired;
• if the policyholder fails to pay premiums on time;
• in case of fulfillment of all obligations by the insurer to the policyholder;
• upon liquidation of the insurer in the manner established by legislative acts of the Russian Federation;
• upon liquidation of the policyholder (legal entity) or death (individual), except in cases where it is possible to replace the policyholder in the insurance contract;
• if the insurance contract is declared invalid by a court decision;
• at the request of the policyholder or insurer, if this is stipulated in the contract or by agreement of the parties;
• in other cases provided for by law.

An insurance contract is invalid if it is concluded after an insured event or the object is property subject to confiscation based on a court decision. The insurance contract is recognized as invalid by the court, arbitration and arbitration courts.

The Civil Code provides grounds for the invalidity of insurance contracts that are not included in the Law of the Russian Federation “On the organization of insurance business in the Russian Federation”, namely:

• a property insurance contract was concluded when the policyholder or beneficiary has no interest in preserving the insured property (Article 930);
• lack of written consent of the insured person to conclude a personal insurance contract in favor of another person (Article 934);
• communication by the insured to the insurer of knowingly false information that is important for determining the likelihood of an insured event and the amount of possible losses (Article 944);
• overstatement of the insured amount resulting from deception on the part of the insured (Article 951).

All conditions, the nullity of which is not directly established in the provisions of Chapter 48 of the Civil Code of the Russian Federation, are declared invalid only in court, and are valid until a court decision.

The regulatory framework of the insurance institute is quite extensive, including several codes, more than 40 federal laws and a lot of by-laws, but it is far from perfect. Certain laws do not always correspond to the current level of development of the insurance market, and in some cases contradict each other. Examples include the lack of a well-developed legal framework in the field of development of coinsurance, reinsurance and mutual insurance, the activities of insurance pools, and the shortage of types of compulsory insurance generally accepted in world practice (especially in civil and professional liability insurance).

In the process of developing social institutions in the Russian Federation, much attention was paid to the regulation of insurance activities. This is due to the high level of social significance of this type of work. The occurrence of an insured event can harm the entire national economy. State regulation of insurance activities occurs through reporting, checking the compliance of information with actual results and regulatory regulation.

Supervision

State regulation and supervision of insurance activities are divided into preliminary, current and subsequent. In the first case, we are talking about checking the compliance of companies with the requirements for issuing a license and registering insurers. consists of checking compliance with legal norms by market participants: analysis of reporting, revocation of licenses, exclusion of brokers from the register, etc. They will be discussed in more detail below.

State legal regulation of insurance activities is carried out by the Law of the Russian Federation “On the Organization of Insurance Business” and the Ministry of Finance. It applies to professional market participants, their intermediaries and beneficiaries.

Goals, functions, tasks

Goals of state regulation of insurance activities:

• ensuring stable functioning of the market;
• compliance by subjects with regulations;
• ensuring the fulfillment of obligations by the parties to the transaction;
• protection of the domestic market from foreign companies;
• transfer of taxes and fees to the state.

Directions of state regulation of insurance activities:

• adoption of laws and regulations, monitoring their compliance by government agencies;
• regulating the solvency of insurers and ensuring that they fulfill their obligations;
• control over the payment of taxes by market entities;
• imposition of sanctions on market participants.

Supervisory authorities perform the following functions:

• issue a license to conduct activities;
• make entries in the State Register of Insurers and Brokers;
• exercise control over the formation of tariffs;
• establish rules for the placement of reserves and transaction accounting indicators;
• develop regulatory and methodological documents;
• develop and provide proposals for the development of the legislative framework.

Rights of state supervisory authorities

• Receive information on the financial situation from insurers, activity reports, and from their clients and banks.
• Carry out checks to ensure compliance of the information provided and the actual financial situation.
• If companies detect violations of legal requirements, issue instructions to eliminate problems. If they are not met, then licenses must be suspended until the violations are completely eliminated.
• File a lawsuit to liquidate the insurer and companies operating without licenses.

Financial regulation

In world practice, regular audits of insurance companies are carried out in this area. In the Russian Federation, this issue is still under consideration.

State regulation of activities on issues of their solvency and financial stability consists of calculating tariffs for some services, forming reserves, and evaluating investment projects. Insurers annually evaluate accepted liabilities. Its results are reflected in a separate conclusion, which is submitted to the government agency.

The lack of an established audit system has a negative impact on the entire industry. Methods for forming reserves quickly become outdated, but are rarely revised. Steps to introduce audit are built only at the legislative level, but the program and mechanisms are not defined in practice.

Insurance unions

There are state and regional associations of insurers operating on the Russian market. They are formed by type of activity: medical, car insurance, etc. Such unions are a resource for self-regulation of the market. Their main task is related to the preparation of proposals for legislative acts, the formation of defense funds, the development of rules and programs, methodological support for activities, personnel training, etc.

The Union of Consumer Protection of the Russian Federation has received weak development. Its main task is to identify unscrupulous companies, protect the interests of consumers, develop rules, insurance programs, etc.

The activities of unions on both sides must be carried out in cooperation. Taking into account the interests of insurers and their clients is an important prerequisite for market development.

World practice

Insurance contracts are complex documents from a legal point of view. It is difficult for a person without special education to understand all the formulations. In Western countries, government regulation of insurance activities for transactions with individuals is much stricter than for contracts with legal entities. The latter can involve qualified lawyers to determine compliance of the terms of the document with regulations.

In the regions of the Russian Federation, state regulation of insurance activities is carried out by local supervisory authorities. To the extent possible, they are assisted by the tax service, the Central Bank and the antimonopoly office. Most European countries use a single surveillance system. In Canada, some aspects are regulated by federal authorities, and the main powers are transferred to local authorities in the province. There is no global government regulation of insurance activities in the United States. Each state has its own rules.

Systems

State regulation of insurance activities when using the public system is that companies must publish reports on their performance in open publications and submit them to supervisory authorities. Consumers of services can use this information to form an idea about the organization and decide on the advisability of concluding a contract.

This is a liberal system. A person without special education will not be able to understand financial statements. The interests of persons who entered into contracts before the insurer had problems are not insured in any way. There is no state control over the execution of transactions.

The regulatory system of regulation is that the state additionally establishes the same requirements for all organizations engaged in insurance activities. They may be related to financial support (correspondence between the amount of capital and accepted obligations), forms of ownership of insurers, deadlines for submitting reports, etc. If these requirements are not met, sanctions are imposed on companies. This scheme has been operating successfully in the UK for a long time, and has recently appeared in the EU countries.

The peculiarities of state regulation of insurance activities under the system of material supervision are that insurers publish reports on the results of their activities, and supervisory authorities monitor compliance with the terms of contracts, the size of rates, and the procedure for the formation of reserves. In theory, with this scheme of activity, the interests of all parties to the transaction are respected, and there is no price dumping. In this way, state regulation of insurance activities in the Russian Federation is carried out.

The material system is wider than the normative one in terms of the number of objects covered. Its main principle is that all actions must be previously agreed upon with government authorities. On the one hand, such a system greatly limits the activities of insurers. Companies that develop a new product must have it approved by regulatory authorities. Lost time will be reflected in lost profits. On the other hand, the interests of service consumers are protected.

Insurer registration

In the Russian Federation, a license to carry out insurance activities is issued by the Ministry of Finance. To receive it, you need to form and pay authorized capital depending on the chosen type of activity:

• minimum 25 thousand minimum wage - all services except life insurance;
• minimum 35 thousand minimum wage - all types of insurance;
• more than 49 thousand minimum wage - only life insurance.

Within the specified limits, funds must be transferred in cash. In excess of these amounts, deposits in the form of property, rights of use, results of intellectual activity, etc. are accepted.

Additionally, you need to provide the following documents to the Ministry of Finance:

• statement;
• constituent documents (charter, minutes of the meeting, extract from the state register).
• a payment order for the transfer of funds to account for the authorized capital;
• activities;
• insurance rules, sample contract forms;
• calculation of tariffs with a detailed explanation of the methodology used;
• information about the manager and his deputies.

The following is accepted as an economic justification:

• annual business plan;
• reinsurance plan in case the maximum risk liability is more than 10% of own funds;
• algorithm for the formation of reserves and a plan for their placement;
• balance sheet, financial performance report.

The supervisory authority makes a decision to issue a license within 60 days after receiving the documents. The basis for refusal may be the documents’ non-compliance with legal requirements. The government agency informs the legal entity about this in writing.

Stages

State regulation of insurance activities in the Russian Federation is carried out in three stages: preliminary, current and subsequent. Let's look at each of them in more detail.

Preliminary control

First, there is a selection among companies that want to obtain a license. Not every organization can carry out insurance activities.

Admission to the market can be achieved in two ways. In the first case, the company is simply registered in the register of insurers, after which it can begin to operate. Such access to attendance is inherent in the publicity system.

If the concession method is used, the supervisory authorities must issue a license to operate. It is necessary to provide documents confirming the ability to meet financial requirements. This is the scheme used in most countries of the world.

Ongoing supervision

Government authorities analyze the submitted accounting records and, if necessary, request additional data. Their competence also includes considering applications with proposals, complaints, and carrying out inspections. That is, state regulation of the insurance activities of an insurance organization comes down to timely assessment of the company’s financial capabilities based on accepted risks, checking the rules for the formation of reserves, and compliance of the availability of funds with established standards.

Subsequent control

At this stage, decisions are made regarding insurers whose performance results do not meet any requirements (rehabilitation, liquidation). State regulation of insurance activities in the Russian Federation at this stage is to minimize losses of clients of unscrupulous companies. Supervisory authorities may impose restrictions on the conclusion of new contracts, change tariff rates, and adjust activities in other aspects. This is done in the form of instructions, that is, written orders obliging the insurer to eliminate violations within a specified period.

The grounds for imposing restrictions are:

• carrying out activities in areas not provided for by the license;
• carrying out activities prohibited by law;
• violation of the procedure for forming reserves;
• unjustified reduction of tariffs;
• failure to comply with the established ratio of assets and liabilities;
• submission of reports and other requested documents in violation of deadlines or procedures;
• discrepancy between the information provided and the actual data;
• violation of deadlines for notification of amendments to the charter, rules for the provision of services, and rate structure;
• transfer of a license to another organization;
• issuing a policy without attaching rules;
• concluding contracts on more extended terms than those specified in the rules.

In case of non-compliance with the order, the supervisory authority may limit the validity of the license. This can be expressed either in a ban on concluding new contracts or in extending the validity of old ones for certain types of activities or in a specified territory.

Coursework on the topic:

“NORMATIVE AND LEGAL REGULATION OF INSURANCE ACTIVITIES IN THE RUSSIAN FEDERATION

Completed by: group student

Teacher:

Moscow 2006

Introduction………………………………………………………………………………..page 3

Ch. I. State regulation of insurance activities in the Russian Federation

1.1 Regulatory and legal framework of insurance activities in the Russian Federation………………...page 6

1.2.System of state regulatory bodies in insurance......page 11

Ch. 2. The problem of developing insurance activities in the Russian Federation

2.1. Main mechanisms of stimulation and support by the state of the insurance sector………………………………………………………………p.16

2.2. Improving state regulation of insurance activities………………………………………………………………….….p.22

Conclusion………………………………………………………………………………………page 27

Appendix………………………………………………………………………………...page 30

List of references………………………………………………………………..page 31

INTRODUCTION

Given the command-administrative system of managing the national economy, the dominant role of state property and the weak economic responsibility of managers and work collectives for its safety, insurance could not fully fulfill its functions.

Now market transformations, transforming economic relations, when the commodity producer begins to act at his own peril and risk, according to his own plan and bears responsibility for this, impose new requirements on insurance.

The formation of a new management system in the Russian Federation introduces fundamental changes to the organization of the insurance business. That. It becomes relevant to consider and transform the legal regulation of insurance activities in the Russian Federation.

Insurance is a necessary element of industrial relations. It is associated with compensation for material losses in the process of social production. The risky nature of social production gives rise to relationships between people to prevent, overcome, localize and unconditionally compensate for the damage caused.

The relevance of the issue under consideration is also enhanced because in modern society, along with the traditional purpose of providing protection from natural disasters (earthquakes, floods, storms, etc.), random events of a technical and technological nature (fires, accidents, explosions, etc.) , - the object of insurance is increasingly becoming losses from various criminal phenomena (theft, robbery, vehicle theft, etc.)

In addition, the changes also affect the sphere of property and personal insurance of citizens, which is directly related to the interests of the population, and the problem of compensation for losses for people has always been

remains paramount.

However, enterprises and organizations of various forms of ownership, acting as insurers, feel the need not only for compensation for damage expressed in the loss or damage of fixed assets and working capital, but also for compensation for lost profits or additional costs due to forced downtime (irregular supplies of raw materials , insolvency of wholesale buyers).

World experience and the history of insurance have convincingly proven that it is a powerful factor of positive impact on the economy. However, there are various problems on the path to the development of insurance in Russia that can only be solved if appropriate conditions exist.

Currently, insurance activity in the Russian Federation is at the stage of active development, and its current state does not fully meet the needs of business entities. There are a number of problems and some shortcomings in this area.

To realize the opportunities of the insurance industry, active government support and assistance is needed, and the sooner the state realizes the role of insurance as a strategic sector of the economy, the sooner the transition to socially oriented market growth will be made in Russia.

In the conditions of the transition period, the regulatory function of the state in insurance activities should manifest itself in various forms: the adoption of legislative acts regulating insurance, the establishment of compulsory insurance in the interests of society and certain categories of its citizens, the implementation of a special tax policy, the establishment of various types of benefits for insurance companies to stimulate this kind activities, as well as the creation of a special legal mechanism to ensure supervision of the functioning of insurance enterprises and organizations.

It should be noted that there is insufficient regulatory support for insurance activities at present. That is why the topic under study is relevant today.

The object of this work is insurance activities in the Russian Federation.

The subject of this work is the regulatory and legal support of insurance activities.

The purpose of the course work is to study the features, incl. shortcomings of legal regulation of the insurance sector.

The goal allowed us to formulate the tasks that were solved in this work:

1. Definition of legal acts regulating insurance activities in Russia;

2. Study of the system of state regulatory bodies in insurance;

3. Consideration of the main mechanisms for stimulating and supporting the insurance sector by the state;

4. Determination of possible ways to improve the regulatory framework for insurance activities.
That. insurance as a whole complex of protecting the interests of citizens, organizations and the state is a necessary element of the economic and social systems of society.

Insurance, as a type of economic and entrepreneurial activity, is actively influenced by the state, which is necessary to realize the possibilities of the insurance field.

CHAPTER I . STATE REGULATION OF INSURANCE ACTIVITY IN THE RUSSIAN FEDERATION

1.1. Regulatory and legal framework of insurance activities in Russia

The state controls relations recognized as legally contractual, including insurance relations, through a special apparatus. This method consists in developing idealized models of behavior, with the help of which rules are created that establish how to behave in the event that the situation coincides with the model one. These rules are then formulated as legal norms, the implementation of which is ensured through the method of state coercion. The rules governing insurance relations are created not individually, but as part of regulatory legal acts. Regulatory legal acts are laws, decrees, resolutions of various bodies authorized to issue such decisions. A characteristic feature of a normative legal act is that it is not addressed to anyone in particular, but to an indefinite circle of persons, i.e. to everyone carrying out the activities described in this act.

The Law of the Russian Federation “On the organization of insurance business in the Russian Federation” (formerly it was called the Law “On Insurance”) is a regulatory legal act, since it is addressed to everyone who is involved in insurance relations. The law regulates relations between persons carrying out activities in the field of insurance or with their participation, relations in the implementation of state supervision over the activities of insurance business entities, as well as other relations related to the organization of insurance business.

Regulatory legal acts are grouped by branches of legislation and acts related to different sectors are created in different ways.

Insurance legislation relates to the “civil” industry

law”, and norms of civil law, including norms related to insurance, can only be created at the federal level and cannot be created at the level of regions - regions, republics and other subjects of the federation. Therefore, if an issue related to insurance is dealt with in court, then no references to regional regulations, for example, those of Moscow or the Republic of Tatarstan, will be taken into account by the courts.

All regulatory legal acts regulating insurance relations can be divided into two parts - regulatory acts addressed only to insurers and regulating their activities and regulatory acts addressed to all potential participants in insurance relations. First of all, this is the Civil Code of the Russian Federation (CC). It has a special chapter 48 dedicated exclusively to insurance. The next level is the special Law “On the organization of insurance business in the Russian Federation”. But since this law was adopted much earlier than the Civil Code, it contains many norms that currently do not correspond to the norms of the Civil Code. It should be emphasized that the Civil Code has priority over the Law “On the Organization of Insurance Business”. However, to date, a number of amendments have been made to the Law.

In general, both the Civil Code and the Law “On the Organization of Insurance Business in the Russian Federation” are general regulations; they contain universal

rules for regulating insurance relations, i.e. rules common to all types of insurance. It is precisely because of their universality that they are closely related to other general rules governing the emergence, termination, change and fulfillment of obligations.

In addition to the general Civil Code and the Law “On the Organization of Insurance Business in the Russian Federation,” there are many different regulations on specific types of insurance. For example, the Law “On Medical Insurance of Citizens of the Russian Federation” and a number of Government resolutions to this law. There is a Merchant Shipping Code, in which the entire XII chapter is devoted to marine insurance. A large number of regulations have been issued on various types of compulsory insurance.

Unfortunately, all collections containing, in a more or less complete and systematized form, the current regulatory acts on insurance very quickly become outdated, since insurance in Russia is rapidly developing. In 1994, the ANKIL company released a “List of regulatory acts on insurance” compiled by Yu.S. Bugaev, the then head of the insurance supervision body, however, since 1994, great changes have occurred in the legal regulation of insurance. Current changes can be followed in various publications.

Also an important legal source regulating the relationship between the policyholder and the insurer is the insurance contract. The agreement is concluded in writing. When concluding an insurance contract, the policyholder is obliged to inform the insurer of the circumstances known to the policyholder that are significant for determining the likelihood of the occurrence of an insured event and the amount of possible losses from it.

occurrence (insurance risk), if these circumstances are not known and should not be known to the insurer.

The peculiarities of the economic and social development of our country have led to the emergence and development of a number of specific types of insurance, such as civil liability insurance for vehicle owners. The issue of compulsory auto liability insurance became especially acute, because Russia is the only country that, until some time, remained the only state in Europe in which there was no compulsory civil liability insurance.

The need to introduce compulsory motor third party liability insurance meets the interests of all participants: policyholders will be fully protected in case of an accident, insurers will have the opportunity to receive significant additional income, the state will receive a source of significant additional revenue, victims will have a guarantee of compensation for moral, material and physical damage.

That. There are currently 3 main types of car insurance:

· Autocasco

· Compulsory motor third party liability insurance (OSAGO)

· Green card

Casco is a type of insurance used to insure vehicles (ships, planes, cars). The term “casco insurance” means compensation for damage from damage or loss of the vehicle itself only and does not include insurance of passengers, transported property, liability to third parties, etc.

Thus, legal relations related to the conduct of insurance and regulating insurance arising from the organization of the insurance business are regulated by the norms of civil law. The structure of insurance legislation in Russia is multi-stage and is determined by the existing legal system.

1.2. System of state regulatory bodies in insurance

State supervision of insurance activities on the territory of the Russian Federation is carried out by the federal executive body for supervision of insurance activities, acting on the basis of the Regulations approved by the Government of the Russian Federation.

The first such body was the Russian Federal Service for Supervision of Insurance Activities. It was created to exercise state supervision over compliance with the legislation of the Russian Federation on insurance, regulate the single insurance market in the Russian Federation on the basis of establishing general requirements for licensing and maintaining the state register of insurance organizations, control over ensuring the financial stability of insurers, accounting and reporting, insurance methodology, intersectoral and interregional coordination on insurance issues.

By Decree of the President of the Russian Federation of August 14, 1996. No. 1177 The Federal Service of Russia for Supervision of Insurance Activities was abolished, and its functions were transferred to the Ministry of Finance of the Russian Federation, where the Department of Insurance Supervision was formed, carrying out the functions of the federal executive body for supervision of insurance activities.

Main functions The federal executive body for supervision of insurance activities are:

1) issuing licenses to insurers to carry out insurance activities;

2) maintaining a unified State register of insurers and associations of insurers, as well as a register of insurance brokers;

3) control over the validity of insurance rates and ensuring the solvency of insurers;

4) establishing rules for formation and placement

insurance reserves, indicators and accounting forms

insurance operations and reporting on insurance activities:

5) development of normative and methodological documents on

issues of insurance activities that are referred by law to the competence of the federal executive body for supervision of insurance activities;

6) generalization of the practice of insurance activities, development and submission in the prescribed manner of proposals for the development and improvement of the legislation of the Russian Federation on insurance.

Federal executive body for supervision of insurance activities to perform the functions assigned to it has the right:

1) receive from insurers established reports on insurance activities, information about their financial situation, receive information necessary to perform the functions assigned to it from organizations, including banks, as well as from citizens;

2) check compliance by insurers with the legislation of the Russian Federation on insurance and the reliability of the reports they submit;

3) when identifying violations of legal requirements by insurers, give them instructions to eliminate them, and in case of failure to comply with the instructions, suspend or limit the validity of the licenses of these insurers until the identified violations are eliminated or make decisions to revoke the licenses;

4) apply to the arbitration court with a claim for the liquidation of the insurer in the event of repeated violations by the latter of the legislation of the Russian Federation, as well as for the liquidation of organizations providing insurance without licenses.

Along with the Department of Insurance Supervision, control functions are carried out by the State Tax Service of the Russian Federation, the State Committee of the Russian Federation on Antimonopoly Policy and Support of New

Economic structures, Federal Market Commission

securities, as well as territorial insurance supervision bodies that directly supervise insurance activities in the constituent entities of the Russian Federation.

The Government of the Russian Federation, at the proposal of the federal executive body for supervision of insurance activities, agreed with the interested government bodies, created territorial insurance supervision bodies in order to comply with the requirements of the legislation of the Russian Federation on insurance issues and create conditions for the effective development of insurance services, as well as the protection of rights and interests of policyholders, insurers, other interested parties and the state. Territorial insurance supervisory authorities exercise direct supervision over insurance activities in the constituent entities of the Russian Federation, for which they are empowered to carry out checks on the reliability of the reports submitted by insurance organizations and compliance with insurance legislation, receive from insurers the established reporting on insurance activities, information on their financial position, and obtain the necessary for the implementation the functions assigned to them, information from organizations, including banks, as well as from citizens.

Territorial insurance supervision bodies carry out their activities under the leadership of the federal executive body for supervision of insurance activities (hereinafter referred to as the federal body).

Functions of territorial bodies:

Ensure control over compliance with the legislation of the Russian Federation

about insurance;

Monitor the implementation by insurers of regulations of the Federal Service of Russia for Supervision of Insurance Activities related to the conduct of insurance activities;

Monitor the validity of insurance claims

tariffs and ensuring the solvency of insurers;

Summarize the practice of insurers, insurance companies

intermediaries and other participants in the insurance market and

submit proposals to federal authorities to improve the practice of supervision of insurance activities and insurance legislation;

Consider applications and complaints of individuals and legal entities

persons on issues related to violation of the legislation of the Russian Federation on

insurance;

Submit, in accordance with the established procedure, accounting, statistical and other reporting on its activities provided for by law.

Territorial insurance supervisory authorities have the right:

Conduct insurance checks on the accuracy of the reports provided and their compliance with insurance legislation;

Receive from insurers the established reporting on insurance activities, information about their financial situation, obtain what is necessary to perform the functions assigned to it

information from institutions and organizations, including banks, and

also from citizens;

If violations by insurers of the requirements of the legislation of the Russian Federation on insurance are detected, take measures to eliminate them;

Submit proposals to federal authorities regarding the suspension, limitation of validity, or revocation of a license.

The system of state supervision of insurance activities should include:

1) organization of the foundations of insurance supervision in the Russian Federation, firstly

turn by creating special bodies to supervise

insurance activities at the federal level and at the level of constituent entities of the Russian Federation;

2) creation of regulatory acts for supervision of insurance

activities, development of uniform methodological principles

organization and implementation of insurance business;

3) determination of special requirements for insurance organizations, establishment of licensing and certification of insurance activities;

That. state regulation of insurance activities is the influence of the state on participants in insurance obligations through the system of state regulatory bodies.

Increasing the efficiency of state regulation of insurance activities and improving the regulatory framework for insurance activities are considered as means for creating an effective system of insurance protection of the interests of citizens and legal entities in the Russian Federation.

CHAPTER II. THE PROBLEM OF INSURANCE ACTIVITY DEVELOPMENT IN THE RUSSIAN FEDERATION

2.1. Main mechanisms of stimulation and support by the state of the insurance sector

The direct participation of the state in the formation of an insurance system for protecting interests is determined by the need, firstly, to provide guarantees of social protection for certain groups of the population and to carry out compulsory state insurance at the expense of budgetary funds; secondly, by defining the basis and procedure for state participation in the insurance of non-commercial risks to protect investments, including foreign ones, in the insurance of export credits; thirdly, by providing additional guarantees to those insurers’ funds that are placed in the form of special non-market government securities with guaranteed income; fourthly, the creation of target reserves to compensate for the insolvency of individual insurance organizations when fulfilling their obligations under long-term life insurance and pension insurance contracts for citizens.

State supervision (which determines the ways of development and support of the insurance sector) of insurance activities is carried out in order to comply with the requirements of the legislation of the Russian Federation on insurance, the effective development of insurance services, and the protection of the rights and interests of policyholders, insurers, other interested parties and the state.

The system of state supervision of insurance activities should include:

1) organizing the foundations of insurance supervision in the Russian Federation, primarily through the creation of special bodies for supervision of insurance activities at the federal level and at the level of constituent entities of the Russian Federation;

2) creation of regulatory acts for supervision of insurance activities, development of uniform methodological principles of organization and implementation

insurance business;

3) determination of special requirements for insurance

organizations, establishment of licensing and certification of insurance activities;

4) establishment of uniform qualification requirements for managers and specialists of insurance organizations, surveyors, emergency commissioners, etc.

We can highlight the main areas of state support for insurance activities. This is, first of all, the preservation of healthy competition in the insurance market (antitrust legislation), as well as licensing of insurance activities.

Maintaining competition in the insurance market

Suppression of monopolistic activities and unfair competition in the insurance market is one of the means of state regulation of insurance activities. Prevention, limitation and suppression of monopolistic activities and unfair competition in the insurance market are ensured by the Ministry of the Russian Federation for Antimonopoly Policy and Entrepreneurship Support (hereinafter - MAP). The protection of fair competition in the insurance market and the suppression of monopolistic activities must take place within the framework of a single, state-regulated process, which involves the following forms.

1) suppression of abuse of dominant position by insurance organizations;

2) determination on a competitive basis of those insurance organizations

who will be involved in the implementation of insurance programs with

use of public funds;

executive power and local government bodies, limiting

competition;

4) implementation of state control over the concentration of capital in the insurance services market;

5) control over the creation of associations of insurance organizations, as well as agreements and coordinated actions of insurance organizations:

6) suppression of the establishment of unreasonably high or low tariffs for insurance services.

Unions, associations and other associations of insurers must obtain the consent of the antimonopoly authority for state registration with the insurance supervisory authorities if all participants in the association of insurers are registered in the same administrative-territorial entity. This consent to register an association of insurers is obtained from the relevant territorial department of the antimonopoly authority of Russia. Consent to register an association of insurers is issued on the basis of the required documents submitted by their founders. Consent to register an association may be refused if the documents submitted indicate that the association is carrying out insurance activities, or that there is an agreement or agreements between members of the association, which has or may result in a significant restriction of competition in this market, infringement of the interests of other insurers or policyholders, including including the division of the insurance services market on a territorial basis or by type of insurance, the establishment (maintenance) of unified insurance

tariffs for certain types of insurance, access restrictions

entry into the insurance market or the elimination of other insurers from it.

A license granting the right to engage in insurance activities on the territory of the Russian Federation can only be issued to a legal entity, since individuals do not have the right to engage in insurance activities.

Insurance activities subject to licensing are considered to be the activities of insurance organizations and mutual insurance companies (insurers) associated with the formation of special monetary funds (insurance reserves) necessary for upcoming insurance payments.

Licenses are issued for voluntary and compulsory personal insurance, property insurance and liability insurance. If the subject of the insurer's activities is exclusively reinsurance, then a license is issued to carry out reinsurance. At the same time, the licenses indicate specific types of insurance that the insurer has the right to provide.

Activities related to assessing insurance risks, determining the amount of damage, the amount of insurance payments, and other consulting and research activities in the field of insurance do not require a license.

Licensing of insurance activities is carried out by the federal executive body for supervision of insurance activities, which issues licenses to insurers to carry out insurance activities, maintains a unified State register of insurers and associations of insurers, as well as a register of insurance brokers, develops regulatory and methodological documents on issues of insurance activities covered by the Law about insurance to his competence.

A license to conduct insurance activities is a document certifying the right of its owner to conduct insurance activities on the territory of the Russian Federation subject to compliance with the conditions and requirements specified

when issuing a license.

Licenses to carry out insurance activities are issued

whose activity is exclusively reinsurance) to carry out insurance activities only in a certain territory declared by the insurer.

Since in accordance with Art. 30 of the Insurance Law, supervision of insurance activities on the territory of the Russian Federation is carried out by federal bodies for supervision of insurance activities and their territorial bodies, then the competence of these bodies includes: issuing instructions, limiting the validity of a license, suspending a license and revoking a license to carry out insurance activities.

Prescription - This is a written order obliging the insurer to eliminate the identified violations within a specified period.

Orders are issued by federal authorities for supervision of insurance activities and their territorial bodies when violations by insurers of the requirements of insurance legislation are detected.

If the order is not fulfilled within the prescribed period, the insurance supervisory authorities have the right to limit or suspend the insurer’s license until the identified violations are eliminated or decide to revoke the license.

License limitation means a prohibition, until the violations established in the activities of the insurer are eliminated, to enter into new insurance contracts and renew existing ones for all types of insurance activities (or types of insurance) or in a certain territory.

Suspension of license means a prohibition, until the violations established in the activities of the insurer are eliminated, to enter into new insurance contracts and renew existing ones for all types of insurance activities (or types of insurance) for which a license has been issued. At the same time, under previously concluded contracts, the insurer fulfills its obligations before their expiration.

License revocation means a ban on carrying out insurance activities, with the exception of fulfilling obligations assumed under existing insurance contracts. In this case, the funds of insurance reserves can be used by the insurer exclusively to fulfill obligations.

That. the suppression of monopolistic activities and unfair competition in the insurance market, as well as the issuance of a license to carry out insurance activities, are one of the means of state regulation of insurance in the Russian Federation. The protection of fair competition in the insurance market and the suppression of monopolistic activities, the issuance of a license must take place within the framework of a single, state-regulated process.

2.2. Improving state regulation of insurance activities
It is necessary to highlight one of the main directions for the development of state regulation of insurance activities - the improvement of legislation in the field of insurance, which takes place in three directions.

Firstly, this is a change in general legislation. At the end of 2002, the Government of the Russian Federation approved the Concept for the development of the insurance market of the Russian Federation; A number of amendments, changes and additions have been made to the federal law “On the organization of insurance business in the Russian Federation” and other legislative acts. Also, the licensing procedure previously provided for by the bill has been significantly improved in many ways.
In particular, the composition

licensed types of activities. The activities of insurance organizations, mutual insurance societies, insurance brokers, as subjects of the insurance business in Russia, can be carried out only with a special permit and only in a certain area - in the field of insurance.

It is expected that the procedure will be somewhat simplified for insurers.

licensing. A new licensing system has been introduced, which makes it possible to obtain a license not for every insurance product, but for 23 types of insurance activities. Taking into account the division of insurance companies by type of insurance activity, in order to obtain a license, some insurers will submit insurance rules within 5 types of insurance, and others - within 18. The proposed licensing procedure will significantly simplify life for both insurance companies and the insurance supervisory authority.

Secondly, bills on specific types, mainly compulsory insurance, are being actively developed. These include the bills “On compulsory liability insurance for the operation of particularly dangerous industries”, “On compulsory medical insurance”, “On compulsory liability insurance of producers”

goods (services) and works", "On compulsory insurance

responsibility of medical workers."

Thirdly, the operating conditions are significantly improved due to the adoption of regulations at the level of the Ministry of Finance of the Russian Federation, allowing, in particular, to make changes to documents in a notification manner, improve statistical reporting, etc.

The main directions of Russian lawmaking in the insurance sector for the next 3-5 years will also be related to the modernization of general legislation and regulations on compulsory types of insurance. In the future, it is necessary to revise Chapter 48 of the Civil Code of the Russian Federation, develop bills “On compulsory liability insurance of producers of goods and services” and some other bills. We can talk about the Insurance Code of the Russian Federation only in a very distant future, only after the legislative framework in insurance has been fully formed and all regulations have been codified.

It is impossible not to take into account the prospects for liberalization of the Russian insurance market. In accordance with the existing legislative system, the conditions for the admission of foreign insurers to the Russian insurance market

designated in the federal law “On the organization of insurance business in the Russian Federation”.

New amendments to this law, which are currently in

State Duma of the Russian Federation do not yet provide for any

changes in the conditions for admission of foreign companies to the insurance market of the Russian Federation.

Many years of experience of foreign companies can bring new technologies and products to Russian insurance, as well as increase competition among insurers, which will lead to improved quality of insurance products.
However, to summarize, it should be noted that the position on liberalization of the Russian insurance market requires further detailed consideration.

That. It is assumed that the most effective stimulating conditions of modern economic policy will be self-regulatory mechanisms, as well as liberalization of the insurance market.

CONCLUSION

Today, the insurance sector is part of the economic sector and the role of the state in promoting and supporting it is enormous. The purpose of state regulation is to ensure the formation and development of an effectively functioning insurance market, to create the necessary conditions for the activities of insurers of various organizational and legal forms, and to protect the interests of policyholders.

State regulation should facilitate the establishment in the insurance market of companies that have a solid financial and legal basis. Also, state regulation is of great importance for pursuing a consistent policy regarding the forms, methods and extent of participation of foreign capital in the insurance business in the Russian Federation and other CIS member states.

State regulation of insurance activities complements the market mechanism of insurance, enhancing its positive aspects.

This paper examined state insurance principles; functions and tasks of insurance supervision over the activities of insurance companies; licensing and taxation of insurers; support and assistance to the insurance sector from the state through the introduction of various mechanisms, etc.

Also, during the study, several problems and directions for solving them were identified.

Firstly, the legislative framework for the insurance business in Russia is just being formed, and state supervisory authorities perform not only the functions of state regulation in the insurance sector, but also directly develop draft legislative acts and proposals on various issues of insurance development. Also, the formation of a system of insurance supervisory authorities has not yet been completed.

However, taking into account numerous proposals and repeated discussions, a list of changes and additions to the current Law “On the Organization of Insurance Business in the Russian Federation” has been developed, which are aimed at regulating the activities of a number of basic insurance institutions that do not have or have an insufficient legal basis.

In addition, in recent years, a fairly extensive package of regulatory documents of RosStrakhNadzor has been formed in the form of instructions, regulations, guidelines and clarifications based on current legislation and mandatory for insurers. Work is constantly being carried out to update the issued directives so that the regulatory system corresponds to emerging trends in the development of the insurance market.

Secondly, cases of violation of insurance legislation by insurers are still not uncommon. This is especially true for unscrupulous insurers who change their location and do not fulfill specific obligations under insurance contracts.

The stability of the insurance market is largely determined by its infrastructure, which should be a well-coordinated mechanism with a developed system of information and analytical support for government bodies, insurance market subjects and interested parties, which can be achieved by creating information and analytical centers, holding regular exhibitions, preparing annual analytical reports on insurance issues, etc.

Regulation of structural transformations must necessarily include the protection of fair competition in the insurance market, prevention and suppression of monopolism.

The mechanisms of the state's stimulating influence on the insurance market include: legislative development of compulsory types of insurance; provision of special tax regimes to policyholders.

In my opinion, insurance as a whole complex of protection of various interests of citizens, organizations and the state is a necessary element of the economic and social systems of society.

The development of the insurance industry in Russia is quite dynamic. Despite a number of problems in this area, insurance is characterized by powerful incentives for self-development: the initiative and entrepreneurship of insurers, as well as the active participation of the state, and above all, the use of a set of measures to stimulate and support the insurance sector in Russia. Thus, the state provides direct participation and assistance in the development of this area, acting through a number of norms and rules issued to regulate insurance activities in the Russian Federation.

Application

Basic regulations on insurance

The following main regulations governing insurance activities in the Russian Federation and in its individual constituent entities are presented.

• Chapter 48 "Insurance" of the Civil Code of the Russian Federation
• Law of the Russian Federation of November 27, 1992 N 4015-I “On the organization of insurance business in the Russian Federation” (as amended on December 31, 1997, November 20, 1999, March 21, April 25, 2002) as amended Federal Law No. 172-FZ of December 10, 2003 “On introducing amendments and additions to the Law of the Russian Federation “On the organization of insurance business in the Russian Federation” and invalidating certain legislative acts of the Russian Federation”
• Law of the Russian Federation "On introducing amendments and additions to the Law of the Russian Federation "On the organization of insurance business in the Russian Federation" and invalidating certain legislative acts of the Russian Federation"
• Law of the Russian Federation "On medical insurance of citizens in the Russian Federation"
• Chapter 15 "Marine Insurance Contract" of the Merchant Shipping Code of the Russian Federation
• On compulsory civil liability insurance for vehicle owners
• Decree of the Government of the Russian Federation "On approval of the Rules for compulsory insurance of civil liability of vehicle owners"
• Decree of the Government of the Russian Federation "On approval of insurance tariffs for compulsory civil liability insurance of vehicle owners, their structure and the procedure for application by insurers when determining the insurance premium"
• Federal Law On introducing amendments and additions to the legislative acts of the Russian Federation in connection with the adoption of the Federal Law "On compulsory insurance of civil liability of vehicle owners"

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Large encyclopedic dictionary. - M: Soviet Encyclopedia, 1998.T.2 p.776

Law of the Russian Federation “On Insurance”. No. 4015-I in accordance with Federal Law No. 157 FZ dated December 31, 1997 is called the law “On the organization of insurance business in the Russian Federation”

Constitution of the Russian Federation, Art. 71, subparagraph “o”

For example: : Federal Law On Amendments to the Law of the Russian Federation “On the Organization of Insurance Business in the Russian Federation” and to Article 2 of the Federal Law “On Amendments and Additions to the Law of the Russian Federation “On the Organization of Insurance Business in the Russian Federation” and invalidation some legislative acts of the Russian Federation" dated February 28, 2005.

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In order to protect the rights of victims to compensation for harm caused to their life, health or property when using vehicles by other persons, this Federal Law defines the legal, economic and organizational basis for compulsory civil liability insurance of vehicle owners (hereinafter referred to as compulsory insurance). Federal Law of the Russian Federation dated April 25, 2002 No. 40-FZ

Internet resource Ins-forum. Http://www.ins-forum..ru/law/real

By Decree of the President of the Russian Federation of September 22, 1998 No. 1142 “On the structure of federal executive bodies,” MAP was entrusted with the functions of the State Committee of the Russian Federation on antimonopoly policy and support of new economic structures, abolished by the same decree.

In accordance with the procedure established by the Regulations on the procedure for considering applications for consent of the MAP of Russia and its territorial departments for state registration of associations of insurers, approved by order of the State Committee of the Russian Federation on Antimonopoly Policy and Support of New Economic Structures (hereinafter referred to as the State Committee for Antimonopoly Policy of the Russian Federation) dated April 29, 1994 No. 50 taking into account the changes introduced by the Order of the State Customs Committee of the Russian Federation dated March 29, 1995 No. 42 (Russian News, 1994. No. 93: 1995. No. 114).

Petrov A.A. Insurance law: Textbook. – St. Petersburg: Knowledge, St. Petersburg VESEP, 2000. – 24 p.

Folgelson Yu.B. Commentary on insurance legislation. M.: Yurist, 1999. – 232 p.

Civil Code of the Russian Federation, art. 936

Insurance is a system of economic relations associated with the creation by the insurer, at the expense of contributions from policyholders, of insurance funds used to compensate for damage caused to the insured property interests. When concluding an insurance contract, these economic relations acquire legal form. The subjects of relations in this case are individuals and legal entities, and the objects are tangible and intangible values. Because of this, insurance legal relations fall within the scope of civil law (the relationships of insurance companies with the budget, government bodies, and banks are regulated by financial, state, administrative and other branches of law).

The entire set of regulations governing insurance legal relations can be divided into three levels.

First level- Civil Code of the Russian Federation. The Civil Code is the regulatory framework of civil law. It determines the principles of relationships between subjects at all levels: from citizens to the state and is the main regulator of the economic life of society. Its main goal is to ensure equality of business entities in all spheres of the market economy. For this purpose, the Civil Code:

• gives a uniform interpretation of the essence of commercial activity in all areas of entrepreneurship, which (in contrast to non-commercial activity) has the goal of systematically generating profit;
• establishes the mandatory state licensing of the most important types of business activities;
• gives a uniform interpretation of the rights and obligations of all subjects of economic relations, defining uniform organizational and legal forms of entrepreneurship for all areas of activity and a unified approach to the content, procedure for concluding and executing agreements (contracts), as well as the procedure for resolving controversial issues;
• ensures the standardization of transactions both within the country and in the foreign economic space, which allows Russia to be an equal participant in international economic relations.

The specificity of civil legislation in the field of insurance is that it ensures equality of all subjects of insurance transactions, but with priority to the interests of the insured. This is due to its lower security. Firstly, the peculiarities of the manifestation of the essence of insurance are that the policyholder pays the insurer real money at the time of concluding the contract, and in return receives not a product of equal value, but only a promise of insurance protection. Secondly, insurance is characterized by the complexity of procedures related to the calculation of insurance rates, damages, and the amounts of payments for them, and is based on specific terminology, which makes it difficult for an unprepared policyholder to understand insurance documents and various aspects of insurance transactions. Thirdly, the professional lawyers on their staff guard the interests of insurance companies. For the above reasons, the civil law system ensures equality of rights and obligations of participants in insurance transactions through priority protection of the interests of policyholders, since insurance transactions are the most complex of all types of business transactions specifically for clients.

Second level- special (sectoral) legislation that regulates legal and economic relations in specific sectors of the economy. Industry legislation in insurance includes Ch. 48 of the Civil Code and the Federal Law “On the organization of insurance business in the Russian Federation”. These laws are a kind of “sectoral constitution”. They define the principles of organizing the insurance business, give an interpretation of basic insurance concepts and are the basis for the development of other laws, regulations, decrees or regulations of the second and third levels, as well as documents of insurance companies.

Third level- regulations of the President, Government, ministries and departments, in particular the Ministry of Finance of the Russian Federation, the Department of Insurance Supervision of the Ministry of Finance of Russia, the Ministry of Taxes and Duties, the State Committee on Statistics, etc. These include, for example, the Presidential Decree “On compulsory personal insurance of passengers (tourists, travelers)”, orders and resolutions of the Ministry of Finance “On territorial insurance supervision bodies”, “Rules for the formation of insurance reserves for types of insurance other than life insurance”, “ Conditions for licensing insurance activities on the territory of the Russian Federation,” etc.

Third-level documents specify individual articles of industry laws, relieve them of excessive detail and explain the procedure for their implementation in relation to certain aspects of insurance activities.

Three-level regulatory support defines for each insurance company: firstly, a clearly defined range of responsibilities to clients, partners, the state and, secondly, certain rights. The implementation of these rights and obligations is carried out through documents developed by each specific entity of the insurance market. These include: general insurance conditions, insurance rules, insurance application forms, insurance contracts, insurance policies.

Let us determine the purpose of documents developed by insurance companies. Linking the provisions of regulatory support to the niche occupied by a specific insurance company in the insurance market is carried out through the General Conditions of Insurance. They set out the provisions of industry and departmental laws in relation to the types of insurance that a given insurance company carries out, to specific objects of insurance, to the categories of policyholders on whom it focuses. General insurance conditions are not developed by all insurers; many of them are limited by the Insurance Rules. The mandatory availability of Insurance Rules is fixed by the norms of the Civil Code. The rules, on the one hand, duplicate the General Conditions of Insurance, and on the other, contain special conditions, reservations and exceptions applied by a specific insurance company in the insurance process (for example, both the General Conditions and the Life Insurance Rules will state that as an insured , who is also an insured person, can be an individual aged 18 to 75 years, but the Rules reflect exceptions, for example, insurance contracts are not concluded for unemployed disabled people of group I, patients with cancer, etc.). Insurance rules are usually printed on the back of the policy or insurance contract. If they are only attached to one or another document, then a corresponding note is made in the contract or policy about the fact of delivery of the Rules to the policyholder.

An application for insurance, an insurance contract and an insurance policy are developed on the basis of the Insurance Rules. The application is a legal confirmation of the client’s potential desire and consent to purchase an insurance service from a given insurer. Agreement is a legal confirmation of the insurer’s potential consent to sell this client the service specified in the application and specifies its conditions. Insurance policy confirms the fact of concluding an insurance transaction and is issued to the policyholder after payment of the insurance premium. Recently, insurers often combine an insurance contract and an insurance policy.