Legal forms of insurance organizations, Subjects of insurance...

3.2. Legal forms of insurance organizations

3.2.1. Subjects of insurance

In accordance with the Law on Organization of Insurance Business, insurance organizations, mutual insurance companies, insurance brokers and insurance actuaries are subjects of insurance business. The activities of the subjects of insurance business are subject to licensing, except for the activity of insurance actuaries, which are subject to certification. Insurance activity (insurance business) is the sphere of activity of insurers on insurance, reinsurance, mutual insurance, as well as insurance brokers, insurance actuaries for providing services related to insurance and reinsurance. The purpose of the insurance business is to protect the property interests of individuals and legal entities, the United States, US subjects and municipal entities in the event of insured events. Participants in the relations regulated by the said Law are: insured persons, insured persons, beneficiaries; insurance organizations; mutual insurance society; insurance agents; insurance brokers; insurance actuaries; The federal executive body, whose competence includes the exercise of the functions of control and supervision in the field of insurance activities; association of subjects of insurance business, including self-regulating organizations. Information on subjects of insurance business shall be entered in the Uniform State Register of Insurance Subjects. The name (title) of the subject of the insurance business should contain an indication of the organizational and legal form of the subject, the type of activity performed - "insurance" or "reinsurance", or "mutual insurance", or "insurance broker", as well as a designation that individualizes the subject of insurance business (its name).

Insurers can only be legal entities created in accordance with US law for insurance, reinsurance, mutual insurance and licensed in the manner prescribed by law. Thus the insurer can carry out either life insurance or insurance other than life insurance.

To obtain a license, insurers (with the exception of mutual insurance societies) must have fully paid up authorized capital, the amount of which must not be less than (million rubles):

Type of insurance activity

Rate as of 01/07/2007

Rate as of 01/01/2012

Insurance other than life insurance (risk insurance)



Life Insurance






Insurers evaluate insurance risk, receive insurance premiums (insurance premiums), form insurance reserves, invest assets, determine the amount of losses or damages, make insurance payments, and perform other actions related to the performance of obligations under the insurance contract.

3.2.2. Organizational and legal forms of subjects of insurance business

Insurers can only be legal entities registered in the United States.

A legal entity is an organization that owns, manages or operates a separate property and is liable for its obligations with this property, can acquire and implement property and personal non-property rights, bear responsibilities, be a plaintiff and defendant in court. Legal entities must have an independent balance or estimate. A legal entity may have civil rights consistent with the objectives of the activities provided for in its constituent documents and bear the responsibilities associated with this activity.

A legal entity is subject to state registration in an authorized state body in the manner prescribed by Federal Law No. 129-FZ of August 8, 2001 "On State Registration of Legal Entities and Individual Entrepreneurs." State registration data are included in the Unified State Register of Legal Entities, open to general public.

A legal entity can create separate units in the form of representations and branches. Representation is a separate subdivision of a legal entity located outside its location, which represents the interests of the legal entity and protects them. Affiliate is a separate subdivision of a legal entity located outside its location and carrying out all its functions or a part thereof, including representation functions. Representations and branches are not legal entities. They are endowed with property by the legal entity that created them and act on the basis of the provisions approved by them. Representations and branches must be indicated in the constituent documents of the legal entity that created them.

US Civil Law provides for the following legal forms of legal entities:

- business partnerships and societies;

- production cooperatives;

- state and municipal unitary enterprises;

- non-profit organizations.

Business associations and companies are recognized as commercial organizations with authorized (share) capital divided into shares (contributions) of founders (participants). Economic partnerships can be established in the form of a full partnership and partnership on faith (limited partnership). Business associations may be established in the form of a joint-stock company, a limited or additional liability company.

The most common organizational and legal forms of insurance companies are closed and open joint-stock companies and limited liability companies. The contribution to the property of an economic partnership or a company may be money, securities, other things or property rights or other rights having a monetary value.

In the post-Soviet period of the insurance market formation, most insurance companies were organized as closed and open joint-stock companies, however in the last five years many companies were transformed into limited liability companies, as this organizational and legal form reduced the level of regulation of insurers' activities by the state primarily in terms of changes in the size of the authorized capital.

Legal entities that are non-profit organizations can be created in the form of consumer cooperatives, public or religious organizations (associations), institutions, charitable and other funds, as well as in others forms provided by law. Non-profit organizations can carry out entrepreneurial activities only insofar as this serves the achievement of the purposes for which they were created, and corresponding to these goals.

Insurance non-profit organizations are represented by mutual insurance societies and associations of insurers (associations and unions).


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