Rules for the review of complaints by the disciplinary council

1. General provisions

1.1. These Rules establish the procedure for filing, registering and considering applications (complaints) against members of the Association of Insurance Agents and Brokers (hereinafter, the Association), as well as the procedure for applying disciplinary measures.

1.2. Applications are considered by the Disciplinary Committee of the Association. For each specific application, the Committee forms a Disciplinary Council.

1.3. Consideration of applications is based on the principles of legality, objectivity, impartiality, adversarial proceedings and confidentiality. Each party has the opportunity to state its position and submit supporting materials.

1.4. The Rules apply with due regard to the Law of the Republic of Kazakhstan “On Insurance Activity”, the Law of the Republic of Kazakhstan “On Consumer Protection” and the internal documents of the Association.

1.5. Applying to the Association is a voluntary means of protecting one's interests. It does not replace applying to the insurance organization, the authorized body or a court, and does not affect the time limits established by law for such applications.

2. Who may file an application and against whom

2.1. The following may file an application:

• clients — individuals and legal entities to whom an insurance agent or broker provided services or offered to provide them;
• insurance organizations;
• members of the Association.

2.2. An application may be filed against an insurance agent or insurance broker who is included in the registry and is a member of the Association. Information about members is available in the registry.

2.3. Applications against persons who are not members of the Association are not accepted for consideration. The applicant is advised where they can apply.

3. Grounds for an application

3.1. The ground for an application is a member's violation of:

• the Code of Professional Ethics of Insurance Agents or the Code of Professional Ethics of Insurance Brokers;
• the standards for organizing the professional services of an insurance agent or insurance broker.

3.2. Such violations include, in particular, distorting or incompletely disclosing insurance terms, misleading the client as to whose interests the intermediary represents, disclosing confidential information, unfair advertising, hidden commissions, and unethical conduct towards clients and colleagues.

4. Procedure for filing an application

4.1. An application is filed in writing via the form on the “Contacts” page or by e-mail at info@asab.kz.

4.2. The application must contain:

• the applicant's surname, first name and patronymic (or organization name) and contact details;
• the surname, first name and patronymic or name of the member against whom the application is filed;
• a description of the circumstances: what happened, when and under what conditions;
• an indication of which requirements of the Code or standards, in the applicant's opinion, have been violated;
• the substance of the applicant's request;
• copies of available documents and correspondence supporting the arguments.

4.3. Anonymous applications are not considered.

4.4. If the application lacks the necessary information, the applicant is asked to supplement it. Consideration is suspended until the additional information is received.

4.5. The applicant may withdraw the application before a decision is made. The Disciplinary Committee may continue the consideration if the materials indicate a violation affecting the interests of other clients.

5. Registration and preliminary review

5.1. An incoming application is registered. The applicant is notified of its receipt.

5.2. During the preliminary review, the Disciplinary Committee establishes:

• whether the person complained against is a member of the Association;
• whether the subject of the application falls within the Association's competence;
• whether there is sufficient information for consideration on the merits.

5.3. Following the preliminary review, the application is accepted for consideration, or the applicant is sent a reasoned refusal explaining where they may apply.

5.4. A repeated application on a matter on which a decision has already been made is not considered unless it presents new circumstances.

6. Disciplinary Council

6.1. To consider an accepted application, the Disciplinary Committee forms a Disciplinary Council of at least three members.

6.2. The Council may not include persons with a conflict of interest: those having family, employment, contractual or other relations with the applicant or the member, or a personal interest in the outcome of the case.

6.3. A Council member who becomes aware of a conflict of interest must declare it and withdraw from the Council. The applicant and the member may file a reasoned challenge against a Council member.

6.4. The Council elects a presiding member from among its members.

7. Notification of the member and the right to give explanations

7.1. The member against whom an application is filed is notified of it and receives a copy of the application or a summary of its substance.

7.2. The member may submit written explanations and documents, and also give explanations at the Council meeting.

7.3. The member's refusal to give explanations does not prevent consideration of the application on the basis of the available materials.

7.4. The member may review the materials of the application, except for information whose disclosure would violate the rights of third parties.

8. Consideration and decision

8.1. The Council examines the materials, requests additional information from the parties and the insurance organization if necessary, and hears the applicant and the member.

8.2. The meeting may be held in person or via video conference.

8.3. Decisions are made by a majority vote of the Council members. The decision is drawn up in writing and contains a description of the circumstances, conclusions as to whether a violation occurred, and the measure applied.

8.4. The Council may find the application unfounded and terminate the consideration if the violation is not confirmed.

8.5. The parties may settle their differences before a decision is made. If the applicant and the member reach an agreement, the Council takes this into account when choosing the measure or terminates the consideration.

9. Disciplinary measures

9.1. If a violation is confirmed, one of the following measures may be applied to the member:

• a remark;
• a warning;
• suspension of accreditation;
• exclusion from the Association's registry.

9.2. The measure is chosen taking into account the nature and consequences of the violation, whether it is repeated, the member's actions to remedy the consequences, and the member's explanations.

9.3. The Council may also recommend that the member undergo additional training or remedy identified shortcomings in working with clients.

10. Informing the applicant

10.1. The applicant and the member are informed of the decision in writing.

10.2. If the decision involves suspension of accreditation or exclusion from the registry, the corresponding changes are reflected in the registry after the decision takes effect.

10.3. Information on the measures applied is taken into account by the Accreditation Committee when confirming the member's accreditation.

11. Appealing a decision

11.1. The applicant and the member may appeal a decision of the Disciplinary Council to the Management Board of the Association.

11.2. The appeal is filed in writing, stating the grounds for disagreement. The Management Board may uphold the decision, change the disciplinary measure, or refer the application for reconsideration by a newly composed Council.

11.3. An appeal within the Association does not deprive the parties of the right to apply to a court or the authorized body.

12. Matters outside the Association's competence

12.1. The Association does not consider disputes concerning insurance payouts, the amount of indemnity or the performance of an insurance contract. Such matters are resolved by the insurance organization, the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market, a court, or through mediation in accordance with the Law of the Republic of Kazakhstan “On Mediation”.

12.2. If an application shows signs of such a dispute, the Association may recommend mediation to the parties. Decisions of the Association are not binding on insurance organizations with respect to insurance payouts.

13. Confidentiality

13.1. Information obtained during the consideration of an application is used solely for that purpose and is not disclosed to third parties, except as provided by law.

13.2. Members of the Disciplinary Council and employees of the Association must keep the materials and the course of consideration confidential.

13.3. The Association may publish anonymized reviews of its practice in considering applications, without disclosing information about the parties, so that members can take this practice into account in their work.

13.4. Personal data of the applicant and the member are processed in accordance with the Association's Privacy Policy.