Standard for organising the professional service of an insurance agent

1. Scope

1.1. This Standard establishes requirements for the organisation and quality of the professional service of an insurance agent who is a participant of the Association of Insurance Agents and Brokers (hereinafter — the Association).

1.2. The Standard applies to insurance agents — individuals and legal entities — as well as to employees of legal entities who interact with clients on behalf of the agent.

1.3. The Standard is applied together with the Law of the Republic of Kazakhstan "On Insurance Activity", the Civil Code of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan "On Consumer Protection", the requirements of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the Code of Professional Ethics of Insurance Agents.

2. Terms

2.1. The following terms are used in the Standard:

• insurance agent — an individual or legal entity that carries out intermediary activities in concluding insurance contracts on behalf of and on the instructions of an insurance company;
• insurer — the insurance company with which the agent has concluded an agency agreement;
• client — an individual or legal entity to whom the agent offers to conclude an insurance contract or provides support under a concluded contract;
• agency agreement — an agreement between the insurer and the agent defining the agent's powers, the list of products and the remuneration procedure;
• deductible — the part of a loss that is not compensated by the insurer and is specified in the insurance contract;
• insured event — an event provided for by the insurance contract, upon the occurrence of which the insurer is obliged to make an insurance payout.

3. Requirements for the agent

3.1. The agent provides the service only if there is a valid agency agreement with the insurer and within the powers granted by that agreement.

3.2. The agent knows the terms of the insurer's products that they offer: scope of cover, exclusions, deductibles, premium calculation procedure and procedure for settling insured events.

3.3. The agent undergoes training on the insurer's products and on insurance legislation. The agent is recommended to complete training and accreditation with the Association and to keep the certificate valid.

3.4. The agent has a document confirming their powers and presents it to the client upon request.

3.5. An agent that is a legal entity appoints persons responsible for compliance with the Standard and supervises the work of its employees.

3.6. The agent does not transfer their powers to third parties unless this is provided for by the agency agreement.

4. Stages of service

4.1. Identifying the client's needs

4.1.1. The agent finds out which risks the client wants to insure, which object or person is to be insured, and what term and budget are acceptable to the client.

4.1.2. The agent checks whether the client has existing insurance contracts in order to avoid duplication of cover.

4.1.3. The agent informs the client that they represent the interests of the insurer and names the insurer.

4.1.4. If none of the insurer's products meets the client's needs, the agent informs the client accordingly and does not offer insurance that is clearly unsuitable.

4.2. Presenting the insurer's products and terms

4.2.1. The agent offers products that match the client's identified needs and explains how they differ from each other.

4.2.2. The agent informs the client of the sum insured, the premium amount, the procedure and timing of its payment, and the term of the contract.

4.2.3. At the client's request, the agent provides the insurance rules and the draft contract before it is signed.

4.3. Explaining exclusions, the deductible and the payout procedure

4.3.1. The agent specifically draws the client's attention to exclusions from cover, grounds for refusal of payout and the amount of the deductible.

4.3.2. The agent explains what to do when an insured event occurs: where and within what time to report the event, what documents will be required and how the amount of the payout is determined.

4.3.3. The agent makes sure that the client has understood the material terms and answers the client's questions.

4.4. Processing and transferring documents to the insurer

4.4.1. The agent receives from the client the information necessary to conclude the contract and checks that it is complete. The agent does not enter into documents any information that the client did not provide.

4.4.2. The agent issues the contract in accordance with the insurer's rules and gives the client their copy or a confirmation that the contract has been concluded.

4.4.3. If the agent accepts the insurance premium, they give the client a supporting document and transfer the premium to the insurer within the time limits set by the agency agreement.

4.4.4. The agent promptly transfers completed documents and client information to the insurer.

4.4.5. The agent does not sign documents on behalf of the client and does not fill in applications in the client's name without the client's participation.

4.5. After-sales support and assistance with insured events

4.5.1. The agent advises the client on matters of contract performance, amendments and renewal.

4.5.2. When an insured event occurs, the agent helps the client report it to the insurer and collect the necessary documents.

4.5.3. The decision on the insurance payout is made by the insurer. The agent does not make any promises to the client about the outcome of the claim review.

4.5.4. If the agency agreement is terminated, the agent informs clients whom to contact regarding existing insurance contracts.

5. Service quality and disclosure of information

5.1. The agent provides the client with complete, accurate and understandable information. Material terms are explained before the contract is signed.

5.2. The agent does not use pressure, does not limit the client's time to make a decision and does not mislead the client about the terms of insurance.

5.3. The agent keeps to arrangements on the time and method of contact with the client and responds to enquiries within a reasonable time.

5.4. The agent keeps their information in the Association's register up to date, including the list of insurers they work with.

5.5. In advertising and when communicating with the client, the agent states their status as an insurance agent and the name of the insurer whose interests they represent.

6. Confidentiality and record-keeping

6.1. The agent keeps client information confidential and processes personal data in accordance with the Law of the Republic of Kazakhstan "On Personal Data and Their Protection".

6.2. The agent keeps records of contracts concluded with their participation, premiums received and client enquiries in the manner established by the agency agreement and legislation.

6.3. The agent ensures the safekeeping of the client's documents and does not use them for purposes unrelated to the provision of the service.

6.4. The agent transfers client information to the insurer only to the extent necessary to conclude and perform the insurance contract.

7. Remuneration

7.1. The agent receives remuneration only from the insurer, on the terms of the agency agreement.

7.2. The agent does not charge the client any additional fee for concluding an insurance contract, does not include hidden commissions in the price and does not demand any other benefits.

7.3. The insurance premium paid by the client must comply with the terms set by the insurer.

8. Interaction with the Association

8.1. An agent who is a participant of the Association confirms compliance with the Standard by acceding to the Memorandum with insurance market participants.

8.2. The agent participates in the Association's training and accreditation programmes, reports problems in industry practice and is entitled to submit proposals for improving the Standard through the Committee on Work with Insurance Agents.

8.3. The agent considers client requests received via the Association's website and responds to client reviews courteously and to the point.

8.4. The agent notifies the Association of the termination of the agency agreement with the insurer so that the register information remains accurate.

9. Supervision and liability

9.1. Compliance with the Standard is monitored when considering complaints from clients, insurers and participants, as well as during accreditation.

9.2. Complaints about violations of the Standard are considered by the Association's Disciplinary Committee through the Disciplinary Council in the manner established by the Rules for Consideration of Complaints by the Disciplinary Council.

9.3. For violation of the Standard, the agent may be subject to a remark, a warning, suspension of accreditation or exclusion from the Association's register.

9.4. The Association's measures do not replace the agent's liability provided for by legislation and the agency agreement.