Task 2 For Midterm exam Group: mm53 I Full name

Question 3: The legal basis of insurance
Legal states, Property rights, Personal (no-property) rights serve as a legal basis of insurance.
There are four types of civil right relations in insurance:

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  Between Customer and Insurance company
  

Both two parties have own responsibilities which are mentioned in a contract.

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  Between two and more insurance company
  

There are two types of relations between insurance companies.

1. 
   Reinsurance is an insurance of insurance in which one or more insurance companies agree to partially or fully cover the risk for an insurance policy issued by one or more other insurance companies.
   
2. 
   Insurance pool is a collection of assets of several insurance companies. This pool is used to provide higher risk insurance.
   

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  Between Customers and special state organs
  

Special state organs protect customers` rights in case of insurance company refuses indemnity without any reason.

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  Between Insurance company and special state organs
  

Special state organs check or monitor the activity of insurance companies according to Law about “Insurance activity”

We have two types of laws: 1.Special laws 2.General laws

Special laws:

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  Law about “Insurance” in 1993
  
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  Law about “Insurance activity” in March 17 2002
  
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  Law about “Auto responsibility insurance” in April 21 2008
  
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  Law about “Civil responsibility of employer” March 17 2009
  

Question 4: Insurance relations and their regulatory mechanism
What actually insurance mechanism gives us?
We can easily get rid of unnecessary worries. As a result, we can giveу all focus on the product or service. Moreover, protect from financial losses of new or long-term companies.
The government has a control over insurance market. It controls insurance market by special state organs.
Why insurance should be controlled by government?
Government should control insurance in order to prevent from various problems. Secondly, government don`t allow monopoly. Thirdly, during the development of market economy there might be social and economic crisis. At that time companies and businesses can get rid of bankruptcy if they make an insurance. Finally, if conflicts appear between the carrier and the assured government will solve them.
In Uzbekistan, State control institute of insurance controls insurance market. This organization has several tasks:

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  ­­­­­to give a license for insurance companies and brokers.
  
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  To assess one`s paying ability.
  
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  To help prevent from risk
  
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  To determine the direction of the use of insurance funds
  
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  To define the reasons why participants of insurance to exit from insurance market
  
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  To providing transparency and better quality of insurance service
  

In the process of controlling government fulfill requirements of law by participants and provide with normative legal framework of insurance.