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The law "About modification and additions in the Law of the Russian Federation" About
Insurance "from 31.12.97 by which the increase was provided
The minimum size of the paid authorised capital stock generated for an abacus
Money resources. Since January, 1st, 1998 the minimum size has been established on
Following level: for the companies spending life insurance and other kinds
Insurance, - not less than 35 thousand minimum wage rates (minimum wage rate) -
(3 million rbl.); for the companies which are not engaged in life insurance, - 25 thousand
The minimum wage rate (2,1 million rbl.); for the specialised resafety companies - 50
Thousand minimum wage rate (4,2 million rbl.). The specified specifications of an authorised capital stock
Are applied from the moment of their introduction to again created insurance companies.
It was necessary for operating insurers to increase the authorised capital stocks to
The new specification within 1998 At those companies which could not it
To make, it was supposed to withdraw since January, 1st, 1999 of the licence.
According to Department of insurance supervision of the Ministry of Finance of the Russian Federation, on the middle 1998it.
Only 326 insurance organisations corresponded to law requirements about
Authorised capital stock increase. Introduction of more rigid requirements by the size
The authorised capital stock, directed on increase of reliability, solvency
The insurance organisations, it urged to strengthen insurance sector as a whole by
Liquidations of the small impractical companies. It is necessary to notice that in all
The countries Central and the Eastern Europe, including the CIS, the similar are established
Requirements, and, as a rule, at higher level. About necessity
Such measures licence withdrawal from considerable number of the insurance testifies
The companies and their self-liquidation. According to Department of insurance supervision
The Ministry of Finance of the Russian Federation, with 1994it. On 1997 licences at 888 insurance have been withdrawn
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