Cabinet of Ministers of Uzbekistan adopted resolution “On approval of plan of law drafting work of the Government of Uzbekistan for 2010” on 25 December 2009.

The document said the adoption of the law is connected with reforms in the insurance market. The resolution said some clauses of the law “On insurance activity” do not meet modern trends in the industry and they contradict to norms of other laws.

In particular, sixth part of article 18 of the law envisages issuance of licenses to newly created organizations in the results of the insurer reorganization in simplified order. At the same time, the Law “On licensing separate types of activities” does not stipulate these simplified procedures.

In the line with sixth part of article 18 of the law “On insurance activity”, the license of insurer becomes invalid at the reorganization of the insurance company in form of merger, division and reorganization. But, the paragraph third of the first part of article 23 of the Law “On licensing separate types of activities” says that the license of the insurer becomes invalid in case of stoppage of legal entities’ activities in the result from reorganization from the reorganization moment, excluding transformation. These two articles contradict to each other.

The law “On insurance activity” does not envisage starting date of reorganization of insurer, which prevents fully execution of the sixth part of article 18 of the law.

According to the resolution, the draft will be submitted to the Legislative Chamber of Oliy Majlis of Uzbekistan tentatively in September 2010.