OREANDA-NEWS. May 05, 2009. The Commission of the Federal Antimonopoly Service (FAS Russia) continued processing the case against the "Agency for Residential Mortgage" OJSC ("AIZhK" OJSC) and 50 insurance companies for violating Part 1 Article 11 of the Federal Law "On Protection of Competition". The parties signed the cooperation agreements for insuring property and other borrower's interests under the mortgage lending programme of "AIZhK" OJSC, reported the press-centre of FAS Russia.

At the meeting of the FAS Russia's Commission, a representative of "AIZhK" OJSC reported that on 23rd April 2009 the Board of Directors of "AIZhK" OJSC had introduced the following amendments to the Agency's Standards for the procedures of granting, refinancing and servicing mortgage credits (loans):

1. Abolished the concept of "concentration limit";

2. Listed public requirements to the insurance companies that comply with the Russian legislation;

3. Particularized the requirements to the minimum market experience of an insurer;

4. Formalized the mandatory requirements for financial stability of the insurers;

5. Introduced qualitative indicators that characterize the level of efficiency of an insurer in its work with servicing companies;

6. The requirement for the insurer's reliability rating was made nonbinding.

Also, taking into account the borrowers' interests and having estimated the percentage of the paid claim and the possibility that insurers can refuse to pay compensation for insurance against the risks of inflicting harm to health and survival of a borrower, the Board of Directors of "AIZhK" OJSC decided to introduce an alternative product without mandatory insurance of the above risk.

Also the representative of "AIZhK" OJSC informed that the Agency needed additional time to complete the work on introducing the relevant amendments to the cooperation agreements with the insurers; and in this connection the Agency petitioned for adjourning the case.

The FAS Russia's Commission granted the petition of "AIZhK" OJSC.

The next case hearing is scheduled for 1st June 2009.