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third parties, is regulated by the civil legislation of the Russian Federation. Thus, not only the harm caused to the property, but also the one caused to the health or life of the citizen, and also the loss of income are considered. Both individuals and legal entities can be insurants on a civil liability. In contrast to insurance of civil liability, insurance of the professional liability concerns some kinds of professional work which subjects should indemnify damage, caused by them to third parties (clients) according to the law. This kind of insurance is obligatory, that it is offered by the law for individuals who carry out professional work as individual practice: estimators (experts), lawyers and others In insurance of liability for non-performance of obligations, the object of insurance is property interests of an individual who is insured under an insurance contract (insured individual), and is a debtor. This individual has a liability to compensate losses, pay forfeit to creditor because of his non-performance (improper performance) of liability, including contract liability. The order of compensation of the mentioned is established by the civil legislation.

Forms of insurance Generally, insurance is subdivided into two forms: obligatory (by act of the law) and voluntary (by act of the contract between the insurant and the insurer). Obligatory insurance The insurance which is carried out by act of the law is obligatory. Its kinds, conditions and the order of carrying it out are determined by appropriate federal laws. Obligatory insurance has more detailed description in the Chapter "Obligatory Non-Tax Payments" of the Guide. Voluntary insurance Voluntary insurance is carried out on the basis of contract between the insurant and the insurer. The insurant makes his independent decision concerning the conclusion of the contract and the choice of the insurer. The insurer has the right to accept or to not accept risk of insurance too, depending on certain circumstances. Rules of insurance are accepted and approved by the insurer or association of insurers independently in compliance with the Civil Code of the Russian Federation, and contain regulations with regards to subjects of insurance, objects of insurance, insurance cases, insurance risks, order of determination of the insurance sum, insurance tariff, insurance premium (insurance payments); order of conclusion, performance and stoppage of insurance contracts; rights and duties of the parties, determination of losses or damage size, order of determination of insurance payment, cases of refusal in insurance payment and other statements.

Licensing of insurance activity The license for carrying out insurance activity is the document certifying the right of its owner for carrying out insurance activity in the territory of the Russian Federation if he observes conditions and requirements stipulated when being licensed. The license can be given for realization of insurance activity in the certain territory declared by the insurer. Licensed insurance activity is understood as activity of the insurance organizations and societies of the mutual insurance (insurers), connected with formation of special monetary funds (insurance reserves), necessary for forthcoming insurance payments. Activity according to insurance risks, to definition of the sizes of damage, consultation, etc. does not require reception of the license. 153  

1. STATE AND MUNICIPAL AUTHORITIES IN ST. PETERSBURG In St. Petersburg the system of state authorities was formed which has statutory object...