Volume 12 - Issue 69
/ September 2023
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DOI: https://doi.org/10.34069/AI/2023.69.09.14
How to Cite:
Biletska, L., Saray, R., Dontsov, D., Lozynskyi, Y., & Hryshchuk, A. (2023). Constitutional principles of economic, administrative,
and criminal responsibility in the field of insurance. Amazonia Investiga, 12(69), 161-170.
https://doi.org/10.34069/AI/2023.69.09.14
Constitutional principles of economic, administrative, and criminal
responsibility in the field of insurance
Конституційні засади господарської, адміністративної та кримінальної
відповідальності у сфері страхування
Received: August 1, 2023 Accepted: September 27, 2023
Written by:
Liudmyla Biletska1
https://orcid.org/0000-0002-5081-610X
Roman Saray2
https://orcid.org/0009-0001-4468-0728
Denys Dontsov3
https://orcid.org/0000-0003-1567-334X
Yurii Lozynskyi4
https://orcid.org/0000-0003-2908-7747
Alina Hryshchuk5
https://orcid.org/0000-0001-6289-6656
Abstract
The constitutional principles of legal liability are
an important prerequisite for the introduction of
economic, administrative and criminal liability in
the insurance sector. The Constitution enshrines
the guiding provisions on legal responsibility in
general, which later find their consolidation in
separate special acts, in particular, those
regulating relations in the insurance sphere. The
purpose of the work is to clarify the peculiarities
of the constitutional regulation of economic,
administrative and criminal responsibility in the
field of insurance. The research methodology
consists of such methods as: dialectical, analysis,
synthesis, formal-logical, historical, systemic.
The article analyzes the peculiarities of bringing
business entities to account in the insurance
sector. It was noted that the Constitution of
Ukraine establishes the general principles of
bringing to legal responsibility, while special
legislation establishes direct requirements for
bringing to responsibility in certain spheres of
1
Ph. D., Associate Professor of the Law Department of the Lviv Institute "Higher Educational Institution" Interregional Academy of
Personnel Management", Ukraine.
2
Ph. D., Associate Professor, Senior Lecturer at the Uzhhorod National University, Ukraine.
3
Ph.D. in Law, Lecturer of the Department of Civil and Legal Disciplines, Odesa State University of Internal Affairs (Odesa, Ukraine),
Judge of the Primorskyi District Court of Odesa, Ukraine.
4
Ph. D., Associate Professor of the Department of Administrative and Legal Disciplines of the Law Institute of the Lviv State
University of Internal Affairs, Ukraine.
5
Ph. D., Associate Professor of the Department of Administrative and Legal Disciplines of the Law Institute of the Lviv State
University of Internal Affairs, Ukraine.
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socio-economic life. Problematic issues of
prosecution in the field of insurance and
international experience on this issue have been
studied in order to formulate scientifically based
conclusions.
Keywords: constitutional principles, insurance,
administrative responsibility, economic
responsibility, criminal responsibility, financial
services.
Introduction
The Constitution of Ukraine (1996) marked the
beginning of a profound transformation in the
legal framework regarding human and citizen
rights and freedoms. Constitutional principles in
the context of insurance usually refer to the
fundamental concepts and rules that govern the
economic, administrative and criminal aspects of
the industry: economic responsibility,
administrative responsibility and criminal
liability. (Law 254k/96-VR, 1996).
As a result, ensuring the actualization of the
rights and freedoms enshrined for individuals
and citizens has evolved into an inseparable
component of the state's overarching
responsibilities. This imperative underscores the
fundamental commitment of the state to actively
facilitate and protect these rights, thus
underscoring the pivotal role of government in
upholding and promoting the well-being and
liberties of its people.Undoubtedly, this also
applies to the field of insurance. For example,
from Article 46 of the Constitution, it can be
concluded that mandatory state social insurance
is an important guarantee of the defined right.
Therefore, the place and role of mandatory state
social insurance in the modern system of social
protection of the population of Ukraine is
determined at the highest legislative level.
At the same time, when declaring the main values
of the state and human rights, offenses in the field
of insurance do not come first. At the beginning
of the independence of the Ukrainian state, the
public danger of offenses in the field of insurance
was not defined. Today, crime in this industry
has become a large-scale phenomenon that
negatively affects all participants in the insurance
market. The problematic issues of legal
regulation and the legislative vacuum regarding
the definition of liability in the field of insurance
do not help in understanding the situation and
bringing responsibility in the event of damage.
Considering the points raised earlier, it is evident
that the constitutional principles governing
economic, administrative, and criminal
accountability within the insurance sector
represent a pertinent and pressing subject that
merits thorough investigation. This area of study
is of current significance, demanding
comprehensive exploration and analysis, as it sits
at the intersection of constitutional law and the
intricate landscape of insurance regulation.
Research in this domain is essential to shed light
on the complex dynamics and implications of
these principles within the insurance industry.
The tasks of the research are:
1. Clarification of the guidelines that determine
the grounds of liability in the field of
insurance.
2. Disclosure of the content of administrative,
economic, and criminal liability in the field
of insurance.
3. Clarification of the constitutional principles
of responsibility (economic, administrative,
and criminal) in the field of insurance.
The focal point of this investigation revolves
around the constitutional underpinnings of
economic, administrative, and criminal
accountability as they pertain to the realm of
insurance. The subject matter of this research
encompasses the spectrum of social interactions
and relationships that emerge, evolve, and
terminate within the sphere of insurance in the
context of economic, administrative, and
criminal responsibility. This study seeks to delve
into the complex web of legal, economic, and
societal dynamics that come into play when
Biletska, L., Saray, R., Dontsov, D., Lozynskyi, Y., Hryshchuk, A. / Volume 12 - Issue 69: 161-170 / September, 2023
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examining these specific areas of accountability
within the insurance sector, and how they impact
the broader social fabric.
Theoretical Framework or Literature Review
During the study of the constitutional principles
of economic, administrative, and criminal
responsibility in the field of insurance, the works
of the following authors were studied: Antoniv,
Gavrilova, Hovorushko, Stetsyuk, Lasko,
Zayets, Ivasyuk, Kotlyar, Chichkan, Malynys,
Patsuriya, Rudyk, Uralova, Uschapovskyi,
Balina, and Baikov.
The issue of insurance during the war was
analyzed by Antoniv (2022). The research
findings have established that insurance contracts
in Ukraine remain legally binding, even in the
event of martial law, and typically incorporate
standard force majeure clauses akin to those
found in other contract types. Nevertheless, it's a
common industry practice for insurers to
explicitly exclude coverage for "war" risks, and
they often delineate war zones and territories not
under government control as ineligible for
insurance coverage. The ambiguity surrounding
the definition and status of these zones and
territories can potentially lead to disputes
between policyholders and insurers.
Consequently, it is now imperative for both
parties to initiate early and transparent
communication when addressing these specific
terms within insurance contracts to prevent
potential conflicts and ensure clarity.
The study of Gavrilova (2019) considered the
international experience of social insurance
against accidents at work and occupational
diseases. The study specifically delves into an
examination of how other nations, including
Bulgaria, Germany, France, the Netherlands,
Spain, and more, have structured their social
insurance systems to address industrial accidents
and occupational diseases. The author
underscores that adopting the best practices from
abroad in the realm of social insurance for
workplace accidents and occupational health
requires a fundamental shift away from the
prevalent state-paternalistic approach currently
ingrained in Ukrainian society. This approach
traditionally places the entire burden of social
security on state institutions. To successfully
integrate foreign expertise, it necessitates a
reconsideration of this dominant mindset and an
embrace of a more balanced and collaborative
approach to social security, where the state
collaborates with other stakeholders to provide
comprehensive coverage and support for the
population.
Moreover, Hovorushko and Stetsyuk (2014)
analyzed the general theoretical issues of
insurance, the constitutional prerequisites for the
functioning of the insurance institute, and the
liability arising from the violation of obligations
and requirements of legislation in this area.
Additionally, Lasko (2016) investigated the
constitutional foundations of Ukrainian
legislation on social security. Thus, Zayets
(2014) noted the problematic issues of combating
offenses in the field of insurance. It is concluded
that the first and most obvious step to effectively
counter offenses in the field of insurance is the
formation of a unified approach to the concept of
fraud in the field of insurance and its
consolidation at the legislative level. Another
important step will be the introduction of the
international experience of the system of
collective security in insurance, that is, the
unification of the efforts of all insurance
companies in the fight against fraud, the creation
of special state bodies and a central data bank on
cases of fraud in the field of insurance, the
legislative empowerment of employees of the
security services of insurance companies and
specially created investigative bodies with the
authority to carry out operational and
investigative measures regarding cases of
offenses in the insurance sector.
The peculiarities of committing fraud in the field
of property insurance are considered in the work
of Ivasyuk (2018). The author comes to the
conclusion that fraud in the field of insurance is
possible only in cases of insurance legal relations
between the insurer and the insured. In view of
the study of fraud in the field of property
insurance, the author refers to the composition of
the crime "fraud" provided for by the Criminal
Code of Ukraine. However, in the context of
insurance fraud, these fundamental ways of
committing fraud acquire a special meaning,
given the specifics of the insurance sector. Thus,
the author emphasizes that the criminal must
independently or with the help of other persons
artificially create an insurance case. The article
also explores the issue of the specificity of the
method of committing fraud in the field of
property insurance, depending on the subject of
the relevant crime. So, if the subject is directly
the insurance company itself, then the main way
of committing fraud in the field of property
insurance in such a case will be the issuance of
an invalid policy and its falsification. Moreover,
a case is possible when a fraudster pretends to be
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a representative of an insurance company, but in
fact, he is not. In this case, the corresponding
crime is committed by forging a seal or issuing a
forged form to a specific insurance company.
Separate issues of the obligation to pay a single
social contribution are investigated in the work
of Kotlyar (2017).
What is more, Malynys (2009) investigated
methodological approaches to the analysis of the
financial reliability of insurance companies and
their advantages and disadvantages. As a result
of the study, it was concluded that the reliability
of the insurance company plays an important
role.
Problematic issues of theory and practice
regarding insurance relations in the field of
business are investigated in the work of Patsuriya
(2013). The goal of the research that was
achieved was a comprehensive analysis of
theoretical problems of insurance legal relations
in the field of business and, the development of
theoretical and practical recommendations for
improving their legal regulation.
Peculiarities of the constitutional guarantee of
human rights to insurance were studied by Rudyk
(2005). Uralova (2015) analyzes the issue of
contractual regulation of mediation in the field of
insurance. Thus, the article examines the issue of
legal regulation of contractual relations with the
participation of intermediaries in the field of
insurance, and reveals the regulatory properties
of the contract as an act of autonomous
regulation, aimed at creating a holistic model of
relations between insurance intermediaries,
insurers and policyholders. The interaction of the
system of legal means is defined, with the help of
which the legal regulation of mediation relations
in the field of insurance is carried out, which is
covered by the concept of the mechanism of legal
regulation. Such characteristics of the contractual
regulation of mediation in the field of insurance
as the subject and subjects have been specified.
Finally, Uschapovsky, Balina, and Baikov
(2003) analyzed the issue of prevention and
exposure of abuses in institutions operating in the
field of insurance and in other organizations
related to compensation for damage in the event
of an insurance event. Also, Chichkan (2021)
investigated mandatory state social insurance as
the basis of the modern system of social
protection in Ukraine.
Methodology
The dialectical method was used during the study
of the constitutional foundations of economic,
administrative, and criminal liability in the
insurance sector. Thus, the method of dialectics
helps in determining the main directions and
approaches to the study of state-legal
phenomena. Dialectic makes it possible to
analyze the development of responsibility in the
field of insurance, to determine its relationship
with other phenomena of a legal nature. This
method helped to explore the question of
responsibility through the prism of determinism
and the unity of the processes of its formation, as
well as its constitutional foundations. Therefore,
the dialectical method of learning responsibility
in the field of insurance provides an opportunity
to distinguish its features, investigate functions
and principles, to determine relationships with
other phenomena of a legal nature. The article
uses the dialectical method to analyse the
development of liability and its relationship with
other legal phenomena. The contribution of the
method is that it is proposed to consider liability
through the prism of determinism and unity of
processes, and to study it through the
constitutional principles.
Applying the formal-logical method, which
posits that law as a social phenomenon is
characterized by a formally substantiated,
logically organized, and precisely delineated set
of rules structured upon the principles of
hierarchy and non-conflicting norms, we have
ascertained the fundamental content and nature
of responsibility within the sphere of insurance.
This method allows us to establish a clear,
structured framework for understanding how
responsibility is defined and governed in the
realm of insurance, ensuring that norms are
coherent and do not contradict one another. This
systematic approach provides a robust
foundation for comprehending the intricacies of
insurance-related accountability. The main
purpose of using the formal logical method is to
determine the fundamental content and nature of
liability in the insurance sector. The contribution
of this method is to create a structured system
that ensures consistency and non-contradictory
rules in the understanding of liability.
Given that responsibility is a complex, complex
and systemic phenomenon, its study involves a
detailed analysis of its components. Thus, the use
of the analysis method helped to divide the
responsibility into parts and examine each such
part separately. The analysis method helps to
break down responsibility into parts for detailed
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study. It allows for a thorough examination of
individual components, but may not be sufficient
to provide a holistic understanding.
However, the initial analysis falls short of
providing a holistic understanding of the subject
as a whole. Therefore, a synthesis approach was
employed, aiding in the identification of
relationships and interactions among the
structural elements of responsibility within the
insurance domain. Consequently, through the
combined use of analysis and synthesis, we are
better equipped to conduct a comprehensive
exploration of legal responsibility as a systemic
and legal phenomenon, with a specific focus on
scrutinizing the interplay among its constituent
elements. The main purpose of the synthetic
approach is to identify the interrelationships and
interactions between the structural elements of
liability. Its contribution is to fill the gap left by
the analysis by providing a comprehensive study
of legal liability as a systemic phenomenon.
The application of the abstraction method, a
critical formal-logical technique, assumes a
central role in the examination of legal
responsibility. It involves the separation of
general features and attributes from a particular
subject, disentangling them from all other
characteristics. This method proves instrumental
in defining the legal significance of a concept and
its legal foundation, isolated from other aspects
associated with specific scenarios. In the context
of insurance, abstraction assists in distinguishing
various types of liability from one another and
enhancing their conceptual clarity. The purpose
of the abstraction method is to separate general
features and attributes from a particular subject,
enhancing conceptual clarity. Contribution is
assistance in distinguishing various types of
liability within insurance and clarifying their
legal significance.
The study of the evolution of constitutional
underpinnings for various forms of responsibility
within the insurance sector necessitates the use of
the historical method. Examining legal
phenomena should occur in conjunction with an
exploration of the historical context of the nation
or humanity as a whole, as the current state of
legal phenomena is intrinsically linked to their
legal history. The historical method of inquiry
unveils the essence of phenomena under scrutiny
by relying on available facts and analogies,
enabling the formation of extensive
generalizations and the drawing of historical
parallels. In essence, the historical method
contributes to delineating the historical
dimensions of the development of legal
phenomena, including those encompassed within
the realm of insurance responsibility. The
purpose of historical method is to study the
evolution of constitutional underpinnings by
exploring the historical context. The contribution
was the unveils the essence of legal phenomena
by drawing on historical facts and analogies,
providing a broader understanding of the
development of insurance responsibility.
A vital method employed in the examination of
responsibility within the insurance sector is the
systematic approach, which facilitates a thorough
investigation of responsibility within the context
of its existence as part of a state-legal framework.
Utilizing the systematic method allows for the
exploration of responsibility in relation to other
legal institutions, fostering a holistic approach to
their study. This method provides the means to
uncover the intricate connections and
interactions between responsibility and various
legal elements, enabling a comprehensive and
interconnected analysis of this critical aspect of
the legal system.
Results and Discussion
Before analyzing the issue of the constitutional
basis of responsibility in the field of insurance,
let's consider what should be considered an
offense in the field of insurance.
Thus, illegal behavior is considered to be
behavior that is characterized by violation of
legal norms. One the types of such behavior is a
crime. A crime is a socially dangerous, culpable,
illegal act (action or inaction) of a subject
capable of delict, for which the current
legislation provides for legal responsibility. Each
offense is specific because it is committed by a
specific individual or collective subject at a
specific time and place. In order to recognize this
or that action as an offense, it is necessary to
establish whether it has signs of an offense.
The main features of the offense include:
1) public danger (harm), i.e. causing harmful
consequences or the threat of causing such
consequences to the legitimate interests of a
person, society, or state, which are protected
by law;
2) only an act can be a crime - i.e. in the form
of an active action (for example, committing
theft) or in the form of inaction - when the
rules of law oblige a person to perform
certain actions, and the person does not
perform them (for example, not providing
assistance);
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3) the illegality of the act, that is, this act must
directly violate the requirements of a
specific rule of law. Actions not regulated by
current legislation are not considered an
offense;
4) culpability of the act, i.e. the internal attitude
of the person towards the committed socially
dangerous act and its consequences in the
form of intent or carelessness. We are
talking about guilt when a person should
have chosen a course of action, but acted
contrary to legal norms;
5) delictual capacity of the subject who
committed the offense, i.e. the person, due to
age and mental health, is aware of the nature
of his actions, manages them and foresees
their consequences, and can also bear legal
responsibility for their implementation;
6) a legal criminal act, i.e. a certain type and
degree of legal liability is assumed for its
commission in the form of losses of a
personal, property, organizational, or
material nature;
7) a causal connection between the action and
the socially dangerous consequences that
occurred, i.e. such consequences are
determined by this action, and not by other
causes.
Therefore, the absence of at least one of the
mentioned signs does not allow us to consider the
act as an offense. Signs of an offense must be
analyzed in aggregate, systematically. In order
for certain specific actions to be recognized as a
crime, it is necessary that they meet certain
characteristics that allow distinguishing the
crime from the violation of other social norms
and form the concept of "composition of the
crime" (Zavets, 2014).
Let's consider the issue of economic,
administrative, and criminal liability as an
example of the legal regulation of this issue
(Table 1).
Table 1.
Types and content of responsibility in the field of insurance.
Type of responsibility
Regulatory and legal regulation
Economic responsibility
Unregistered entrepreneurial activity or activity subject to licensing is carried
out without compliance with the relevant licence or in violation of the
requirements established for licensing shall be punishable by a fine of 1000 to
2000 tax-free minimum incomes with or without confiscation of manufactured
products, tools, raw materials and money obtained as a result of the
administrative offence. If the said offence is committed by a person who has been subjected to an
administrative penalty for the same offence repeatedly within a year, or is
associated with obtaining large amounts of income, a fine of 2000 to 5000 tax-
free minimum incomes with confiscation of manufactured products, tools, raw
materials and money obtained as a result of the administrative offence. If an entrepreneur/enterprise provides inaccurate information about the
material and technical base, liability is provided in the form of a fine of 1000 to
2000 tax-free minimum incomes (Law 436-IV, 2003).
Administrative responsibility
Banking or other financial services activities without obtaining the status of a
financial institution or without a special permit/licence or in violation of the
licensing conditions result in fines ranging from 100 to 250 non-taxable
minimum incomes. In case of committing the above actions related to the
receipt of income in large amounts, a fine of 2000 to 3000 tax-free minimum
incomes is provided for (Law 8073-X, 1984).
Penal liability
Upon the occurrence of an insured event, the insurance company is obligated to
fulfill its responsibilities, which include making the stipulated insurance
payment or indemnity payment within the agreed-upon timeframe, as specified
in the insurance contract. In cases where the insurer fails to meet this
obligation promptly, they are liable for financial compensation in the form of a
penalty or fine, the specific amount of which is determined by the terms of the
insurance contract or in accordance with legal provisions. Additionally, the insurer is also responsible for reimbursing any expenses
incurred by the insured party in connection with taking measures to prevent or
mitigate losses stemming from the insured event, provided that such
reimbursement is outlined within the terms and conditions of the insurance
contract. These provisions, as outlined in Law 1909-IX in 2021, serve to ensure
that the insurer upholds their commitment to policyholders and meets their
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financial obligations in a timely and transparent manner, thus preserving the
trust and effectiveness of the insurance system (Law 1909-IX, 2021). The governing body is vested with the authority to enforce mandatory
rehabilitation measures for a domestic insurance company under specific
circumstances, including the failure to meet obligations to policyholders for a
duration of three months, non-compliance with the prescribed authorized
capital requirements as outlined by Ukrainian law, or other conditions specified
in the existing legislative framework of Ukraine. Mandatory rehabilitation encompasses several key actions: Conducting a comprehensive audit of the financial and economic activities of
the domestic insurer, including a mandatory audit. Appointing a managing person, who holds the exclusive authority for
overseeing the financial, economic, and personnel management of the domestic
insurer, without whose consent such operations cannot be conducted. Imposing restrictions on the unrestricted use of the assets owned by the
domestic insurer, and prohibiting the acceptance of new insurance
commitments without prior consent from the governing body. Establishing a mandatory schedule for settling outstanding claims with
policyholders. Making a determination on whether to either dissolve or restructure the
domestic insurer. The process of winding up a domestic insurer adheres to the regulations
specified in the current legislation of Ukraine. It is a set of legal actions
employed to handle the dissolution of the insurer in accordance with the
statutory provisions of Ukrainian law. This entire framework is designed to
ensure the accountability, financial stability, and proper functioning of
domestic insurers and protect the interests of policyholders. (Law 1909-IX,
2021). The National Commission, which carries out state regulation in the field of
financial services markets, can apply the following influence measures:
demand the convening of extraordinary meetings of financial institution
participants (Law 2664-III, 2001). The National Commission, which carries out state regulation in the field of
financial services markets, can apply the following measures of influence:
approve a plan for restoring the financial stability of a financial institution.
(Law 2664-III, 2001).
Criminal liability
Article 220-2. Manipulating financial documents and financial reports
belonging to a financial institution, withholding information regarding the
institution's insolvency or factors that warrant the revocation of its license are
serious offenses. Such actions encompass making alterations to accounting
records or registers, providing knowingly incomplete or false details about
agreements, liabilities, the institution's assets (including those under trust
management), or its financial status. These actions further encompass
confirming such misleading information and subsequently conveying it to the
National Bank of Ukraine, publishing it, or disclosing it in accordance with
Ukrainian legislation. These acts are considered a deliberate effort to obscure indications of
bankruptcy, prolonged financial instability, or reasons necessitating the
compulsory withdrawal of a financial institution's license or declaring it
insolvent. The legal consequences for individuals engaged in such actions
involve penalties, including a fine ranging from eight hundred to one thousand
non-taxable minimum incomes of citizens. In more severe cases, punishment
may extend to a maximum of four years of restricted liberty, coupled with the
deprivation of the right to hold specific positions or engage in particular
activities for a period of up to ten years. This stern legal framework aims to
deter fraudulent practices, safeguard the integrity of financial institutions, and
protect the interests of stakeholders and the financial system as a whole. (Law 2341-III, 2001)
So, as can be seen from the above-mentioned
legal norms, liability is provided for in the field
of insurance, both economic, related to certain
issues of economic activity, and administrative
and criminal. At the same time, separate
legislation in the field of insurance establishes
criminal liability in the field of insurance (Law
222-VIII, 2015).
From the analytical materials, it can be seen that
the most common schemes of offenses in the
field of insurance are related to insurance of the
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liability of motor vehicle owners, to the staging
or falsification of road accidents, to the insurance
of people traveling abroad by falsifying medical
bills and overcharging for medical services, in
medical insurance by staging accidents and
injuries Also, offenses are committed in
connection with the conclusion, execution, and
execution of contracts on mandatory or voluntary
insurance.
The peculiarity of these offenses is that the
offender is fraud or breach of trust:
1) Infringes upon the arrangements designed to
safeguard the property interests of both
individuals and legal entities in cases of
insurance events, funded through the
resources accumulated from the insurance
premiums they have contributed. This
infringement concerns the established
mechanisms intended to protect the financial
well-being and assets of both individuals and
organizations when insurance events occur,
which should be sustained by the funds
generated from their premium payments.
The violation in question pertains to the
disruption of the fundamental assurance that
individuals and legal entities should receive
the intended compensation or coverage for
their insured assets when needed. This
aspect underscores the importance of
upholding the trust and integrity of the
insurance system, ensuring that it remains
reliable and effective in providing protection
for policyholders.;
2) receives an illegal material benefit from it,
while causing property damage to the legal
owners.
In general, the most common criminal offense in
the insurance industry is insurance fraud. In
Ukrainian criminal legislation, "fraud in the field
of insurance" does not have an independent
component of the crime, therefore even actions
in this field are qualified as ordinary fraud
(Article 190 of the Criminal Code of Ukraine).
At the same time, in foreign countries, fraud in
the field of insurance is considered an intentional
crime aimed at deceiving an insurance company
and committed by the insured with the aim of
unjustified enrichment at the expense of the
insured by distorting information about the
insured object, taking actions aimed at the
occurrence of an insured event or increasing the
amount of insurance compensation (Zayets,
2014).
At the same time, in Ukraine, fraud is one of the
most common crimes, but the current version of
the article does not take into account the
peculiarities of modern economic relations, and
the introduction of new clauses will allow for
more clearly separate criminal acts from civil
legal relations.
Regarding the constitutional principles of
economic, administrative, and criminal liability
in the field of insurance, the following should be
noted.
1) In accordance with Art. 8 of the Constitution
of Ukraine, the principle of the rule of law is
recognized and applied in Ukraine.
Adherence to the principle of the rule of law
requires the state to implement it in law-
making and law-enforcement activities, in
particular in-laws whose content should be
imbued primarily with the ideas of social
justice, freedom, and equality. The
components of the rule of law should
include, in particular, legality, legal (legal)
certainty, prohibition of arbitrariness,
equality of all before the law, and respect for
human rights. At the same time, a violation
of the principle of the rule of law will occur
in case of non-compliance with at least one
of its components.
2) According to Article 46 of the Ukrainian
Constitution, citizens are endowed with the
right to social protection, encompassing
various forms of assistance in cases of
complete, partial, or temporary disability,
the loss of a breadwinner, involuntary
unemployment, as well as support in old age
and under circumstances stipulated by law.
This entitlement is safeguarded through
compulsory state social insurance, funded by
contributions from citizens, enterprises,
institutions, organizations, as well as
budgetary allocations and other resources
designated for social security. Additionally,
it involves the establishment of a network of
state, communal, and private institutions
dedicated to caring for individuals with
disabilities. Article 46 of the Ukrainian
Constitution serves as the cornerstone for
ensuring that citizens receive the necessary
social protections and support in diverse life
situations.
3) Article 42 of the Constitution of Ukraine,
which guarantees everyone the right to
freedom of entrepreneurial activity, not
prohibited by law, and emphasizes that the
State ensures the protection of competition
in entrepreneurial activity.
4) According to Art. 24 of the Constitution of
Ukraine, which declares the equality of all
before the law. At the same time, the
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specified principle does not prevent
establishing differences in the legal
regulation of labor for persons who belong
to different categories by nature and
conditions of activity.
5) When adopting new laws or making changes
to existing laws, it is not allowed to narrow
the content or scope of existing rights and
freedoms.
6) Laws and other normative legal acts do not
have retroactive effects in time, except when
they mitigate or cancel the responsibility of
a person.
7) No one can be brought twice to the same
type of legal responsibility for the same
offense. The legal responsibility of a person
has an individual character.
8) Everyone is obliged to strictly adhere to the
Constitution of Ukraine and the laws of
Ukraine, not to encroach on the rights and
freedoms, honor, and dignity of other
people. Ignorance of laws does not exempt
from legal responsibility.
In view of the above, the Constitution of Ukraine
provides for key provisions on prosecution and
on carrying out activities in the field of insurance,
which must be taken into account both when
prosecuting a person and regarding reforming
and amending the legislation.
Conclusions
The analysis of the principles governing
economic, administrative and criminal liability in
the insurance sector has led to the following
conclusions and generalisations:
1. Offences committed in the insurance sector
have a number of peculiarities related to
both the subject matter and legal regulation,
related to the conclusion, operation and
performance of compulsory insurance
contracts, and the performance of
compulsory or voluntary insurance contracts
and the manner of their commission (e.g., by
fraud or breach of trust). These conclusions
are based on the methods of analysis, which
helped to consider in detail the individual
issues of liability. Offenses committed in the
field of insurance have a number of features
related to both the composition of the subject
and the legal regulation of this related to the
conclusion, operation, and performance of
contracts on mandatory or voluntary
insurance and the method of commission (to
for example, by deception or breach of
trust).
2. The formal logical method contributed to the
qualitative analysis of the legal framework
and legal regulation of economic,
administrative and criminal liability and to
formulate specific features of each type of
liability. For example, the criminal offence
of insurance fraud is not enshrined in law in
the insurance sector, although in other
countries this offence is regulated by the
provisions of the criminal code. Some
violations in the insurance sector are
punishable by Some violations in the
insurance sector are punishable by fines.
Separate provisions are devoted to
administrative liability in the insurance
sector. In the same context, the historical
method and the synthesis method were used,
which by their nature contribute to a detailed
understanding of both the environment and
the whole picture from individual parts.
3. As for the constitutional principles of
economic, administrative and criminal
liability in the insurance sector The main
principles are the principle of the rule of law;
the principle of individual legal liability; the
principle of the principle of individual nature
of legal liability; the principle of freedom of
entrepreneurial activity not prohibited by
law; the principle of equality of all before
principle of freedom of entrepreneurial
activity not prohibited by law; principle of
equality of all before the law. These
conclusions are based on the analysis of
developmental data, the use of the dialectical
method and the method of abstraction.
Therefore, it is fair to conclude that the goal and
objectives of the research have been fully
achieved.
As for further scientific research, we consider it
necessary to consider the international legal
experience of establishing responsibility in the
field of insurance, as well as the effective
national guarantee of bringing guilty persons to
such responsibility.
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