diff --git a/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/ClusterHealthWarning.java b/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/ClusterHealthError.java
similarity index 67%
rename from modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/ClusterHealthWarning.java
rename to modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/ClusterHealthError.java
index db29b86254a..f3d8530dcf8 100644
--- a/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/ClusterHealthWarning.java
+++ b/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/ClusterHealthError.java
@@ -1,16 +1,16 @@
 package com.enonic.xp.cluster.impl;
 
 import com.enonic.xp.cluster.ClusterId;
-import com.enonic.xp.cluster.ClusterValidationWarning;
+import com.enonic.xp.cluster.ClusterValidationError;
 
-class ClusterHealthWarning
-    implements ClusterValidationWarning
+class ClusterHealthError
+    implements ClusterValidationError
 {
     private final ClusterId providerId;
 
     private final String errorMessage;
 
-    ClusterHealthWarning( final ClusterId providerId, final String errorMessage )
+    ClusterHealthError( final ClusterId providerId, final String errorMessage )
     {
         this.providerId = providerId;
         this.errorMessage = errorMessage;
diff --git a/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/HealthValidator.java b/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/HealthValidator.java
index 191380ce518..ee94ff02740 100644
--- a/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/HealthValidator.java
+++ b/modules/core/core-cluster/src/main/java/com/enonic/xp/cluster/impl/HealthValidator.java
@@ -15,10 +15,10 @@ public ClusterValidatorResult validate( final Clusters clusters )
         {
             if ( !provider.getHealth().isHealthy() )
             {
-                final ClusterHealthWarning warning = new ClusterHealthWarning( provider.getId(), provider.getHealth().getErrorMessage() );
+                final ClusterHealthError error = new ClusterHealthError( provider.getId(), provider.getHealth().getErrorMessage() );
 
                 return ClusterValidatorResult.create().
-                    warning( warning ).
+                    error( error ).
                     build();
             }
         }
diff --git a/modules/core/core-cluster/src/test/java/com/enonic/xp/cluster/impl/ClusterManagerImplTest.java b/modules/core/core-cluster/src/test/java/com/enonic/xp/cluster/impl/ClusterManagerImplTest.java
index 1795b15ad33..90fbc6e0711 100644
--- a/modules/core/core-cluster/src/test/java/com/enonic/xp/cluster/impl/ClusterManagerImplTest.java
+++ b/modules/core/core-cluster/src/test/java/com/enonic/xp/cluster/impl/ClusterManagerImplTest.java
@@ -53,8 +53,8 @@ public void single_provider_life_cycle()
 
         provider.setHealth( ClusterHealth.red() );
         Thread.sleep( CHECK_INTERVAL_MS );
-        assertClusterOk();
-        assertActive( provider );
+        assertClusterError();
+        assertDeactivated( provider );
 
         provider.setHealth( ClusterHealth.green() );
         Thread.sleep( CHECK_INTERVAL_MS );
@@ -91,8 +91,8 @@ public void multiple_providers_life_cycle()
 
         provider1.setHealth( ClusterHealth.red() );
         Thread.sleep( CHECK_INTERVAL_MS );
-        assertClusterOk();
-        assertActive( provider1, provider2 );
+        assertClusterError();
+        assertDeactivated( provider1, provider2 );
     }
 
     @Test
diff --git a/modules/core/core-repo/src/main/java/com/enonic/xp/repo/impl/repository/NodeRepositoryServiceImpl.java b/modules/core/core-repo/src/main/java/com/enonic/xp/repo/impl/repository/NodeRepositoryServiceImpl.java
index 8b4088ec740..02da8462f44 100644
--- a/modules/core/core-repo/src/main/java/com/enonic/xp/repo/impl/repository/NodeRepositoryServiceImpl.java
+++ b/modules/core/core-repo/src/main/java/com/enonic/xp/repo/impl/repository/NodeRepositoryServiceImpl.java
@@ -5,6 +5,8 @@
 import org.slf4j.Logger;
 import org.slf4j.LoggerFactory;
 
+import com.fasterxml.jackson.databind.node.ObjectNode;
+
 import com.enonic.xp.index.IndexType;
 import com.enonic.xp.repo.impl.elasticsearch.ClusterHealthStatus;
 import com.enonic.xp.repo.impl.elasticsearch.ClusterStatusCode;
@@ -16,6 +18,7 @@
 import com.enonic.xp.repository.IndexSettings;
 import com.enonic.xp.repository.NodeRepositoryService;
 import com.enonic.xp.repository.RepositoryId;
+import com.enonic.xp.security.SystemConstants;
 import com.enonic.xp.util.JsonHelper;
 
 @Component(immediate = true)
@@ -90,15 +93,42 @@ private void doCreateIndex( final CreateRepositoryParams params, final IndexType
 
     private IndexSettings mergeWithDefaultSettings( final CreateRepositoryParams params, final IndexType indexType )
     {
-        final IndexSettings defaultSetting = DEFAULT_INDEX_RESOURCE_PROVIDER.getSettings( params.getRepositoryId(), indexType );
+        final IndexSettings defaultSettings = getDefaultSettings( params, indexType );
 
         final IndexSettings indexSettings = params.getRepositorySettings().getIndexSettings( indexType );
         if ( indexSettings != null )
         {
-            return new IndexSettings( JsonHelper.merge( defaultSetting.getNode(), indexSettings.getNode() ) );
+            return new IndexSettings( JsonHelper.merge( defaultSettings.getNode(), indexSettings.getNode() ) );
+        }
+
+        return defaultSettings;
+    }
+
+    private IndexSettings getDefaultSettings( final CreateRepositoryParams params, final IndexType indexType )
+    {
+        final IndexSettings defaultSettings = DEFAULT_INDEX_RESOURCE_PROVIDER.getSettings( params.getRepositoryId(), indexType );
+        if ( SystemConstants.SYSTEM_REPO.getId().equals( params.getRepositoryId() ) )
+        {
+            return defaultSettings;
+        }
+
+        try
+        {
+            final String numberOfReplicasString =
+                indexServiceInternal.getIndexSettings( SystemConstants.SYSTEM_REPO.getId(), IndexType.VERSION ).getNode().
+                    get( "index.number_of_replicas" ).
+                    textValue();
+            final int numberOfReplicas = Integer.parseInt( numberOfReplicasString );
+            final ObjectNode indexNodeObject = (ObjectNode) defaultSettings.getNode().get( "index" );
+            indexNodeObject.put( "number_of_replicas", numberOfReplicas );
+        }
+        catch ( Exception e )
+        {
+            LOG.warn( "Failed to retrieve number of replicas from [" +
+                          resolveIndexName( SystemConstants.SYSTEM_REPO.getId(), IndexType.VERSION ) + "]" );
         }
 
-        return defaultSetting;
+        return defaultSettings;
     }
 
     private void applyMappings( final CreateRepositoryParams params )