Opinion of the Advocate General — ECLI:EU:C:2002:421
Date: 2002-07-04
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Right of establishment;Freedom to provide services
Procedure: Action for failure to fulfil obligations - successful;Action for failure to fulfil obligations - unfounded
Origin: Italy

Summary of the Judgment 
Freedom of movement for persons — Freedom of establishment — Freedom to provide 
services — Direct insurance other than life assurance — Directive 92/49 — Freedom to 
set premiums — Price-control system applicable to contracts of insurance covering 
third-party liability arising from the use of motor vehicles — Not permissible 
(Council Directive 92/49, Arts 6, 29 and 39) 
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SUMMARY — CASE C-59/01 
By introducing and maintaining in force 
rate-freezing rules applicable to all 
contracts of insurance in respect of third-
party liability arising from the use of motor 
vehicles in relation to risks situated within 
its terri tory, without distinguishing 
between insurance companies having their 
head office in that Member State and those 
conducting their business there, through 
branch offices or under the freedom to 
provide services, a Member State fails to 
fulfil its obligations under Council Direc­
tive 92/49 on the coordination of laws, 
regulations and administrative provisions 
relating to direct insurance other than life 
assurance and amending Directives 73/239 
and 88/357 (third non-life insurance Direc­
tive). 
Such legislation is in fact contrary to the 
principle of freedom to set premiums 
referred to in Articles 6, 29 and 39 of that 
directive, which implies the prohibition of 
any system of prior or systematic notifi­
cation or approval of the rates which an 
undertaking intends to use in its dealings 
with policy-holders. It does not, moreover, 
fall within the exception provided for by 
the third subparagraph of Article 8(3) of 
Directive 73/239, the second paragraph of 
Article 29 and Article 39(3) of Directive 
92/49 in so far as it cannot be regarded as 
forming part of a general price-control 
system within the meaning of those provi­
sions. 
(see paras 26, 29, 37, 48, operative part) 
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