29. 9. 79 Official  Journal  of the  European  Communities No C 245/7 
Proposal  for a Council  Directive  amending,  as regards  credit  insurance,  First  Directive 
73/239/EEC  on the  coordination  of laws,  regulations  and  administrative  provisions 
relating  to the  taking-up  and  pursuit  of the  business  of direct  insurance  other  than  life 
insurance 
(Submitted  by the Commission  to the Council  on 13 September  1979) 
THE  COUNCIL  OF THE  EUROPEAN 
COMMUNITIES, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  57 (2) thereof, 
Having  regard  to the proposal  from  the Commission, 
Having  regard  to the  opinion  of the  European 
Parliament, 
Having  regard  to the  opinion  of the  Economic  and 
Social  Committee, 
Whereas  the  First  Council  Directive  73/239/EEC  of 
24 July  1973  on the coordination  of laws,  regulations 
and administrative  provisions  relating  to  the 
taking-up  and  pursuit  of the  business  of direct 
insurance  other  than  life  assurance  ('), as amended  by 
Directive  76/580/EEC  (2), eliminated  a number  of 
divergencies  in the  laws  of the  Member  States  in 
order  to facilitate  the taking  up and  pursuit  of that 
business; 
Whereas  however  the said  Directive  states  in Article  2 
(2) (d) that  it does  not apply,  'pending  further  coordi-
nation,  which  shall  be implemented  within  four  years 
of notification  of this  Directive',  to 'export  credit 
insurance  operations  for  the account  of or with  the 
support  of the State';  whereas,  since  the protection  of 
insured  persons  normally  provided  by the Directive  is 
provided  by  the  State  itself  where  export  credit 
insurance  operations  are  carried  out  for  the account 
of or with  the guarantee  of the State,  such  operations 
should  continue  to be excluded  from  the scope  of the 
said Directive; 
Whereas  the said  Directive  states  in Article  7 (2) (c) 
that 'pending  further  coordination,  which  must  be 
implemented  within  four  years  of notification  of this 
Directive,  the  Federal  Republic  of Germany  may 
maintain  the  provision  prohibiting  the  simultaneous 
undertaking  in its territory  of health  insurance,  credit 
and surety  insurance  or insurance  in respect  of 
recourse  against  third  parties  and  legal  defence,  either 
with  one  another  or with  other  classes';  whereas  it 
follows  from  this  that  there  are  barriers  to the 
establishment  under  normal  conditions  of competition 
of agencies  and  branches  transacting  credit  and 
suretyship  insurance;  whereas  the present  Directive  is 
intended  to remedy  this  situation; 
(') OJ No L 228,  16. 8. 1973,  p. 3. 
O OJ  No L 189,  13. 7. 1976,  p. 13. Whereas  the  interests  of  insured  persons  are 
sufficiently  safeguarded,  as  regards  suretyship 
insurance,  by the  provisions  of the  said  Directive; 
whereas  the  prohibition  in the  Federal  Republic  of 
Germany  on  the  simultaneous  undertaking  of 
suretyship  insurance  and  other  classes  is therefore  not 
justified,  and  should  be lifted; 
Whereas  in view  of the  cyclical  nature  of claims  in 
credit  insurance,  the latter  should  for the purposes  of 
calculating  the  average  burden  of claims  within  the 
meaning  of Article  16 (2) of the  said  Directive,  be 
treated  on the same  basis  as insurance  against  storm, 
hail and  frost  risks; 
Whereas  the  nature  of the  risk  in credit  insurance  is 
such  that  undertakings  which  transact  such  business 
ought  to form  a higher  guarantee  fund  than  is at 
present  provided  for in Directive  73/239/EEC; 
Whereas  credit  insurance  undertakings  require  an 
equalization  reserve  which  does  not  form  part  of the 
solvency  margin  and  which  is not liable  to tax; 
Whereas  moreover  certain  provisions  are necessary  as 
regards  the  accounts  undertakings  which  carry  on 
credit  insurance  business; 
Whereas  however  certain  obligations  imposed  upon 
undertakings  which  carry  on credit  insurance  business 
are not  necessary  for undertakings  whose  operations 
do not  exceed  a certain  volume;  whereas  it is appro-
priate  to grant  them  a period  of three  years  to meet 
these  obligations  from  the  time  when  they  exceed 
such  volume;  whereas  it is also  appropriate  to grant 
to undertakings  whose  operations  exceed  such 
volume  at the date  of notification  of this  Directive  a 
period  of three  years  to meet  those  obligations; 
Whereas,  in view  of the  provisions  laid  down  in 
respect  of credit  insurance,  the  maintenance  by the 
Federal  Republic  of Germany  of the  prohibition  of 
the simultaneous  undertaking  of credit  insurance  and 
other  classes  is no  longer  justified,  and  such 
prohibition  should  therefore  be removed, 
HAS  ADOPTED  THIS  DIRECTIVE: 
Article  1 
Council  Directive  73/239/EEC  is hereby  amended  as 
follows: 
1. Article  2 (2)  (d),  shall  be  replaced  by  the 
following: 
'Export  credit  insurance  operations  for  the 
account  of or with  the guarantee  of the State.' 
No C 245/8 Official  Journal  of the  European  Communities 29. 9. 79 
2. In Article  7 (2)  (c),  the  words  'credit  and 
suretyship  insurance'  shall  be deleted. 
3. In Article  16 (2),  the  text  of the  second  sentence 
shall  be replaced  by the following  text: 
'In the  case,  however,  of undertakings  which 
essentially  underwrite  only  one  or more  of the 
risks  of credit,  storm,  hail,  frost,  the  last  seven 
years  shall  be taken  as the  period  of reference 
for the average  burden  of claims.' 
4. Article  17  (2)  (a)  shall  be  replaced  by  the 
following: 
'(a) The  guarantee  fund  may  not,  however,  be 
less than: 
— 1 000  000  units  of account  in the  case 
where  all or some  of the  risks  included 
in the  class  listed  in point  A of the 
Annex  under  No 14 are covered, 
this class  for  each  of the  last  three 
financial  years  exceeded  1 000  000  units 
of account  or 5 % of the  total  amount 
of premiums  or contributions  receivable 
by the undertaking  concerned, 
— 400  000  units  of account  in the  case 
where  all or some  of the  risks  included 
in one  of the  classes  listed  in point  A of 
the Annex  under  Nos  10,  11,  12,  13,  14 
in so far  as the  first  indent  does  not 
apply,  and  15.' 
— (Remainder  unchanged). 
5. The  following  subparagraph  (d)  shall  be added  to 
Article  17 (2): 
'(d) Where  an undertaking  carrying  on credit 
insurance  is required  to raise  the  fund 
referred  to in subparagraph  (a) to 1 000  000 
units  of  account,  the  Member  State 
concerned  shall  allow  such  undertaking  a 
period  of three  years  in which  to carry  out 
such  increase. 
The three-year  period  shall  run  from  the 
date  on which  the  first  indent  of subpara-
graph  (a) becomes  applicable  to the  under-
taking.  The  Member  States  shall  determine 
the manner  in which  this  increase  is to be 
carried  out.' Article  2 
1. Undertakings  shall  set  up  an  equalization 
reserve  for  the  class  of insurance  listed  under  No  14 
in Point  A of the  Annex  to Directive  73/239/EEC 
(hereafter  referred  to as 'credit  insurance').  Such 
reserve  shall  each  year  receive  75 % of the  technical 
surplus,  if any,  of that  financial  year.  The  amount 
involved  may  not,  however,  exceed  12 % of the  net 
premiums  or contributions  for  the  same  financial 
year.  Such  transfer  shall  no  longer  be  obligatory 
when  the  reserves  have  reached  150  % of the  highest 
annual  amount  of net  premiums  or contributions  paid 
in during  the last  five  financial  years. 
2. Any  technical  deficit  which  may  occur  for  a 
given  financial  year  in credit  insurance  shall  be 
charged  to each  equalization  reserve. 
3. Such  equalization  reserve,  up  to the  amount 
referred  to in Paragraph  1 shall  be disregarded  for 
purposes  of calculating  the  solvency  margin  and  shall 
be under  exemption  from  any  liability  to tax. 
Article  3 
The technical  reserves  for  credit  insurance  shall  be 
shown  separately.  The  accounts  of the  undertaking 
must  be  so  drawn  up  that  the  results  of credit 
insurance  business  can  be distinguished. 
Article  4 
Member  States  shall  amend  their  national  provisions 
to comply  with  this  Directive  within  12 months  of its 
notification  and  shall  forthwith  inform  the 
Commission  thereof.  They  shall  apply  such  amended 
provisions  following  a period  of 18 months  from  the 
date  of such  notification. 
Articles  5 
Upon  notification  of this  Directive,  Member  States 
shall  ensure  that  the  texts  of the  main  laws,  regu-
lations  and  administrative  provisions  which  they 
adopt  in the  field  governed  by  this  directive  are 
communicated  to the Commission. 
Article  6 
This  Directive  is addressed  to the Member  States.