3.8.92 OfficialJournaloftheEuropeanCommunitiesNoC196/9
AmendedproposalforaThirdCouncilDirectiveonthecoordinationoflaws,regulationsand
administrativeprovisionsrelatingtodirectlifeassuranceandamendingDirectives79/267/EEC
and90/619/EEC
(92/C196/02)
COM(92)285final—SYN329
(SubmittedbytheCommissionon22June1992pursuanttoArticle149(3)oftheEECTreaty)
THECOUNCILOFTHEEUROPEAN COMMUNITIES , marketsintoanintegratedmarketandthatstage
mustbesupplemented byotherCommunity
instrumentswithaviewtoenablingall
policyholders ,irrespectiveofwhetherthey
themselvestaketheinitiative,tohaverecourseto
anyassurerwithaheadofficeintheCommunity
whocarriesonbusinessthere,undertherightof
establishment orthefreedomtoprovideservices,
whileguaranteeingthemadequateprotection;
4.WhereasthisDirectiveformspartofthebodyof
Communitylegislationalreadyenactedwhich
includestheFirstCouncilDirective79/267/EECof
5March1979onthecoordination oflaws,
regulationsandadministrative provisionsrelatingto
thetakingupandpursuitofthebusinessofdirect
lifeassurance(5)andCouncilDirective
91/674/EECof19December1991ontheannual
accountsandconsolidated accountsofinsurance
undertakings (6);HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticles57(2)
and66thereof,
HavingregardtotheproposalfromtheCommission (!),
IncooperationwiththeEuropeanParliament (2),
HavingregardtotheopinionoftheEconomicandSocial
Committee (3),
1.Whereasitisnecessarytocompletetheinternal
marketindirectlifeassurance,fromthepointof
viewbothoftherightofestablishmentandofthe
freedomtoprovideservices,tomakeiteasierfor
assuranceundertakingswithheadofficesinthe
Communitytocovercommitmentssituatedwithin
theCommunity ;
2.WhereastheSecondCouncilDirectiveof
8November1990onthecoordinationoflaws,
regulationsandadministrative provisionsrelatingto
directlifeassurance,layingdownprovisionsto
facilitatetheeffectiveexerciseoffreedomtoprovide
servicesandamendingDirective79/267/EEC(4)
hasalreadycontributedsubstantially tothe
achievement oftheinternalmarketindirectlife
assurancebygrantingpolicyholderswho,byvirtue
ofthefactthattheytaketheinitiativeinentering
intoacommitmentwithanassuranceundertakingin
anotherMemberState,donotrequirespecial
protectionintheMemberStateofthecommitment
completefreedomtoavailthemselvesofthewidest
possiblelifeassurancemarket;
3.WhereasDirective90/619/EECthereforerepresents
animportantstageinthemergingofnational5.Whereastheapproachadoptedconsistsinbringing
aboutsuchharmonization asisessential,necessary
andsufficienttoachievethemutualrecognitionof
authorizations andprudentialcontrolsystems,
therebymakingitpossibletograntasingle
authorizationvalidthroughouttheCommunityand
applytheprincipleofsupervisionbythehome
MemberState;
6.Whereas,asaresult,thetakingupandthepursuitof
thebusinessofassurancearehenceforthtobe
subjecttothegrantofasingleofficialauthorization
issuedbythecompetentauthoritiesoftheMember
Stateinwhichanassuranceundertakinghasitshead
office;whereassuchauthorization enablesan
undertakingtocarryonbusinessthroughoutthe
Community ,undertherightofestablishmentorthe
(»)OJNoC99,16.4.1991,p.2.
(2)Opiniondeliveredon10June1992andDecisionof...(not
yetpublishedintheOfficialJournal)
(3)OJNoC14,20.1.1992,p.11.(5)OJNoL63,13.3.1979,p.1.LastamendedbytheSecond
Directive(90/619/EEC)(OJNoL330,29.11.1990,
p.50).
(6)OJNoL374,31.12.1991,p.7. (4)OJNoL330,29.11.1990,p.50.

NoC196/10 OfficialJournaloftheEuropeanCommunities3.8.92
thatpossibilitymay,however,besubjecttocertain
conditionsasregardscompliancewithaccounting
rulesandrulesonwinding-up ;freedomtoprovideservices;whereastheMember
Stateofthebranchoroftheprovisionofservices
maynolongerrequireassuranceundertakingswhich
wishtocarryonassurancebusinessthereandwhich
havealreadyauthorizedintheirhomeMemberState
toseekfreshauthorization ;whereasDirectives
79/267/EECand90/619/EECshouldthereforebe
amendedalongthoselines;
7.WhereasthecompetentauthoritiesofhomeMember
Stateswillhenceforthberesponsibleformonitoring
thefinancialhealthofassuranceundertakings ,
includingtheirstateofsolvency,theestablishmentof
adequatetechnicalprovisionsandthecoveringof
thoseprovisionsbymatchingassets;13.Whereasitisnecessaryfromthepointofviewofthe
protectionoflivesassuredthateveryassurance
undertakingshouldestablishadequatetechnical
provisions;whereasthecalculationofsuch
provisionsisbasedforthemostpartonactuarial
principles;whereasthoseprinciplesshouldbe
coordinatedinordertofacilitatemutualrecognition
oftheprudentialrulesapplicableinthevarious
MemberStates;
14.Whereasitisdesirable,intheinterestsofprudence,
toestablishaminimumofcoordination ofrules
limitingtherateofinterestusedincalculatingthe
technicalprovisions,andwhereas,forthepurposes
ofsuchlimitation,sinceexistingmethodsareall
equallycorrect,prudentialandequivalent,itseems
appropriatetoleaveMemberStatesafreechoiceas
tothemethodtobeused;8.Whereastheperformanceoftheoperationsreferred
toinArticle1(2)(c)ofDirective79/267/EEC
cannotunderanycircumstances affectthepowers
conferredontherespectiveauthoritieswithregardto
theentitiesholdingtheassetswithwhichthat
provisionisconcerned;
9.WhereascertainprovisionsofthisDirectivedefine
minimumstandards;whereasahomeMemberState
maylaydownstricterrulesforassurance
undertakings authorizedbyitsowncompetent
authorities ;
10.Whereasthecompetentauthoritiesofthemember
Statesmusthaveattheirdisposalsuchmeansof
supervisionasarenecessarytoensuretheorderly
pursuitofbusinessbyassuranceundertakings
throughouttheCommunitywhethercarriedon
undertherightofestablishmentorthefreedomto
provideservices;whereas,inparticular,theymust
beabletointroduceappropriatesafeguardsor
imposesanctionsaimedatpreventingirregularities
andinfringements oftheprovisionsonassurance
supervision ;15.Whereastherulesgoverningthespread,localization
andmatchingoftheassetsusedtocovertechnical
provisionsmustbecoordinatedinordertofacilitate
themutualrecognitionofMemberStates'rules;
whereasthatcoordination musttakeaccountofthe
measuresontheliberalizationofcapitalmovements
providedforinCouncilDirective88/361/EECof
24June1988fortheimplementation ofArticle67of
theTreaty(2)andtheprogressmadebythe
Communitytowardseconomicandmonetary
union;
16.Whereas,however,thehomeMemberStatemaynot
requireassuranceundertakingstoinvesttheassets
coveringtheirtechnicalprovisionsinparticular
categoriesofassets,assucharequirementwouldbe
incompatiblewiththemeasuresontheliberalization
ofcapitalmovementsprovidedforinDirective
88/361/EEC;11.Whereastheprovisionsontransfersofportfolios
mustbeadaptedtobringthemintolinewiththe
singlelegalauthorizationsystemintroducedbythis
Directive;
12.Whereasprovisionshouldbemadeforthe
specialization rulelaiddownbyDirective
79/267/EECtoberelaxedsothatthoseMember
Stateswhichsowishareabletograntthesame
undertakingauthorizations fortheclassesreferredto
intheAnnextoDirective79/267/EECandthe
insurancebusinesscomingunderclasses1and2in
theAnnextoDirective73/239/EECf1):whereas17.Whereas,pendingtheadoptionofaDirectiveon
investmentservicesharmonizing interaliathe
definitionoftheconceptofaregulatedmarket,for
thepurposesofthisDirectiveandwithoutprejudice
tosuchfutureharmonization thatconceptmustbe
difinedprovisionally ,tobereplacedbythedefinition')FirstCouncilDirective73/239/EECof24July1973onthe
coordinationoflaws,regulationsandadministrative provisions
relatingtothetaking-upandpursuitofthebusinessofdirect
insuranceotherthanlifeassurance(OJNoL228,16.8.1973,
p.3).LastamendedbyDirective90/618/EEC(OJNoL330,
29.11.1990,p.44). (2)OJNoL178,8.7.1988,p.5.

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/11
aninternalmarketwhichenableeveryMemberState
toguaranteepolicyholdersadequateprotection;harmonizedatCommunitylevel,whichwillgive
thehomeMemberStateofthemarketthe
responsibilities forthesematterswhichthisDirective
transitionally givestotheassuranceundertaking's
homeMemberState:22.Whereas,forthepurposesofimplementingactuarial
principlesinconformitywiththisDirective,the
homeMemberStatemayneverthelessrequire
systematicnotificationofthetechnicalbasesusedfor
calculatingscalesofpremiumsandtechnical
provisions,withsuchnotificationoftechnicalbases
excludingnotificationofthegeneralandspecial
policyconditionsandtheundertaking'scommercial
rates;18.Whereasthelistofitemsofwhichthesolvency
marginrequiredbyDirective79/267/EECmaybe
madeupmustbesupplementedtotakeaccountof
newfinancialinstruments andofthefacilities
grantedtootherfinancialinstitutionsforthe
constitutionoftheirownfunds;
19.Whereastheharmonization ofassurancecontract
lawisnotapriorconditionfortheachievementof
theinternalmarketinassurance;whereas,therefore,
theopportunityaffordedtotheMemberStatesof
imposingtheapplicationoftheirlawtoassurance
contractscoveringcommitments withintheir
territoriesislikelytoprovideadequatesafeguards
forpolicyholders ;23.Whereasinasingleassurancemarkettheconsumer
willhaveawiderandmorevariedchoiceof
contracts;whereas,ifheistoprofitfullyfromthis
diversityandfromincreasedcompetition ,hemustbe
providedwithwhateverinformationisnecessaryto
enablehimtochoosethecontractbestsuitedtohis
needs;whereasthisinformationrequirementisall
themoreimportantasthedurationofcommitments
canbeverylong;whereastheminimumprovisions
mustthereforebecoordinated inorderforthe
consumertoreceiveclearandaccurateinformation
ontheessentialcharacteristics oftheproducts
proposedtohimaswellastheparticularsofthe
bodiestowhichanycomplaintsofpolicyholders ,
assuredpersonsorbeneficiariesofcontractsmaybe
addressed;20.Whereaswithintheframeworkofaninternalmarket
itisinthepolicyholder'sinterestthatheshouldhave
accesstothewidestpossiblerangeofassurance
productsavailableintheCommunitysothathecan
choosethatwhichisbestsuitedtohisneeds;
whereasitisfortheMemberStateofthe
commitmenttoensurethatthereisnothingto
preventthemarketingwithinitsterritoryofallthe
assuranceproductsofferedforsaleinthe
Communityaslongastheydonotconflictwiththe
legalprovisionsprotectingthegeneralgoodinforce
intheMemberStateofthecommitment andinsofar
asthegeneralgoodisnotsafeguardedbytherulesof
thehomeMemberState,providedthatsuch
provisionsmustbeappliedwithoutdiscrimination to
allundertakingsoperatinginthatMemberStateand
beobjectivelynecessaryandinproportiontothe
subjectivepursued;24.Whereaspublicityforassuranceproductsisan
essentialmeansofenablingassurancebusinesstobe
carriedoneffectivelywithintheCommunity;
whereasitisnecessarytoleaveopentoassurance
undertakings theuseofallnormalmeansof
advertisingintheMemberStateofthebranchorof
provisionofservices;whereasMemberStatesmay
neverthelessrequirecompliancewiththeirnational
rulesontheformandcontentofadvertising,
whetherlaiddownpursuanttoCommunity
legislationonadvertisingoradoptedbyMember
Statesforreasonsofthegeneralgood;
25.Whereas,withintheframeworkoftheinternal
market,noMemberStatemaycontinuetoprohibit
thesimultaneouscarryingonofassurancebusiness
withinitsterritoryundertherightofestablishment
andthefreedomtoprovideservices;whereasthe
optiongrantedtomemberStatesinthisconnection
byDirective90/619/EECshouldthereforebe
abolished;21.WhereastheMemberStatesmustbeabletoensure
thattheassuranceproductsandcontractdocuments
used,undertherightofestablishment orthe
freedomtoprovideservices,tocovercommitments
withintheirterritoriescomplywithsuchspecific
legalprovisionsprotectingthegeneralgoodasare
applicable;whereasthesystemsofsupervisiontobe
employedmustmeettherequirementsofaninternal
marketbuttheiremploymentmaynotconstitutea
priorconditionforcarryingonassurancebusiness;
whereas,fromthisstandpoint,systemsfortheprior
approvalofpolicyconditionsdonotappeartobe
justified;whereasitisthereforenecessarytoprovide
forothersystemsbettersuitedtotherequirementsof26.Whereasprovisionshouldbemadeforasystemof
penaltiestobeimposedwhen,intheMemberState
inwhichthecommitment isenteredinto,an
assuranceundertakingdoesnotcomplywiththose
provisionsprotectingthegeneralgoodthatare
applicabletoit;

NoC196/12 OfficialJournaloftheEuropeanCommunities 3.8.92
HASADOPTEDTHISDIRECTIVE :
TITLEI27.WhereassomeMemberStatesdonotsubject
assurancetransactionstoanyformofindirect
taxation,whilethemajorityapplyspecialtaxesand
otherformsofcontribution ;whereasthestructures
andratesofsuchtaxesandcontributions vary
considerablybetweentheMemberStatesinwhich
theyareapplied;whereasitisdesirabletoprevent
existingdifferencesleadingtodistortionsof
competitioninassuranceservicesbetweenMember
States;whereas,pendingsubsequentharmonization ,
applicationofthetaxsystemsandotherformsof
contributionprovidedforbytheMemberStatesin
whichcommitments enteredintoarelikelyto
remedythatproblemanditisfortheMemberStates
tomakearrangementstoensurethatsuchtaxesand
contributions arecollected;
28.Whereas,itisimportanttointroduceCommunity
coordination onthewinding-upofassurance
undertakings ;whereasitishenceforthessentialto
provide,ineventofthewinding-upofanassurance
undertaking ,thatthesystemofprotectioninplacein
eachMemberStatemustguaranteeequalityof
treatmentforallassurancecreditors,irrespectiveof
nationalityandofthemethodofenteringintothe
commitment ;Definitionsandscope
Article1
ForthepurposesofthisDirective:
(a)assuranceundertakingshallmeananundertaking
whichhasreceivedofficialauthorization inaccordance
withArticle6ofDirective79/267/EEC;
(b)branchshallmeananagencyorbranchofanassurance
undertaking ,havingregardtoArticle3ofDirective
90/619/EEC;
(c)commitmentshallmeanacommitmentrepresentedby
oneofthekindsofinsuranceoroperationsreferredto
inArticle1ofDirective79/267/EEC;
(d)homeMemberStateshallmeantheMemberStatein
whichtheheadofficeoftheassuranceundertaking
coveringthecommitment issituated;
(e)MemberStateofthebranchshallmeantheMember
Stateinwhichthebranchcoveringthecommitment is
situated;
(f)MemberStateoftheprovisionofservicesshallmean
theMemberStateofthecommitment ,asdefinedin
Article2(e)ofDirective90/619/EEC,ifthe
commitmentiscoveredbyanassuranceundertakingor
abranchsituatedinanotherMemberState;
(g)controlshallmeantherelationshipbetweenaparent
undertakingandasubsidiary,asdefinedinArticle1of
Directive83/349/EEC(2),orasimilarrelationship
betweenanynaturalorlegalpersonandan
undertaking ;
(h)qualifyingholdingshallmeanadirectorindirect
holdinginanundertakingwhichrepresents10%or
moreofthecapitalorofthevotingrightsorwhich
makesitpossibletoexerciseasignificantinfluenceover
themanagementoftheundertakinginwhichaholding
subsists.
Forthepurposesofthisdefinition,inthecontextof
Articles7and14andoftheotherlevelsofholding
referredtoinArticle14,thevotingrightsreferredtoin
Article7ofDirective88/627/EEC(3)shallbetaken
intoconsideration ;29.Whereastechnicaladjustmentstothedetailedrules
laiddowninthisDirectivemaybenecessaryfrom
timetotimetotakeaccountofthefuture
developmentoftheassuranceindustry;whereasthe
Commissionwillmakesuchadjustmentsasand
whennecessary,afterconsultingtheInsurance
CommitteesetupbyDirective91/675/EEC(J),in
theexerciseoftheimplementingpowersconferred
onitbytheTreaty;
30.Whereasitisnecessarytoadoptspecificprovisions
intendedtoensuresmoothtransitionfromthelegal
arrangements inexistencewhenthisDirective
becomesapplicabletothosethatitintroduces;
whereascareshouldbetakeninsuchprovisionsnot
toplaceanadditionalworkloadonMemberstates'
competentauthorities ;
31.Whereas,pursuanttoArticle8coftheTreaty,
accountshouldbetakenoftheextentoftheeffort
whichmustbemadebycertaineconomiesat
differentstagesofdevelopment ;whereas,therefore,
transitionalarrangementsshouldbeadoptedforthe
gradualapplicationofthisDirectivebycertain
MemberStates,(2)SeventhCouncilDirective83/349/EECof13June1983based
onArticle54(3)(g)oftheTreatyonconsolidatedaccounts
(OJNoL193,18.7.1983,p.1).LastamendedbyDirective
90/605/EEC(OJNoL317,16.11.1990,p.60).
(3)CouncilDirective88/627/EECof12December1988onthe
informationtobepublishedwhenamajorholdinginalisted
companyisacquiredordisposedof(OJL348,17.12.1988,
p.62).' (!)OJNoL374,31.12.1991,p.32.

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/13
TITLE
Thetaking-upofthebusinessoflifeassurance
Article3
Article6ofDirective79/267/EECshallbereplacedbythe
following:
'Article6
Thetaking-upoftheactivitiescoveredbythisDirective
shallbesubjecttopriorofficialauthorization .
Suchauthorizationshallbesoughtfromtheauthorities
ofthehomeMemberStateby:
(a)anyundertakingwhichestablishesitsheadofficein
theterritoryofthatState;
(b)anyundertaking which,havingreceivedthe
authorization requiredinthefirstsubparagraph ,
extendsitsbusinesstoanentireclassortoother
classes.'(i)parentundertakingshallmeanaparentundertakingas
definedinArticles1and2ofDirective83/349/EEC;
(j)subsidiaryshallmeanasubsidiaryundertakingas
definedinArticles1and2ofDirective83/349/EEC;
anysubsidiaryofasubsidiaryundertakingshallalsobe
regardedasasubsidiaryoftheundertakingwhichis
thoseundertakings 'ultimateparentundertaking ;
(k)regulatedmarketshallmeanafinancialmarket
regardedbyanundertaking'shomeMemberStateasa
regulatedmarketpendingtheadoptionofadefinition
inaDirectiveoninvestmentservicesandcharacterized
by:
—regularoperation,and
—thefactthatregulationsissuedorapprovedbythe
appropriateauthoritiesdefinetheconditionsforthe
operationofthemarket,theconditionsforaccessto
themarketand,whereCouncilDirective
79/279/EECof5March1979coordinatingthe
conditionsfortheadmissionofsecuritiestoofficial
stock-exchange listing0)applies,theconditionsfor
admissiontolistingimposedinthatDirectiveor,
wherethatDirectivedoesnotapply,theconditions
tobesatisfiedbyafinancialinstrumentinorderto
beeffectivelydealtinonthemarket.
ForthepurposesofthisDirective,aregulatedmarket
maybesituatedinaMemberStateorinathird
country.Inthelatterevent,themarketmustbe
recognizedbytheundertaking'shomeMemberState
andmeetcomparablerequirements .Anyfinancial
instrumentsdealtinmustbeofaqualitycomparableto
thatoftheinstrumentsdealtinontheregulatedmarket
ormarketsoftheMemberStateinquestion;
(1)competentauthoritiesshallmeanthenational
authoritieswhichareempoweredbylaworregulation
tosuperviseassuranceundertakings .Article4
Article7ofDirective79/267/EECshallbereplacedbythe
following:
'Article7
1.Authorization shallbevalidfortheentire
Community .Itshallpermitanundertakingtocarryon
businessthere,undereithertherightofestablishment
orfreedomtoprovideservices.
2.Authorization shallbegrantedforaparticularclass
ofassuranceaslistedintheAnnex.Itshallcoverthe
entireclass,unlesstheapplicantwishestocoveronly
someoftheriskspertainingtothatclass.
Thecompetentauthoritiesmayrestrictauthorization
requestedforoneoftheclassestotheoperationssetout
intheschemeofoperationsreferredtoinArticle9.
EachMemberStatemaygrantauthorizationfortwoor
moreoftheclasses,whereitsnationallawspermitsuch
classestobecarriedonsimultaneously .'Article2
1.ThisDirectiveshallapplytothecommitments and
undertakings referredtoinArticle1ofDirective
79/267/EEC.
2.InArticle1(2)ofDirective79/267/EECthewords
'andareauthorizedinthecountryconcerned'shallbe
deleted.
3.ThisDirectiveshallapplyneithertoclassesof
insuranceoroperationsnortoundertakingsorinstitutions
towhichDirective79/267/EECdoesnotapply,norshall
itapplytothebodiesreferredtoinArticle4ofthat
Directive .Article5
Article8ofDirective79/267/EECshallbereplacedbythe
following.
'Article8
1.ThehomeMemberStateshallrequireevery
assuranceundertakingforwhichauthorization is
soughtto:(')OJNoL66,13.3.1979,p.21.LastamendedbyDirective
82/148/EEC(OJNoL62,5.3.1982,p.22).

NoC196/14 OfficialJournaloftheEuropeanCommunities 3.8.92
(a)adoptoneofthefollowingforms:
—inthecaseoftheKingdomofBelgium:
'sociétéanonyme/naamlozevennootschap',
'société encommandite par
actions/commanditaire vennootschap op
aandelen','association d'assurance
mutuelle/onderlingeverzekeringsvereniging ',
'sociétécoopérative/coöperatieve vennoot­
schap',
—inthecaseoftheKingdomofDenmark:
'aktieselskaber','gensidige selskaber',
'pensionskasser omfattetaflovom
forsikringsvirksomhed (tværgåendepensions­
kasser)',Anassuranceundertakingmayalsoadopttheform
ofaEuropeancompanywhenthathasbeen
established .
Furthermore ,MemberStatesmay,where
appropriate,setupundertakingsinanypublic-law
formprovidedthatsuchbodieshaveastheirobject
insuranceoperationsunderconditionsequivalentto
thoseunderwhichprivate-lawundertakings
operate;
(b)limititsobjectstothebusinessprovidedforinthis
Directiveandoperationsdirectlyarisingtherefrom,
totheexclusionofallothercommercialbusiness;
(c)submitaschemeofoperationsinaccordancewith
Article9;
(d)possesstheminimumguaranteefundprovidedfor
inArticle20(2);
(e)beeffectivelyrunbypersonsofgoodreputewith
appropriate professional qualifications or
experience .
2.Anundertakingseekingauthorizationtoextendits
businesstootherclassesortoextendanauthorization
coveringonlysomeoftheriskspertainingtooneclass
shallberequiredtosubmitaschemeofoperationsin
accordancewithArticle9.—inthecaseoftheFederalRepublicof
Germany :
'Aktiengesellschaft ','Versicherungsverein auf
Gegenseitigkeit ','öffentlich-rechtliches Wett­
bewerbsversicherungsunternehmen ',
—inthecaseoftheFrenchRepublic:
'sociétéanonyme','sociétéd'assurance
mutuelle','institutiondeprévoyancerégieparle
codedelasécuritésociale','institutionde
prévoyancerégieparlecoderural'and
'mutuellesrégiesparlecodedelamutualité',
—inthecaseofIreland:
'incorporatedcompanieslimitedbysharesorby
guaranteeorunlimited','societiesregistered
undertheIndustrialandProvidentSocieties
Acts'and'societiesregisteredundertheFriendly
SocietiesActs',
—inthecaseoftheItalianRepublic:Itshall,furthermore,berequiredtoshowproofthatit
possessesthesolvencymarginprovidedforinArticle19
andtheguaranteefundreferredtoinArticle20(1)
and(2).
'societàperazioni,'societàcooperativa ,'mutua
diassicurazione',
—inthecaseoftheGrandDuchyof
Luxembourg :
'sociétéanonyme','sociétéencommanditepar
actions','associationd'assurances mutuelles',
'sociétécoopérative',
—inthecaseoftheKingdomoftheNetherlands :
'naamlozevennootschap','onderlingewaar­
borgmaatschappij ',3.MemberStatesshallnotadoptprovisionsrequiring
thepriorapprovalorsystematicnotificationofgeneral
andspecialpolicyconditions,ofscalesofpremiums,of
thetechnicalbases,usedinparticularforcalculating
scalesofpremiumsandtechnicalprovisionsorofforms
andotherprinteddocumentswhichanassurance
undertakingintendstouseinitsdealingswith
policyholders .
Notwithstanding thefirstsubparagraph ,forthesole
purposeofverifyingcompliancewithnational
provisionsconcerningactuarialprinciples,thehome
MemberStatemayrequiresystematicnotificationof
thetechnicalbasesusedforcalculatingscalesof.
premiumsandtechnicalprovisions,withoutthat
requirementconstitutingapriorconditionforan
undertakingtocarryonitsbusiness.
NothinginthisDirectiveshallpreventMemberStates
frommaintaininginforceorintroducinglaws,
regulationsoradministrative provisionsrequiring
approvalofthememorandum andarticlesof
associationandthecommunication ofanyother
documentsnecessaryforthenormalexerciseof
supervision .—inthecaseoftheUnitedKingdom:
'incorporatedcompanieslimitedbysharesorby
guaranteeorunlimited','societiesregistered
undertheIndustrialandProvidentSocieties
Acts','societiesregisteredorincorporatedunder
theFriendlySocietiesActs','theassociationof
underwritersknownasLloyd's',
—inthecaseoftheHellenicReupublic :
'ανώνυμηεταιρία
—inthecaseoftheKingdomofSpain:
'sociedadanónima','sociedadmutua','sociedad
cooperativa',
—inthecaseofthePortugueseRepublic:
'sociedadeanónima','mútuadeseguros'.

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/15
TITLEIII
Harmonization ofconditionsgoverningpursuit
ofbusinessNotlaterthanfiveyearsafterthedateofentryinto
forcementionedinthefirstsubparagraphofArticle51
(1)ofDirective92/.../EEC(!),theCommissionshall
submitareporttotheCouncilontheimplementation
ofthisparagraph.
4.Theabovementioned provisionsmaynotrequire
thatanyapplicationforauthorizationbeconsideredin
thelightoftheeconomicrequirementsofthemarket.Chapter1
(!)OJNoL....' Article8
Article15ofDirective79/267/EECshallbereplacedby
thefollowing:
'Article15
1.Thefinancialsupervisionofanassurance
undertaking ,includingthatofthebusinessitcarrieson
eitherthroughbranchesorunderthefreedomto
provideservices,shallbethesoleresponsibilityofthe
homeMemberState.Ifthecompetentauthoritiesofthe
MemberStateofthecommitment havereasonto
considerthattheactivitiesofanassuranceundertaking
mightaffectitsfinancialsoundness,theyshallinform
thecompetentauthoritiesoftheundertaking'shome
MemberState.Thelatterauthoritiesshalldetermine
whethertheundertaking iscomplyingwiththe
prudentialprincipleslaiddowninthisDirective.
2.Thatfinancialsupervisionshallincludeverification,
withrespecttotheassuranceundertaking'sentire
business,ofitsstateofsolvency,theestablishmentof
technicalprovisions,includingmathematical
provisions,andoftheassetscoveringthem,in
accordancewiththeruleslaiddownorpractices
followedinthehomeMemberStatepursuanttothe
provisionsadoptedatCommunitylevel.
3.ThecompetentauthoritiesofthehomeMember
Stateshallrequireeveryassuranceundertakingtohave
soundadministrative andaccountingproceduresand
adequateinternalcontrolmechanisms.'Article6
Article9ofDirective79/267/EECshallbereplacedbythe
following:
'Article9
TheschemeofoperationsreferredtoinArticle8(1)(c)
and(2)shallincludeparticularsorproofconcerning :
(a)thenatureofthecommitments whichthe
undertakingproposestocover;
(b)theguidingprinciplesastoreassurance;
(c)theitemsconstitutingtheminimumguarantee
fund;
(d)estimatesrelatingtothecostsofsettingupthe
administrative servicesandtheorganizationfor
securingbusinessandthefinancialresources
intendedtomeetthosecosts;
inaddition,forthefirstthreefinancialyears:
(e)aplansettingoutdetailedestimatesofincomeand
expenditure inrespectofdirectbusiness,
reassuranceacceptancesandreassurancecessions;
(f)aforecastbalancesheet;
(g)estimatesrelatingtothefinancialresourcesintended
tocoverunderwritingliabilitiesandthesolvency
margin.' Article9
Article16ofDirective79/267/EECshallbereplacedby
thefollowing:
'Article16
TheMemberStateofthebranchshallprovidethat,
whereanassuranceundertakingauthorizedinanother
MemberStatecarriesonbusinessthroughabranch,the
competentauthoritiesofthehomeMemberStatemay,
afterhavingfirstinformedthecompetentauthoritiesof
thememberStateofthebranch,carryoutthemselves,
orthroughtheintermediaryofpersonstheyappointfor
thatpurpose,on-the-spotverificationofthe
information necessarytoensurethefinancial
supervisionoftheundertaking .Theauthoritiesofthe
MemberStateofthebranchmayparticipateinthat
verification.'Article7
ThecompetentauthoritiesofthehomeMemberStateshall
notgrantanundertakingauthorization totakeupthe
businessofassurancebeforetheyhavebeeninformedofthe
identitiesoftheshareholders ormembers,director
indirect,whethernaturalorlegalpersons,whohave
qualifyingholdingsinthatundertakingandoftheamounts
ofthoseholdings.
Thesameauthoritiesshallrefuseauthorization if,taking
intoaccounttheneedtoensurethesoundandprudent
managementofanassuranceundertaking ,theyarenot
satisfiedastothequalifications oftheshareholdersor
members .

NoC196/16 OfficialJournaloftheEuropeanCommunities 3.8.92
Article10 2.Undertheconditionslaiddownbynationallaw,each
MemberStateshallauthorizeassuranceundertakingswith
headofficeswithinitsterritorytotransferallorpartof
theirportfoliosofcontracts,concludedundereitherthe
rightofestablishmentorthefreedomtoprovideservices,to
anacceptingofficeestablishedwithintheCommunity ,if
thecompetentauthoritiesofthehomeMemberStateofthe
acceptingofficecertifythataftertakingthetransferinto
accountthelatterpossessesthenecessarysolvency
margin.
3.Whereabranchproposestotransferallorpanofits
portfolioofcontracts,concludedundereithertherightof
establishment orthefreedomtoprovideservices,the
MemberStateofthebranchshallbeconsulted.
4.Inthecircumstancesreferredtoinparagraphs2and3,
theauthoritiesofthehomeMemberStateofthe
transferringundertakingshallauthorizethetransferafter
obtainingtheagreementofthecompetentauthoritiesofthe
MemberStatesofthecommitment .Article23(2)and(3)ofDirective79/267/EECshallbe
replacedbythefollowing :
'2.MemberStatesshallrequireassurance
undertakingswithheadofficeswithintheirterritories
torenderperiodicallythereturns,togetherwith
statisticaldocuments,whicharenecessaryforthe
purposesofsupervision .Thecompetentauthorities
shallprovideeachotherwithanydocumentsand
informationthatareusefulforthepurposesof
supervision .
3.EveryMemberStateshalltakeallstepsnecessaryto
ensurethatthecompetentauthoritieshavethepowers
andmeansnecessaryforthesupervisionofthebusiness
ofassuranceundertakingswithheadofficeswithintheir
territories,includingbusinesscarriedonoutsidethose
territories,inaccordancewiththeCouncilDirectives
governingthoseactivitiesandforthepurposeofseeing
thattheyareimplemented .
Thesepowersandmeansmust,inparticular,enablethe
competentauthoritiesto:
(a)makedetailedenquiriesregardingtheundertaking's
situationandthewholeofitsbusiness,interalia,
by:
—gatheringinformationorrequiringthe
submissionofdocumentsconcerningits
assurancebusiness,
—carryingouton-the-spotinvestigations atthe
undertaking'spremises;
(b)takeanymeasures,withregardtotheundertaking,
itsdirectorsormanagersorthepersonswhocontrol
it,thatareappropriateandnecessarytoensurethat
thatundertaking'sbusinesscontinuestocomply
withthelaws,regulationsandadministrative
provisionswithwhichtheundertakingmustcomply
ineachMemberStateandinparticularwiththe
schemeofoperationsinsofarasitremains
mandatory,andtopreventorremedyany
irregularitiesprejudicialtotheinterestsofthe
assuredpersons;
(c)ensurethatthosemeasuresarecarriedout,ifneed
bebyenforcement,whereappropriatethrough
judicialchannels.
MemberStatesmayalsomakeprovisionforthe
competentauthoritiestoobtainanyinformation
regardingcontractswhichareheldbyintermediaries.'5.ThecompetentauthoritiesoftheMemberStates
consultedshallgivetheiropinionorconsenttothe
competentauthoritiesofthehomeMemberStateofthe
transferringassuranceundertakingwithinthreemonthsof
receivingarequest;theabsenceofanyresponsewithinthat
periodfromtheauthoritiesconsultedshallbeconsidered
equivalenttoafavourableopinionortacitconsent.
6.AtransferauthorizedinaccordancewiththisArticle
shallbepublishedaslaiddownbynationallawinthe
MemberStateofthecommitment .Suchtransfersshall
automatically bevalidagainstpolicyholders ,theassured
personsandanyotherpersonhavingrightsorobligations
arisingoutofthecontractstransferred .
ThisprovisionshallnotaffecttheMemberStates'rightsto
givepolicyholderstheoptionofcancellingcontractswithin
afixedperiodafteratransfer.
Article12
Article24ofDirective79/267/EECshallbereplacedby
thefollowing:
'Article24
1.IfanundertakingdoesnotcomplywithArticle17,
thecompetentauthorityofitshomeMemberStatemay
prohibitthefreedisposalofitsassetsafterhaving
communicated itsintentiontothecompetent
authoritiesoftheMemberStatesofcommitment .Article11
1.Article6(2)to(7)ofDirective90/619/EECshallbe
deleted.

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/17
(b)nolongerfulfilstheconditionsforadmission;
(c)hasbeenunable,withinthetimeallowed,totake
themeasuresspecifiedintherestorationplanor
financeschemereferredtoinArticle24;
(d)failsseriouslyinitsobligationsunderthe
regulationstowhichitissubject.
Intheeventofthewithdrawalorlapseofthe
authorization ,thecompetentauthorityofthehome
MemberStateshallnotifythecompetentauthoritiesof
theothermemberStatesaccordinglyandtheyshalltake
appropriatemeasurestopreventtheundertakingfrom
commencingnewoperationswithintheirterritories,
undereitherthefreedomofestablishment orthe
freedomtoprovideservices.ThehomeMemberState's
competentauthorityshall,inconjunctionwiththose
authorities,takeallnecessarymeasurestosafeguardthe
interestsoftheassuredpersonsandshallrestrict,in
particular,thefreedisposaloftheassetsofthe
undertakinginaccordancewithArticle24(1),(2),
secondsubparagraph ,or(3),secondsubparagraph .
2.Anydecisiontowithdrawanauthorization shallbe
supportedbyprecisereasonsandnotifiedtothe
undertakinginquestion.'2.Forthepurposesofrestoringthefinancialsituation
ofanundertakingthesolvencymarginofwhichhas
fallenbelowtheminimumrequiredunderArticle19,
thecompetentauthorityofthehomeMemberState
shallrequirethataplanfortherestorationofasound
financialpositionbesubmittedforitsapproval.
Inexceptionalcircumstances ,ifthecompetent
authorityisoftheopinionthatthefinancialsituationof
theundertakingwillfurtherdeteriorate,itmayalso
restrictorprohibitthefreedisposaloftheundertaking's
assets.ItshallinformtheauthoritiesofotherMember
Stateswithintheterritoriesofwhichtheundertaking
carriesonbusinessofanymeasuresithastakenandthe
lattershall,attherequestoftheformer,takethesame
measures .
3.Ifthesolvencymarginfallsbelowtheguarantee
fundasdefinedinArticle20,thecompetentauthority
ofthehomeMemberStateshallrequiretheundertaking
tosubmitashort-termfinanceschemeforits
approval.
Itmayalsorestrictorprohibitthefreedisposalofthe
undertaking'sassets.Itshallinformtheauthoritiesof
otherMemberStateswithintheterritoriesofwhichthe
undertakingcarriesonbusinessaccordinglyandthe
lattershall,attherequestoftheformer,takethesame
measures .
4.Thecompetentauthoritiesmayfurthertakeall
measuresnecessarytosafeguardtheinterestsofthe
assuredpersonsinthecasesprovidedforinparagraphs
1,2and3.
5.EachMemberStateshalltakethemeasures
necessarytobeableinaccordancewithitsnationallaw
toprohibitthefreedisposalofassetslocatedwithinits
territoryattherequest,inthecasesprovidedforin
paragraphs 1,2and3,oftheundertaking'shome
MemberState,whichshalldesignatetheassetstobe
coveredbysuchmeasures.'Article14
1.MemberStatesshallrequireanynaturalorlegalperson
whoproposestoacquire,directlyorindirectly,aqualifying
holdinginanassuranceundertakingfirsttoinformthe
competentauthoritiesofthehomeMemberState,
indicatingthesizeoftheintendedholding.Suchaperson
mustlikewiseinformthecompetentauthoritiesofthehome
MemberStateifheproposestoincreasehisqualifying
holdingsothattheproportionofthevotingrightsorofthe
capitalheldbyhimwouldreachorexceed20,33or50%
orsothattheassuranceundertakingwouldbecomehis
subsidiary .
Article13
ThecompetentauthoritiesofthehomeMemberStateshall
haveamaximumofthreemonthsfromthedateofthe
notificationprovidedforinthefirstsubparagraph to
opposesuchaplanif,inviewoftheneedtoensuresound
andprudentmanagementoftheassuranceundertaking,
theyarenotsatisfiedastothequalificationsoftheperson
referredtointhefirstsubparagraph .Iftheydonotoppose
theplaninquestiontheymayfixamaximumperiodforits
implementation .Article26ofDirective79/267/EECshallbereplacedby
thefollowing:
'Article26
1.Authorizationgrantedtoanassuranceundertaking
bythecompetentauthorityofitshomeMemberState
maybewithdrawnbythatauthorityifthat
undertaking :
(a)doesnotmakeuseoftheauthorization within12
months,expresslyrenouncesitorceasestocarryon
businessformorethansixmonths,unlessthe
MemberStateconcernedhasmadeprovisionfor
authorizationtolapseinsuchcases;2.MemberStatesshallrequireanynaturalorlegalperson
whoproposestodispose,directlyorindirectly,ofa
qualifyingholdinginanassuranceundertakingfirstto
informthecompetentauthoritiesofthehomeMember
State,indicatingthesizeofhisintendedholding.Sucha
personmustlikewiseinformthecompetentauthoritiesifhe

NoC196/18 OfficialJournaloftheEuropeanCommunities3.8.92
proposestoreducehisqualifyingholdingsothatthe
proportionofthevotingrightsorofthecapitalheldbyhim
wouldfallbelow20,33or50%orsothattheassurance
undertakingwouldceasetobehissubsidiary.
3.Onbecomingawareofthem,assuranceundertakings
shallinformthecompetentauthoritiesoftheirhome
MemberStatesofanyacquisitionsordisposalsofholdings
intheircapitalthatcauseholdingstoexceedorfallbelow
oneofthethresholdsreferredtoinparagraphs 1and2.
Theyshallalso,atleastonceayear,informthemofthe
namesofshareholdersandmemberspossessingqualifying
holdingsandthesizesofsuchholdingsasshown,for
example,bytheinformationreceivedattheannualgeneral
meetingsofshareholdersandmembersorasaresultof
compliancewiththeregulationsrelatingtocompanies
listedonstockexchanges .
4.MemberStatesshallrequirethat,iftheinfluence
exercisedbythepersonsreferredtoinparagraph1islikely
tooperatetothedetrimentoftheprudentandsound
managementoftheassuranceundertaking ,thecompetent
authoritiesofthehomeMemberStateshalltake
appropriatemeasurestoputanendtothatsituation.Such
measuresmayconsist,forexample,ininjunctions,
sanctionsagainstdirectorsandmanagers,orthesuspension
oftheexerciseofthevotingrightsattachingtotheshares
heldbytheshareholdersormembersinquestion.Nevertheless ,whereanassuranceundertakinghasbeen
declaredbankruptorisbeingcompulsorilywoundup,
confidentialinformationwhichdoesnotconcernthird
partiesinvolvedinattemptstorescuethatundertakingmay
bedivulgedincivilorcommercialproceedings .
2.Paragraph1shallnotpreventthecompetentauthorities
ofthedifferentMemberStatesfromexchanging
informationinaccordancewiththeDirectivesapplicableto
assuranceundertakings .Thatinformationshallbesubject
totheconditionsofprofessionalsecrecyindicatedin
paragraph 1.
3.MemberStatesmayconcludecooperationagreements,
providingforexchangesofinformation,withthe
competentauthoritiesofthirdcountriesonlyifthe
information disclosedissubjecttoguaranteesof
professionalsecrecyatleastequivalenttothosereferredto
inthisArticle.
4.Competent authorities receivingconfidential
informationunderparagraphs 1or2mayuseitonlyinthe
courseoftheirduties:
—tocheckthattheconditionsgoverningthetaking-upof
thebusinessofassurancearemetandtofacilitate
monitoringoftheconductofsuchbusiness,especially
withregardtothemonitoringoftechnicalprovisions,
solvencymargins,administrative andaccounting
proceduresandinternalcontrolmechanisms ,or
—toimposesanctions,or
—inadministrative appealsagainstdecisionsofthe
competentauthority,or
—incourtproceedingsinitiatedpursuanttoArticle50or
underspecialprovisionsprovidedforintheDirectives
adoptedinthefieldofassuranceundertakings .
5.Paragraphs 1and4shallnotprecludetheexchangeof
informationwithinaMemberState,wheretherearetwoor
morecompetentauthoritiesinthesameMemberState,or,
betweenMemberStates,betweencompetentauthorities
and:
—authoritiesresponsiblefortheofficialsupervisionof
creditinstitutionsandotherfinancialorganizationsand
theauthoritiesresponsibleforthesupervisionof
financialmarkets,
—bodiesinvolvedintheliquidationandbankruptcyof
assuranceundertakingsandinothersimilarprocedures,
and
—personsresponsibleforcarryingoutstatutoryauditsof
theaccountsofassuranceundertakings andother
financialinstitutions,
inthedischargeoftheirsupervisoryfunctions,andthe
disclosure,tobodieswhichadminister (compulsory )
winding-upproceedingsorguaranteefunds,ofinformationSimilarmeasuresshallapplytonaturalorlegalpersons
failingtocomplywiththeobligationtoprovideprior
information ,aslaiddowninparagraph1.Ifaholdingis
acquireddespitetheoppositionofthecompetent
authorities,theMemberStatesshall,regardlessofany
othersanctionstobeadopted,provideeitherforexerciseof
thecorresponding votingrightstobesuspended,orforthe
nullityofvotescastorforthepossibilityoftheir
annulment .
Article15
1.TheMemberStatesshallprovidethatallpersons
workingorwhohaveworkedforthecompetent
authorities,aswellasauditorsorexpertsactingonbehalf
ofthecompetentauthorities,shallbeboundbythe
obligationofprofessionalsecrecy.Thismeansthatno
confidentialinformationwhichtheymayreceiveinthe
courseoftheirdutiesmaybedivulgedtoanypersonor
authoritywhatsoever ,exceptinsummaryoraggregate
form,suchthatindividualassuranceundertakingscannot
beidentified,withoutprejudicetocasescoveredby
criminallaw.

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/19
necessarytotheperformanceoftheirduties.The
informationreceivedbytheseauthorities,bodiesand
personsshallbesubjecttotheobligationofprofessional
secrecylaiddowninparagraph 1.
6.Inaddition,notwithstanding paragraphs 1and4,
MemberStatesmay,underprovisionslaiddownbylaw,
authorizethedisclosureofcertaininformationtoother
departmentsoftheircentralgovernmentadministrations
responsibleforlegislationonthesupervisionofcredit
institutions,financialinstitutions,investmentservicesand
assuranceundertakingsandtoinspectorsactingonbehalf
ofthosedepartments .
However,suchdisclosuresmaybemadeonlywhere
necessaryforreasonsofprudentialcontrol.4.MemberStatesmayprovidethattheundertakings
referredtoinparagraph2shallcomplywiththe
accountingrulesgoverningundertakingsauthorized
underthisDirectiveforalloftheiractivities.Pending
coordinationinthisrespect,MemberStatesmayalso
providethat,withregardtorulesonwinding-up,
activitiesrelatingtotheriskslistedinclasses1and2in
theAnnextoDirective73/239/EECcarriedonbythe
undertakingsreferredtoinparagraph2shallbe
governedbytherulesapplicabletolifeassurance
activities.
5.Whereanundertakingcarryingontheactivities
referredtointheAnnextoDirective73/239/EEChas
financial,commercialoradministrative linkswithan
undertakingcarryingontheactivitiescoveredbythis
Directive,thesupervisoryauthoritiesoftheMember
Stateswithinwhoseterritoriestheheadofficesofthose
undertakingsaresituatedshallensurethattheaccounts
oftheundertakings inquestionarenotdistortedby
agreementsbetweentheseundertakingsorbyany
arrangementwhichcouldaffecttheapportionment of
expensesandincome.
6.AnyMemberStatemayrequireundertakingswhose
headofficesaresituatedinitsterritorytocease,within
aperiodtobedeterminedbytheMemberState
concerned,thesimultaneouspursuitofactivitiesin
whichtheywereengagedatthetimeofnotificationof
thisDirective.
7.TheprovisionsofthisArticleshallbereviewedon
thebasisofareportfromtheCommissiontothe
Councilinthelightoffutureharmonization oftherules
onwinding-up,andinanycasebefore31December
1999.'However,MemberStatesshallprovidethatinformation
receivedpursuanttoparagraphs2and5andthatobtained
bymeansoftheon-the-spotverificationreferredtoin
Article16ofDirective79/267/EECmayneverbe
disclosedinthecasesreferredtointhisparagraphexcept
withtheexpressconsentofthecompetentauthorities
whichdisclosedtheinformationorofthecompetent
authoritiesoftheMemberStateinwhichon-the-spot
verificationwascarriedout.
Article17
Article35ofDirective79/267/EECandArticle18of
Directive90/619/EECshallbedeleted.
Chapter2Article16
Article13ofDirective79/267/EECshallbereplacedby
thefollowing :
'Article13
1.Withoutprejudicetoparagraphs3and7,no
undertakingmaybeauthorizedbothunderthis
DirectiveandunderDirective73/239/EEC.
2.However,MemberStatesmayprovidethat:
—undertakingsauthorizedunterthisDirectivemay
alsoobtainauthorization ,inaccordancewith
Article6ofDirective73/239/EECfortherisks
listedinclasses1and2intheAnnextothat
Directive,
—undertakings authorizedunderArticle6of
Directive73/239/EECsolelyfortheriskslistedin
classes1and2intheAnnextothatDirectivemay
obtainauthorization underthisDirective.
3.Subjecttoparagraph6,undertakingsreferredtoin
paragraph2andthosewhichatthetimeofnotification
ofthisDirectivecarryonsimultaneously bothofthe
activitiescoveredbythisDirectiveandbyDirective
73/239/EECmaycontinuetodoso,providedthat
eachactivityisseparatelymanagedinaccordancewith
Article14.Article18
Article17ofDirective79/267/EECshallbereplacedby
thefollowing :
'Article17
1.ThehomeMemberStateshallrequireevery
assuranceundertakingtoestablishsufficienttechnical
provisions,includingmathematical provisions,in
respectofitsentirebusiness.
Theamountofsuchtechnicalprovisionsshallbe
determinedaccordingtothefollowingprinciples:

NoC196/20 OfficialJournaloftheEuropeanCommunities3.8.92
A.(i)theamountofthetechnicallife-assurance
provisionsshallbecalculatedbyasufficiently
prudentprospectiveactuarialvaluation,taking
accountofallfutureliabilitiesasdetermined
bythepolicyconditionsforeachexisting
contract,including:
—allguaranteedbenefits,including
guaranteedsurrendervalues,
—bonusestowhichpolicyholdersarealready
eithercollectivelyorindividuallyentitled,
howeverthosebonusesaredescribed,—
vested,declaredorallotted,
—alloptionsavailabletothepolicyholder
underthetermsofthecontract,
—expenses,includingcommissions ,
takingcreditforfuturepremiumsdue;B.therateofinterestusedshallbechosenprudently.It
shallbedeterminedinaccordancewiththerulesof
thecompetentauthorityinthehomeMemberState,
applyingthefollowingprinciples:
(a)forallcontracts,thecompetentauthorityofthe
undertaking'shomeMemberStateshallfixone
ormoremaximumratesofinterest,inparticular
inaccordancewiththefollowingrules:
(i)whencontractscontainaninterestrate
guarantee,thecompetentauthorityinthe
homeMemberStateshallsetasingle
maximumrateofinterest.Itmaydiffer
accordingtothecurrencyinwhichthe
contractisdenominated ,providedthatitis
notmorethan60%oftherateonbond
issuesbytheStateinwhosecurrencythe
contractisdenominated .Inthecaseofa
contractdenominatedinecus,thislimitshall
besetbyreferencetoecu-denominated
issuesbytheCommunityinstitutions .
IfaMemberStatedecides,pursuanttothe
secondsentenceoftheprecedingparagraph,
tosetamaximumrateofinterestfor
contractsdenominated inanotherMember
State'scurrency,itshallfirstconsultthe
competentauthorityoftheMemberState
inwhosecurrencythecontractis
denominated ;
(ii)however,whentheassetsoftheundertaking
arenotvaluedattheirpurchaseprices,a
MemberStatemaystipulatethatoneor
moremaximumratesmaybecalculated
takingintoaccounttheyieldonthe
corresponding assetscurrentlyheld,minusa
prudentialmarginand,inparticularfor
contractswithperiodicpremiums,
furthermore takingintoaccountthe
anticipatedyieldonfutureassets.The
prudentialmarginandthemaximumrateor
ratesofinterestappliedtotheanticipated
yieldonfutureassetsshallbefixedbythe
competentauthorityofthehomeMember
State;(ii)theuseofaretrospectivemethodisallowed,if
itcanbeshownthattheresultingtechnical
provisionsarenotlowerthanwouldbe
requiredunderasufficientlyprudent
prospectivecalculationorifaprospective
methodcannotbeusedforthetypeofcontract
involved;
(iii)aprudentvaluationisnota'bestestimate'
valuation,butshallincludeanappropriate
marginforadversedeviationoftherelevant
factors;
(iv)themethodofvaluationforthetechnical
provisionsmustnotonlybeprudentinitself,
butmustalsobesohavingregardtothe
methodofvaluationfortheassetscovering
thoseprovisions;
(v)technicalprovisionsshallbecalculated
separatelyforeachcontract.Theuseof
appropriateapproximations orgeneralizations
isallowed,however,wheretheyarelikelyto
giveapproximately thesameresultas
individualcalculations .Theprincipleof
separatecalculationshallinnowayprevent
theestablishmentofadditionalprovisionsfor
generalriskswhicharenotindividualized ;(b)theestablishmentofamaximumrateofinterest
shallnotimplythattheundertakingisboundto
usearateashighasthat;
(c)thehomeMemberStatemaydecidenottoapply
(a)tothefollowingcategoriesofcontracts:
—unit-linkedcontracts,
—single-premium contractsforaperiodofup
toeightyears,(vi)wherethesurrendervalueofacontractis
guaranteed,theamountofthemathematical
provisionsforthecontractatanytimeshallbe
atleastasgreatasthevalueguaranteedatthat
time;

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/21
2.Assuranceundertakingsshallmakeavailabletothe
publicthebasesandmethodsusedinthecalculationof
thetechnicalprovisions,includingprovisionsfor
bonuses.
3.ThehomeMemberStateshallrequireevery
assuranceundertakingtocoverthetechnicalprovisions
inrespectofitsentirebusinessbymatchingassets,in
accordancewithArticle24ofDirective92/000/EEC.
InrespectofbusinesswrittenintheCommunity,these
assetsmustbelocalizedwithintheCommunity .
MemberStatesshallnotrequireassuranceundertakings
tolocalizetheirassetsinaparticularMemberState.
ThehomeMemberStatemay,however,permit
relaxationsintherulesonthelocalizationofassets.—without-profits contracts,andannuity
contractswithnosurrendervalue.
Inthecasesreferredtointhelasttwo
indentsofthefirstsubparagraph ,in
choosingaprudentrateofinterest,account
maybetakenofthecurrencyinwhichthe
contractisdenominatedandcorresponding
assetscurrentlyheldandwherethe
undertakings'sassetsarevaluedattheir
currentvalue,theanticipatedyieldonfuture
assets.
Undernocircumstances maytherateof
interestusedbehigherthantheyieldon
assetsascalculatedinaccordancewiththe
accountingrulesinthehomeMemberState,
lessanappropriatededuction;
(d)theMemberStateshallrequireanundertaking
tosetasideinitsaccountsaprovisiontomeet
interest-ratecommitments vis-a-vispolicy­
holdersifthepresentorforeseeableyieldonthe
undertaking'sassetsisinsufficienttocoverthose
commitments :4.IfthehomeMemberStateallowsanytechnical
provisionstobecoveredbyclaimsagainstreassurers,it
shallfixthepercentagesoallowed.Insuchcase,itmay
notrequirethelocalizationoftheassetsrepresenting
suchclaims.'
(e)theCommissionandthecompetentauthorities
oftheMemberStateswhichsorequestshallbe
notifiedofthemaximumratesofinterestset
under(a);Article19
Premiumsfornewbusinessshallbesufficient,on
reasonableactuarialassumptions ,toenableassurance
undertakingstomeetalltheircommitments and,in
particular,toestablishadequatetechnicalprovisions .
Forthispurpose,allaspectsofthefinancialsituationofan
assuranceundertakingmaybetakenintoaccount,without
theinputfromresourcesotherthanpremiumsandincome
earnedthereonbeingsystematicandpermanentinsucha
waythatitmayjeopardizetheundertaking'ssolvencyin
thelongterm.C.thestatisticalelementsofthevaluationandthe
allowanceforexpensesusedshallbechosen
prudently,havingregardtotheStateofthe
commitment ,thetypeofpolicyandthe
administrative costsandcommissionsexpectedto
beincurred:
D.inthecaseofparticipatingcontracts,themethodof
calculationfortechnicalprovisionsmaytakeinto
account,eitherimplicitlyorexplicitly,future
bonusesofallkinds,inamannerconsistentwith
theotherassumptionsonfutureexperienceand
withthecurrentmethodofdistribution of
bonuses:Article20
Theassetscoveringthetechnicalprovisionsshalltake
accountofthetypeofbusinesscarriedonbyan
undertakinginsuchawayastosecurethesafety,yieldand
marketabilityofitsinvestments,whichtheundertaking
shallensurearediversifiedandadequatelyspread. E.allowanceforfutureexpensesmaybemade
implicitly,forinstancebytheuseoffuture
premiumsnetofmanagementcharges.However,
theoverallallowance,implicitorexplicit,shallbe
notlessthanaprudentestimateoftherelevant
futureexpenses;Article21
1.ThehomeMemberStatemaynotauthorizeassurance
undertakingstocovertheirtechnicalprovisionswithany
butthefollowingcategoriesofassets:
A.Investments
(a)debtsecurities,bondsandothermoney-and
capital-market instruments ;F.themethodofcalculationoftechnicalprovisions
shallnotbesubjecttodiscontinuities fromyearto
yeararisingfromarbitrarychangestothemethod
orthebasesofcalculationandshallbesuchasto
recognizethedistributionofprofitsinan
appropriatewayoverthedurationofeachpolicy.

NoC196/22 OfficialJournaloftheEuropeanCommunities3.8.92
detailedrulesfixingtheconditionsfortheuseofacceptable
assets;inthisconnection,itmayrequirevaluablesecurity
orguarantees,particularlyinthecaseofdebtsowedby
reassurers .
Indeterminingandapplyingtheruleswhichitlaysdown,
thehomeMemberStateshall,inparticular,ensurethatthe
followingprinciplesarecompliedwith:
(i)assetscoveringtechnicalprovisionsshallbevalued
netofanydebtsarisingoutoftheiracquisition;
(ii)allassetsmustbevaluedonaprudentbasis,allowing
fortheriskofanyamountsnotbeingrealizable.In
particular,tangiblefixedassetsotherthanlandand
buildingsmaybeacceptedascoverfortechnical
provisionsonlyiftheyarevaluedonthebasisof
prudentamortization ;(b)loans;
(c)sharesandothervariable-yieldparticipations ;
(d)unitsinundertakingsforcollectiveinvestmentin
transferablesecuritiesandotherinvestmentfunds;
(e)land,buildingsandimmovablepropertyrights;
B.Debtsandclaims
(f)debtsowedbyreassurers,includingreassurers'
sharesoftechnicalprovisions;
(g)depositswithanddebtsowedbyceding
undertakings ;
(h)debtsowedbypolicyholdersandintermediaries
arisingoutofdirectandreassuranceoperations;
(i)advancesagainstpolicies;
(j)taxrecoveries;
(k)claimsagainstguaranteefunds;
C.Others
(1)tangiblefixedassets,otherthanlandandbuildings,
valuedonthebasisofprudentamortization ;
(m)cashatbankandinhand,depositswithcredit
institutionsandanyotherbodyauthorizedto
receivedeposits;
(n)deferredacquisitioncosts;
(o)accruedinterestandrent,otheraccruedincomeand
prepayments ;
(p)reversionaryinterests.(iii)loans,whethertoundertakings ,toaStateor
international organization ,tolocalorregional
authoritiesortonaturalpersons,maybeacceptedas
coverfortechnicalprovisionsonlyifthereare
sufficientguaranteesastotheirsecurity,whether
thesearebasedonthestatusoftheborrower,
mortgages,bankguaranteesorguaranteesgrantedby
assuranceundertakingsorotherformsofsecurity;
(iv)derivativeinstrumentssuchasoptions,futuresand
swapsinconnectionwithassetscoveringtechnical
provisionsmaybeusedinsofarastheycontributeto
areductionofinvestmentrisksorfacilitateefficient
portfoliomanagement .Theymustbevaluedona
prudentbasisandmaybetakenintoaccountinthe
valuationoftheunderlyingassets;Inthecaseoftheassociationofunderwriters knownas
Lloyd's,assetcategoriesshallalsoincludeguaranteesand
lettersofcreditissuedbycreditinstitutionswithinthe
meaningofDirective77/780/EEC(J)orbyassurance
undertakings ,togetherwithverifiablesumsarisingoutof
lifeassurancepolicies,totheextentthattheyrepresent
fundsbelongingtomembers.(v)transferablesecuritieswhicharenotdealtinona
regulatedmarketmaybeacceptedascoverfor
technicalprovisionsonlyiftheycanberealizedinthe
shorttermoriftheyareholdingsincredit
institutions,inassuranceundertakings ,withinthe
limitspermittedbyArticle8ofDirective
79/267/EEC,orininvestmentundertakings
establishedinaMemberState; Theinclusionofanyassetorcategoryofassetslistedinthe
firstsubparagraph shallnotmeanthatalltheseassets
shouldautomatically beacceptedascoverfortechnical
provisions .ThehomeMemberStateshalllaydownmore(vi)debtsowedbyandclaimsagainstathirdpartymay
beacceptedascoverforthetechnicalprovisionsonly
afterdeductionofallamountsowedtothesame
thirdparty;
(*)FirstCouncilDirective77/780/EECof12December1977on
thecoordinationofthelaws,regulationsandadministrative
provisionsrelatingtothetakingupandpursuitofthebusiness
ofcreditinstitutions (OJNoL322,17.12.1977,p.30).Last
amendedbyDirective89/646/EEC(OJNoL386,30.12.
1989,p.1).(vii)thevalueofanydebtsandclaimsacceptedascover
fortechnicalprovisionsmustbecalculatedona
prudentbasis,withdueallowancefortheriskofany

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/23
(c)5%ofitstotalgrosstechnicalprovisionsinunsecured
loans,including1%foranysingleunsecuredloan,
otherthanloansgrantedtocreditinstitutions,
assuranceundertakings —insofarasArticle8of
Directive79/267/EECallowsit—andinvestment
undertakingsestablishedinaMemberState.Thelimits
mayberaisedto8and2%respectivelybyadecision
takenonacase-by-casebasisbythecompetent
authorityofthehomeMemberState;
(d)3%ofitstotalgrosstechnicalprovisionsintheformof
cashinhand;
(e)10%ofitstotalgrosstechnicalprovisionsinshares,
othersecuritiestreatedassharesanddebtsecurities
whicharenotdealtinonaregulatedmarket.amountsnotbeingrealizable.Inparticular,debts
owedbypolicyholdersandintermediaries arisingout
ofassuranceandreassuranceoperationsmaybe
acceptedonlyinsofarastheyhavebeenoutstanding
fornotmorethanthreemonths;
(viii)wheretheassetsheldincludeaninvestmentina
subsidiaryundertakingwhichmanagesallorpartof
theassuranceundertaking^investmentsonits
behalf,thehomeMemberStatemust,whenapplying
therulesandprincipleslaiddowninthisArticle,take
intoaccounttheunderlyingassetsheldbythe
subsidiaryundertaking ;thehomeMemberStatemay
treattheassetsofothersubsidiaries inthesame
way;
(ix)deferredacquisitioncostsmaybeacceptedascover
fortechnicalprovisionsonlytotheextentthatthisis
consistentwiththecalculationofthemathematical
provisions .
2.Notwithstanding paragraph 1,inexceptional
circumstancesandatanassuranceundertaking'srequest,
thehomeMemberStatemay,temporarilyandundera
properlyreasoneddecision,acceptothercategoriesof
assetsascoverfortechnicalprovisions,subjecttoArticle
20.
Article222.Theabsenceofalimitinparagraph1oninvestmentin
anyparticularcategorydoesnotimplythatassetsinthat
categoryshouldbeacceptedascoverfortechnical
provisionswithoutlimit.ThehomeMemberStateshalllay
downmoredetailedrulesfixingtheconditionsfortheuse
ofacceptableassets.Inparticularitshallensure,inthe
determination andtheapplicationofthoserules,thatthe
followingprinciplesarecompliedwith:
(i)assetscoveringtechnicalprovisionsmustbediversified
andspreadinsuchawayastoensurethatthereisno
excessiverelianceonanyparticularcategoryofasset,
investmentmarketorinvestment ;
(ii)investmentinparticulartypesofassetwhichshow
highlevelsofrisk,whetherbecauseofthenatureof
theassetorthequalityoftheissuer,mustberestricted
toprudentlevels;
(iii)limitationsonparticularcategoriesofassetmusttake
accountofthetreatmentofreassurance inthe
calculationoftechnicalprovisions;
(iv)wheretheassetsheldincludeaninvestmentina
subsidiaryundertakingwhichmanagesallorpartof
theassuranceundertaking'sinvestmentsonitsbehalf,
thehomeMemberStatemust,whenapplyingtherules
andprincipleslaiddowninthisArticle,takeinto
accounttheunderlyingassetsheldbythesubsidiary
undertaking;thehomeMemberStatemaytreatthe
assetsofothersubsidiariesinthesameway;
(v)thepercentageofassetscoveringtechnicalprovisions
whicharethesubjectofnon-liquidinvestmentsmust
bekepttoaprudentlevel;
(vi)wheretheassetsheldincludeloanstoordebt
securitiesissuedbycertaincreditinstitutions,the1.Asregardtheassetscoveringtechnicalprovisions,the
homeMemberStateshallrequireeveryassurance
undertakingtoinvestnomorethan:
(a)10%ofitstotalgrosstechnicalprovisionsinanyone
pieceoflandorbuilding,oranumberofpiecesofland
orbuildingscloseenoughtoeachothertobe
consideredeffectivelyasoneinvestment ;
(b)5%ofitstotalgrosstechnicalprovisionsinsharesand
othernegotiablesecuritiestreatedasshares,bonds,
debtsecuritiesandothermoney-andcapital-market
instrumentsfromthesameundertaking ,orinloans
grantedtothesameborrower,takentogether,theloans
beingloansotherthanthosegrantedtoaState,regional
orlocalauthorityortoaninternationalorganizationof
whichoneormoreMemberStatesaremembers.This
limitmayberaisedto10%ifanundertakinginvests
notmorethan40%ofitsgrosstechnicalprovisionsin
theloansorsecuritiesofissuingbodiesandborrowers
ineachofwhichitinvestsmorethan5%ofits
assets;

3.8.92 NoC196/24 OfficialJournaloftheEuropeanCommunities
andwhich,intheeventoffailureoftheissuer,wouldbe
usedonaprioritybasisforthereimbursement ofthe
principalandpaymentoftheaccruedinterest.homeMemberStatemay,whenapplyingtherulesand
principlescontainedinthisArticle,takeintoaccount
theunderlyingassetsheldbysuchcreditinstitutions .
Thistreatmentmaybeappliedonlywherethecredit
institutionhasitsheadofficeinaMemberState,is
entirelyownedbythatMemberStateand/orthat
State'slocalauthoritiesanditsbusiness,accordingto
itsmemorandum andarticlesofassociation,consists
ofextending,throughitsintermediaries ,loansto,or
guaranteedby,Statesorlocalauthoritiesorofloans
tobodiescloselylinkedtotheStateortolocal
authorities .5.MemberStatesshallnotrequireassurance
undertakingstoinvestinparticularcategoriesofassets.
6.Notwithstanding paragraph 1,inexceptional
circumstances andattheassuranceundertaking'srequest,
thehomeMemberStatemay,temporarilyandundera
properlyreasoneddecision,allowexceptionstotherules
laiddowninparagraph1(a)to(e),subjecttoArticle20.
Article23
1.Wherethebenefitsprovidedbyacontractaredirectly
linkedtothevalueofunitsinaUcitsortothevalueof
assetscontainedinaninternalfundheldbytheinsurance
undertaking ,usuallydividedintounits,thetechnical
provisionsinrespectofthosebenefitsmustberepresented
ascloselyaspossiblebythoseunitsor,inthecasewhere
unitsarenotestablished,bythoseassets.3.Inthecontextofthedetailedruleslayingdownthe
conditionsfortheuseofacceptableassets,theMember
Stateshallgivemorelimitativetreatmentto:
—anyloanunaccompanied byabankguarantee,a
guaranteeissuedbyanassuranceundertaking ,a
mortgageoranyotherformofsecurity,ascompared
withloansaccompanied bysuchcollateral,
—UcitsnotcoordinatedwithinthemeaningofDirective
85/611/EEC(*)andotherinvestmentfunds,as
comparedwithUcitscoordinatedwithinthemeaning
ofthatDirective,
—securitieswhicharenotdealtinonaregulatedmarket,
ascomparedwiththosewhichare,
—bonds,debtsecuritiesandothermoney-and
capital-market instrumentsnotissuedbyStates,local
orregionalauthoritiesorundertakingsbelongingto
ZoneAasdefinedinDirective89/647/EEC(2),orthe
issuersofwhichareinternationalorganizationsnot
numberingatleastoneCommunityMemberState
amongtheirmember,ascomparedwiththesame
financialinstrumentsissuedbysuchbodies.2.Wherethebenefitsprovidedbyacontractaredirectly
linkedtoashareindexorsomeotherreferencevalueother
thanthosereferredtoinparagraph 1,thetechnical
provisionsinrespectofthosebenefitsmustberepresented
ascloselyaspossibleeitherbytheunitsdeemedto
representthereferencevalueor,inthecasewhereunitsare
notestablished,byassestsofappropriatesecurityand
marketabilitywhichcorrespondascloselyaspossiblewith
thoseonwhichtheparticularreferencevalueisbased.
3.Articles20and22shallnotapplytoassetsheldto
matchliabilitieswhicharedirectlylinkedtothebenefits
referredtotheparagraphs 1and2.Referencestothe
technicalprovisionsinArticle22shallbetothetechnical
provisionsexcludingthoseinrespectofsuchliabilities.4.MemberStatesmayraisethelimitlaiddownin
paragraph 1(b)to40%inthecaseofcertaindebt
securitieswhentheseareissuedbyacreditinstitution
whichhasitsheadofficeinaMemberStateandissubject
bylawtospecialofficialsupervisiondesignedtoprotectthe
holdersofthosedebtsecurities.Inparticular,sums
derivingfromtheissueofsuchdebtsecuritiesmustbe
investedinaccordancewiththelawinassetswhich,during
thewholeperiodofvalidityofthedebtsecurities,are
capableofcoveringclaimsattachingtothedebtsecurities4.Wherethebenefitsreferredtoinparagraphs 1and2
includeaguaranteeofinvestmentperformanceorsome
otherguaranteedbenefit,thecorresponding additional
technicalprovisionsshallbesubjecttoArticles20,21and
22.
(')CouncilDirective85/611/EECof20December1985onthe
coordinationoflaws,regulationsandadministrativeprovisions
relatingtoundertakings forcollectiveinvestmentin
transferablesecurities(Ucits)(OJNoL375,31.12.1985,p.
3).AmendedbyDirective88/220/EEC(OJNoL100,19.4.Article24
1988,p.31).
(2)CouncilDirective89/647/EECof18December1989ona
solvencyratioforcreditinstitutions (OJNoL386,30.12.1.ForthepurposesofArticle17(3)andArticle28of
Directive79/267/EEC,MemberStatesshallcomplywith
AnnexItothisDirectiveasregardsthematchingrules. 1989,p.14).

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/25
2.ThisArticleshallnotapplytothecommitments
referredtoinArticle23ofthisDirective .preferentialsharecapitalranksafterthe
claimsofallothercreditorsandisnottobe
repaiduntilallotherdebtsoutstandingat
thetimehavebeensettled;
subordinatedloancapitalmustalsofulfilthe
followingconditions :
(b)onlyfullypaid-upfundsmaybetakeninto
account;
(c)forloanswithafixedmaturity,theoriginal
maturitymustbeatleastfiveyears.No
laterthanoneyearbeforetherepayment
datetheassuranceundertakingmust
submittothecompetentauthoritiesfor
theirapprovalaplanshowinghowthe
solvencymarginwillbekeptatorbrought
totherequiredlevelatmaturity,unlessthe
extenttowhichtheloanmayrankasa
componentofthesolvencymarginis
graduallyreducedduringatleastthelast
fiveyearsbeforetherepaymentdate.The
competentauthoritiesmayauthorizethe
earlyrepaymentofsuchloansprovided
application ismadebytheissuing
assuranceundertakinganditssolvency
marginwillnotfallbelowtherequired
level;
(d)loansthematurityofwhichisnotfixed
mustberepayableonlysubjecttofive
years'noticeunlesstheloansarenolonger
consideredasacomponentofthesolvency
marginorunlessthepriorconsentofthe
competentauthorities isspecifically
requiredforearlyrepayment.Inthelatter
eventtheassuranceundertakingmust
notifythecompetentauthoritiesatleastsix
monthsbeforethedateoftheproposed
repayment,specifyingtheactualand
requiredsolvencymarginbothbeforeand
afterthatrepayment .Thecompetent
authoritiesshallauthorizerepaymentonly
iftheassuranceundertaking'ssolvency
marginwillnotfallbelowtherequired
level;
(e)theloanagreementmustnotincludeany
clauseprovidingthatinspecified
circumstances ,otherthanthewinding-up
oftheassuranceundertaking,thedebtwill
becomerepayablebeforetheagreed
repaymentdates;
(f)theloanagreementmaybeamendedonly
afterthecompetentauthoritieshave
declaredthattheyhavenoobjectiontothe
amendment ;Article25
Article18,secondsubparagraph ,point1ofDirective
79/267/EECshallbereplacedbythefollowing:
'1.theassetsoftheundertaking freeofany
foreseeableliabilities,lessanyintangibleitems.In
particularthefollowingshallbeincluded:
—thepaid-upsharecapitalor,inthecaseofa
mutualassuranceundertaking ,theeffective
initialfundplusanymembers'accountswhich
meetallthefollowingcriteria:
(a)thememorandum andarticlesof
associationmuststipulatethatpayments
maybemadefromtheseaccountsto
membersonlyinsofarasthisdoesnot
causethesolvencymargintofallbelowthe
requiredlevel,or,afterthedissolutionof
theundertaking ,ifalltheundertaking's
otherdebtshavebeensettled;
(b)thememorandum andarticlesof
associationmuststipulate,withrespectto
anysuchpaymentsforreasonsotherthan
theindividualterminationofmembership ,
thatthecompetentauthoritiesmustbe
notifiedatleastonemonthinadvanceand
canprohibitthepaymentwithinthat
period;
(c)therelevantprovisions ofthe
memorandum andarticlesofassociation
maybeamendedonlyafterthecompetent
authoritieshavedeclaredthattheyhaveno
objectiontotheamendment,without
prejudicetothecriteriastatedin(a)and
(b);
—onehalfoftheunpaidsharecapitalorinitial
fund,oncethepaid-uppartamountsto25%
ofthatsharecapitalorfund,
—reserves(statutoryreservesandfreereserves)
notcorresponding tounderwritingliabilities,
—anyprofitsbroughtforward,
—cumulativepreferentialsharecapitaland
subordinatedloancapitalmaybeincludedbut,
ifso,onlyupto50%ofthemargin,nomore
than25%ofwhichshallconsistof
subordinatedloanswithafixedmaturity,or
fixed-termcumulativepreferentialshare
capital,ifthefollowingminimumcriteriaare
met:
(a)intheeventofthebankruptcyor
liquidationoftheassuranceundertaking ,
bindingagreementsmustexistunderwhich
thesubordinated loancapitalor

NoC196/26 OfficialJournaloftheEuropeanCommunities3.8.92
ofthelivesassured,areentitledtotakeasownersor
membersoforpartnerstotheundertakings in
question.'
Chapter3—securitieswithnospecifiedmaturitydateand
otherinstrumentsthatfulfilthefollowing
conditions,includingcummulativepreferential
sharesotherthanthosementionedinthe
precedingindent,upto50%ofthemarginfor
thetotalofsuchsecuritiesandthe
subordinatedloancapitalreferredtointhe
precedingindent:
(a)theymaynotberepaidontheinitiativeof
thebearerorwithoutthepriorconsentof
thecompetentauthority;
(b)thecontractofissuemustenablethe
assuranceundertaking todeferthe
paymentofinterestontheloan;
(c)thelender'sclaimsontheassurance
undertakingmustrankentirelyafterthose
ofallnon-subordinated creditors;
(d)thedocumentsgoverningtheissueofthe
securitiesmustprovideforthe
loss-absorption capacityofthedebtand
unpaidinterest,whileenablingthe
assuranceundertakingtocontinueits
business;
(e)onlyfullypaid-upamountsmaybetaken
intoaccount.'Article28
TheMemberStateofthecommitmentshallnotpreventa
policyholderfromconcludingacontractwithanassurance
undertakingauthorizedundertheconditionsofArticle6of
Directive79/267/EEC,aslongasthatdoesnotconflict
withlegalprovisionsprotectingthegeneralgoodinthe
MemberStateofthecommitment .
Article26Article29
MemberStatesshallnotadoptprovisionsrequiringthe
priorapprovalorsystematicnotificationofgeneraland
specialpolicyconditions,scalesofpremiums,technical
basesusedinparticularforcalculatingscalesofpremiums
andtechnicalprovisionsorformsandotherprinted
documentswhichanassuranceundertakingintendstouse
initsdealingswithpolicyholders .
Notwithstanding thefirstsubparagraph ,forthesole
purposeofverifyingcompliancewithnationalprovisions
concerningactuarialprinciples,theMemberStateoforigin
mayrequiresystematiccommunication ofthetechnical
basesusedforcalculatingscalesofpremiumsandtechnical
provisions,withoutthatrequirementconstitutingaprior
conditionforanundertakingtocarryonitsbusiness.
Notlaterthanfiveyearsafterthedateofapplicationofthis
Directive,theCommissionshallsubmitareporttothe
Councilontheimplementation ofthoseprovisions .Nomorethanthreeyearsafterthedateofapplicationof
thisDirective,theCommissionshallsubmitareporttothe
InsuranceCommittee ontheneedforfurther
harmonization ofthesolvencymargin.
Article27
Article21ofDirective79/267/EECshallbereplacedby
thefollowing:
'Article21
1.MemberStatesshallnotprescribeanyrulesasto
thechoiceoftheassetsthatneednotbeusedascover
forthetechnicalprovisionsreferredtoinArticle17.
2.SubjecttoArticle17(3),Article24(1),(2),(3)and
(5)andthesecondsubparagraphofArticle26(1),
MemberStatesshallnotrestrainthefreedisposalof
thoseassets,whethermovableorimmovable,thatform
partoftheassetsofauthorizedassurance
undertakings .
3.Paragraphs 1and2shallnotprecludeanymeasures
whichMemberStates,whilesafeguardingtheinterestsArticle30
1.InthefirstsubparagraphofArticle15(1)ofDirective
90/619/EECthewords'inoneofthecasesreferredtoin
TitleIII'shallbedeleted.
2.Article15(2)ofDirective90/619/EECshallbe
replacedbythefollowing:
'2.TheMemberStatesneednotapplyparagraph1to
contractsofsixmonths'durationorless,norwhere,
becauseofthestatusofthepolicyholderorthe
circumstances inwhichthecontractisconcluded,the
policyholderdoesnotneedthisspecialprotection.
MemberStatesshallspecifyintheirruleswhere
paragraph1isnotapplied.'

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/27
Article31
1.Beforetheassurancecontractisconcluded,atleastthe
informationlistedinpointAofAnnexIIshallbe
communicated tothepolicyholder .
2.Thepolicyholdershallbekeptinformedthroughout
thetermofthecontractofanychangeconcerningthe
informationlistedinpointBofAnnexII.
3.TheMemberStateofthecommitmentmayrequire
assuranceundertakingstofurnishinformationinaddition
tothatlistedinAnnexIIonlyifitisnecessaryforaproper
understanding bythepolicyholderoftheessentialelements
ofthecommitment .
4.ThedetailedrulesforimplementingthisArticleand
AnnexIIshallbelaiddownbytheMemberStateofthe
commitment .
TITLEIV
Provisionsrelatingtorightofestablishmentandfreedomto
provideservicesrepresentitinrelationswiththeauthoritiesand
courtsoftheMemberStateofthebranch.With
regardtoLloyd's,intheeventofanylitigationin
theMemberStateofthebrancharisingoutof
underwrittencommitments ,theassuredpersons
mustnotbetreatedlessfavourablythanifthe
litigationhadbeenbroughtagainstbusinessesofa
conventional type.Theauthorizedagentmust,
therefore,possesssufficientpowersforproceedings
tobetakenagainsthimandmustinthatcapacitybe
abletobindtheLloyd'sunderwritersconcerned .
3.Unlessthecompetentauthoritiesofthehome
MemberStatehavereasontodoubttheadequacyofthe
administrative structureorthefinancialsituationofthe
assuranceundertakingorthegoodreputeand
professionalqualificationorexperienceofthedirectors
ormanagersortheauthorizedagent,takinginto
accountthebusinessplanned,theyshallwithinthree
monthsofreceivingalltheinformationreferredtoin
paragraph2communicatethatinformationtothe
competentauthoritiesoftheMemberStateofthe
branchandshallinformtheundertakingconcerned
accordingly .
ThecompetentauthoritiesofthehomeMemberState
shallalsoattestthattheassuranceundertakinghasthe
minimumsolvencymargincalculatedinaccordance
withArticles19and20.
WherethecompetentauthoritiesofthehomeMember
Staterefusetocommunicate theinformationreferredto
inparagraph2tothecompetentauthoritiesofthe
MemberStateofthebranchtheyshallgivethereasons
fortheirrefusaltotheundertakingconcernedwithin
threemonthsofreceivingalltheinformationin
question.Thatrefusalorfailuretoactshallbesubject
toarighttoapplytothecourtsinthehomeMember
State.
4.Beforethebranchofanassuranceundertaking
startsbusiness,thecompetentauthoritiesofthe
MemberStateofthebranchshall,withintwomonths
ofreceivingtheinformationreferredtoinparagraph3,
informthecompetentauthorityofthehomeMember
State,ifappropriate,oftheconditionsunderwhich,in
theinterestofthegeneralgood,thatbusinessmustbe
carriedonintheMemberStateofthebranch.
5.Onreceivingacommunication fromthecompetent
authoritiesoftheMemberStateofthebranchor,ifno
communication isreceivedfromthem,onexpiryofthe
periodprovidedforinparagraph4,thebranchmaybe
establishedandstartbusiness.
6.Intheeventofachangeinanyoftheparticulars
communicated underparagraph2(b),(c)or(d),an
assuranceundertakingshallgivewrittennoticeofthe
changetothecompetentauthoritiesofthehome
MemberStateandoftheMemberStateofthebranchatArticle32
Article10ofDirective79/267/EECshallbereplacedby
thefollowing :
'Article10
1.Anassuranceundertakingthatproposesto
establishabranchwithintheterritoryofanother
MemberStateshallnotifythecompetentauthoritiesof
itshomeMemberState.
2.TheMemberStatesshallrequireeveryassurance
undertakingthatproposestoestablishabranchwithin
theterritoryofanotherMemberStatetoprovidethe
followinginformationwheneffectingthenotification
providedforinparagraph 1:
(a)theMemberStatewithintheterritoryofwhichit
proposestoestablishabranch;
(b)aschemeofoperationssettingoutinteraliathe
typesofbusinessenvisagedandthestructural
organizationofthebranch;
(c)theaddressintheMemberStateofthebranchfrom
whichdocumentsmaybeobtainedandtowhich
theymaybedelivered,beingunderstoodthatthat
addressshallbetheonetowhichall
communications totheauthorizedagentaresent;
(d)thenameofthebranch'sauthorizedagent,who
mustpossesssufficientpowerstobindthe
undertakinginrelationtothirdpartiesandto

NoC196/28 OfficialJournaloftheEuropeanCommunities3.8.92
leastonemonthbeforemakingthechangesothatthe
competentauthoritiesofthehomeMemberStateand
thecompetentauthoritiesoftheMemberStateofthe
branchmayfulfiltheirrespectiverolesunder
paragraphs3and4.'
Article33
Article11ofDirective79/267/EECshallbedeleted.Article36
Article17ofDirective90/619/EECshallbereplacedby
thefollowing:
'Article17
Anychangewhichanundertakingintendstomaketo
theinformationreferredtoinArticle11shallbesubject
totheprocedureprovidedforinArticles11and14.'
Article37
Articles10,12,13,16,22and24ofDirective
90/619/EECshallbedeleted.Article34
Article11ofDirective90/619/EECshallbereplacedby
thefollowing :
'Article11
Anyundertakingthatintendstocarryonbusinessfor
thefirsttimeinoneormoreMemberStatesunderthe
freedomtoprovideservicesshallfirstinformthe
competentauthoritiesofthehomeMemberState,
indicatingthenatureofthecommitmentsitproposesto
cover.'Article38
ThecompetentauthoritiesoftheMemberStateofthe
branchortheMemberStateoftheprovisionofservices
mayrequirethattheinformationwhichtheyareauthorized
underthisDirectivetorequestwithregardtothebusiness
ofassuranceundertakingsoperatingintheterritoryofthat
Stateshallbesuppliedtothemintheofficiallanguageor
languagesofthatState.
Article39
1.Article19ofDirective90/619/EECshallbedeleted.
2.TheMemberStateofthebranchorofprovisionof
servicesshallnotlaydownprovisionsrequiringtheprior
approvalorsystematicnotificationofgeneralandspecial
policyconditions,scalesofpremiums,technicalbasesused
inparticularforcalculatingscalesofpremiumsand
technicalprovisions,formsandotherprinteddocuments
whichanundertakingintendstouseinitsdealingswith
policyholders .Forthepurposeofverifyingcompliance
withnationalprovisionsconcerningassurancecontracts,it
mayrequireanundertakingthatproposestocarryon
assurancebusinesswithinitsterritory,undertherightof
establishmentorthefreedomtoprovideservices,toeffect
onlynon-systematic notificationofthosepolicyconditions
andotherprinteddocumentswithoutthatrequirement
constitutingapriorconditionforanundertakingtocarry
onitsbusiness.Article35
Article14ofDirective90/619/EECshallbereplacedby
thefollowing :
'Article14
1.Withinonemonthofthenotificationprovidedfor
inArticle11,thecompetentauthoritiesofthehome
MemberStateshallcommunicate totheMemberState
orMemberStateswithintheterritoryofwhichthe
undertakingintendstocarryonbusinessbywayofthe
freedomtoprovideservices:
(a)acertificateattestingthattheundertakinghasthe
minimumsolvencymargincalculatedinaccordance
withArticles19and20ofDirective
79/267/EEC;
(b)theclasseswhichtheundertakinghasbeen
authorizedtooffer;
(c)thenatureofthecommitments whichthe
undertakingproposestocoverintheMemberState
oftheprovisionofservices.
Atthesametime,theyshallinformtheundertaking
concernedaccordingly .
2.Wherethecompetentauthoritiesofthehome
MemberStatedonotcommunicate theinformation
referredtoinparagraph1withintheperiodlaiddown,
theyshallgivethereasonsfortheirrefusaltothe
undertakingwithinthatsameperiod.Therefusalshall
besubjecttoarighttoapplytothecourtsinthehome
MemberState.
3.Theundertakingmaystartbusinessonthecertified
dateonwhichitisinformedofthecommunication
providedforinthefirstsubparagraph ofparagraph
1.'Article40
1.Article20ofDirective90/619/EECshallbedeleted.
2.Anyundertakingcarryingonbusinessundertheright
ofestablishmentorthefreedomtoprovideservicesshall
submittothecompetentauthoritiesoftheMemberStateof
thebranchand/oroftheMemberStateoftheprovisionof

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/29
servicesalldocumentsrequestedofitforthepurposesof
thisArticleinsofarasundertakingstheheadofficeof
whichisinthoseMemberStatesarealsoobligedtodo
so.10.Everytwoyears,theCommissionshallsubmittothe
InsuranceCommitteeareportsummarizingthenumber
andtypeofcasesinwhich,ineachMemberState,
authorization hasbeenrefusedunderArticle10of
Directive79/267/EECorArticle14ofDirective
90/619/EECasamendedbythisDirectiveormeasures
havebeentakenunderparagraph5.MemberStatesshall
cooperatewiththeCommissionbyprovidingitwiththe
informationrequiredforthatreport.3.IfthecompetentauthoritiesofaMemberState
establishthatanundertakingwithabranchorcarryingon
businessunderthefreedomtoprovideservicesinits
territoryisnotcomplyingwiththelegalprovisions
applicabletoitinthatState,theyshallrequirethe
undertakingconcernedtoremedythatirregularsituation.
4.Iftheundertakinginquestionfailstotakethenecessary
action,thecompetentauthoritiesoftheMemberState
concernedshallinformthecompetentauthoritiesofthe
homeMemberStateaccordingly .Thelatterauthorities
shall,attheearliestopportunity ,takeallappropriate
measurestoensurethattheundertakingconcerned
remediesthatirregularsituation.Thenatureofthose
measuresshallbecommunicated tothecompetent
authoritiesoftheMemberStateconcerned .Article41
NothinginthisDirectiveshallpreventassurance
undertakingswithheadofficesinotherMemberStates
fromadvertisingtheirservicesthroughallavailablemeans
ofcommunication intheMemberStateofthebranchor
MemberStateoftheprovisionofservices,subjecttoany
rulesgoverningtheformandcontentofsuchadvertising
adoptedintheinterestofthegeneralgood.
Article42
1.Article21ofDirective90/619/EECshallbedeleted.
2.Shouldanassuranceundertakingbewoundup,
commitmentsarisingoutofcontractsunderwrittenthrough
abranchorunderthefreedomtoprovideservicesshallbe
metinthesamewayasthosearisingoutofthat
undertaking'sotherassurancecontracts,without
distinctionastonationalityasfarasthelivesassuredand
thebeneficiaries areconcerned .5.If,despitethemeasurestakenbythehomeMember
Stateorbecausethosemeasuresproveinadequateorare
lackinginthatState,theundertakingpersistsinviolating
thelegalprovisionsinforceinthememberStateconcerned,
thelattermay,afterinformingthecompetentauthoritiesof
thehomeMemberState,takeappropriatemeasuresto
preventorpenalizefurtherirregularities ,including,inso
farasisstrictlynecessary,preventingthatundertaking
fromcontinuingtoconcludenewassurancecontracts
withinitsterritory.MemberStatesshallensurethatintheir
territoriesitispossibletoservethelegaldocuments
necessaryforsuchmeasuresonassuranceundertakings .
6.Paragraphs3,4and5shallnotaffecttheemergency
poweroftheMemberStatesconcernedtotakeappropriate
measurestopreventorpenalizeirregularitiescommitted
withintheirterritories.Thisshallincludethepossibilityof
preventingassuranceundertakingsfromcontinuingto
concludenewassurancecontractswithintheirterritories .
7.Paragraphs3,4and5shallnotaffectthepowerofthe
MemberStatestopenalizeinfringements withintheir
territories .
8.Ifanundertaking whichhascommittedan
infringementhasanestablishmentorpossessespropertyin
theMemberStateconcerned,thecompetentauthoritiesof
thelattermay,inaccordancewithnationallaw,applythe
administrativepenaltiesprescribedforthatinfringementby
wayofenforcement againstthatestablishment or
property .
9.Anymeasureadoptedunderparagraphs4to8
involvingpenaltiesorrestrictionsontheconductof
assurancebusinessmustbeproperlyreasonedand
communicated totheundertakingconcerned.Article43
1.Article23ofDirective90/619/EECshallbedeleted.
2.Everyassuranceundertaking shallinformthe
competentauthorityofitshomeMemberState,separately
inrespectoftransactionscarriedoutundertherightof
establishment andthosecarriedoutunderthefreedomto
provideservices,oftheamountofthepremiums,without
deductionofreassurance,byMemberStateandbyeachof
classesItoIX,asdefinedintheAnnextoDirective
79/267/EEC.
ThecompetentauthorityofthehomeMemberStateshall,
withinareasonabletimeandonanaggregatebasisforward
thisinformationtothecompetentauthoritiesofeachofthe
MemberStatesconcernedwhichsorequest.
Article44
1.Article25ofDirective90/619/EECshallbedeleted.
2.Withoutprejudicetoanysubsequentharmonization ,
everyassurancecontractshallbesubjectexclusivelytothe
indirecttaxesandparafiscalchargesonassurance

NoC196/30 OfficialJournaloftheEuropeanCommunities3.8.92
thoseassetsshallbeeffectedunderthesupervisionof
thatMemberStateinaccordancewithitsrulesand
practicesadoptedinaccordancewiththisDirective.
TITLEVIpremiumsintheMemberStateofthecommitmentwithin
themeaningofArticle2(e)ofDirective90/619/EECand
also,withregardtoSpain,tothesurchargeslegally
establishedinfavouroftheSpanish'Consorciode
Compensation deSeguros'fortheperformanceofits
functionsrelatingtothecompensationoflossesarising
fromextraordinary eventsoccurringinthatMember
State.
ThelawapplicabletothecontractunderArticle4of
Directive90/619/EECshallnotaffectthefiscal
arrangementsapplicable .
Pendingfutureharmonization ,eachMemberStateshall
applytothoseundertakingswhichcovercommitments
situatedwithinitsterritoryitsownnationalprovisionsfor
measurestoensurethecollectionofindirecttaxesand
parafiscalchargesdueunderthefirstsubparagraph .Finalprovisions
TITLEV
Transitionalprovisions
Article45
MemberStatesmayallowassuranceundertakingswith
headofficesintheirterritories,andwhosebuildingsand
landcoveringtheirtechnicalprovisionsexceed,atthetime
ofthenotificationofthisDirective,thepercentagelaid
downinArticle22(1)(a),aperiodexpiringnolaterthan
31December1998withinwhichtocomplywiththat
provision.Article47
Thefollowingtechnicaladjustmentstobemadeto
Directives79/267/EECand90/619/EECandtothis
Directiveshallbeadoptedinaccordancewiththe
procedurelaiddowninDirective91/675/EEC:
—extensionofthelegalformsprovidedforinArticle8(1)
(a)ofDirective79/267/EEC,
—amendmentstothelistsetoutintheAnnextoDirective
79/267/EEC,oradaptationoftheterminologyusedin
thatlisttotakeaccountofthedevelopmentof
assurancemarkets,
—clarificationoftheitemsconstitutingthesolvency
marginlistedinArticle18ofDirective79/267/EECto
takeaccountofthecreationofnewfinancial
instruments ,
—alterationoftheminimumguaranteefundprovidedfor
inArticle20(2)ofDirective79/267/EECtotake
accountofeconomicandfinancialdevelopments ,
—amendments ,totakeaccountofthecreationofnew
financialinstruments,tothelistofassetsacceptableas
coverfortechnicalprovisionssetoutinArticle21of
thisDirectiveandtotherulesonthespreadingof
investmentslaiddowninArticle22ofthisDirective,
—changesintherelaxationsinthematchingruleslaid
downinAnnexItothisDirective,totakeaccountof
thedevelopmentofnewcurrency-hedging instruments
orprogressmadeineconomicandmonetaryunion,
—clarification ofthedefinitionsinordertoensure
uniformapplicationofDirectives79/267/EECand
90/619/EECandofthisDirectivethroughoutthe
Community ,
—thetechnicaladjustmentsnecessarytotherulesfor
settingthemaximaapplicabletointerestrates,
pursuanttoArticle17ofDirective79/267/EEC,as
amendedbythisDirective,inparticulartotakeaccount
ofprogressmadeineconomicandmonetaryunion.Article46
1.Article26ofDirective90/619/EECshallbedeleted.
2.SpainandPortugal,until31December1995,and
Greece,until31December1998,mayoperatethe
followingtransitionalarrangementsforcontractsinrespect
ofwhichoneofthoseMemberStatesistheMemberState
ofthecommitment :
(a)bywayofderogationfromArticle8(3)ofDirective
79/267/EECandfromArticles29and39ofthis
Directive,thecompetentauthoritiesofthemember
Statesinquestionmayrequirethecommunication ,
beforeuse,ofgeneralandspecialinsurancepolicy
conditions ;
(b)theamountofthetechnicalprovisionsrelatingtosuch
contractsshallbedeterminedunderthesupervisionof
theMemberStateconcernedinaccordancewithitsown
rulesor,failingthat,inaccordancewiththeprocedures
established inthatStateinaccordancewiththis
Directive.Coverofthosetechnicalprovisionsby
equivalentandmatchingassetsandthelocalizationofArticle48
1.Brancheswhichhavestartedbusiness,inaccordance
withtheprovisionsinforceintheirMemberStateof

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/31
establishment ,beforetheentryintoforceoftheprovisions
adoptedinimplementation ofthisDirectiveshallbe
presumedtohavebeensubjecttotheprocedurelaiddown
inArticle10(1)to(5)ofDirective79/267/EEC.They
shallbegoverned,fromthedateofthatentryintoforce,by
Articles17,23,24and26ofDirective79/267/EECand
byArticle40ofthisDirective .
2.Articles11and14ofDirective90/619/EEC,as
amendedbythisDirective,shallnotaffectrightsacquired
byassuranceundertakingscarryingonbusinessunderthe
freedomtoprovideservicesbeforetheentryintoforceof
theprovisionsadoptedinimplementation ofthis
Directive .agencyorbranchissituatedshallauthorizethetransfer
afterobtainingtheagreementofthecompetent
authoritiesoftheMemberStateofthecommitment ,
wheredifferentfromtheMemberStateinwhichthe
transferringagencyorbranchissituated.
5.ThecompetentauthoritiesoftheMemberStates
consultedshallgivetheiropinionorconsenttothe
competentauthoritiesofthehomeMemberStatesof
thetransferringassuranceundertakingwithinthree
monthsofreceivingarequest;theabsenceofany
responsefromtheauthoritiesconsultedwithinthat
periodshallbeconsideredequivalenttoafavourable
opinionortacitconsent.
6.Atransferauthorizedinaccordancewiththis
Articleshallbepublishedaslaiddownbynationallaw
intheMemberStateofthecommitment .Suchtransfers
shallautomatically bevalidagainstpolicyholders ,
assuredpersonsandanyotherpersonshavingrightsor
obligationsarisingoutofthecontractstransferred .
ThisprovisionshallnotaffecttheMemberStates'right
togivepolicyholderstheoptionofcancellingcontracts
withinafixedperiodafteratransfer.'
Article50
MemberStatesshallensurethatdecisionstakeninrespect
ofanassuranceundertakingunderlaws,regulationsand
administrative provisionsadoptedinaccordancewiththis
Directivemaybesubjecttotherighttoapplytothe
courts.Article49
ThefollowingArticle31ashallbeinsertedinDirective
79/267/EEC:
Article31a
1.Undertheconditionslaiddownbynationallaw,
eachMemberStateshallauthorizeagenciesand
branchessetupwithinitsterritoryandcoveredbythis
Titletotransferallorpartoftheirportfoliosof
contractstoanacceptingofficeestablishedinthesame
MemberStateifthecompetentauthoritiesofthat
MemberStateor,ifappropriate ,thoseoftheMember
StatereferredtoinArticle30certifythataftertaking
thetransferintoaccounttheacceptingofficepossesses
thenecessarysolvencymargin.
2.Undertheconditionslaiddownbynationallaw,
eachMemberStateshallauthorizeagenciesand
branchessetupwithinitsterritoryandcoveredbythis
Titletotransferallorpartoftheirportfoliosof
contractstoanassuranceundertakingwithahead
officeinanotherMemberStateifthecompetent
authoritiesofthatMemberStatecertifythatafter
takingthetransferintoaccounttheacceptingoffice
possessesthenecessarysolvencymargin.
3.Ifundertheconditionslaiddownbynationallawa
MemberStateauthorizesagenciesandbranchessetup
withinitsterritoryandcoveredbythisTitletotransfer
allorpartoftheirportfoliosofcontractstoanagency
orbranchcoveredbythisTitleandsetupwithinthe
territoryofanotherMemberStateitshallensurethat
thecompetentauthoritiesoftheMemberStateofthe
acceptingofficeor,ifappropriate ,oftheMemberState
referredtoinArticle30certifythataftertakingthe
transferintoaccounttheacceptingofficepossessesthe
necessarysolvencymargin,thatthelawoftheMember
Stateoftheacceptingofficepermitssuchatransferand
thatthatStatehasagreedtothetransfer.
4.Inthecircumstancesreferredtoinparagraphs 1,2
and3theMemberStateinwhichthetransferringArticle51
1.MemberStatesshalladoptthelaws,regulationsand
administrative provisionsnecessaryfortheircompliance
withthisDirectivenolaterthan31December1993and
bringthemintoforcenolaterthan1July1994.Theyshall
forthwithinformtheCommissionthereof.
Whentheyadoptsuchmeasures,theMemberStatesshall
includereferencestothisDirectiveorshallmakesuch
referenceswhentheyeffectofficialpublication .The
mannerinwhichsuchreferencesaretobemadeshallbe
laiddownbytheMemberStates.
2.TheMemberStatesshallcommunicate tothe
Commissionthetextsofthemainprovisionsofnational
lawwhichtheyadoptinthefieldcoveredbythis
Directive.
Article52
ThisDirectiveisaddressedtotheMemberStates.

NoC196/32 OfficialJournaloftheEuropeanCommunities 3.8.92
ANNEXI
MATCHING RULES
Thecurrencyinwhichtheassurer'scommitmentsarepayableshallbedeterminedinaccordancewiththe
followingrules:
1.wherethecoverprovidedbyacontractisexpressedintermsofaparticularcurrency,theassurer's
commitmentsareconsideredtobepayableinthatcurrency;
2.MemberStatesmayauthorizeundertakingsnottocovertheirtechnicalprovisions,includingtheir
mathematicalprovisions,bymatchingassetsifapplicationoftheaboveprocedureswouldresultinthe
undertakingbeingobliged,inordertocomplywiththematchingprinciple,toholdassetsinacurrency
amountingtonotmorethan7%oftheassetsexistinginothercurrencies;
3.MemberStatemaychoosenottorequireundertakingstoapplythematchingprinciplewherecommitments
arepayableinacurrencyotherthanthecurrencyofoneoftheCommunityMemberStates,ifinvestmentsin
thatcurrencyareregulated,ifthecurrencyissubjecttotransferrestrictionsorifforsimilarreasons,itisnot
suitableforcoveringtechnicalprovisions;
4.undertakingsareauthorizednottoholdmatchingassetstocoveranamountnotexceeding20%oftheir
commitments inaparticularcurrency,
However,totalassetsinallcurrenciescombinedmustbeatleastequaltototalcommitments inall
currenciescombined;
5.eachMemberStatemayprovidethat,whenever,undertheproceedingproceduresacommitmenthastobe
coveredbyassetsexpressedinthecurrencyofaMemberState,thisrequirementshallalsobeconsideredto
besatisfiedwhentheassetsareexpressedinecus.

3.8.92 OfficialJournaloftheEuropeanCommunities NoC196/33
ANNEXII
INFORMATION FORPOLICYHOLDERS
Thefollowinginformation ,whichistobecommunicated tothepolicyholderbeforethecontractisconcluded
(A)orduringthetermofthecontract(B),mustbeprovidedinaclearandaccuratemanner,inwriting,inan
officiallanguageoftheMemberStateofthecommitment .
However,suchinformationmaybeinanotherlanguageifthepolicyholdersorequestsandthelawofthe
MemberStatesopermitsorthepolicyholderisfreetochoosethelawapplicable.
A.Beforeconcludingthecontract
Informationaboutthe
assuranceundertakingInformationaboutthecommitment
a.1.Thenameoftheundertakinganditslegala.4.Definitionofeachbenefitandeachoption
form
a.5.Termofthecontract
a.2.ThenameoftheMemberStateinwhichthe
headofficeand,whereappropriate,thea.6.Meansofterminatingthecontract
agencyorbranchconcludingthecontractis
situateda.7.Meansofpaymentofpremiumsand
durationofpayments
a.3.Theaddressoftheheadofficeand,where
appropriate ,oftheagencyorbranch a.8.Meansofcalculationanddistributionof
concludingthecontract bonuses
a.9.Indicationofsurrenderandpaid-upvalues
andtheextenttowhichtheyare
guaranteed
a.10.Informationonthepremiumsforeach
benefit,bothmainbenefitsand
supplementary benefits,whereappropriate
a.11.Forunit-linkedpolicies,definitionofthe
unitstowhichthebenefitsarelinked
a.12.Indicationofthenatureoftheunderlying
assetsforunit-linkedpolicies
a.13.Arrangements forapplicationofthe
cooling-offperiod
a.14.Generalinformation onthetax
arrangements applicabletothetypeof
policy
a.15.Thearrangements forhandlingcomplaints
concerningcontractsbypolicyholders ,lives
assuredorbeneficiaries undercontracts
including,whereappropriate,theexistence
ofacomplaintsbodywithoutprejudiceto
therighttotakelegalproceedings
a.16.Lawapplicabletothecontractwherethe
partiesdonothaveafreechoiceor,where
thepartiesarefreetochoosethelaw
applicable,thelawtheassurerproposesto
choose

NoC196/34 OfficialJournaloftheEuropeanCommunities 3.8.92
B.Duringthetermofthecontract
Inadditiontothepolicyconditions,bothgeneralandspecial,thepolicyholdermustreceivethefollowing
informationthroughoutthetermofthecontract:
Informationaboutthe
assuranceundertakingInformationaboutthecommitment
b.1.Anychangeinthenameoftheundertaking ,b.2.Alltheinformationlistedinpointsa.4to
itslegalformortheaddressofitshead a.12ofAintheeventofachangeinthe
officeand,whereappropriate,oftheagency policyconditionsoramendementofthelaw
orbranchwhichconcludedthecontraa applicabletothecontract
b.3.Everyyear,informationonthestateof
bonuses.