ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(74)641
Vol.1974/0102

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenneetdelaCommunautéeuropéennedel'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiésconformément àl'article5dudit
règlement.
InaccordancewithCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
CommunityandtheEuropeanAtomicEnergyCommunity(OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
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filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung(EG,Euratom)Nr.1700/2003vom22.September2003
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Γ:ηΤιΡΤΐι"ΠΓπητπΑι-7αηιη,^τ^ΤΗ7 ^kWf'-LJIliJll 'M'i.jLi;.iLj X.i'-j/oi.JL-3 J-^-"L•+.).*»';m*j–
COM(74)641Final
Brussels,8Maj'1974
PROPOSALFORA
CouncilDirectiveontheliberalization ofco-insuranceoperations
andtheco-ordination oflatTs,regulations andadministrative
provisionsrelatingtoco-insurance
(submittedtotheCouncilbytheCommission)
C0îT(7/i)6/1Final

EXPLANATORY MSMORAEDUM
ReasonsforandaimsoftheDirective
1.Co-insuranceisanoperationwhich,enablesseveralinsurersactingin
agreement "butwithout .jointandseveralliabilitytoinsurearisk
ontheconditions andinaccordancewiththetariffslaiddownby
oneofthem,whoisknownastheleadinginsurer.
AtpresentthelawsofcertainMemberStatesforbidinsurersestablished
abroadtotakepartinsuchoperations.OtherMemberStates,onthe
otherhand,havenorestrictions .
TheaimofthisDirectiveistoliberalizetheprovisionofsuch
servicesatCommunitylevelandatthesametimetocarryoutthe
minimumofcoordination thatisnecessaryifsuchliberalization is
tobeachieved,
2.Promtheeconomicpointofview,theneedtocarryoutthisliberalization
arisesfromtheconstantincreaseinthenumberofunitsofproduction
andthegrowthinthevolumeandvalueoftheunitsproduced.This
tendstoaddtotheriskswhich,increasingly ,cannolongerbecovered
simplybyresortingtothedomesticinsurancemarket.
Inthesecircumstances ,andwithoutcallinginquestiontheimportance
oftheroleplayedbyre-insurance ,theliberalization ofco-insurance
atCommunitylevelislikelytofacilitatethecoveringofcertainrisks.
3.Although,intermsinpracticalimportance,theliberalization ofco­
insurancecaninnowaybecomparedwiththeliberalization ofinsurance
services,whichwillbethesubjectofspecialdirectives,forcertain
MemberStatesthisinitialliberalization ,howevermodestitmayappear,
willprovideavaluableforetasteofmorecompletefreedom.
/•

ThelegalbasisofthisdraftisprovidedbyArticle57(2)which
coversthecoordination aspectandtowhichArticle66refers,by-
Article63(2)whichconcernstheliberalization ofservicesandby
thesecondparagraphofArticle59whichconcernsagenciesandbranches
established witfcintheCommunityandbelongingtoundertakings whose
headofficesareoutsidetheCommunity, '

II.TitlesandArticlesoftheDirective
TITLEI:GEIIERALPROVISIONS
Art.1sObjectoftheDirective
Art.-2:Definitions
Art.3sLiberalization ofCommunityco-insurance
Art.4JThirdcountryundertakings
TITLEIIsCONDITIONS ANDPROCEDURES FORCOMMUNITY CO-INSURANCE
Art.5?Countryofestablishment ofleadinginsurer
Art.6:Minimumunderwriting
Art.7'Lawapplicabletocontract
Art.8:Determination andrepresentation ofreserves
Art.95Statistical data
Art.10:Collaboration betweensupervisoryauthorities
Art.11:Winding-up
TITLSIII:FINALPROVISIONS
Art.12:Collaboration betweenCommission andMemberStates
Art.13:Revisionclause
Art.14sTime-limitsforapplication
Art.15sCommunication ofimplementing provisions
Art.16:AddresseesoftheDirective

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III.NotosontheTitlesandprincipalArticles
TitleI
Generalprovisions (Articles1to4)
Onlythefollowingpointscallforspecialcomments:
1.ThedefinitioninArticle2wasdrawnupsoastotakeaccountof
thepracticalaspectsofco-insurance .
Itwasfoundthatsometimesoneobjectoreventmightbecovered "by
severalco-insurance contracts,theriskcoveredbyeachofthese
contractsbeingonepartoraspectoftheobjectoreventtobe
insured.Insuchacasetheconditionsandthetariffsmightvary
fromonecontracttoanother.However,thereisonlyonekindof
conditionandonetariffonlypercontract.Accordinglytherule
wasadoptedwherebytheremustbeasinglecontract.
2.Motorvehicleliabilitywasexpresslyexcludedfromthedraft's
fieldofapplicationbecauseinmostMemberStatestheobligation
toinsureagainstthisriskhasbeenaccompanied bythecreationof
specialfundsfinancedbyapercentageofpremiumscollected.
Inthecontextofthefreedomtoprovideco-insurance services,the
levyingofthesepercentages fromco-insurersestablishedina
MemberStateotherthanthatoftheleadinginsurerwouldraise
seriousdifficulties,over,itwasfoundthatinpracticemotor
vehicleliabilityrarftiygaverisetotheconclusionofco-insurance
contracts.
CertainotherriskslistedintheAnnextothefirstCouncilDirective
of24July1973alsorarelygiverisetotheconclusionofcontracts
ofthisnature.
However,itwasnotconsidereddesirabletoexcludethemexpressly
fromtheapplicationoftheDirectivesincetheintroduction oftoo
manyexceptionsshouldbeavoidedasfaras;.possibleasitmight
prejudicethefuturedevelopmentofCommunityco-insurance .
./

-5-
3.ThequestionofthefieldofapplicationoftheDirectivearisesalso
inconnectionwithparticipation inCocununityco-insurance operations
"byheadofficesand"bytheiragenciesand"branches.
Thesolutionadoptedisliteralinthesensethatallvindertakings
establishedintheCommunitymayengageinCommunityco-insurance
operations(Article3).
Forlegalandpracticalreasons,neithertheexclusionofheadoffices
where-anagencyorbranchisestablishedinthecountryoftheleading
insurernortheexclusionofagenciesandbranchesinfavouroftheir
headofficeestablishedinaMemberStateotherthanthatoftheleading
insurercanbecontemplated .
Legally,itisinadmissiblethatthefactthatanundertakingestablishes
itselfinanotherMemberStateshoulddepriveitoftherighttobenefit
fromtheliberalization ofservices.
Inpractice,theFirstCoordination Directiveprovidesfortheharmoni­
zationoflegislation asregardstheconditionsforthetaking-upofthe
businessofinsurance,whichmeansthatatCommunitylevelundertakings
aresubjecttoanidenticalsystemofsupervision.
Lastly,certainstatistics showthatsuchrestrictions wouldhavethe
effectofdeprivingtheenvisagedliberalization ofmuchofitseffectiveness ,
sincemostinsurancecompanieshaveoneormoreagenciesandbranchesin
thevariousMemberStates.Therefore,inmanycasesheadofficeswouldbe
practicallyexcludedfromCommunityco-insurance ,whichiscompletely
unjustified.
Moreover,theobligationtouseonlytheservicesoftheheadoffice
situatedinaMemberStateotherthanthatoftheleadinginsurertothe
exclusionofitsagenciesandbranchesestablishedinotherMemberStates
appearsequallyunjustified byreasonoftheorganization oftheinsurance
marketincertainMemberStateswhichcanresultinagenciesandbranches
acquiringinthecourseoftimevastexperienceinthecoveringofcertain
risks.

4*Asregards theproblem 01thirdcount ries ,theexistence ofTitle III
oftheIlrst Coordination Directive ,which contains certain provisions
applicable toagencies orbranches established within theCommunity and
belonging toundertakings whose head offices areoutside theCommunity ,
justifies recourse totheprovisions ofthesecond paragraph of
Article 59inorder toauthorize these agencies andbranches toengage
inCommunity co-insurance onthe same terms asthose whose head offices
areestablished within theCommunity (Article 4)«
Title IIIofthat Directive contains proper safeguards inrespect ofthe
financial situation ofthese undertakings ,which aresubject toregular
supervision bythenational authorities .
Ontheother hand ,Member States areforthemoment free tocontinue to
apply their ownnational legislation totheir direct co-insurance business
with undertakings established inthird countries .
Title II
Conditions andprocedures forCommunity co-insurance (Articles 5"to11)
TheMember State inwhich theleading insurer must beestablished isnot
laid down categorically intheDirective ;this reflects thedesire to
take theexisting situation into account .
Forthose Member States which apply precise andsometimes differing
criteria inthis connection ,provision hassimply been made forarule
designed toprevent anyconflict oflaws .Ifsuch aconflict arises ,
only theplace where therisk issituated must betaken into consideration
(Article 5).
2.Totake account ofthewishes ofcertain Member States ,provision has
been made intheDirective forreserving agiven percentage oftherisk
forco-insurers established inthecountry oftheleading insurer .
However ,amaximum percentage hasbeen laid down inorder toprevent
this device restricting excessively thescope oftheDirective .

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Thepercentageadopted,25representsareasonablemarginwhich
can"beabolishedsubsequentlyinthelightofexperience(Article6).
3.Thelawapplicabletotheinsurancecontractisthatofthecountry
wheretheleadinginsurerhashisestablishment (Article7)•
Purposely,mentionismademerelyofthelawofthecountryofthe
leadinginsurerandnotofitsnationallaw.
Thismeansthat,dependingonthelegislationapplicableinthe
variousMemberStates,thislawmayeitherenforcetheapplication
ofnationallawor,onthecontrary,leavethepartiescomplete
freedomofchoice.Thisisatemporarysolutionsincefreedomof
choicewillprobablybecometherule,aspartoftheharmonization
whichisinprogresswithaviewtotheliberalization ofservices.
4.Thetechnicalreservesarecalculatedinaccordancewiththerules
applicableintheMemberStatesoftheco-insurers (Article8).
Theonlyrestriction onthisprincipleconcernsreservesforpending
claims,whichmustbeatleastequaltothosedeterminedbytheleading
insureraccordingtotherulesofthecountrywhereheisestablished.
Thisprovisionisbasedontheassumptionthatinallprobabilitythe
leadinginsurerisinthebestpositiontoevaluatetheamountof
suchreserves.
5.Collaboration betweenthesupervisoryauthoritiesisanimportant
factorintheimplementation oftheDirective.Suchcollaboration
callsforsomelaioirle&geofdevelopments inthefieldofCommunity
co-insurance .
•A

Thisisx«iyprovisionhasbeenmadeforthecompetentauthorities
toensurethattheundertakings concernedhavethenecessary
statisticaldata(Articles9and10).
6.Asregardswinding-up,ittfasconsidereddesirable,evenbeforethe
directiveonthesubjectwhichisnowbeingdrawnupwasadopted,to
asserttheprincipleofequalityoftreatment,irrespective of
nationality ,forcreditorsderivingtheirrightsfromco-insurance
businessandfromotherdirectinsurancebusiness,(Articlell)«
TitleIII
Finalprovisions (arts.12to16)
Theseprovisionsarecontainedmthedirectivesalreadyadoptedinthe
insurancefieldandconsequently ,donotcallforanyspecialcomment.

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PROPOSALFORA
CouncilDirectiveontheliberalization ofco-insurance operations
andtheco-ordination ofla.?s,ro^ulationsandadministrative
provisionsrelatingtoc>-instirJico
THECOUNCIL0?THEEUROPEANCOMMUNITIES
HavingregardtotheTreatyestablishingtheEuropeanEconomicCommunity,
andinparticularArticle57(2),thesecondparagraphofArticle59t
Article63(2)andArticle66thereof;
HavingregardtotheproposalfromtheCommission ;
HavingregardtotheOpinionoftheEuropeanParliament ;
HavingregardtotheOpinionoftheEconomicandSocialCommittee ;
Whereasitisnecessarytodevelopco-insurance betweenMemberStates
withaviewtoincreasingthecapacityoftheinsurersoftheCommunity
toacceptrisks,byallowinginsurerstocallnotonlyonco-insurers
establishedintheircountrybutalsoonthoseestablishedinother
MemberStates;
Whereastheremovalofrestrictions inthismatteris,asfarasdirect
insuranceoperationsotherthanlifeassuranceareconcerned,dependent
ontheachievementoffreedomofestablishment fortheseoperations ;
whereasthisliberalization hasbeenachievedbythefirstCouncilDirective
(l)onthecoordinationofprovisionsrelatingtoinsuranceotherthan
lifeassuranoeandbytheDirective(2)abolishingrestrictions onfreedom
ofestablishment ;
Whereastheremovalofrestrictions onthefreedomtotransactCommunity
co-insurance businessmustbeaccompanied byaminimumofcoordination
soastopreventdistortionsincompetition andinequalityoftreatment;,
whereassuchcoordination must >notaffecttheexistingarrangements in
theMemberStates 1whichrecognizethefreedomtoprovideservicesinthe
fieldo:?Communityco-insurance ■
r ____ •
(1)0JNo.L228,16A-agust1973,p.3.
(2)0JNo.L223,16Av.gust1973,p.20.

..-10τ
WhereastherighttotransactCommunityoo-insurance businessshouldbe
opentoallinsuranceundertakings establishedinthevariousMember
States,includingagenciesandbranchesestablishedwithintheCommunity
andbelongingtoundertakings whoseheadofficesareoutsidetheCommunity ,
Whereasitisnecessarytorequiretheleadinginsurertoassumeresponsi­
bilitiesexceedingthoseofanintermediary betweenthepersonseeking
insuranceandtheco-insurerorco-insurers ;
Whereasthelawapplicabletothecontractshouldbedeterminedbythe
lawsofthecountryinwhi'ohtheleadinginsurerisestablished ;
WhereasMemberStatesshouldbepermittedtoreserveaminimumpercentage
ofparticipation intheriskfortheleadinginsurerandco-insurers
establishedintheleadinginsurer'scountry;whereasthispercentage
canbefixedforaninitialperiodat25$5
Whereastheleadinginsurerisbetterplacedthantheotherco-insurers
toevaluateclaimsandtofixtheminimumamountofreservesforpending
claims;
Whereasworkisinprogressconcerningthewindingupofinsuranceunder­
takings;whereasprovisionmustnevertheless bemadenowtoensurethatin
theeventofaninsuranceundertakingbeingwounduppersonsentitled
underCommunityco-insurance contractsenjoyequalityoftreatmentwith
thoseentitledinconnectionwiththeotherinsurancebusinessofthe
undertaking ;
IJhereasspecialcooperation shouldbeprovidedforintheco-insurance
fieldbothbetweenthesupervisoryauthoritiesoftheMemberStatesand
betweentheseauthorities andtheCommission ;
HASADOPTEDTHISDIIffiCTIVSi

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TITLEI:GENERALPROVISIONS
AflTICLS1
ThisDirectivehasasitso"bjectthesettingupofasystemofCommunity
rulesonco-insurance inrespectoftheriskssetoutintheAnnexto
thefirstCouncilDirective(l)of24July1973onthecoordinationof
laws,regulations andadministrative provisionsrelatingtothetaking
upandpursuitofthe"businessofdirectinsuranceotherthanlife
assurance,hereinaftercalled"theFirstCoordination Directive",with
theexceptionoftherisksclassifiedunderNo.10(Motorvehicleliability),
ofpointAofthatAnnex.
ARTICLE2
PtorthepurposeofthisDirectiveco-insurance means:theinsuringby
twoormoreinsuranceundertakings ,hereinafterreferredtoas"co-insurers",
actingattheinstigationofoneofthem,calledtheleadinginsurer,and
inagreementwitheachotherbutwithoutjointandseveralliability,of
asingleriskunderasinglecontractatasinglepremiumandforasingle
period.
Co-insurance shallbecalledCommunityco-insurance whereatleastone
oftheco-insurersisestablished ,withinthemeaningofthefirst
Coordination Directive,inaMemberStateotherthanthatofthe
leadinginsurer.
Theconditionsofinsuranceandthetariffsshallbedeterminedbythe
leadinginsurer.
ΑΗΤΙΟΙΖϋ3
Therightoxundertakings havingtheirheadofficeinaMemberState
andvrhicharesubjecttoandsatisfytherequirements ofthePirst
Coordination DirectivetoparticipateinCommunityco-insurance shall
notbemadesubjecttoanyprovisionsotherthanthoseofthisDirective.
Thisrightshallexistbothforsuchheadofficesandfortheiragencies
andbranches. /
(l)OJNo.L228,16August1973»p."3.

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ARTICLE4
ThisDirectiveshallapplytoagenciesand"branchesestablishedwithinthe
Community "belongingtoundertakings whoseheadofficesareoutsidethe
CommunityandwhicharesubjecttoandcomplywiththerulesofTitleIII
oftheFirstCoordination Directive.

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TITUBI:CONDITICI1TSMSPROCEDURES0?COMUMTYC0-IP5URMGE
ARTIOLE5
Ifthelawinanycountrycontainsprovisionsconcerningtheplaceof
establishment oftheleadinginsurer,andifsvichprovisionsgiverise
toaconflictoflaws,thelawapplicableshallbethatwhichrequires
theleadinginsurertobeestablishedinthecountrywheretherisk
issituated.
ARTICLE6
AnyMemberStatemayrequirethatpartoftherisk,uptoamaximumof
25%beunderwritten bytheleadinginsurerandotherco-insurers
establishedinthecountryoftheleadinginsurer.
ARTICLE7
Thecontractofco-insurance shallbegovernedbythelawofthecountry
wheretheleadinginsurerisestablished.Mattersconcerningintermediaries
andcommissionshallbesubjecttotheprovisionsofthesamelaw.
ARTICLE8
ν
1.Theamountoftechnicalreservesshallbedeterminedbythedifferent
co-insurers accordingtotherulesfixedbytheStatewheretheyare
establishedor,indefaultofsuchrules,accordingtothepractices
currentinthatState.However,thereserveforpendingclaimsshall
beatleastequaltothatdeterminedbytheleadinginsureraccording
totherulesorpracticesoftheStatewheresuchleadinginsureris
established .
2.Thetechnicalreservesestablished bythedifferentco-insurersshall
berepresented bymatchingassetslocalizedintheMemberStateswhere
theyarerespectively established .However,greaterflexibilityinthe
rulesonmatchingassetsandtheirlocalization maybeallowedbythe
MemberStates.

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ARTICLE 9
Every Member State shall ensure that co-insurers established onits
territory have available tothem statistical data showing theextent
ofCommunity co-insurance operations andthecountries concerned .
ARTICLE 10
The supervisory authorities oftheMember States shall cooperate closely
forthepurpose ofimplementing theprovisions ofthis Directive and ,
shall provide each other with alltheinformation necessary tothis end .
ARTICLE 11
Intheevent ofaninsurance undertaking being wound upcommitments to
theinsured ortoother persons entitled ariBifig under Community co­
insurance contracts shall behonoured inthesame way asthose arising
under other insurance contracts andwithout distinction astonationality .
./•

-15- /-■
ι
ι
' TITUSIII:EI1TALPROVISIONS
ARTICLE12
TheCommissionandthecompetentauthoritiesoftheMemberStatesshall
cooperatecloselyforthepurposeofexamininganydifficulties which
ariseinimplementing thisDirective.
ARTICLE13
TheCommissionshallsubmittotheCouncil,withinsixyearsofthedate
ofnotification ofthisDirective,areportonthedevelopmentofthe
Communityco-insurance market.
TheCommissionshallalsosubmittotheCouncilanyproposalforamore
completeliberalization ofCommunityco-insurance ,inparticularbythe
reductionofthepercentagereferredtoinArticle6.
ARTICLE14
MemberStatesshallwithineighteenmonthsfollowingnotification ofthis
Directiveamendtheirnationalprovisionssoastocomplytherewithand
shall'informtheCommissionthereof.
Theprovisionssoamendedshallbeappliedwithin24monthsofthedate
ofnotification .
ARTICLE15
Pollowingnotification oftheDirectiveMemberStatesshallensurethat
thotextsofthomainprovisionsbywayoflaw,regulationsoradrainistrat?.ve
actionswhichtheyadoptinthofieldgovernedbythisDirectiveare
communicated totheCommission .
ARTICLE16
ThisDirectiveisaddressedtotheMemberStates.