5. 3. 90 Official Journal of the European Communities No C 53/1 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Decision on the conclusion of the Agreement between 
the Swiss Confederation and the European Economic Community concerning direct insurance 
other than life assurance 
COM(89) 436 final — SYN 220 
(Submitted by the Commission on 7 September 1989) 
(90/C 53/01) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and in particular 
Articles 57 and 235 thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and Social Committee, 
Whereas it is desirable to conclude the Agreement with Switzerland concerning direct insurance 
other than life assurance, signed at ... on ..., 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Agreement between the Swiss Confederation and the European Economic Community 
concerning direct insurance other than life assurance is hereby approved on behalf of the 
Community. 
The text of the Agreement is annexed to this Decision. 
Article 2 
The President of the Council shall take the measures necessary for the exchange of instruments 
provided for in Article 44 of the Agreement. (l) 
(') The date of entry into force of the Agreement will be published in the Official Journal of the European 
Communities by the General Secretariat of the Council. 
No C 53/2 Official Journal of the European Communities 5. 3. 90 
AGREEMENT 
Between the Swiss Confederation and the European Economic Community 
on direct insurance other than life assurance 
(Text initialled on 26 July 1989) 
PREAMBLE 
THE SWISS CONFEDERATION, of the one part, and 
THE EUROPEAN ECONOMIC COMMUNITY, of the other part, 
CONSIDERING the close relations which exist between Switzerland and the Community; 
DESIRING to avail themselves of the occasion offered by the establishment of a unified Community insurance 
market to consolidate existing economic relations between the two Parties in this field, and to promote, under 
fair conditions of competition, the harmonious development of these relations by ensuring protection for 
insured persons; 
RESOLVED to that end to remove obstacles to the taking-up and pursuit of the business of direct insurance 
other than life assurance on a reciprocal and non-discriminatory basis safeguarded by the necessary legal 
conditions in respect of supervision, and thus to introduce between themselves freedom of establishment in this 
field; 
EMPHASIZING that this in no way affects their power to legislate subject to limits set by public international 
law; 
ENDEAVOURING to do everything in their power to see that their domestic legislation in this field evolves in a 
mutually compatible manner; 
OBSERVING that it is in the interest of their economies to develop and strengthen their relations in this way in a 
field which up to now has not been governed by contractual rules, and to contribute thus to the coordination of 
economic law between the two Parties; 
DECLARE themselves ready to consider in the light of any relevant factor, and particularly of the evolution of 
Community insurance law, the possibility of concluding other agreements in respect of private insurance; 
HAVE AGREED in pursuit of these aims to conclude the present Agreement and to this end have designated as 
their Plenipotentiaries: 
THE SWISS CONFEDERATION 
THE EUROPEAN ECONOMIC COMMUNITY 
WHO, having exchanged their Full Powers, found in good and due form, have agreed as follows: 
SECTION 1 Article 2 
BASIC PROVISIONS 
Scope of Agreement 
Article 1 
The classes of insurance which are subject to this 
Object Agreement are set out in Annex I hereto. 
The object of this Agreement is to lay down, on a reciprocal . 
basis, the conditions which are necessary and sufficient to 
enable agencies and branches of undertakings whose head 
office is situated in the territory of one of the Contracting Exceptions 
Parties and which wish to become established in the 
territory of the other Contracting Party, or are established The kinds of insurance, operations and undertakings which 
there, to take up or pursue the self-employed activity of are not subject to this Agreement are listed in Annex II 
direct insurance other than life assurance. hereto. 
5. 3. 90 Official Journal of the European Communities No C 53/3 
Article 4 
Application of domestic law 
The law in force in each Contracting Party shall apply: 
— to points which are not governed by this Agreement, 
— to questions raised by points governed by this 
Agreement, in so far as such questions are not regulated 
by the Agreement. 
Article 5 
Principle of non-discrimination 
The Contracting Parties undertake to apply the principle of 
non-discrimination when introducing and applying the 
provisions of this Agreement. 
Article 6 
Supervisory authority 
For the purposes of this Agreement, the supervisory 
authority shall, in the case of the Community, be the 
competent authority of the Member State in whose 
territory the head office of the undertaking is situated or in 
whose territory an agency or branch takes up or pursues the 
business of direct insurance. 
SECTION 2 
CONDITIONS GOVERNING ADMISSION 
Article 7 
Compulsory authorization 
1. Each Contracting Party shall make the taking-up of the 
business of direct insurance in its territory by an 
undertaking which establishes its head office there subject 
to authorization by the supervisory authority. 
2. Each Contracting Party shall, furthermore, make the 
opening in its territory of an agency or branch of an 
undertaking whose head office is situated in the territory of 
the other Contracting Party subject to authorization by the 
supervisory authority. 
3. In addition, it shall make the opening in its territory of 
an agency or branch of an undertaking whose head office is 
situated outside the territories to which this Agreement 
applies, as laid down in Article 43, subject to authorization 
by the supervisory authority. 
Article 8 
Scope of authorization 
1. An authorization shall be valid for the covering of risks 
situated in the entire territory for which the supervisory authority granting the authorization is responsible unless, 
and in so far as the legislation applicable permits, the 
applicant seeks permission to carry on his business only in a 
part of that territory. 
2. A risk shall be situated in the territory for which a 
supervisory authority is responsible: 
— in the case of insurance relating either to buildings or to 
buildings and their contents, in so far as the contents are 
covered by the same insurance policy, where the 
property is situated in that territory, 
— in the case of insurance relating to vehicles of any type, 
where the vehicle is registered in that territory, 
— in the case of policies of a duration of four months or 
less covering travel or holiday risks, whatever the class 
concerned, where the policy-holder took out the policy 
in that territory, 
— in all cases not explicitly covered by the foregoing 
indents, where the policy-holder has his habitual 
residence in that territory or, if the policy-holder is a 
legal person, where the latter's establishment, to which 
the contract relates, is situated in that territory. 
3. Authorization shall be granted in respect of a 
particular class of insurance. It shall cover the entire class, 
unless the applicant wishes to cover only part of the risks 
pertaining to such class, as classified under part A of 
Annex I. 
However: 
— it shall be open to the supervisory authority to grant 
authorization for any group of classes classified under 
part B of Annex I, provided that it attaches to such 
authorization the appropriate denomination specified 
therein, 
— authorization granted for one class or group of classes 
shall also be valid for the purpose of covering ancillary 
risks included in another class if the conditions specified 
under part C of Annex I are fulfilled. 
Article 9 
Legal form 
The legal forms which may be assumed by an undertaking 
whose head office is situated in the territory of a 
Contracting Party are listed in Annex III. 
Article 10 
Conditions of authorization 
1. Each Contracting Party shall require that an undertak­
ing whose head office is situated in the territory of the other 
Contracting Party and which seeks an authorization to 
No C 53/4 Official Journal of the European Communities 5. 3. 90 
open in its territory an agency or branch shall satisfy the 
following conditions: 
(a) it shall submit its statutes and a list of its directors and 
managers; 
(b) it shall produce a certificate issued by the supervisory 
authority of the Contracting Party in whose territory its 
head office is situated, attesting: 
— that the applicant undertaking is constituted in one 
of the legal forms listed in Annex III, 
— that the applicant undertaking limits its business 
activities to the business of insurance and to 
operations directly arising therefrom to the exclu­
sion of all other commercial business, 
— the classes of insurance which the undertaking is 
entitled to transact, 
— that it possesses the minimum guarantee fund 
referred to in Article 3 (2) of Protocol 1, or, where 
appropriate, the minimum solvency margin calcu­
lated in accordance with Article 2 (2) of Protocol 1 if 
the minimum solvency margin is higher than the 
minimum guarantee fund, 
— the risks which it actually covers, 
— the existence of the financial resources referred to in 
subparagraph (f) of Article 1 of Protocol 2. 
(c) It shall submit a scheme of operations drawn up in 
accordance with Protocol 2, accompanied by the 
balance sheet and profit and loss account of the 
undertaking for each of the past three financial years. 
However, where an undertaking has existed for fewer 
than three financial years, it shall submit such 
documents only for the financial years that have closed 
if: 
— it is a new undertaking created as a result of a merger 
between existing undertakings, or 
— it is a new undertaking created by one or more 
existing undertakings for the purpose of transacting 
a specific class of insurance previously pursued by 
one of the undertakings in question. 
(d) It shall designate an authorized agent having his 
permanent residence and abode in the territory for 
which the supervisory authority of the Contracting 
Party in question is responsible, and possessing 
sufficient powers to bind the undertaking in relation to 
third parties and to represent it in relations with the 
authorities and courts of that Contracting Party. Where the legal provisions of a Contracting Party 
permit the authorized agent to have legal personality, it 
shall have its head office in the territory of that 
Contracting Party and in turn designate an individual to 
represent it who satisfies the above conditions. 
2. This Agreement shall not prevent the Contracting 
Parties from enforcing provisions requiring for all 
insurance undertakings, at the time of granting of the 
authorization, approval of the general and special policy 
conditions, scales of premiums and any other documents 
necessary in the normal course of events for the exercise of 
supervision. 
However, with regard to the risks referred to in Article 2(1) 
of Protocol 2, the Contracting Parties shall not lay down 
provisions requiring the approval or systematic notifi­
cation of general and special policy conditions, scales of 
premiums, or forms and other printed documents which 
the undertaking intends to use in its dealings with policy­
holders. They may require only non-systematic notification 
of these conditions and other documents, for the purpose of 
verifying compliance with laws, regulations and adminis­
trative provisions in respect of such risks, and this 
requirement may not constitute a prior condition for an 
undertaking to be able to carry on its activities. 
For the purposes of this Agreement, general and special 
policy conditions shall not include specific conditions 
intended to meet, in an individual case, the particular 
circumstances of the risk to be covered. 
This Agreement shall likewise not prevent the Contracting 
Parties from subjecting undertakings requesting author­
ization for class 18 in Part A of Annex I to checks on their 
direct or indirect resources in staff and equipment, 
including the qualification of their medical teams and the 
quality of the equipment, available to the undertakings to 
meet their commitments arising from this class of 
insurance. 
Article 11 
Granting of authorization 
1. Each Contracting Party undertakes to grant author­
ization provided the conditions laid down in Article 10 are 
met and further provided that the other provisions 
governing undertakings with their head offices in its 
territory are observed. 
2. The Contracting Parties shall not make authorization 
subject to the lodging of a deposit or the provision of 
security. 
3. The Contracting Parties undertake furthermore that 
no application for an authorization shall be examined in 
the light of the economic requirements of the market. 
5. 3. 90 Official Journal of the European Communities No C 53/5 
4. The designated authorized agent may be challenged by 
the supervisory authority only on grounds relating to his 
good repute or technical qualifications. 
Article 12 
Extension of the scope of an authorization 
1. Each Contracting Party shall make any extension of 
the business for which an initial authorization was granted 
pursuant to Articles 7 and 8 subject to a new authorization. 
2. Each Contracting Party shall require that, for the 
purpose of extending the business of an agency or branch 
either to other classes or in the circumstances referred to in 
Article 8 (1), the applicant for the authorization shall 
submit a scheme of operations in accordance with Protocol 
2 and produce the certificate referred to in Article 10 (1). 
Article 13 
Authorization procedure 
1. Authorization shall be sought from the supervisory 
authority by the undertaking whose head office is situated 
in the territory of the other Contracting Party. 
2. The scheme of operations drawn up in accordance 
with Protocol 2, together with the observations of the 
supervisory authority responsible for granting author­
ization, shall be forwarded by the latter to the supervisory 
authority of the Contracting Party in whose territory the 
head office is situated. 
The latter shall make known its opinion to the former 
within three months following receipt of the documents. If 
no opinion has been received upon the expiry of that 
period, it shall be deemed to be favourable. 
3. The supervisory authority from whom authorization 
has been sought shall forward to the applicant undertaking 
its decision on the application not later than six months 
following receipt of the application for authorization. 
Article 14 
Refusal of authorization 
1. Any decision to refuse an authorization shall be 
accompanied by the grounds on which it is based and shall 
be notified to the undertaking in question. 
2. Each Contracting Party shall make provision for a 
right of recourse to the courts in the event of any refusal of 
authorization. Provision shall also be made for such right in regard to cases where the supervisory authority has not 
given a decision on an application for authorization upon 
the expiry of a period of six months from the date of its 
receipt. 
SECTION 3 
CONDITIONS GOVERNING THE PURSUIT OF BUSINESS 
Article 15 
Choice of assets 
The Contracting Parties shall not prescribe any rules as to 
the choice of assets in excess of those representing the 
technical reserves referred to in Articles 19 to 23. Subject to 
the provisions of Articles 18 (2), 20, 21, 23 and 29 (2) and 
(3), the Contracting Parties shall not restrict the free 
disposal of movable or immovable property forming part 
of the assets of undertakings. 
Article 16 
Establishment of solvency margin 
1. Each Contracting Party shall require every undertak­
ing whose head office is situated in its territory to establish 
an adequate solvency margin in respect of its entire 
business. 
2. The definition of the solvency margin and the manner 
in which it is to be calculated and represented, and the 
minimum guarantee fund fixed, are set out in Protocol 1. 
Article 17 
Verification of the state of solvency 
1. The supervisory authority of the Contracting Party in 
whose territory the head office of the undertaking is 
situated shall verify the state of solvency of the undertaking 
with respect to its entire business. 
2. The supervisory authority of the other Contracting 
Party shall, where it has granted the said undertaking 
authorization to open an agency or branch, provide the 
abovementioned authority with all the information 
necessary to enable such verification to be carried out. 
3. Each Contracting Party shall require undertakings 
whose head office is situated in its territory to produce an 
annual account, covering all their transactions, of their 
situation and solvency, and, as regards cover for risks listed 
under class 18 in part A of Annex I, of the other resources 
available to them for meeting their liabilities, where its laws 
provide for supervision of such resources. 
No C 53/6 Official Journal of the European Communities 5. 3. 90 
Article 18 
Restoration of financial situation 
1. For the purpose of restoring the financial situation of 
an undertaking whose solvency margin has fallen below the 
minimum required under Article 2 (2) of Protocol 1, the 
supervisory authority of the Contracting Party in whose 
territory the head office is situated shall require a plan for 
the restoration of a sound financial situation to be 
submitted for its approval. 
2. If the solvency margin falls below the guarantee fund 
defined in Article 3 of Protocol 1, the supervisory authority 
of the Contracting Party in whose territory the head office 
of the undertaking is situated shall required the latter to 
submit a short-term financing plan for its approval. 
It may also restrict or prohibit the free disposal of the assets 
of the undertaking. It shall inform the supervisory 
authority of the Contracting Party in whose territory 
authorized agencies or branches of the undertaking are 
situated of any such measures. If they are requested by the 
former authority, the latter authority shall take the same 
measures. 
The supervisory authority may, furthermore, take all 
measures necessary to safeguard the interests of insured 
persons should the situation envisaged in this paragraph 
arise. 
Article 19 
Establishment of technical reserves 
1. Each Contracting Party in whose territory an under­
taking carries on business shall require that undertaking to 
establish sufficient technical reserves. 
2. The amount of such reserves shall be determined in 
accordance with the rules laid down in each Contracting 
Party, or, in the absence of such rules, in accordance with 
the established practices in each Contracting Party. 
3. Each Contracting Party shall furthermore require 
undertakings established in its territory and underwriting 
risks listed under class 14 in part A of Annex I (credit 
insurance) to set up an equalization reserve for the purpose 
of offsetting any technical deficit or above-average claims 
ratio arising in that class for a financial year. 
The methods of calculating the equalization reserve and the 
conditions governing exemption from the obligation to 
make such a reserve are set out in Annex V. 
The equalization reserve must be calculated, under the 
rules laid down by each Contracting Party, in accordance 
with one of the four methods set out in Annex V, which 
shall be regarded as being equivalent. Up to the amount calculated in accordance with those methods, the equaliz­
ation reserve shall be disregarded for purposes of 
calculating the solvency margin. 
Undertakings shall make available to the supervisory 
authority accounts showing both the technical results and 
the technical reserves relating to this business. 
Article 20 
Matching assets and localization of assets constituting 
technical reserves 
1. Technical reserves shall be represented by equivalent 
and matching assets localized in the territory for which the 
supervisory authority of each Contracting Party is 
respectively responsible. Each Contracting Party may, 
however, permit relaxations of the rules on matching assets 
and the localization of assets. 
2. 'Matching assets' means the representation of under­
writing liabilities expressed in a particular currency by 
assets expressed or realizable in the same currency. 
3. 'Localization of assets' means the existence of movable 
or immovable assets in the territory for which the 
supervisory authority of the Contracting Party concerned is 
responsible, but shall not be construed as involving a 
requirement that movable property be deposited or that 
immovable property be made subject to restrictive 
measures such as the registration of a mortgage. Assets 
represented by claims against debtors shall be regarded as 
localized in the territory for which the supervisory 
authority of the Contracting Party where they are to be 
realized is responsible. 
Subject to the above, localization shall be governed by the 
respective rules in force in the Contracting Parties. 
Article 21 
Nature of technical reserves 
1. The rules in force in the Contracting Party in whose 
territory an undertaking pursues its business shall 
determine the nature of the assets and, where appropriate, 
the extent to which they may be used for the purpose of 
representing the technical reserves, and shall also de­
termine the rules for valuing such assets. 
2. The expression 'nature of the assets' refers to the 
various categories of movable and immovable assets and 
their specific characteristics, such as those relating to the 
debtor in the case of a claim forming part of the technical 
reserves. 
3. If a Contracting Party allows any technical reserves to 
be represented by claims against re-insurers, it shall fix the 
percentage so allowed or shall make provision for it to be 
5. 3. 90 Official Journal of the European Communities No C 53/7 
fixed. In such case, notwithstanding the provisions of 
Article 20 (1), it may not require the assets representing 
such claims to be localized. 
Article 22 
Balance sheet 
The supervisory authority of the Contracting Party in 
whose territory the head office of an undertaking is situated 
shall verify that the undertaking's balance sheet shows in 
respect of the technical reserves assets equivalent to the 
underwriting liabilities assumed in all the countries in 
which it carries on business. 
Article 23 
Non-compliance with the requirements relating 
to technical reserves 
If an agency or branch does not comply with the provisions 
laid down in Article 19 to 21, the supervisory authority of 
the Contracting Party in whose territory it carries on 
business may prohibit the free disposal of assets localized in 
its territory after having informed the supervisory 
authority of the Contracting Party in whose territory the 
head office is situated that it intends to take such action. 
The supervisory authority of the Contracting Party in 
whose territory such agency or branch carries on business 
may, furthermore, take any measure necessary to safeguard 
the interests of insured persons. 
Article 24 
Transfer of portfolio 
1. Under the conditions laid down by the legal provisions 
in force in the Contracting Party in question, the 
supervisory authority shall authorize undertakings which 
are established in the territory for which it is responsible to 
transfer all or part of their portfolios of contracts to an 
accepting office established in the same territory as the 
transferring undertaking, if the supervisory authority of the 
Contracting Party in whose territory the head office of the 
accepting office is situated certifies that the latter possesses 
the necessary margin of solvency after taking the transfer 
into account. 
2. A transfer authorized in accordance with paragraph 1 
shall be published in the territory for which the supervisory 
authority of the Contracting Party in which the transferring 
undertaking and the accepting office are established is 
responsible, under the conditions laid down by the legal 
provisions in force the Contracting Party in question. Such 
transfer shall be automatically valid against the policy­
holders, the insured persons and any other person having 
rights and obligations arising out of the contracts 
transferred. However, this paragraph shall not preclude the existence in each of the Contracting Parties of provisions 
providing policy-holders with the option of cancelling the 
contract within a given period after the transfer. 
Article 25 
Approval of conditions and scales of premiums 
1. This Agreement shall not prevent the Contracting 
Parties from enforcing provisions requiring of all undertak­
ings and in respect of all classes of insurance, during the 
pursuit of business, approval of the general and special 
policy conditions, scales of premiums and any other 
documents necessary in the normal course of events for the 
exercise of supervision. 
However, with regard to the risks referred to in Article 2(1) 
Protocol 2, the Contracting Parties shall not lay down 
provisions requiring the approval or systematic notifi­
cation of general and special policy conditions, scales of 
premiums, forms and other printed documents which the 
undertaking intends to use in its dealings with policy­
holders. They may require only non-systematic notification 
of these conditions and other documents, for the purpose of 
verifying compliance with laws, regulations and adminis­
trative provisions in respect of such risks. 
With regard to the same risks, the Contracting Parties may 
not retain or introduce prior notification or approval of 
proposed increases in premium rates except as part of a 
general price control system. 
2. This Agreement shall likewise not prevent the 
Contracting Parties from subjecting undertakings which 
have obtained authorization for class 18 in part A of Annex 
I to checks on their direct or indirect resources in staff and 
equipment, including the qualification of their medical 
teams and the quality of the equipment, available to the 
undertakings to meet their commitments arising from this 
class of insurance. 
3. For the purposes of this Agreement, general and special 
policy conditions shall not include specific conditions 
intended to meet, in an individual case, the particular 
circumstances of the risk to be covered. 
Article 26 
Documentation 
The Contracting Parties shall require undertakings 
carrying on business in their territory to produce the 
documents, including statistical documents, necessary for 
the exercise of supervision and, as regards cover for risks 
listed under class 18 in part A of Annex I, to indicate the 
resources available to them for meeting their liabilites, 
where their laws provide for supervision of such resources. 
No C 53/8 Official Journal of the European Communities 5. 3. 90 
SECTION 4 
WITHDRAWAL OF AUTHORIZATION 
Article 27 
Withdrawal conditions 
The supervisory authority of a Contracting Party may 
withdraw from an undertaking whose head office is 
situated in the territory of the other Contracting Party the 
authorization which it granted to open an agency or branch 
where such agency or branch: 
(a) no longer fulfils the conditions for admission; or 
(b) fails seriously to fulfil its obligations under the rules 
applicable to it, in particular with respect to the 
establishment of technical reserves. 
Article 28 
Withdrawal procedure 
1. Before withdrawing authorization, the supervisory 
authority shall consult the supervisory authority of the 
Contracting Party in whose territory the head office of the 
undertaking is situated. 
If the former authority deems it necessary to suspend the 
business of the agency or branch referred to in Article 27 
before consultation is concluded, it shall immediately 
advise the latter authority thereof. 
2. Any decision to withdraw an authorization or to order 
the suspension of business shall state the reasons on which 
it is based and shall be notified to the undertaking in 
question. 
3. Each Contracting Party shall make provision for a 
right of recourse to the courts against such a decision. 
Article 29 
Withdrawal of the authorization granted to the head 
office 
1. Where the supervisory authority of a Contracting 
Party in whose territory the head office is situated 
withdraws the authorization which it has granted to the 
undertaking, it shall notify such action to the supervisory 
authority of the other Contracting Party if the latter has 
granted the undertaking, authorization to open an agency 
or branch. The latter authority shall also withdraw its 
authorization. 
2. In the case referred to in paragraph 1, the supervisory 
authority of the Contracting Party in whose territory the 
head office is situated shall, in conjunction with the 
supervisory authority of the other Contracting Party, take 
all measures necessary to safeguard the interests of insured 
persons and shall, in particular, restrict the free disposal of 
the assets of the undertaking, if this measure has not 
already been taken, pursuant to Articles 18 (2) and 23. 3. Paragraphs 1 and, where relevant, 2 shall likewise 
apply where the undertaking surrenders of its own accord 
the authorization granted to it. 
SECTION 5 
COLLABORATION BETWEEN SUPERVISORY 
AUTHORITIES 
Article 30 
Conditions of collaboration 
The Contracting Parties shall take all necessary measures 
to enable their supervisory authorities to collaborate 
closely in the implementation of this Agreement. 
Article 31 
Objectives of collaboration 
1. The supervisory authorities shall collaborate in 
verifying the provision by undertakings of financial 
guarantees as defined in Articles 16 and 19 to 21 and, in 
particular, in applying the measures provided for in 
Articles 18 and 23. 
2. Should the undertakings in question be authorized to 
cover the risks listed under class 18 in part A of Annex I, the 
supervisory authorities shall also collaborate in supervising 
the resources available to those undertakings for carrying 
out the assistance operations they have undertaken to 
perform, where their laws provide for supervision of such 
resources. 
Article 32 
Exchange of information 
The supervisory authorities shall furnish each other with 
all documents and information necessary for exercising 
supervision. 
Article 33 
Secrecy 
1. Articles 30 to 32 shall under no circumstances be 
interpreted as requiring any supervisory authority to 
furnish information which would disclose commercial 
secrets of an undertaking or information the communi­
cation of which would be contrary to public policy. 
2. Nevertheless, the secrecy rules to which the super­
visory authorities are subject shall not hinder collaboration 
between those authorities and the mutual assistance 
provided for by this Agreement. 
3. The information exchanged shall be used by such 
authorities solely for the purpose of carrying out their 
supervisory duties. 
5. 3. 90 Official Journal of the European Communities No C 53/9 
SECTION 6 
GENERAL AND FINAL PROVISIONS 
Article 34 
Particular provisions and undertakings of third countries 
1. Particular provisions applicable to certain Member 
States of the Community are set out in Annex IV. 
2. The provisions applicable to agencies and branches of 
undertakings whose head office is situated outside the 
territories to which this Agreement applies pursuant to 
Article 43 thereof are set out in Protocol 4. 
Article 35 
Integral parts of the Agreement 
The Annexes, Protocols and Exchanges of Letters annexed 
to this Agreement shall form an integral part thereof. 
Article 36 
Failure to fulfil obligations 
1. The Contracting Parties shall refrain from taking any 
measures which might jeopardize the attainment of the 
objectives of this Agreement. 
2. They shall take all general or special measures 
necessary to ensure fulfilment of the obligations arising 
from this Agreement. 
If either Contracting Party considers that the other 
Contracting Party has failed to fulfil an obligation arising 
from this Agreement, the procedure referred to in Article 37 
(2) shall apply. 
Article 37 
Joint Committee 
1. A Joint Committee, composed of representatives of 
Switzerland and representatives of the Community, is 
hereby established, which shall be responsible for the 
administration of the Agreement and its proper implemen­
tation and for taking decisions in the circumstances 
provided for therein. Its decisions shall be taken by mutual 
agreement. 
2. For the purpose of the proper implementation of the 
Agreement, the Contracting Parties shall exchange inform­
ation and, at the request of either Party, shall hold 
consultations within the Joint Committee. The exercise of 
supervision, referred to in Section 5, shall not come within 
its powers. 
3. The Joint Committee shall adopt its own rules of 
procedure. 
4. The Joint Committee shall be chaired in turn by each 
of the Contracting Parties in accordance with detailed 
arrangements to be laid down in its rules of procedure. It 
shall be convened by its chairman whenever special circumstances so require, at the request of either Contract­
ing Party, in accordance with conditions to be laid down in 
its rules of procedure. 
The Joint Committee may decide to set up any working 
party needed to assist it in carrying out its tasks. 
Article 38 
Settlement of disputes 
1. If a dispute arises between the Contracting Parties 
concerning the operation of this Agreement and in 
particular its interpretation or implementation and such 
dispute cannot be resolved either through collaboration 
between the supervisory authorities referred to in Section 5 
or by the Joint Committee referred to in Article 37, the 
Contracting Parties shall consult each other through 
diplomatic channels. 
2. If it has not been possible to resolve the dispute by 
means of the procedure provided for in paragraph 1, it shall 
be referred, at the request of either of the Parties, to an 
arbitration tribunal consisting of three members. Reference 
may be made to this tribunal at the earliest after a period of 
two years following the first reference to the Joint 
Committee referred to in Article 37, unless the Parties agree 
jointly to refer their dispute to the said tribunal before the 
end of that period. Each Party shall appoint an arbitrator. 
The two arbitrators appointed shall appoint an umpire 
who shall be a national neither of Switzerland nor of a 
Member State of the Community. 
3. Where one of the Contracting Parties does not appoint 
its arbitrator and has not complied with the request made 
by the other Party to make such appointment within two 
months, the arbitrator shall be appointed, at the request of 
the former Party, by the President of the International 
Court of Justice. 
4. Where after a period of two months following their 
appointment the two arbitrators are unable to agree on the 
choise of an umpire, the latter shall be appointed at the 
request of one of the Parties by the President of the 
International Court of Justice. 
5. Where, in the cases provided for in paragraphs 3 and 4, 
the President of the International Court of Justice is unable 
to act, or is a national of Switzerland or of a Member State 
of the Community, the appointments shall be made by the 
Vice-President. If the latter is unable to act or is a national 
of Switzerland or of a Member State of the Community, the 
appointments shall be made by the oldest member of the 
Court who is not a national either of Switzerland or of a 
Member State of the Community. 
6. Save as otherwise provided by the Contracting Parties, 
the tribunal shall lay down its own rules of procedure. It 
shall take its decisions by majority vote. 
No C 53/10 Official Journal of the European Communities 5. 3. 90 
7. The decisions of the tribunal shall be binding on the 
Contracting Parties. 
Article 39 
Evolution of the domestic legislation of the Contracting 
Parties 
1. The Agreement shall be without prejudice to the right 
of each Contracting Party, subject to compliance with the 
principle of non-discrimination and the provisions of this 
Article, unilaterally to amend its domestic legislation on a 
point regulated by this Agreement. 
2. As soon as a Contracting Party has initiated the process 
for adopting a draft amendment of its domestic legislation 
concerning the conditions for taking up and pursuing, by 
means of establishment, the activity of direct insurance 
other than life assurance, it shall inform the other 
Contracting Party via the Joint Committee referred to in 
Article 37. The Joint Committee shall hold an exchange of 
views on the implications of such an amendment for the 
proper functioning of the Agreement. 
3. As soon as the amended legislation has been adopted, 
and eight days after adoption at the latest, the Contracting 
Party concerned shall notify the text of the new provisions 
to the other Contracting Party. 
4. In order to guarantee legal certainty, a period of at least 
12 months from the date of adoption of the amended 
legislation must be laid down by the Contracting Party 
concerned for the implementation of any amendment of 
legislation which deviates from the provisions of the 
Agreement. 
5. Any amendment of legislation which has been the 
subject of the procedures referred to in paragraphs 2 and 3 
and which, in the opinion of either Contracting Party, 
deviates from the provisions of the Agreement, shall be 
referred to the Joint Committee. The Joint Committee shall 
meet at the latest six weeks after the notification laid down 
in paragraph 3. 
6. The Joint Committee shall: 
— either adopt a decision revising the provisions of the 
Agreement so as to integrate therein, if necessary on a 
basis of reciprocity, the admendments made to the 
legislation in question, 
— or, as long as the insured person is guaranteed 
equivalent protection to that provided for under the 
Agreement, adopt a decision to the effect that the 
amendments to the legislation in question shall be 
regarded as in accordance with the Agreement, 
— or decide any other measure to safeguard the proper 
functioning of the Agreement. 
7. The decisions of the Joint Committee shall be 
published in the Official Compendium of Federal Laws 
(Recueil Officiel des lois federales) and in the Official 
Journal of the European Communies. Each decision shall 
state the date of its implementation in the two Contracting 
Parties and any other information likely to concern 
economic operators. The decisions shall be submitted as necessary for ratification or approval by the Contracting 
Parties in accordance with their own procedures. The 
Contracting Parties shall notify each other of the 
completion of this formality. If upon the expiry of the 
period provided for in paragraph 4 such notification has 
not taken place, the decisions of the Joint Committee shall 
be implemented provisionally pending their ratification or 
approval by the Contracting Parties. If either Contracting 
Party notifies the non-ratification or non-approval of a 
decision of the Joint Committee, paragraph 8 shall apply 
mutatis mutandis from the time of such notification. 
8. If the Joint Committee does not reach agreement on 
the decisions to be taken within six months of the date of 
referral pursuant to paragraph 5, the Agreement shall be 
regarded as ended on the day the legislation in question is 
implemented, pursuant to paragraph 4; in that event the 
provisions of Article 38 are not applicable. The provisions 
of Article 42 (2) shall apply mutatis mutandis. 
Article 40 
Revision of the Agreement 
1. If a Contracting Party wishes that this Agreement be 
revised, it shall request the other Contracting Party to open 
negotiations to that end. Such request shall be made 
through diplomatic channels. 
2. Amendments to this Agreement shall enter into force in 
accordance with the procedure set out in Article 44. 
3. Nevertheless, amendments to the Annexes, Protocols 
and Exchanges of Letters annexed to this Agreement shall 
be adopted by the Joint Committee referred to in Article 37, 
which shall determine the date of their entry into force. 
Article 41 
Matters not covered by the Agreement 
1. Where a Contracting Party considers that it would be 
useful in the interests of both Contracting Parties to 
develop the relations established by this Agreement by 
extending them to private insurance activities not covered 
thereby, it shall propose to the other Contracting Party that 
negotiations be opened to that end. 
2. Agreements resulting from negotiations referred to in 
paragraph 1 shall be subject to ratification or approval by 
the Contracting Parties in accordance with their own 
procedures. 
o.3.^0 Cofficialjournal of the European Communities ^oC^Bll 
ArrA^^ 
denunciation 
L Either contracting l^artymaydenouncethis Agreed 
ment at any time by notifying the other Contracting Earty 
to that effect^The Agreement shall cease to be in forced 
months after the date of such notification. 
^ In the event of denunciations the Contracting parties 
shall jointly agree on rules governing the situation of 
undertakings which have obtained authorisation in 
accordance withArticlell^ipin the absence of agreement 
upon expiry of the period of t^. months referred to in 
paragraph^those undertakings shall be made subject to 
the rules applicable to those of third countries, l^everthe^ 
less^ the ContractingEarties hereby undertake that the 
authorisation obtained in accordance with ArticleM ^ 
shall not be withdrawn in the light of the economic 
requirementsofthemarleetforaperiodofatleastfiveyears 
from thedateon which this Agreement ceases to be inforce. 
Arr^^^ 
Territorial scope of Agreement 
This Agreement shall apply^ on the one hand^ to the 
territories to which theTreaty establishing the European Economic Community applies upon the terms laid down in 
thatTreatyand^ on the othermo the territory of the ^wiss 
Confederation 
Arr^^^ 
Entry into force 
P This Agreement was negotiated in Erench and drawn 
up in two originals in the tO^nish^Eo^tch^ English^ Erench^ 
C^erman^ree^ltalian^ortuguese and Spanish languages^ 
each of these texts being equally authentic 
^ This Agreement shall be ratified or approved by the 
Contracting parties in accordance with their own proD 
cedures. 
3, ThisAgreementshallenterintoforceonthefirstdayof 
the calendar year following the exchange of instruments of 
ratification or approval on condition that such exchange 
tal^es place not later than one month before that date. 
nevertheless^ the Contracting Eartiesmay^on exchanging 
instrumentsofratificationor approvals jointly agree on 
another date for the entry into force of this Agreement^in 
that case^ the date shall be published forthwith. 
No C 53/12 Official Journal of the European Communities 5. 3. 90 
Hecho en , el 
Udfaerdiget i , den 
Geschehen zu , am 
'Eyive , tr|v 
Done at , on this day of in the year 
Fait a , le 
Fatto a , il 
Gedaan te , de 
Feito em , em 
En nombre del Consejo de las Comunidades Europeas 
Pa Radet for De Europaeiske Faellesskabers vegne 
Im Namen des Rates der Europaischen Gemeinschaften 
Tia to SonPouXio xcov Ei)pt07taiK(bv Koivoxfitcov 
In the name of the Council of the European Communities 
Au nom du Conseil des Communautes europeennes 
A nome del Consiglio delle Comunita Europee 
Namens de Raad van de Europese Gemeenschappen 
Em nome do Conselho das Comunidades Europeias 
Fur die Schweizerische Eidgenossenschaft 
Pour la Confederation Suisse 
Per la Confederazione svizzera 
5. 3. 90 Official Journal of the European Communities No C 53/13 
ANNEX I 
CLASSES OF INSURANCE SUBJECT TO THE AGREEMENT 
A. Classification of risks according to classes of insurance 
1. Accident (including industrial injury and occupational diseases): 
— fixed pecuniary benefits, 
— benefits in the nature of indemnity, 
— combinations of the two, 
— injury to passengers. 
2. Sickness: 
— fixed pecuniary benefits, 
— benefits in the nature of indemnity, 
— combinations of the two. 
3. Land vehicles (other than railway rolling stock): 
All damage to or loss of: 
— land motor vehicles, 
— land vehicles other than motor vehicles. 
4. Railway rolling stock : 
All damage to or loss of railway rolling stock. 
5. Aircraft: 
All damage to or loss of aircraft. 
6. Ships (sea, lake, river and canal vessels): 
All damage to or loss of: 
— river and canal vessels, 
— lake vessels, 
— sea vessels. 
7. Goods in transit (including merchandise, baggage and all other goods): 
All damage to or loss of goods in transit or baggage, irrespective of the form of transport. 
8. Fire and natural forces: 
All damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7) due to: 
— fire, 
— explosion, 
— storm, 
— natural forces other than storm, 
— nuclear energy, 
— land subsidence. 
9. Other damage to property: 
All damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7) due to hail or 
frost, and any event such as theft, other than those mentioned under 8. 
No C 53/14 Official Journal of the European Communities 5. 3. 90 
10. Motor vehicle liability: 
All liability arising out of the use of motor vehicles operating on land (including carrier's liability). 
11. Aircraft liability: 
All liability arising out of the use of aircraft (including carrier's liability). 
12. Liability for ships (sea, lake, river and canal vessels): 
All liability arising out of the use of ships, vessels or boats on the sea, lakes, rivers or canals (including 
carrier's liability). 
13. General liability: 
All liability other than those forms mentioned under 10, 11 and 12. 
14. Credit: 
— insolvency (general), 
— export credit, 
— instalment credit, 
— mortgages, 
— agricultural credit. 
15. Suretyship: 
— suretyship (direct), 
— suretyship (indirect). 
16. Miscellaneous financial loss: 
— employment risks, 
— insufficiency of income (general), 
— bad weather, 
— loss of profits, 
— continuing general expenses, 
— unforeseen trading expenses, 
— loss of market value, 
— loss of rent or revenue, 
— indirect trading losses other than those mentioned above, 
— other financial loss (non-trading), 
— other forms of financial loss. 
17. Legal expenses: 
Legal expenses and costs of litigation. 
18. Tourist assistance: 
Assistance for persons who get into difficulties while travelling, while away from home or while away 
from their permanent residence. 
The risks included in a class may not be included in any other class except in the cases referred to in part C. 
B. Description of authorizations granted simultaneously for more than one class of insurance 
Where the authorization simultaneously covers: 
(a) classes 1 and 2, it shall be named 'accident and health insurance'; 
(b) classes 1 (fourth indent), 3, 7 and 10, it shall be named 'motor insurance'; 
(c) classes 1 (fourth indent), 4, 6, 7 and 12, it shall be named 'marine and transport insurance'; 
(d) classes 1 (fourth indent), 5, 7 and 11, it shall be named 'aviation insurance'; 
5. 3. 90 Official Journal of the European Communities No C 53/15 
(e) classes 8 and 9, it shall be named 'insurance against fire and other damage to property'; 
(f) classes 10, 11, 12 and 13, it shall be named 'liability insurance'; 
(g) classes 14 and 15, it shall be named 'credit and suretyship insurance'; 
(h) all classes, it shall be named at the choice of the Contracting Party in question, which shall notify the 
other Contracting Party of its choice. 
C. Ancillary risks 
An undertaking obtaining an authorization for a principal risk belonging to one class or a group of classes 
may also insure risks included in another class without an authorization being necessary for them if they: 
— are connected with the principal risk, 
— concern the object which is covered against the principal risk, and 
— are covered by the contract insuring the principal risk. 
However, the risks included in classes 14,15 and 17 may not be regarded as risks ancillary to other classes. 
Nonetheless, the risk included in class 17 (legal expenses insurance) may be regarded as an ancillary risk of 
class 18 where the conditions laid down in the first subparagraph of part C of this Annex are fulfilled, and 
where the main risk relates solely to the assistance provided for persons who fall into difficulties while 
travelling, while away from home or while away from their permanent residence. 
Legal expenses insurance may also be regarded as an ancillary risk under the conditions set out in the first 
subparagraph of part C of this Annex where it concerns disputes or risks arising out of, or in connection 
with, the use of sea-going vessels. 
D. Assistance 
1. The assistance activity shall be the assistance provided for persons who get into difficulties while 
travelling, while away from home or while away from their permanent residence. It shall consist in 
undertaking, against the prior payment of a premium, to make aid immediately available to the 
beneficiary under an assistance contract where that person is in difficulties following the occurrence of a 
chance event, in the cases and under the conditions set out in the contract. 
The aid may consist in the provision of benefits in cash or in kind. The provision of benefits in kind may 
also be effected by means of the staff and equipment of the person providing them. 
The assistance activity does not cover servicing, maintenance, after-sales service or the mere indication 
or provision of aid as an intermediary. 
2. Either Contracting Party may, in its territory, make the provision of assistance to persons who get into 
difficulties in circumstances other than those referred to in paragraph 1 subject to the arrangements 
introduced by this Agreement. If a Contracting Party makes use of this possibility it shall, for the 
purposes of applying these arrangements, treat such activity as if it were listed under class 18 in part A of 
this Annex, without prejudice to part C thereof. 
This shall in no way affect the possibilities for classification laid down in this Annex for activities which 
clearly come under other classes. 
It shall not be possible to refuse authorization sought for an agency or branch by an undertaking whose 
head office is situated in the territory of the other Contracting Party solely on the grounds that the 
activity covered by this point is classified differently in that other Contracting Party. 
No C 53/16 Official Journal of the European Communities 5. 3. 90 
ANNEX 11 
KINDS OF INSURANCE, OPERATIONS AND UNDERTAKINGS NOT SUBJECT 
TO THE AGREEMENT 
A. Kinds of insurance excluded 
This Agreement does not apply to: 
1. Life assurance, that is to say the class of insurance which comprises, in particular, assurance on survival 
to a stipulated age only, assurance on death only, assurance on survival to a stipulated age or on earlier 
death, life assurance with return of premiums, tontines, marriage assurance and birth assurance. 
2. Annuities. 
3. Supplementary insurance carried on by life assurance undertakings, that is to say, insurance against 
personal injury including incapacity for employment, insurance against death resulting from an 
accident, and insurance against disability resulting from an accident or sickness, where these various 
kinds of insurance are underwritten in addition to life assurance. 
4. In Switzerland: 
insurance forming part of a statutory system of social security, except where such insurance is written by 
authorized undertakings. 
In the Community: 
insurance forming part of a statutory system of social security. 
5. The type of insurance existing in Ireland and the United Kingdom known as 'permanent health 
insurance not subject to cancellation'. 
B. Operations excluded 
This Agreement does not apply to: 
1. Capital redemption operations, as defined by the law in each Contracting Party. 
2. Operations of provident and mutual benefit institutions whose benefits vary according to the resources 
available and in which the contributions of members are determined on a flat-rate basis. 
3. Operations carried out by organizations not having legal personality with the purpose of providing 
mutual cover for their members without there being any payment of premiums or constitution of 
technical reserves. 
4. Export credit insurance operations for the account of or supported by the State, or where the State is the 
insurer. 
5. The assistance activity in which liability is limited to the following operations provided in the event of an 
accident or breakdown involving a road vehicle which normally occurs in the territory of the 
Contracting Party in which the undertaking providing cover is established: 
— an on-the-spot breakdown service for which the undertaking providing cover uses, in most 
circumstances, its own staff and equipment, 
— the conveyance of the vehicle to the nearest or the most appropriate location at which repairs may be 
carried out and the possible accompaniment, normally by the same means of assistance, of the driver 
and passengers to the nearest location from where they may continue their journey by other means, 
— if provided for by the Contracting Party in which the undertaking providing cover is established, the 
conveyance of the vehicle, possibly accompanied by the driver and passengers, to their home, point 
of departure or original destination within the same Contracting Party, 
unless such operations are carried out by an undertaking subject to the Agreement. 
In the cases referred to in the first two indents, the condition that the accident or breakdown must have 
happened in the territory of the Contracting Party in which the undertaking providing cover is 
established: 
(a) shall not apply where the latter is a body of which the beneficiary is a member and the breakdown 
service or conveyance of the vehicle is provided simply on presentation of a membership card, 
without any additional premium being paid, by a similar body in the Contracting Party concerned on 
the basis of a reciprocal agreement; 
5. 3. 90 Official Journal of the European Communities No C 53/17 
(b) shall not preclude the provision of such assistance in Ireland and the United Kingdom by a single 
body operating in both States. 
In the circumstances referred to in the third indent, where the accident or the breakdown has occurred in 
the territory of Ireland or, in the case of the United Kingdom, in the territory of Northern Ireland, the 
vehicle, possibly accompanied by the driver and passengers, may be conveyed to their home, point of 
departure or original destination within either territory. 
Moreover, the Agreement does not concern assistance operations carried out on the occasion of an 
accident to or the breakdown of a road vehicle and consisting in conveying the vehicle which has been 
involved in an accident or has broken down outside the territory of the Grand Duchy of Luxembourg, 
possibly accompanied by the driver and passengers, to their home, where such operations are carried out 
by the Automobile Club of the Grand Duchy of Luxembourg. 
Undertakings subject to the Agreement may engage in the activity referred to under this point only if they 
have received authorization for class 18 in part A of Annex I without prejudice to part C of the said 
Annex. In that event the Agreement shall apply to the operations in question. 
C. Exclusion of undertakings occupying special positions 
This Agreement does not apply: 
1. To undertakings which fulfil the following conditions: 
— the undertaking does not pursue any activity falling within the scope of the Agreement other than the 
one described in class 18 in part A of Annex I. 
— the activity is carried out exclusively on a local basis and consists only of benefits in kind, 
and 
— the total annual income collected in respect of the activity of assistance to persons who get into 
difficulties does not exceed ECU 200 000. 
2. In the case of undertakings whose head office is situated in Switzerland, to: 
Undertakings whose annual premium income for the activities covered by the Agreement does not 
exceed the sum of Sfrs 3 million on the date of entry into force of this Agreement and whose activities 
extend only to Swiss territory for such time as they satisfy these conditions. Once it has become subject 
to the rules of the Agreement an undertaking may not rely on this exception even if it satisfies the two 
abovementioned conditions. 
3. In the case of undertakings whose head office is situated in the Community, to: 
— Mutual associations in so far as they fulfil all the following conditions: 
— the articles of association contain provisions for calling up additional contributions or reducing 
their benefits, 
— their business does not cover liability risks — unless the latter constitute ancillary cover within 
the meaning of part C of Annex I — or credit and suretyship risks, 
— the annual contribution income for the activities covered by this Agreement does not exceed ECU 
1 million, 
and 
— at least half of the contribution income from the activities covered by this Agreement comes from 
persons who are members of the mutual association. 
— Mutual associations which have concluded with another undertaking of the same nature an 
agreement which provides for the full reinsurance of the insurance contracts concluded by them or 
under which the transferee undertaking is to meet the liabilities arising out of such contracts in the 
place of the transferor undertaking. 
In such a case, the transferee undertaking shall be subject to this Agreement. 
D. Exclusion of specific undertakings 
This Agreement shall not apply to the undertakings listed under 1 and 2 unless their articles of association 
are amended as regards capacity. 
However, the territorial capacity of the undertakings referred to in 1 and 2 (b) shall not be regarded as 
modified in the case of a merger between or division of such undertakings which has the effect of 
maintaining for the benefit of the new undertaking or undertakings the territorial capacity of the 
undertaking which has divided or the undertakings which have merged, nor shall capacity as to the classes of 
No C 53/18 Official Journal of the European Communities 5. 3. 90 
insurance be regarded as modified if one of the undertakings takes over in respect of the same territory one 
or more of the classes of another such undertaking. 
1. In Switzerland: 
The following cantonal institutions under public law, enjoying a monopoly: 
(a) Aargau: Aargauisches Versicherungsamt, Aargau; 
(b) Appenzell Ausser-Roden: Brand- und Elementarschadenversicherung Appenzell AR, Herisau; 
(c) Basel-Land: Basellandschaftliche Gebaudeversicherung, Liestal; 
(d) Basel-Stadt: Gebaudeversicherung des Kantons Basel-Stadt, Basel; 
(e) Bern/Berne: Gebaudeversicherung des Kantons Bern, Bern, Assurance immobiliere du canton de 
Berne, Berne; 
(f) Fribourg/Freiburg: Etablissement cantonal d'assurance des batiments du canton de Fribourg, 
Fribourg/Kantonale Gebaudeversicherungsanstalt Freiburg, Freiburg; 
(g) Glarus: Kantonale Sachversicherung Glarus, Glarus; 
(h) Graubunden/Grigioni/Grischun: Gebaudeversicherungsanstalt des Kantons Graubiinden, Chur, 
Istituto d'assicurazione fabbricati del cantone dei Grigioni, Coira, Istitut dil cantun Grischun per 
assicuranzas da baghetgs, Cuera; 
(i) Jura: Assurance immobiliere de la Republique et canton du Jura, Saignelegier; 
(j) Luzern: Gebaudeversicherungsanstalt des Kantons Luzern, Luzern; 
(k) Neuchatel: Etablissement cantonal d'assurance immobiliere contre l'incendie, Neuchatel; 
(i) Nidwalden: Kantonale Brandversicherungsanstalt Nidwalden, Stans; 
(m)Schaffhausen: Gebaudeversicherung des Kantons Schaffhausen, Schaffhausen; 
(n) Solothurn: Solothurnische Gebaudeversicherung, Solothurn; 
(o) St. Gallen: Gebaudeversicherungsanstalt des Kantons St. Gallen, St. Gallen; 
(p) Thurgau: Gebaudeversicherung des Kantons Thurgau, Frauenfeld; 
(q) Vaud: Etablissement d'assurance contre l'incendie et les elements naturels du canton de Vaud, 
Lausanne; 
(r) Zug: Gebaudeversicherung des Kantons Zug, Zug; 
(s) Zurich: Gebaudeversicherung des Kantons Zurich, Zurich. 
2. In the Community: 
(a) In Denmark : 
Falcks Redningskorps A/S, Kebenhavn; 
(b) In Germany : 
— the following institutions under public law enjoying a monopoly (Monopolanstalten): 
aa) Badische Gebaudeversicherungsanstalt, Karlsruhe, 
(bb) Bayerische Landesbrandversicherungsanstalt, Miinchen, 
(cc) Bayerische Landestierversicherungsanstalt, Schlachtviehversicherung, Miinchen, 
(dd) Braunschweigische Landesbrandversicherungsanstalt, Braunschweig, 
(ee) Hamburger Feuerkasse, Hamburg, 
(ff) Hessische Brandversicherungsanstalt (Hessische Brandversicherungskammer), Darmstadt, 
(gg) Hessische Brandversicherungsanstalt, Kassel, 
(hh) Lippische Landesbrandversicherungsanstalt, Detmold, 
(ii) Nassauische Brandversicherungsanstalt, Wiesbaden, 
(jj) Oldenburgische Landesbrandkasse, Oldenburg, 
(kk) Ostfriesische Landschaftliche Brandkasse, Aurich, 
(11) Feuersozietat Berlin, Berlin, 
(mm)Wurttembergische Gebaudebrandversicherungsanstalt, Stuttgart; 
5. 3. 90 Official Journal of the European Communities No C 53/19 
— the following semi-public institutions: 
(nn) Postbeamtenkrankenkasse, 
(oo) Krankenversorgung der Bundesbahnbeamten; 
(c) In Spain : 
The following public institutions: 
(aa) Coraisaria del Seguro Obligatorio de Viajeros, 
(bb) Consorcio de Compensacion de Seguros, 
(cc) Fondo Nacional de Garantia de Riesgos de la Circulation; 
(d) In France: 
The following institutions: 
(aa) Caisse departementale des incendies des Ardennes, 
(bb) Caisse departementale des incendies de la Cote-d'Or, 
(cc) Caisse departementale des incendies de la Marne, 
(dd) Caisse departementale des incendies de la Meuse, 
(ee) Caisse departementale des incendies de la Somme; 
(e) In Ireland : 
Voluntary Health Insurance Board; 
(f) In Italy: 
La Cassa di Previdenza per l'assicurazione degli sportivi (Sportass); 
(g) In the United Kingdom : 
The Crown Agents. 
ANNEX III 
ACCEPTABLE LEGAL FORMS 
An undertaking whose head office is situated in the territory of a Contracting Party shall adopt one of the legal 
forms shown below. 
The Contracting Parties may also set up, where appropriate, undertakings under any form governed by public 
law provided that such institutions have as their object insurance transactions under conditions equivalent to 
those of undertakings governed by private law. 
A. In Switzerland: 
— Aktiengesellschaft/societe anonyme/societa per azioni, 
— Genossenschaft/cooperative/cooperativa. 
B. In the Community: 
1. In Belgium: 
— naamloze vennootschap/societe anonyme, 
— vennootschap bij wijze van geldschieting op aandelen/societe en commandite par actions, 
No C 53/20 Official Journal of the European Communities 5. 3. 90 
— onderlinge verzekeringsmaatschappij/association d'assurance mutuelle, 
— cooperatieve vennootschap/societe cooperative. 
2. In Denmark: 
— aktieselskaber, 
— gensidige selskaber. 
3. In Germany: 
— Aktiengesellschaft, 
— Versicherungsverein auf Gegenseitigkeit, 
— Offentlich-rechtliches Wettbewerbs-Versicherungsunternehmen. 
4. In France: 
— societe anonyme, 
— societe a forme mutuelle, 
— mutuelle, 
— union de mutuelles. 
5. In Spain: 
— sociedad anonima, 
— sociedad mutua, 
— sociedad cooperativa. 
6. In Greece: 
— avcbvouoc, ETaipeia, 
— aXkr^acs^akioxiKoq auvETaipiauoi;. 
7. In Ireland: 
— incorporated companies limited by shares or by guarantee or unlimited. 
8. In Italy: 
— societa per azioni, 
— societa cooperativa, 
— mutua di assicurazione. 
9. In Luxembourg: 
— societe anonyme, 
— societe en commandite par actions, 
— association d'assurances mutuelles, 
— societe cooperative. 
10. In the Netherlands: 
— naamloze vennootschap, 
— onderlinge waarborgmaatschappij. 
11. In Portugal: 
— sociedade anonima de responsabilidade limitada, 
— mutua de seguros. 
12. In the United Kingdom: 
— incorporated companies limited by shares or by guarantees or unlimited, 
— societies registered under the Industrial and Provident Societies Acts, 
— societies registered under the Friendly Societies Act, 
— the association of underwriters known as Lloyd's. 
5. 3. 90 Official Journal of the European Communities No C 53/21 
ANNEX IV 
PARTICULAR PROVISIONS FOR CERTAIN MEMBER STATES OF THE COMUNITY 
By way of derogation from the provisions of this Agreement, the following special provisions shall apply in 
certain Member States of the Community: 
1. In Denmark: 
re Article 15: 
Denmark may retain in force its legislation restricting the free disposal of assets built up by insurance 
undertakings to cover pensions payable under compulsory insurance against industrial accidents. 
2. In Germany: 
— re Article 8 (2): 
Germany may maintain the provision prohibiting the simultaneous undertaking in its territory of health 
insurance with other classes. 
— re Article 15: 
Germany may maintain, with respect to health insurance within the meaning of Article 2 (3) of Protocol 
1, the restrictions imposed on the free disposal of assets in so far as the free disposal of assets covering 
mathematical reserves is subject to the agreement of a 'Treuhander'. 
3. In Luxembourg: 
— re Article 20 (1) and (3): 
Luxembourg may retain the system of guarantees for technical reserves existing at the time of entry into 
force of this Agreement. 
4. In the United Kingdom: 
— re Article 10 (1) (c): 
With regard to the association of underwriters known as Lloyd's, submission of the balance sheet and 
the profit and loss account shall be replaced by the compulsory presentation of annual trading accounts 
covering the insurance operations, and accompanied by an affidavit certifying that auditors' certificates 
have been supplied in respect of each insurer and showing that the liabilities incurred as a result of those 
operations are wholly covered by the assets. These documents must allow the supervisory authorities to 
form a comparable view of the state of solvency of the Association. 
— re Article 10 (1) (d): 
With regard to the association of underwriters known as Lloyd's, in the event of any litigation in the host 
country resulting from underwritten commitments, insured persons must not be less favourably treated 
than if the litigation had been brought against a business of a more conventional type. The authorized 
agent must, therefore, possess sufficient powers to enable proceedings to be instituted against him and 
must in that capacity be able to bind the Lloyd's underwriters concerned. 
No C 53/22 Official Journal of the European Communities 5. 3. 90 
ANNEX V 
METHODS OF CALCULATING THE EQUALIZATION RESERVE FOR THE CREDIT INSURANCE 
CLASS AND CONDITIONS GOVERNING EXEMPTION FROM THE OBLIGATION TO SET UP 
SUCH A RESERVE 
A. Methods 
Method 1 
1.1. In respect of the risks listed under class 14 in part A of Annex I (credit insurance), the undertaking shall 
set up an equalization reserve to which shall be charged any technical deficit arising in that class for a 
financial year. 
1.2. Such reserve shall in each financial year receive 75 % of any technical surplus arising on credit insurance 
business, subject to a limit of 12 % of the net premiums or contributions until the reserve has reached 
150 % of the highest annual amount of net premiums or contributions received during the previous five 
financial years. 
Method 2 
2.1. In respect of the risks listed under class 14 in part A of Annex I (credit insurance), the undertaking shall 
set up an equalization reserve to which shall be charged any technical deficit arising in that class for a 
financial year. 
2.2. The minimum amount of the equalization reserve shall be 134 % of the average of the premiums or 
contributions received annually during the previous five financial years after subtraction of the cessions 
and addition of the reinsurance acceptances. 
2.3. Such reserve shall in each of the successive financial years receive 75 % of any technical surplus arising in 
that class until the reserve is at least equal to the minimum calculated in accordance with point 2.2 of this 
Annex. 
2.4. The Contracting Parties may lay down special rules for the calculation of the amount of the reserve and/ 
or the amount of the annual levy in excess of the minimum amounts laid down in points 2.2 and 2.3 of 
this Annex. 
Method 3 
3.1. An equalization reserve shall be formed for class 14 in part A of Annex I (credit insurance) for the 
purpose of offsetting any above-average claims ratio for a financial year in that class of insurance. 
3.2. The equalization reserve shall be calculated on the basis of the method set out below. 
All calculations shall relate to income and expenditure for the insurer's own account. 
An amount in respect of any claims shortfall for each financial year shall be placed to the equalization 
reserve until it has reached, or is restored to, the required amount. 
There shall be deemed to be a claims shortfall if the claims ratio for a financial year is lower than the 
average claims ratio for the reference period. The amount in respect of the claims shortfall shall be 
arrived at by multiplying the difference between the two ratios by the earned premiums for the financial 
year. 
The required amount shall be equal to six times the standard deviation of the claims ratios in the 
reference period from the average claims ratio, multiplied by the earned premiums for the financial year. 
Where claims for any financial year are in excess, an amount in respect thereof shall be taken from the 
equalization reserve. Claims shall be deemed to be in excess if the claims ratio for the financial year is 
higher than the average claims ratio. The amount in respect of the excess claims shall be arrived at by 
multiplying the difference between the two ratios by the earned premiums for the financial year. 
Irrespective of claims experience, 3,5 % of the required amount of the equalization reserve shall be first 
placed to that reserve each financial year until its required amount has been reached or restored. 
5. 3. 90 Official Journal of the European Communities No C 53/23 
The length of the reference period shall be not less than 15 years and not more than 30 years. No 
equalization reserve need be formed if no underwriting loss has been noted during the reference period. 
The required amount of the equalization reserve and the amount to be taken from it may be reduced if 
the average claims ratio for the reference period in conjunction with the expenses ratio show that the 
premiums include a safety margin. 
Method 4 
4.1. An equalization reserve shall be formed for class 14 in part A of Annex I (credit insurance) for the 
purpose of offsetting any above-average claims ratio for a financial year in that class of insurance. 
4.2. The equalization reserve shall be calculated on the basis of the method set out below. 
All calculations shall relate to income and expenditure for the insurer's own account. 
An amount in respect of any claims shortfall for each financial year shall be placed to the equalization 
reserve until it has reached the maximum required amount. 
There shall be deemed to be a claims shortfall if the claims ratio for a financial year is lower than the 
average claims ratio for the reference period. The amount in respect of the claims shortfall shall be 
arrived at by multiplying the difference between the two ratios by the earned premiums for the financial 
year. 
The maximum required amount shall be equal to six times the standard deviation of the claims ratio in 
the reference period from the average claims ratio, multiplied by the earned premiums for the financial 
year. 
Where claims for any financial year are in excess, an amount in respect thereof shall be taken from the 
equalization reserve until it has reached the minimum required amount. Claims shall be deemed to be in 
excess if the claims ratio for the financial year is higher than the average claims ratio. The amount in 
respect of the excess claims shall be arrived at by multiplying the difference between the two ratios by the 
earned premiums for the financial year. 
The minimum required amount shall be equal to three times the standard deviation of the claims ratio in 
the reference period from the average claims ratio multiplied by the earned premiums for the financial 
year. 
The length of the reference period shall be not less than 15 years and not more than 30 years. No 
equalization reserve need be formed if no underwriting loss has been noted during the reference period. 
Both required amounts of the equalization reserve and the amount to be placed to it or the amount to be 
taken from it may be reduced if the average claims ratio for the reference period in conjunction with the 
expenses ratio show that the premiums include a safety margin and that safety margin is more than one-
and-a-half times the standard deviation of the claims ratio in the reference period. In such a case the 
amounts in question shall be multiplied by the quotient of one-and-a-half times the standard deviation 
and the safety margin. 
B. Exemption 
Each Contracting Party may exempt head offices, agencies or branches from the obligation to set up an 
equalization reserve for credit insurance business where the premiums or contributions receivable in respect of 
credit insurance are less than 4 % of the total premiums or contributions receivable by them or less than ECU 
2 500 000. 
The relationship between the ecu and the Swiss franc and the procedures necessary for defining that relationship 
for the purposes of this Annex are laid down in Protocol 3. 
^oC^^ C^fficial]ournal of the European Communities ^.^.^0 
P^C^PC^^^Li 
solvency margin 
fOefinition of the solvency margin 
Lhe solvency margin shallcorrespondtothe assets of theundertaking, free of all foreseeable 
liabilities, less any intangible items. In particular the following shall be considered^ 
— the paid-up share capital or, in the case ofamutual concern, the effective initial fund, 
— onehalf of the share capital or the initial fund which is not yet paid up,once the paid-up part 
reaches^^o of this capital or fund, 
— reserves^statutory reserves and free reserves^not corresponding to underwriting liabilities, 
— any carryforward of profits, 
— in the case ofamutual ormutuaPtype association with variable contributions, any claim which 
it has against its members by way ofacall for supplementary contribution, within the financial 
year,uptoonehalfofthedifference between the maximum contributions and thecontributions 
actually called in, and subject to an overriding limit of ^O^of the margin, 
— at the request of, and upon proof being shown by the undertaking, and with the agreement of 
the concerned supervisory authorities of the Contracting parties in whose territory the 
undertakingcarnes on its business, anyhiddenreservesresultingfromunderDestimation of 
assets or over^estimationofliabihties in the balance sheet, in so far as such hidden reserves are 
not of an exceptional nature. 
C^ver^estimationoftechmcal reserves shall be determined in relation to their amount calculated by 
the undertaking in conformity with national rules,however,an amount equivalent to^^of the 
difference between the amount of the reserve for outstanding risks calculated ataflat rate by the 
undertaking by application ofaminimum percentage in relation to premiums and the amount that 
would have been obtained by calculating the reserve contract by contractwhere the national lawm 
question gives anoptionbetweenthetwomethods,canbe taken into account mthe solvency 
margin up to ^0^. 
Ar^A^^ 
relationship between the solvency margin and the amount of premiums or the burden 
of claims 
P Lhe solvency margin shall be determined on the basis either ofthe annual amount ofpremiums 
or contributions, or of the average burden of claims for the past three financial years. In the case, 
however, of undertakings which essentially underwrite only one or more of the risks of credit, 
storm, hail and frost, the last seven years shall be taken as the period of reference for the average 
burden of claims. 
^.. ^ub^ect to the provisions of Article^of this protocol, the amount of the solvency margin shall 
be equal to the higher of the following two results^ 
— first result ^premium basis^ 
— the premiums or contributions ^inclusive of charges ancillary to premiums or contributions^ 
duemrespect of all direct business in the last financial year for all financial years,shall be 
aggregated, 
— to this aggregate there shall be added the amount ofpremiums accepted for all reinsurance in 
the last financial year, 
5. 3. 90 Official Journal of the European Communities No C 53/25 
— from this sum there shall then be deducted the total amount of premiums or contributions 
cancelled in the last financial year, as well as the total amount of taxes and levies pertaining 
to the premiums or contributions entering into the aggregate. 
The amount so obtained shall be divided into two portions, the first portion extending up to 
ECU 10 million, the second comprising the excess; 18 and 16 % of these portions respectively 
shall be calculated and added together. 
The first result shall be obtained by multiplying the sum so calculated by the ratio existing in 
respect of the last financial year between the amount of claims remaining to be borne by the 
undertaking after deduction of transfers for reinsurance and the gross amount of claims; this 
ratio may in no case be less than 50 % ; 
— second result (claims basis): 
— the amounts of claims paid in respect of direct business (without any deduction of claims 
borne by reinsurers and retrocessionnaires) in the periods specified in Article 2 (1) of this 
Protocol shall be aggregated, 
— to this aggregate there shall be added the amount of claims paid in respect of reinsurances or 
retrocessions accepted during the same periods, 
— to this sum there shall be added the amount of provisions or reserves for outstanding claims 
established at the end of the last financial year both for direct business and for reinsurance 
acceptances, 
— from this sum there shall be deducted the amount of recoveries effected during the periods 
specified in Article 2 (1) of this Protocol, 
— from the sum then remaining, there shall be deducted the amount of provisions or reserves 
for outstanding claims established at the commencement of the second financial year 
preceding the last financial year for which there are accounts, both for direct business and for 
reinsurance acceptances. 
One-third, or one-seventh, of the amount so obtained, according to the period of reference 
established in Article 2 (1) of this Protocol, shall be divided into two portions, the first extending 
up to ECU 7 million, and the second comprising the excess; 26 and 23 % of these portions 
respectively shall be calculated and added together. 
The second result shall be obtained by multiplying the sum so obtained by the ratio existing in 
respect of the last financial year between the amount of claims remaining to be borne by the 
business after transfers for reinsurance and the gross amount of claims; this ratio may in no case 
be less than 50 %. 
3. The fractions applicable to the portions referred to in Article 2 (2) of this Protocol shall each be 
reduced to a third in the case of health insurance practised on a similar technical basis to that of life 
assurance, if: 
— the premiums paid are calculated on the basis of sickness tables according to the mathematical 
method applied in insurance, 
— a reserve is set up for increasing age, 
— an additional premium is collected in order to set up a safety margin of an appropriate amount, 
— the insurer may only cancel the contract before the end of the third year of insurance at the 
latest, 
— the contract provides for the possibility of increasing premiums or reducing payments even for 
current contracts. 
4. In the case of the association of underwriters known as Lloyd's, the calculation of the first 
result in respect of premiums, referred to in Article 2 (2) of this Protocol, shall be made on the basis 
of net premiums, which shall be multiplied by a flat-rate percentage fixed annually by the 
No C 53/26 Official Journal of the European Communities 5. 3. 90 
supervisory authority of the Contracting Party in whose territory the head office of the undertaking 
is situated. This flat-rate percentage must be calculated on the basis of the most recent statistical 
data on commission paid. 
The details, together with the relevant calculations, shall be sent to the supervisory authority of 
Switzerland if the association of underwriters known as Lloyd's is established there. 
5. In the case of the risks listed under class 18 in part A of Annex I, the amount of claims paid used 
to calculate the second result (claims basis) shall be the costs borne by the undertaking in respect of 
assistance given. Such costs shall be calculated in accordance with the provisions of the Contracting 
Party in whose territory the head office of the undertaking is situated. 
Article 3 
Guarantee fund 
1. One-third of the solvency margin shall constitute the guarantee fund. 
2. The guarantee fund may not, however, be less than: 
— ECU 1 400 000 where all or some of the risks included in the class listed in part A of Annex I 
under 14 are covered. This provision shall apply to every undertaking for which the annual 
amount of premiums or contributions due in this class for each of the last three financial years 
exceeded ECU 2 500 000 or 4 % of the total amount of premiums or contributions receivable by 
the undertaking concerned, 
— ECU 400 000 where all or some of the risks included in one of the classes listed in part A of 
Annex I under 10, 11, 12, 13 and 15 and, in so far as the first indent does not apply, 14, are 
covered, 
— ECU 300 000 where all or some of the risks included in one of the classes listed in part A of 
Annex I under 1, 2, 3, 4, 5, 6, 7, 8, 16 and 18 are covered, 
— ECU 200 000 where all or some of the risks included in one of the classes listed in part A of 
Annex I under 9 and 17 are covered. 
3. If the business carried on by the undertaking covers several classes or several risks, only that 
class or risk for which the highest amount is required shall be taken into account. 
4. Each Contracting Party may provide for a one-fourth reduction of the minimum guarantee 
fund in the case of mutual associations and mutual-type associations. 
5. Where an undertaking has, in accordance with the first indent of Article 3 (2) of this Protocol, 
to increase the guarantee fund to ECU 1 400 000, the Contracting Party in question shall allow the 
undertaking: 
— a period of three years in which to increase the fund to ECU 1 000 000, 
— a period of five years in which to increase the fund to ECU 1 200 000, 
— a period of seven years in which to increase the fund to ECU 1 400 000. 
These periods shall start to run on the day on which the conditions set out in the first indent of 
Article 3 (2) of this Protocol are met. 
Article 4 
Relationship between the ecu and the Swiss franc 
The relationship between the ecu and the Swiss franc and the procedures necessary for defining that 
relationship for the purposes of this Protocol are laid down in Protocol 3. 
5,3,90 COfficialjournal of the European Communities ^oC53B^ 
P^C^PC^^C^L^ 
scheme of operations 
content 
Lheschemeofoperationsofthe agency or branch shall contain the following particulars orproofs 
concerning^ 
^a^ the nature of the risks which the undertaking proposes to covers 
^the general and special policy conditions which it proposes to use^ 
^c^ the scales of premiums which the undertaking proposes to apply for each category ofbusiness^ 
^d^the guiding principles as to reinsurances 
^the state of the solvency margin of the undertakings referred to in l^rotocoll^ 
^estimates relating to the expenses of installing the administrative services and the organization 
for securing business^the financial resources intended to coverthem^and^ where the risks to be 
coveredare listed under class l^inpartAofAnnexlgheresourcesavailable to the undertaking 
for providing the promised assistances 
and^ in additions for the first three financial years^ 
^estimates relatingto expenses of managements 
^estimates relating to premiums or contributions and to claims in respect ofthe new business^ 
d^ the forecast balance sheet for the agency or branch, 
Arr^^^ 
exceptions 
1, The particulars referred to in^and^ofArticlelofthis protocol shall not be required with 
regard to the following d^^^i^^ 
^a^ risks listed under classes 4^ 5^ 6^^11 and 1^ in partAof Annexe 
^b^risks listed under classes 14 and 15 in partAofAnnex^where the policy-holder is engaged 
professionally in anindustrial or commercial activity orinoneofthe liberal professions^ and the 
risks relate to such activity^ 
^c^ risks listed under classes 8^ 9^ 13 and 16 in partAofAnnexlin so far as the policy-holder 
exceeds the limits of at least two of the following three criteria^ 
first stage^until 31 I0ecemberl99^^ 
— balance-sheet totah^C^C^1^^4million^ 
— net turnover^CU ^4 millions 
— average number of employees during the financial year^ 500^ 
second stage^froml]anuary!993^ 
— balance-sheet totah^CC^ 6^ millions 
— net turnover^C01^8 millions 
— average number of employees during the financial year^50. 
No C 53/28 Official Journal of the European Communities 5. 3. 90 
If the policy-holder belongs to a group of undertakings for which consolidated accounts are 
drawn up in accordance with the law in force in the Contracting Party to whose jurisdiction the 
group is subject, the criteria mentioned above shall be applied on the basis of the consolidated 
accounts. 
Each Contracting Party may add to the category mentioned under (c) risks insured by 
professional associations, joint ventures or temporary groupings. 
2. However, in Switzerland the particulars referred to in (b) and (c) of Article 1 of this Protocol 
may be required with regard to the risks listed under class 12 in part A of Annex I where the vessels 
involved are lake or river vessels. 
PROTOCOL 3 
Relationship between the ecu and the Swiss franc 
Article 1 
Ecu 
For the purposes of this Agreement, 'ecu' means the ecu as defined by the competent Community 
authorities. 
Article 2 
Relationship between national currencies and the ecu 
1. In so far as amounts expressed in ecus in this Agreement have to be converted into national 
currencies to enable the supervisory authorities to apply the Agreement's provisions directly, the 
conversion shall be effected in accordance with the provisions of Article 2 (2) and (3) of this 
Protocol. 
2. With regard to the conversion of amounts expressed in ecus into the national currencies of the 
Member States of the Community, the rules laid down by the competent Community authorities 
shall apply. 
3. With regard to the equivalent in Swiss francs of amounts expressed in ecus, the exchange value 
of one ecu shall, for the purposes of this Agreement, be 1,83 (*) Swiss francs. 
Article 3 
Alteration of the relationship between the ecu and the Swiss franc 
1. The relationship between the ecu and the Swiss franc referred to in Article 2 (3) shall be 
reviewed annually as follows: where the exchange value of the ecu in terms of Swiss francs as fixed 
by the Swiss National Bank for the last working day in October fluctuates by more than 10 % on 
either side of the value used for the purposes of this Agreement, that value shall be adjusted 
accordingly with effect from 1 January of the following year. 
2. The Joint Committee referred to in Article 37 may make such other adjustments as may be 
necessary. 
(x) This figure is given for guidance only. The ecu/Swiss franc conversion rate will be fixed on the day before 
that on which the Agreement is signed. 
5. 3. 90 Official Journal of the European Communities No C 53/29 
PROTOCOL 4 
Agencies and branches of undertakings whose head office is situated outside 
the territories to which this Agreement applies 
Article 1 
Conditions for authorization 
Each Contracting Party may grant to an undertaking whose head office is situated outside the 
territories to which this Agreement applies under Article 41 thereof, authorization to open an 
agency or branch in its territory, if the applicant undertaking fulfils at least the following 
conditions: 
(a) it is entitled to undertake insurance business under its national law; 
(b) it establishes an agency or branch in the territory of the Contracting Party in question; 
(c) it undertakes to establish at the place of management of the agency or branch accounts specific 
to the business which it undertakes there, and to keep there all the records relating to the 
business transacted; 
(d) it designates an authorized agent, to be approved by the supervisory authority; 
(e) it possesses in the country in which it carries on its business assets of an amount equal to at least 
one-half of the minimum amount prescribed in Article 3 (2) of Protocol 1, in respect of the 
guarantee fund, and deposits one-quarter of the minimum amount as security; 
(f) it undertakes to keep a solvency margin in accordance with Article 3 of this Protocol; 
(g) it submits a scheme of operations in accordance with the provisions of Article 9 (1) (c) of the 
Agreement and Protocol 2. Each Contracting Party may, if the legal provisions in force therein 
so permit, require an undertaking which has been in existence for fewer than three financial 
years to supply the balance sheet and profit and loss account which must accompany the scheme 
of operations only in respect of the financial years which have closed. 
Article 2 
Technical reserves 
Under this Protocol, each Contracting Party shall apply to agencies or branches set up in its 
territory rules regarding technical reserves which may not be more favourable than those provided 
for in Articles 19,20 and 21. By way of derogation from the second sentence of Article 20 (1) it shall 
require assets representing technical reserves to be localized in the territory for which the 
supervisory authority of the Contracting Party concerned is responsible. 
Article 3 
Solvency margin 
1. Under this Protocol, each Contracting Party shall require for agencies or branches established 
in its territory a solvency margin consisting of assets free of all foreseeable liabilities, less any 
intangible items. The solvency margin shall be calculated in accordance with Article 2 (2) and (3) of 
Protocol 1. However, for the purpose of calculating this margin, account shall be taken only of the 
premiums or contributions and claims pertaining to the business effected by the agency or branch 
concerned. 
No C 53/30 Official Journal of the European Communities 5. 3. 90 
2. One-third of the solvency margin shall constitute the guarantee fund. The guarantee fund may 
not be less than one-half of the minimum required under Article 3 (2) of Protocol 1. The initial 
security lodged in accordance with subparagraph (e) of Article 1 of this Protocol shall be counted 
towards such guarantee fund. 
3. The assets representing the solvency margin shall be localized in the territory for which the 
supervisory authority of the Contracting Party concerned is responsible. 
4. The Community may allow these rules to be relaxed in the case of undertakings with agencies 
or branches in various Member States in order to facilitate their supervision. 
Article 4 
Verification and restoration of financial situation 
The provisions of Articles 17 (3) and 18 shall apply mutatis mutandis in relation to agencies and 
branches of undertakings to which this Protocol applies. 
Article 5 
Agreements with third countries 
Each Contracting Party may, by means of agreements concluded with one or more third countries, 
agree to the application of provisions different from those provided for in this Protocol on 
condition that its insured persons are adequately protected under conditions of reciprocity. 
5. 3. 90 Official Journal of the European Communities No C 53/31 
EXCHANGE OF LETTERS No 1 
Principle of non-discrimination 
Delegation of the 
Commission of the European 
Communities 
Brussels, 26 July 1989 
Sir, 
With reference to the Agreement between the Community and Switzerland, initialled today, I have 
the honour to confirm that the obligation of non-discrimination referred to in Article 5 thereof 
exclusively concerns the taking-up and pursuit of the activity of direct insurance in the territory 
falling under the jurisdiction of the supervisory authority which grants authorization and also 
applies to the Member States of the Community in the exercise of their power to legislate in the 
areas covered by the said Agreement. 
I would ask you to take note of this communication, and to accept, Sir, the assurance of my high 
consideration. 
Geoffrey FITCHEW 
Head of the Delegation 
of the Commission of the European 
Communities 
Franz Blankart, Esq. 
State Secretary 
Head of the Swiss Delegation 
Berne 
Swiss Delegation 
Berne, 16 July 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between the Community and Switzerland, initialled today, I 
have the honour to confirm that the obligation of non-discrimination referred to in Article 5 
thereof exclusively concerns the taking-up and pursuit of the activity of direct insurance in the 
territory falling under the jurisdiction of the supervisory authority which grants authorization 
and also applies to the Member States of the Community in the exercise of their power to 
legislate in the areas covered by the said Agreement.' 
I have taken note of this communication, and in turn ask you to accept, Sir, the assurance of my 
high consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Geoffrey Fitchew, Esq. 
Director General 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
No C 53/32 Official Journal of the European Communities 5. 3. 90 
EXCHANGE OF LETTERS No 2 
Scope of authorization 
Delegation of the 
Commission of the European 
Communities 
Brussels, 26 July 1989 
Sir, 
With reference to the Agreement between the Community and Switzerland, initialled today, I have 
the honour to remind you of our understanding that Article 8(1) does not affect the provisions in 
force in each Contracting Party concerning the possibility for an insurance undertaking to cover 
risks situated outside the territory for which the supervisory authority which granted it 
authorization is responsible. 
I would ask you to kindly confirm the above, and to accept, Sir, the assurance of my high 
consideration. 
Geoffrey FITCHEW 
Head of the Delegation of the Commission of 
the European Communities 
Franz Blankart, Esq. 
State Secretary 
Head of the Swiss Delegation 
Berne 
Swiss Delegation 
Berne, 26 July 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between the Community and Switzerland, initialled today, I 
have the honour to remind you of our understanding that Article 8(1) does not affect the 
provisions in force in each Contracting Party concerning the possibility for an insurance 
undertaking to cover risks situated outside the territory for which the supervisory authority 
which granted it authorization is responsible.' 
I have taken note of this communication, and in turn ask you to accept, Sir, the assurance of my 
high consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Geoffrey Fitchew, Esq. 
Director General 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
5. 3. 90 Official Journal of the European Communities No C 53/33 
EXCHANGE OF LETTERS No 3 
Authorized agent 
Swiss Delegation 
Berne, 25 June 1989 
Sir, 
With reference to the Agreement between Switzerland and the Community, initialled today, I have 
the honour to state that it does not preclude the authorized agent referred to in Articles 10 (1) (d) 
and 11 (4) thereof and in subparagraph (d) of Article 1 of Protocol No 4 being required to assume 
effective management of the agency or branch in respect of all the business activities the latter 
intends carrying on in the territory for which the supervisory authority from which authorization is 
sought is responsible. 
I would ask you to kindly confirm the above, and to accept, Sir, the assurance of my high 
consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Gerard Imbert, Esq. Director 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
Delegation of the 
Commission of the European 
Communities 
Brussels, 25 June 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between Switzerland and the Community, initialled today, I 
have the honour to state that it does not preclude the authorized agent referred to in Articles 10 
(1) (d) and 11 (4) thereof and in subparagraph (d) of Article lof Protocol No 4 being required to 
assume effective management of the agency or branch in respect of all the business activities the 
latter intends carrying on in the territory for which the supervisory authority from which 
authorization is sought is responsible.' 
I hereby confirm the above, and in turn ask you to accept, Sir, the assurance of my high 
consideration. 
Gerard IMBERT 
Head of the Delegation of the Commission of 
the European Communities 
Franz Blankart, Esq. Ambassador 
Head of the Swiss Delegation 
Berne 
No C 53/34 Official Journal of the European Communities 5. 3. 90 
EXCHANGE OF LETTERS No 4 
Assignment to the Swiss Securities Fund of immovable 
property directly owned by insurance undertakings 
Swiss Delegation 
Berne, 25 June 1989 
Sir, 
With reference to the Agreement between Switzerland and the Community, initialled today, I have 
the honour to inform you that Switzerland reserves the right, with regard to the assignment to the 
securities fund of immovable property directly owned by insurance undertakings, to have the said 
immovable property registered in the securities fund register maintained by the undertaking and to 
have included in the land register a note relating thereto restricting the right to dispose freely of 
such property which, under Swiss law, does not constitute registration of a mortgage. 
I would ask you to confirm that you are also of the opinion that such a procedure is not contrary to 
Articles 11 (2) and 20 (3) of the said Agreement. 
Please accept, Sir, the assurance of my high consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Gerard Imbert, Esq. Director 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
Delegation of the 
Commission of the European 
Communities 
Brussels, 25 June 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between Switzerland and the Community, initialled today, I 
have the honour to inform you that Switzerland reserves the right, with regard to the 
assignment to the securities fund of immovable property directly owned by insurance 
undertakings, to have the said immovable property registered in the securities fund register 
maintained by the undertaking and to have included in the land register a note relating thereto 
restricting the right to dispose freely of such property which, under Swiss law, does not 
constitute registration of a mortgage.' 
I hereby confirm that I am also of the opinion that such a procedure is not contrary to Articles 11 (2) 
and 20 (3) of the said Agreement. 
Please accept, Sir, the assurance of my high consideration. 
Gerard IMBERT 
Head of the Delegation of the Commission 
of the European Communities 
Franz Blankart, Esq. Ambassador 
Head of the Swiss Delegation 
Berne 
5. 3. 90 Official Journal of the European Communities No C 53/35 
EXCHANGE OF LETTERS No 5 
Principles governing investment 
Swiss Delegation 
Berne, 25 June 1989 
Sir, 
With reference to the Agreement between Switzerland and the Community, initialled today, I have 
the honour to state with regard to the assets referred to in Article 15 that the said Agreement does 
not preclude the supervisory authority from taking action in specific cases where the choice of 
assets is likely to place the financial security of an undertaking in serious jeopardy or diminish its 
degree of liquidity. 
I would ask you to kindly confirm the above, and to accept, Sir, the assurance of my high 
consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Gerard Imbert, Esq. Director 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
Delegation of the 
Commission of the European 
Communities 
Brussels, 25 June 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between Switzerland and the Community, initialled today, I 
have the honour to state with regard to the assets referred to in Article 15 that the said 
Agreement does not preclude the supervisory authority from taking action in specific cases 
where the choice of assets is likely to place the financial security of an undertaking in serious 
jeopardy or diminish its degree of liquidity.' 
I hereby confirm the above, and in turn ask you to accept, Sir, the assurance of my high 
consideration. 
Gerard IMBERT 
Head of the Delegation of the Commission 
of the European Communities 
Franz Blankart, Esq. Ambassador 
Head of the Swiss Delegation 
Berne 
No C 53/36 Official Journal of the European Communities 5. 3. 90 
EXCHANGE OF LETTERS No 6 
Swiss list of classes of insurance 
Swiss Delegation 
Berne, 25 June 1989 
Sir, 
With reference to the Agreement between Switzerland and the Community, initialled today, I have 
the honour to inform you that Switzerland will continue to apply to head offices, agencies and 
branches established in its territory its 'List of classes of insurance' for the purposes of submission 
of accounts and statistics. This will also be the case with regard to the report of the Federal Office 
for Private Insurance on 'Private insurance undertakings in Switzerland'. However, the 
'Classification of risks according to classes of insurance', set out in part A of Annex I to the said 
Agreement, will apply for the purposes of the specification of classes in applications for 
authorization and assessment of the need to approve the general and special conditions of insurance 
policies and tariffs. 
This does not preclude examination by Switzerland, at a later date, of the possibility of applying the 
abovementioned 'Classification' in its entirety. A decision to that effect would be notified to the 
Community through diplomatic channels. 
It is agreed that the scope of the 'List of classes of insurance' is the same as that of the 'Classification 
of risks according to classes of insurance'. Comparability as between the two types of classification 
is as follows: 
Swiss 
of 
1. Accident 
2. Liability list of classes 
insurance 
3. Fire and natural forces 
4. Transport 
5. Vehicles 
6. Hail 
7. Animals 
8. Theft 
9. Plate glass 
10. Damage by water 
11. Machinery 
12. Jewellery 
13. Suretyship 
14. Credit 
15. Legal defence 
16. Health 
17. Rain 
18. Special policies A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. 
A. Classes of insurance according 
to the classification in Annex I 
1 
10, 11, 12, 13 
8 
4, 6,7 
3. 5 
9 
9 
9 
9 
9 
9 
9 
15 
14 
17 
2 
16, 18 
16, 18 
I would ask you to take note of this communication, and to accept, Sir, the assurance of my high 
consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Gerard Imbert, Esq. Director 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
5. 3. 90 Official Journal of the European Communities No C 53/37 
Delegation of the 
Commission of the European 
Communities 
Brussels, 25 June 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between Switzerland and the Community, initialled today, I 
have the honour to inform you that Switzerland will continue to apply to head offices, agencies 
and branches established in its territory its 'List of classes of insurance' for the purposes of 
submission of accounts and statistics. This will also be the case with regard to the report of the 
Federal Office for Private Insurance on 'Private insurance undertakings in Switzerland'. 
However, the 'Classification of risks according to classes of insurance', set out in part A of 
Annex I to the said Agreement, will apply for the purposes of the specification of classes in 
applications for authorization and assessment of the need to approve the general and special 
conditions of insurance policies and tariffs. 
This does not preclude examination by Switzerland, at a later date, of the possibility of 
applying the abovementioned 'Classification' in its entirety. A decision to that effect would be 
notified to the Community through diplomatic channels. 
It is agreed that the scope of the 'List of classes of insurance' is the same as that of the 
'Classification of risks according to classes of insurance'. Comparability as between the two 
types of classification is as follows: 
Swiss list of classes 
of insurance 
1. Accident 
2. Liability 
3. Fire and natural forces 
4. Transport 
5. Vehicles 
6. Hail 
7. Animals 
8. Theft 
9. Plate glass 
10. Damage by water 
11. Machinery 
12. Jewellery 
13. Suretyship 
14. Credit 
15. Legal defence 
16. Health 
17. Rain 
18. Special policies Classes of insurance according 
to the classification in Annex I 
A. 1 
A. 10, 11, 12, 13 
A. 8 
A. 4, 6, 7 
A. 3, 5 
A. 9 
A. 9 
A. 9 
A. 9 
A. 9 
A. 9 
A. 9 
A. 15 
A. 14 
A. 17 
A. 2 
A. 16, 18 
A. 16, 18' 
I have taken note of this communication, and in turn ask you to accept, Sir, the assurance of my 
high consideration. 
Gerard IMBERT 
Head of the Delegation of the Commission 
of the European Communities 
Franz Blankart, Esq. Ambassador 
Head of the Swiss Delegation 
Berne 
No C 53/38 Official Journal of the European Communities 5. 3. 90 
EXCHANGE OF LETTERS No 7 
The capital of insurance undertakings 
Swiss Delegation 
Berne, 15 June 1989 
Sir, 
With reference to the Agreement between Switzerland and the Community, initialled today, I have 
the honour to remind you of our understanding that the provisions concerning the minimum 
solvency margin calculated in accordance with Article 2 (2) of Protocol 1, and the minimum 
guarantee fund, referred to in Article 3 (2) of that Protocol, have no bearing on the laws or practices 
of the Contracting Parties regarding the requirements relating to the capital of undertakings. 
I would ask you to kindly confirm the above, and to accept, Sir, the assurance of my high 
consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Gerard Imbert, Esq. Director 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
Delegation of the 
Commission of the European 
Communities 
Brussels, 25 June 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between Switzerland and the Community, initialled today, I 
have the honour to remind you of our understanding that the provisions concerning the 
minimum solvency margin calculated in accordance with Article 2 (2) of Protocol No 1, and the 
minimum guarantee fund, referred to in Article 3 (2) of that Protocol, have no bearing on the 
laws or practices of the Contracting Parties regarding the requirements relating to the capital of 
undertakings.' 
I hereby confirm the above, and in turn ask you to accept, Sir, the assurance of my high 
consideration. 
Gerard IMBERT 
Head of the Delegation of the Commission 
of the European Communities 
Franz Blankart, Esq. Ambassador 
Head of the Swiss Delegation 
Berne 
5. 3. 90 Official Journal of the European Communities No C 53/39 
EXCHANGE OF LETTERS No 8 
Transitional arrangements for assistance 
Delegation of the 
Commission of the European 
Communities 
Brussels, 26 July 1989 
Sir, 
With reference to the Agreement between the Community and Switzerland, initialled today, I have 
the honour to remind you of our understanding that the Member States of the Community may 
allow undertakings which, on 12 December 1984, provided only assistance in their territory a 
period of five years from that date in order to comply with the requirements set out in Article 16 of 
this Agreement. 
The Member States of the Community may allow any undertakings referred to above which, upon 
expiry of the five-year period, have not fully established the solvency margin a further period not 
exceeding two years in which to do so provided that such undertakings have, in accordance with 
Article 18 of this Agreement, submitted for the approval of the supervisory authority the measures 
which they propose to take for that purpose. 
Any undertaking referred to above which wishes to extend its business to other classes or, in the 
case referred to in Article 8(1) of this Agreement, to another part of the territory, may do so only on 
condition that it complies forthwith with this Agreement. 
Moreover, until 12 December 1992, the condition specified in point 5 of part B of Annex II to this 
Agreement, namely that the accident or breakdown must have happened in the territory of the 
Contracting Party in which the undertaking providing cover is established, shall not apply to the 
operations referred to in the third indent of the abovementioned point where these operations are 
carried out by the ELPA (Automobile and Touring Club of Greece). 
I would ask you to kindly confirm the above, and to accept, Sir, the assurance of my high 
consideration. 
Geoffrey FITCHEW 
Head of the Delegation of the Commission 
of the European Communities 
Franz Blankart, Esq. 
State Secretary 
Head of the Swiss Delegation 
Berne 
Swiss Delegation 
Berne, 26 July 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between the Community and Switzerland, initialled today, I 
have the honour to remind you of our understanding that the Member States of the Community 
may allow undertakings which, on 12 December 1984, provided only assistance in their 
territory a period of five years from that date in order to comply with the requirements set out in 
Article 16 of this Agreement. 
No C 53/40 Official Journal of the European Communities 5. 3. 90 
The Member States of the Community may allow any undertakings referred to above which, 
upon expiry of the five-year period, have not fully established the solvency margin a further 
period not exceeding two years in which to do so provided that such undertakings have, in 
accordance with Article 18 of this Agreement, submitted for the approval of the supervisory 
authority the measures which they propose to take for that purpose. 
Any undertaking referred to above which wishes to extend its business to other classes or, in the 
case referred to in Article 8 (1) of this Agreement, to another part of the territory, may do so 
only on condition that it complies forthwith with this Agreement. 
Moreover, until 12 December 1992, the condition specified in point 5 of part B of Annex II to 
this Agreement, namely that the accident or breakdown must have happened in the territory of 
the Contracting Party in which the undertaking providing cover is established, shall not apply 
to the operations referred to in the third indent of the abovementioned point where these 
operations are carried out by the ELPA (Automobile and Touring Club of Greece).' 
I hereby confirm the above, and in turn ask you to accept, Sir, the assurance of my high 
consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Geoffrey Fitchew, Esq. 
Director General 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
5. 3. 90 Official Journal of the European Communities No C 53/41 
EXCHANGE OF LETTERS No 9 
Transitional arrangements for the large risks referred to in Article 2 (1) of Protocol 2 
Delegation of the 
Commission of the European 
Communities 
Brussels, 26 July 1989 
Sir, 
With reference to the Agreement between the Community and Switzerland, initialled today, I have 
the honour to remind you of our understanding that Greece, Ireland, Spain and Portugal benefit 
from the following transitional arrangements in respect of the large risks referred to in Article 2(1) 
of Protocol 2 to this Agreement: 
(a) until 31 December 1992, they may apply, to all risks, the regime other than that for risks referred 
to in Article 2 (1) of Protocol 2 to this Agreement; 
(b) from 1 January 1993 to 31 December 1994, the regime for large risks shall apply to risks referred 
to in Article 2(1) (a) and (b) of Protocol 2 to this Agreement; for risks referred to under (c) of the 
same paragraph, these Member States shall fix the thresholds to apply therefor; 
(c) Spain: 
— from 1 January 1995 to 31 December 1996, the thresholds of the first stage fixed in Article 2 
(1) (c) of Protocol 2 to this Agreement shall apply, 
— from 1 January 1997, the thresholds of the second stage shall apply; 
(d) Portugal, Ireland and Greece: 
— from 1 January 1995 to 31 December 1998 the thresholds of the first stage fixed in Article 2 
(1) (c) of Protocol 2 to this Agreement shall apply, 
— from 1 January 1999 the thresholds of the second stage shall apply. 
The derogation allowed from 1 January 1995 shall only apply to contracts covering risks classified 
under classes 8, 9, 13 and 16 in part A of Annex I situated exclusively in one of the four Member 
States of the Community benefiting from the transitional arrangements. 
I would ask you to kindly confirm the above, and to accept, Sir, the assurance of my high 
consideration. 
Geoffrey FITCHEW 
Head of the Delegation of the Commission 
of the European Communities 
Franz Blankart, Esq. 
State Secretary 
Head of the Swiss Delegation 
Berne 
No C 53/42 Official Journal of the European Communities 5. 3. 90 
Swiss Delegation 
Berne, 26 July 1989 
Sir, 
I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 
'With reference to the Agreement between the Community and Switzerland, initialled today, I 
have the honour to remind you of our understanding that Greece, Ireland, Spain and Portugal 
benefit from the following transitional arrangements in respect of the large risks referred to in 
Article 2 (1) of Protocol 2 to this Agreement: 
(a) until 31 December 1992, they may apply, to all risks, the regime other than that for risks 
referred to in Article 2 (1) of Protocol 2 to this Agreement; 
(b) from 1 January 1993 to 31 December 1994, the regime for large risks shall apply to risks 
referred to in Article 2 (1) (a) and (b) of Protocol 2 to this Agreement; for risks referred to 
under (c) of the same paragraph, these Member States shall fix the thresholds to apply 
therefore; 
(c) Spain: 
— from 1 January 1995 to 31 December 1996, the thresholds of the first stage fixed in 
Article 2 (1) (c) of Protocol 2 to this Agreement shall apply, 
— from 1 January 1997, the thresholds of the second stage shall apply; 
(d) Portugal, Ireland and Greece: 
— from 1 January 1995 to 31 December 1998 the thresholds of the first stage fixed in Article 
2 (1) (c) of Protocol 2 to this Agreement shall apply. 
— from 1 January 1999 the thresholds of the second stage shall apply. 
The derogation allowed from 1 January 1995 shall only apply to contracts covering risks classified 
under classes 8, 9, 13 and 16 in part A of Annex I situated exclusively in one of the four Member 
States of the Community benefiting from the transitional arrangements.' 
I hereby confirm the above, and in turn ask you to accept, Sir, the assurance of my high 
consideration. 
Franz BLANKART 
Head of the Swiss Delegation 
Geoffrey Fitchew, Esq. 
Director General 
Head of the Delegation of the Commission 
of the European Communities 
Brussels 
5. 3. 90 Official Journal of the European Communities No C 53/43 
Joint declaration by the Contracting Parties concerning the period between the date of signature 
and the date of entry into force of the Agreement 
During the period between the date of signature and the date of entry into force of this Agreement, 
referred to in Article 44 (3) thereof, each Contracting Party hereby declares that it will not 
introduce any new provisions on supervision which are liable to be repealed under this Agreement 
concerning agencies and branches belonging to undertakings whose head office is situated in the 
territory of the other Contracting Party and which wish to become established in its territory, or are 
established there, for the purpose of taking up or pursuing the self-employed activity of direct 
insurance other than life assurance. 
The Contracting Parties further undertake to initiate without delay the procedures necessary to 
amend their national laws in accordance with this Agreement. 
FINAL ACT 
The representatives of 
THE SWISS CONFEDERATION 
and THE EUROPEAN ECONOMIC COMMUNITY 
assembled in . . . on . . . 
on the occasion of the signature of the Agreement between the Swiss Confederation and the European Economic 
Community on direct insurance other than life assurance, 
have, at the time of signature of this Agreement, 
— taken note of the exchanges of letters annexed to the abovementioned Agreement: 
Exchange of Letters No 1: Principle of non-discrimination 
Exchange of Letters No 2: Scope of authorization 
Exchange of Letters No 3: Authorized agent 
Exchange of Letters No 4: Assignment to the Swiss Securities Fund of immovable property directly owned 
by insurance undertakings 
Exchange of Letters No 5: Principles governing investment 
Exchange of Letters No 6: Swiss list of classes of insurance 
Exchange of Letters No 7: The capital of insurance undertakings 
Exchange of Letters No 8: Transitional arrangements for assistance 
Exchange of Letters No 9: Transitional arrangements for the large risks referred to in Article 2 (1) of 
Protocol 2 
— adopted the following declaration which is annexed to the above Agreement: 
Joint declaration by the Contracting Parties concerning the period between the date of signature and the 
date of entry into force of the Agreement. 
No C 53/44 Official Journal of the European Communities 5. 3. 90 
Hecho en , el 
Udfaerdiget i , den 
Geschehen zu , am 
Eyive , TT|V 
Done at , on this day of in the year 
Fait a , le 
Fatto a , il 
Gedaan te , de 
Feito em , em 
En nombre del Consejo de las Comunidades Europeas 
Pa Radet for De Europaeiske Faellesskabers vegne 
Im Namen des Rates der Europaischen Gemeinschaften 
Tia TO SuupouXio xcov EupoorcaiKcbv KOIVOTT|TG)V 
In the name of the Council of the European Communities 
Au nom du Conseil des Communautes europeennes 
A nome del Consiglio delle Comunita Europee 
Namens de Raad van de Europese Gemeenschappen 
Em nome do Conselho das Comunidades Europeias 
Fur die Schweizerische Eidgenossenschaft 
Pour la Confederation suisse 
Per la Confederazione svizzera