No C 355/30 Official Journal of the European Communities 31. 12.80 
Amendment of the proposal for a Council Directive on the coordination of laws, 
regulations and administrative provisions relating to insurance contracts (') 
(Submitted to the Council by the Commission pursuant to the second paragraph of Article 
149 of the EEC Treaty on 30 December 1980) 
INITIAL PROPOSAL NEW PROPOSAL 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES THE COUNCIL OF THE EUROPEAN 
COMMUNITIES 
Citations unchanged 
First recital unchanged 
Second recital 
Whereas the second Council Directive .../.. ./EEC 
of ... on the coordination of laws, regulations and 
administrative provisions relating to direct insurance 
other than life assurance and laying down provisions 
to facilitate the effective exercise of freedom to 
provide services granted the parties freedom to 
choose the law applicable to the contract, firstly in 
the case of risks classified as transport, primarily on 
account of their frequently international character, 
and secondly in the case of certain risks which are 
defined by precise criteria in respect of which there is 
less need of protection for insured persons; Whereas the second Council Directive .../.. ./EEC 
of ... on the coordination of laws, regulations and 
administrative provisions relating to direct insurance 
other than life assurance and laying down provisions 
to facilitate the effective exercise of freedom to 
provide services, granted the parties freedom to 
choose the law applicable to the contract, firstly in 
the case of risks classified as transport, primarily on 
account of their frequently international character, 
and secondly in the case of certain risks which are 
defined by precise criteria; (13 words deleted); 
New recital 
Whereas coordination of laws relating to insurance 
contracts would facilitate the provision of services in a 
Member State by those providing them in another 
Member State; 
Third recital 
Whereas, however, pending subsequent coordination 
of national rules governing insurance contracts, that 
Directive maintained in respect of other risks the 
principle of the application of the law in force in the 
State in which the risk is situated; whereas such 
coordination, by establishing a balance between the 
interests of the insurer on the one hand and the 
protection of the policyholder and the insured person 
on the other, is likely to enable freedom of choice to 
be extended and thus to facilitate the exercise of 
freedom to provide services; Whereas in coordinating the laws relating to 
insurance contracts it is necessary to maintain the 
fairest balance between the interests of the insurer on 
the one hand and the protection of the insured person 
on the other; whereas such coordination is likely to 
facilitate an extension of the freedom of choice of the 
law applicable to the contract; 
(') OJ No C 190, 28. 7. 1979, p. 2. 
31.12.80 Official Journal of the European Communities No C 355/31 
INITIAL PROPOSAL NEW PROPOSAL 
Fourth recital 
Whereas it was considered advisable to exclude from 
the scope of the Directive marine, aviation and 
transport insurance because of their widely inter­
national character and the freedom traditionally 
allowed to the parties in concluding such contracts; 
whereas the credit and suretyship insurance classes 
display peculiarities which, pending subsequent 
coordination, justify not making them subject to the 
provisions of this Directive as they stand; Whereas it was considered advisable to exclude from 
the scope of the Directive, marine, aviation and 
transport insurance because of their widely inter­
national character and the freedom traditionally 
allowed to the parties in concluding such contracts, 
and sickness insurance which in some cases is operated 
in a manner similar to life assurance and has special 
technical features; whereas the credit and suretyship 
insurance classes display peculiarities which, pending 
subsequent coordination, justify not making them 
subject to the provisions of this Directive as they 
stand; 
Fifth recital 
Whereas among the fundamental problems posed by 
legislation on insurance contracts are the 
consequences resulting firstly from the conduct of the 
policyholder at the time of the conclusion and in the 
course of the contract concerning the declaration of 
the risk and of the claim, and secondly his attitude 
with regard to the measures to be taken in the event 
of a claim; Whereas among the problems (one word deleted) 
posed by legislation on insurance contracts are the 
consequences resulting (one word deleted) from the 
conduct of the policyholder at the time of the 
conclusion and in the course of the contract 
concerning the declaration of the risk and of the 
claim, and (three words deleted) with regard to the 
measures to be taken in the event of a claim; 
Sixth recital 
Whereas it is also necessary to regulate certain 
general questions relating in particular to the 
existence of cover depending on the payment of the 
premium, the duration of the contract, and the 
position of insured persons who are not 
policyholders; Whereas it is also desirable to coordinate the law 
relating in particular to the existence of cover 
depending on the payment of the premium, the 
duration of the contract, and the position of insured 
persons who are not policyholders; 
Seventh recital unchanged 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 Article 1 
The object of this Directive is to coordinate the 
fundamental laws, regulations and administrative 
provisions governing insurance contracts relating to 
one of the classes contained in point A of the Annex 
to Directive 73/239/EEC of 24 July 1973 on the 
coordination of laws, regulations and administrative 
provisions relating to the taking-up and pursuit of 
the business of direct insurance other than life assur­
ance ('), with the exception of the classes contained 
in points 4 (railway rolling stock), 5 (aircraft), 6 The object of this Directive is to coordinate the 
important laws, regulations and administrative 
provisions governing insurance contracts covering 
risks situated in Member States of the Community 
and relating to one of the classes contained in point A 
of the Annex to Directive 73/239/EEC of 24 July 
1973 on the coordination of laws, regulations and 
administrative provisions relating to the taking-up 
and pursuit of the business of direct insurance other 
than life assurance 1, with the exception of the classes 
No C 355/32 Official Journal of the European Communities 31. 12.80 
INITIAL PROPOSAL NEW PROPOSAL 
(ships, sea, lake and river and canal vessels), 7 (goods 
in transit), 11 (aircraft liability), 12 (liability for ships, 
sea, lake and river and canal vessels), 14 (credit) and 
15 (suretyship). contained in points 2 (sickness), 4 (railway rolling 
stock), 5 (aircraft), 6 (ships (sea, lake and river and 
canal vessels)), 7 (goods in transit), 11 (aircraft 
liability), 12 (liability for ships (sea, lake and river 
and canal vessels)), 14 (credit) and 15 (suretyship). 
Article 2 Article 2 
1. Every insurance contract shall give rise to the 
issue to the policyholder of a document containing at 
least the following information: 
(a) the name and address or head office of the 
contracting parties; 
(b) the subject matter of the insurance and a 
description of the risks covered; 
(c) the amount insured or the method of calculating 
it; 
(d) the amount of the premium or contribution or the 
method of calculating it; 
(e) the dates on which premiums or contributions fall 
due; 
(f) the duration of the contract and the times at 
which cover commences and expires and, where it 
applies, the time of automatic renewal. 1. Every insurance contract shall give rise to the 
issue to the policyholder of a document containing at 
least the following information: 
(a) the name and address of the policyholder; name 
and registered office of the insurer or co-insurers; 
address of the establishment to which the 
policyholder is to send his declarations and pay 
the premiums; 
(b) the subject matter of the insurance, any exclusions 
and a description of the risks covered; 
(c) the amount insured or the method of calculating 
it; 
(d) the amount of the premium or contribution or the 
method of calculating it; 
(e) the dates on which premiums or contributions fall 
due; 
(f) the duration of the contract and the times at 
which cover commences and expires and, where it 
applies, the time of automatic renewal. 
2. Pending the issue of such a document the 
policyholder shall be entitled to receive, at the earliest 
opportunity, a document which attests to the 
existence of an insurance contract and contains at 
least the information referred to in paragraph 1 (1), 
(b) and (c). 2. Pending the issue of such a document the 
policyholder shall be entitled to receive, without 
delay, a document which attests to the existence of an 
insurance contract and contains at least the infor­
mation referred to in paragraph 1 (a), (b) and (c). 
3. If, after the contract has been concluded any 
change occurs that affects the information referred to 
under paragraph 1 (a) to (f), the insurer shall furnish 
the policyholder with a document notifying such 
change 3. If, after the contract has been concluded, any 
agreed change occurs that affects the information 
referred to under paragraph 1 (a) to (f), the insurer 
shall furnish the policyholder with a document 
containing information as to such change. 
4. If provisional cover is provided the policyholder 
shall receive a document which certifies that such 
cover has in fact been provided and which contains at 
least the information referred to in paragraph 1 (a), 
(b), (c) and (f). 4. If provisional cover is provided, the policy­
holder shall be entitled to receive a document which 
contains the information that such cover has in fact 
been provided and which contains at least the infor­
mation referred to in paragraph 1 (a), (b), (c) and (f). 
(') OJ No L 228, 16. 8. 1973, p. 3. (') OJ No L 228, 16. 8. 1973, p. 3. 
31.12.80 Official-Journal of the European Communities No C 355/33 
INITIAL PROPOSAL NEW PROPOSAL 
5. The contract shall be drafted in the language of 
the Member State whose law is applicable. 5. The documents referred to in paragraphs 1, 2, 3 
and 4 shall be drafted in the language of the Member 
State whose law is applicable according to the second 
Council Directive .../.. ./EEC of 
However, the policyholder shall be entitled to 
stipulate as a condition precedent to the conclusion of 
the contract that all documents relating to the 
conclusion, amendment and performance of the 
insurance contract be translated into the language of 
his habitual residence, provided such language is an 
official language of the Community. However, the policyholder shall be entitled to 
stipulate as a condition precedent to the conclusion of 
the contract that all documents relating to the 
conclusion, amendment and performance of the 
insurance contract be drafted in the language of his 
habitual residence, provided such language is an 
official language of the Community. 
6. The documents referred to in the above 
paragraphs have only a probative value. 6. The documents referred to in the above 
paragraphs shall have only a probative value. 
7. Notwithstanding the provisions of this Article, 
the laws of the Member States may authorize a 
simplified form for insurance contracts concluded for 
a short period and for bearer policies. 7. Notwithstanding the provisions of this Article, 
the laws of the Member States may authorize a 
simplified form for insurance contracts concluded for 
a period of less than six months and for bearer 
policies. 
Article 3 Article 3 
1. When concluding the contract, the policyholder 
shall declare to the insurer any circumstances of 
which he is aware which may influence the insurer's 
assessment or acceptance of the risk. The 
policyholder shall not be obliged to declare to the 
insurer circumstances which are already known to the 
latter or which are common knowledge. Any 
circumstance in respect of which the insurer has 
asked specific questions in writing shall, in the 
absence of proof the contrary, be regarded as 
influencing the assessment and acceptance of the risk. 1. When concluding the contract, the policyholder 
shall declare to the insurer any circumstances of 
which he ought reasonably to be aware and which he 
ought to expect to influence a prudent insurer's 
assessment or acceptance of the risk. The 
policyholder shall not be obliged to declare to the 
insurer circumstances of which the latter is already 
aware because he has already covered the risk. In the 
case of a corporate policyholder, circumstances of 
which it ought reasonably to be aware means circum­
stances of which the appropriate officer of the cor­
poration ought reasonably to have been aware. Any 
circumstances in respect of which the insurer has 
asked specific questions in writing shall, in the 
absence of proof to the contrary, be regarded as 
influencing the assessment and acceptance of the risk. 
2. (a) If circumstances which were unknown to both 
parties when the contract was concluded come 
to light subsequently, or if the policyholder has 
failed to fulfil the obligation referred to in 
paragraph 1, the insurer shall be entitled, within 
a period of two months from the date on which 
he becomes aware of the fact, to propose an 
amendment to the contract. (a) If circumstances existing at the time of 
entering into the contract which were 
unknown to both parties when the contract 
was concluded come to light subsequently, or 
if the policyholder has failed to declare 
circumstances of which he was aware but which 
he did not expect to influence a prudent 
insurer's assessment of the risk, the insurer or 
the policyholder shall be entitled, within a 
period of two months from the date on which 
he becomes aware of the fact, to propose an 
amendment to or termination of the contract. 
No C 355/34 Official Journal of the European Communities 31. 12. 80 
INITIAL PROPOSAL NEW PROPOSAL 
(b) 1. The policyholder shall be entitled to a 
period of fifteen days from the date on which 
he receives the proposal for an amendment in 
which to accept or reject it. If the policyholder 
rejects the proposal or fails to reply within the 
above time limit, the insurer may terminate the 
contract within a period of eight days by 
giving fifteen days' notice. 
2. If the contract is terminated, the insurer 
shall refund to the policyholder the proportion 
of the premium in respect of the period for 
which cover is not provided. Where one of the parties proposes an 
amendment to the contract, the insurer shall be 
entitled to a period of fifteen days and the 
policyholder to a period of one month from the 
date of receipt of the proposal in which to 
accept or reject it. In the event of rejection of 
the proposal or failure to reply within the 
above time limit, the party proposing the 
amendment may terminate the contract within 
a period of eight days. 
Termination shall not take effect until a period 
of fifteen days has elapsed from the date on 
which notice of termination is given, as the case 
may be, to the insurer or to the policyholder at 
his last known address. 
The abovementioned periods shall be extended 
to three weeks and one month where they are 
to the policyholder's benefit and the contract 
covers a risk which is not connected with a 
commercial or industrial activity of the 
policyholder. 
Where one of the parties proposes that the 
contract be terminated, termination shall not 
take effect until a period of fifteen days has 
elapsed from the date on which notice of termi­
nation is given to the insurer or to the 
policyholder at his last known address. 
The abovementioned period shall be extended 
to one month where the insurer terminates the 
contract and the contract covers a risk which is 
not connected with a commercial or industrial 
activity of the policyholder. 
(b) If the contract is terminated, the insurer shall 
refund to the policyholder the proportion of 
the premium in respect of the period for which 
cover is not provided. 
3. If a claim arises before the contract is 
amended or before termination of the contract 
has taken effect, the insurer shall provide the 
agreed cover. (c) If a claim arises before the contract is 
amended or before termination of the contract 
has taken effect, the insurer shall provide the 
agreed cover. 
3. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1 and may be 
considered to have acted improperly, the insurer may 
terminate the contract or propose an amendment to 
it. 
(a) The insurer shall choose either to terminate the 
contract or to propose an amendment to it within 
two months from the date on which he becomes 
aware of such facts. Termination shall take effect 
fifteen days after the date on which the 
policyholder is notified thereof at his last known 
address. If the insurer has proposed an 3. (a) If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1, (eight 
words deleted) the insurer may, within two 
months from the date on which he becomes 
aware of such fact, propose an amendment to 
the contract or terminate it. 
Where the insurer has proposed an 
amendment to the contract, the policyholder 
shall be entitled to accept or reject it within 
one month from the date on which he receives' 
the proposal for an amendment. If the 
policyholder refuses the proposal or fails to 
31. 12.80 Official Journal of the European Communities No C 355/35 
INITIAL PROPOSAL NEW PROPOSAL 
amendment to the contract, the policyholder shall 
be entitled to accept or reject it within fifteen 
days from the date on which he receives the 
proposal for an amendment. If the policyholder 
refuses the proposal or fails to reply, the insurer 
may terminate the contract within eight days by 
giving fifteen days' notice. 
(b) If the contract is terminated, the insurer shall 
refund to the policyholder the proportion of the 
premium in respect of the period for which cover 
is not provided* 
(c) If a claim arises before the contract is amended or 
before termination of the contract has taken 
effect, the insurer shall be liable to provide only 
such cover as is in accordance with the ratio 
between the premium paid and the premium that 
the policyholder should have paid if he had 
declared the risk correctly. reply, the insurer may terminate the contract 
within eight days. Termination shall not take 
effect until a period of fifteen days has elapsed 
from the date on which the policyholder is 
notified thereof at his last known address. 
Where the insurer terminates the contract, 
termination shall take effect fifteen days after 
the date on which the policyholder is notified 
thereof at his last known address. 
(b) If the contract is terminated, the insurer shall 
refund to the policyholder the proportion of 
the premium in* respect of the period for which 
cover is not provided. 
(c) If a claim arises before the contract is 
amended or before termination of the contract 
has taken effect, the insurer shall pay the 
policyholder a proportion of the compensation 
which would have been payable had the 
policyholder not failed to fulfil his obligations 
under paragraph 1 equal to the ratio between 
the agreed premium and the premium which a 
prudent insurer would have fixed if the 
policyholder had fulfilled his obligations under 
paragraph 1. However, if the insurer can show 
that no prudent insurer would have accepted 
the risk regardless of the rate of premium if he 
had been aware of the circumstances which the 
policyholder should have disclosed, or if the 
insurer can show that a prudent insurer would 
not have accepted the risk unless certain 
conditions were complied with, he shall not be 
bound to pay any claim. 
4. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1 with the 
intention of deceiving the insurer, the latter may 
terminate the contract. 
(a) The insurer shall take such action within two 
months from the date on which he becomes 
aware of such facts. 
(b) By way of damages, premiums paid shall be 
retained by the insurer who shall be entitled to 
the payment of all premiums due. 
(c) The insurer shall not be liable in respect of any 
claim. 4. (a) If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1 with the 
intention of deceiving the insurer, the latter 
may terminate the contract (six words deleted) 
within two months from the date on which he 
becomes aware of such fact. 
(b) By way of damages, premiums paid shall be 
retained by the insurer who shall be entitled to 
the payment of all premiums due, without 
prejudice to the payment of damages in respect 
of any additional losses he has incurred by 
reason of the intention to deceive. 
(c) The insurer shall not be liable in respect of any 
claim. 
5. In the cases referred to in paragraphs 3 and 4, 
the burden of proof of fraudulent or improper 
conduct on the part of the policyholder shall rest on 
the insurer. 5. In the cases referred to in paragraphs 3 and 4, 
the burden of proof of failure to fulfil the obligation 
referred to in paragraph 1 or of intention to deceive 
on the part of the policyholder shall rest on the 
No C 355/36 Official Journal of the European Communities 31.12.80 
INITIAL PROPOSAL NEW PROPOSAL 
Article 4 Article 4 
2. The insurer may, within two months of the date 
on which he was notified of the increase of the risk, 
propose an amendment to the contract in accordance 
with the procedure laid down in Article 3 (2) (b). 1. unchanged. 
2. The insurer may, within two months of the date 
on which he became aware of the increase of risk, 
propose an amendment to or terminate the contract 
in accordance with the provisions covering such 
circumstances set out in Article 3 (2). 
3. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1, such failure to 
give notice shall not give rise to any sanction where it 
relates to a new circumstance or change in circum­
stances which is not liable to appreciably and 
permanently increase the risk and lead to an increase 
in the premium. 3. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1, such failure to 
give notice shall not give rise to any sanction where it 
relates to a new circumstance which is (one word 
deleted) liable neither to increase the risk appreciably 
or permanently nor lead to an increase in the 
premium. 
4. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1, the insurer 
may, within two months of the date on which he 
becomes aware of such fact, propose an amendment 
to the contract in accordance with the procedure laid 
down in Article 3 (2) (b). 
5. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1 and may be 
considered to have acted improperly, Article 3 (3) 
shall apply. 4. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1, the insurer 
may, within two months of the date on which he 
becomes aware of such fact, propose an amendment 
to the contract or terminate it in the manner provided 
for in Article 3 (3). However, in respect of the 
application of the proportionality provided for in 
Article 3 (3) (c) account shall be taken only of the 
portion of premium corresponding to the period sub­
sequent to the increase. 
(deleted) 
6. If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1 with the 
intention of deceiving the insurer, the latter may 
terminate the contract. 
(a) The insurer shall take such action within two 
months from the date on which he becomes 
.aware of such fact; 
(b) By way of damages, any premiums paid shall be 
retained by the insurer who shall be entitled to 
the payment of all premiums due. 
(c) The insurer shall not be liable in respect of any 
claim arising after the increase of the risk. 5. (a) If the policyholder has failed to fulfil the 
obligation referred to in paragraph 1, with the 
intention of deceiving the insurer, the latter 
may terminate the contract (six words deleted) 
within two months from the date on which he 
becomes aware of such fact. 
(b) By way of damages, any premiums paid shall 
be retained by the insurer who shall be entitled 
to the payment of all premiums due without 
prejudice to the payment of damages in respect 
of any additional losses he has incurred by 
reason of the intention to deceive. 
(c) The insurer shall not be liable in respect of any 
claim arising after the increase of the risk. 
7. In the case referred to in paragraphs 5 and 6, 
the burden of proof of fraudulent or improper con­
duct on the part of the policyholder shall rest on the 6. In the cases referred to in paragraphs 4 and 5, 
the burden of proof of failure to fulfil the obligation 
referred to in paragraph 1 or of intention to deceive 
31. 12. 80 Official Journal of the 
INITIAL PROPOSAL 
Article 5 
Any unjustified payment made pursuant to Articles 3 
and 4 shall be refunded. 
Article 6 
If, while the contract is in force, the risk has dimini­
shed appreciably and permanently because of circum­
stances other than those covered by the contract, and 
if this justifies a reduction in the premium, the policy­
holder shall be entitled to terminate the contract 
without compensation if the insurer does not consent 
to reduce the premium proportionately. 
The right to terminate the contract shall arise imme­
diately the insurer refuses to reduce the premium or, 
where he fails to reply to the policyholder's proposal, 
after a period of 15 days following such proposal. 
Where the contract is terminated, the insurer shall re­
fund to the policyholder a proportion of the premium 
corresponding to the period for which cover is not 
provided, less the administrative costs involved. 
Article 8 
2. Any costs incurred by the policyholder in per­
forming the obligation referred to in paragraph 1 
shall be borne by the insurer. European Communities No C 355/37 
NEW PROPOSAL . 
on the part of the policyholder shall rest on the 
insurer. 
7. The provisions of this Article shall not apply to 
circumstances which form the subject of an express 
exclusion of cover in the contract. 
(Article 5 becomes Article 9). 
Article 5 
If, while the contract is in force, the risk has 
diminished appreciably and permanently because of 
circumstances other than those covered by the 
contract (nine words deleted) the policyholder may 
ask for the premium to be reduced. The policyholder 
shall be entitled to terminate the contract without 
compensation if the insurer does not consent to 
reduce the premium proportionately. 
The right to terminate the contract shall arise 
immediately the insurer refuses to reduce the 
premium or, where he fails to reply to the 
policyholder's proposal, after a period of fifteen days 
following such proposal. 
Where the contract is terminated, the insurer shall 
refund to the policyholder a proportion of the 
premium corresponding to the period for which cover 
is not provided, less the administrative costs involved. 
Article 6 
(Old Article 7 unchanged). 
Article 7 
1. (Old Article 8 (a) unchanged). 
2. Any costs incurred by the policyholder in per­
forming the obligation referred to in paragraph 1 
shall be borne by the insurer. 
Notwithstanding this, where the policyholder carries 
on a commercial or industrial activity and the contract 
covers a risk connected with such activity, they shall 
be defrayed only in so far as, when combined with the 
amount of damage suffered, they do not exceed the 
sum insured. 
No C 355/38 Official Journal of the European Communities 31.12.80 
INITIAL PROPOSAL NEW PROPOSAL 
Paragraphs 3, 4 and 5 unchanged. 
Article 9 Article 8 
1. If a claim arises, the policyholder shall declare it 
to the insurer in accordance with the conditions and 
time limits laid down in the policy. 
The time limit must be reasonable. Such time limit 
may be fixed by national laws for certain classes of 
insurance. 1. If a claim arises or if an event occurs which may 
result in a claim arising, the policyholder shall declare 
it to the insurer in accordance with the conditions 
and time limits laid down in the policy. The time limit 
must be reasonable. Such time limit may be fixed by 
national laws for certain classes of insurance. 
Paragraphs 2, 3 and 4 unchanged. 
Article 5 Article 9 
Any unjustified payment made pursuant to Articles 3 
and 4 shall be refunded. Any unjustified payment made by the parties pursuant 
to the foregoing Articles shall be refunded. 
Article 10 Article 10 
1. The circumstances and conditions in which the 
contract may be denounced or terminated shall be set 
out in the contract either directly or by reference to 
the law. 1. The circumstances and conditions in which the 
contract may be denounced or terminated shall be set 
out in the contract either directly or by reference to 
the law applicable to the contract. 
2. (unchanged). 
3. Without prejudice to the circumstances referred 
to in paragraph 2: 
(a) premature termination on the part of the 
policyholder or the insurer shall not take effect 
until a period of 15 days has elapsed from the 
date on which notice of termination is given, as 
the case may be, to the insurer or to the 
policyholder at his last known address; 3. Without prejudice to the circumstances referred 
to in paragraph 2: 
(a) Save where the parties have agreed to a shorter 
period in the case of wax, insurrection or civil war, 
premature termination on the part of the 
policyholder or the insurer shall not take effect 
until a period of fifteen days has elapsed from the 
date on which notice of termination is given, as 
the case may be, to the insurer or to the 
policyholder at his last known address. 
(b) unchanged. 
(c) if the contract is for a period of more than three 
years, the policyholder may terminate it at the 
end of the third year or of any subsequent year 
by giving at least two months' notice; (c) If the contract is for a period of more than three 
years, the policyholder may terminate it at the 
end of the third year or of any subsequent year 
by giving at least two months' notice, provided 
that the premiums were not agreed for a fixed 
period. 
(d) as regards sickness insurance and contracts drawn 
up on the same basis as life assurance contracts, 
national law may, by way of derogation from (d) deleted. 
31. 12.80 Official Journal of the European Communities No C 355/39 
INITIAL PROPOSAL NEW PROPOSAL 
subparagraphs (a) and (b), limit or prohibit termi­
nation of the contract by the insurer. 
Ankles 11 and 12 
(unchanged). 
Article 13 Article 13 
Member States shall bring into force the measures 
necessary to comply with this Directive within 18 
months of its notification. They shall forthwith 
inform the Commission thereof. Member States shall bring iruo force the measures, 
necessary to comply with this Directive before 1 July 
1983. They shall inform the Commission thereof 
immediately. 
Articles 14 and 15 
(unchanged). 
Proposal for a Council Directive coordinating the requirements for the drawing up, 
scrutiny and distribution of the prospectus to be published when securities are offered for 
subscription or sale to the public 
(Submitted to the Council by the Commission on 13 January 1981) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Articles 54 (3) (g) and 100 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas investment in securities, like any other form 
of investment, involves risks, and the protection of 
investors requires that they be put in a position to 
make a correct assessment of such risks so as to be 
able to take investment decisions in full knowledge of 
the facts; 
Whereas the provision of adequate and complete 
information concerning securities and the issuers of securities promotes the protection of investors by 
allowing the latter to evaluate the risks undertaken 
and to take decisions on their own responsibility; 
Whereas, moreover, such information represents an 
effective means of reinforcing confidence in securities 
and thus contributes to the correct functioning of 
securities markets and to encouraging their 
development; 
Whereas it is accordingly appropriate to establish an 
information policy relating to securities at 
Community level, and whereas such an information 
policy, by virtue of the safeguards that it provides to 
investors and its impact on the correct functioning of 
securities markets, is of such a nature as to promote 
the interpenetration of national securities markets and 
thus to contribute to the creation of a genuine 
European capital market; 
Whereas the Council Directive 80/390/EEC of 17 
March 1980 coordinating the requirements for the 
drawing up, scrutiny and distribution of the listing 
particulars to be published for the admission of