22. 3. 90 Official Journal of the European Communities No C 72/5 
II 
(Preparatory Acts) 
COMMISSION 
Amended proposal for a Second Council Directive on the coordination of laws, regulations and 
administrative provisions relating to direct life assurance, laying down provisions to facilitate the 
effective exercise of freedom to provide services and amending Directive 79/267/EEC 
COM(90) 46 final — SYN 177 
(Submitted by the Commission pursuant to Article 149 (3) of the EEC Treaty on 9 March 1990) 
(90/C 72/05) 
INITIAL PROPOSAL 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, AMENDED PROPOSAL 
Unchanged 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 57 (2) 
and 66 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 necessary to develop the internal market in 
life assurance and in the operations referred to in the 
First Council Directive 79/267/EEC of 5 March 1979 
on the coordination of laws, regulations and adminis­
trative provisions relating to the taking-up and pursuit of 
the business of direct life assurance ('), hereinafter called 
'the First Directive'; whereas, in order to achieve that 
objective, it is desirable to make it easier for assurance 
undertakings having their head office in the Community 
to provide services in the Member States, thus making it 
possible for policy-holders to have recourse not only to 
assurers established in their own country, but also to 
assurers which have their head office in the Community 
and are established in other Member States; 
Whereas, under the Treaty, any discrimination with 
regard to freedom to provide services based on the fact 
that an undertaking is not established in the Member 
0) OJ No L 63, 13. 3. 1979, p. 1. 
No C 72/6 Official Journal of the European Communities 22. 3. 90 
INITIAL PROPOSAL AMENDED PROPOSAL 
State in which the services are provided has been 
prohibited since the end of the transitional period; 
whereas that prohibition applies to services provided 
from any establishment in the Community, whether it be 
the head office of an undertaking or an agency or 
branch; Unchanged 
Whereas, for practical reasons, it is desirable to define 
provision of services taking into account both the 
assurer's establishment and the place where the 
commitment is to be covered; whereas, therefore 
commitment should also be defined; whereas, moreover, 
it is desirable to distinguish between activities pursued by 
way of establishment and activities pursued by way of 
freedom to provide services; 
Whereas it is desirable to supplement the First Council 
Direcitve of 5 March 1979 in order, in particular, to 
clarify the powers and means of supervision vested in the 
supervisory authorities; whereas it is also desirable to lay 
down specific provisions regarding the taking-up, pursuit 
and supervision of activity by way of freedom to provide 
services; 
Whereas policy-holders who, by virtue of the fact that 
they take the initiative in entering into a commitment in 
another State and thus place themselves under the 
protection of the legal system of that other State, do not 
require special protection in the State of the commitment 
should be granted complete freedom to avail themselves 
of the widest possible market in life assurance and in the 
operations referred to in the First Directive; whereas, 
other policy-holders should also be afforded adequate 
protection; 
Whereas, in the case of group assurances and certain 
individual pensions assurances, the multiplicity and 
complexity of the various schemes and their close 
connection with social security schemes call for careful 
study; whereas they should therefore be excluded from 
the scope of the provisions specific to freedom to provide 
services contained in this Directive; whereas they will 
form the subject matter for another proposal for a 
Directive; Whereas in the management of some group pension 
funds, the multiplicity and complexity of the various 
schemes and their close connection with social security 
schemes call for careful study; whereas they should 
therefore be excluded from the scope of the provisions 
specific to freedom to provide services contained in this 
Directive; whereas they will form the subject matter of 
another proposal for a Directive; 
Whereas the provisions in force in the Member States 
regarding contract law applicable to the activities 
referred to in the First Directive continue to differ; 
whereas the freedom to choose, as the law applicable to 
the contract, a law other than that of the State of the 
commitment may be granted in certain cases, in 
accordance with rules which take into account specific 
circumstances; Unchanged 
Whereas the First Directive's provisions on transfer of 
portfolio should be reinforced and supplemented by 
provisions specifically concerning the transfer to another 
undertaking of the portfolio of contracts concluded by 
way of freedom to provide services; 
22. 3. 90 Official Journal of the European Communities No C 72/7 
INITIAL PROPOSAL AMENDED PROPOSAL 
Whereas, in the interests of protecting policy-holders, 
Member States should, at the present stage of the coor­
dination process, be given the option of limiting the 
simultaneous pursuit of activity by way of freedom to 
provide services and activity by way of establishment; 
whereas no such limitation can be provided for where 
policy-holders do not require such protection; Unchanged 
Whereas the taking-up and pursuit of activity by way of 
freedom to provide services should be subject to 
procedures guaranteeing the assurance undertaking's 
compliance with provisions regarding financial guaran­
tees, conditions of assurance and premium rates; whereas 
those procedures may be relaxed where -the activity 
pursued by way of freedom to provide services covers 
policy-holders who, by virtue of the characteristics of the 
commitment they propose to enter into, do not require 
special protection in the State of the commitment; 
Whereas, however, in the case of this second category of 
policy-holder and where the contract is one of life 
assurance, the policy-holder should be given the oppor­
tunity of cancelling the contract within a period of 30 
days; Whereas for life assurance contracts entered into by way 
of the free provision of services the policy-holder should 
be given the opportunity of cancelling the contract 
within a period of between 14 and 30 days; 
Whereas the First Directive adopted the principle of 
prohibiting the simultaneous pursuit of the activities 
covered by the First Directive on the coordination of 
non-life insurance and those covered by the First 
Directive; whereas, while it authorized the continued 
existence of existing composite undertakings, it stated 
that they may not set up agencies or branches for life 
assurance; whereas such undertakings should likewise be 
prohibited from covering by way of freedom to provide 
services commitments referred to in the First Directive; Whereas the First Directive adopted the principle of 
prohibiting the simultaneous pursuit of the activities 
covered by the First Directive on the coordination of 
non-life insurance and those covered by the First 
Directive; whereas, while it authorized the continued 
existence of existing composite undertakings, it stated 
that they may not set up agencies or branches for life 
assurance; whereas the specific nature of the 
commitments entered into in the insurance field under 
the freedom of services regime nevertheless justifies, at 
least on a transitional basis as from notification of this 
Directive to Member States, the introduction of a degree 
of flexibility in the application of the above principle; 
Whereas it is necessary to make provision for special 
cooperation in the sphere of freedom to provide services 
between the competent supervisory authorities of the 
Member States and between those authorities and the 
Commission; whereas provision should also be made for 
a system of penalties to apply where the undertaking 
providing the service fails to comply with the provisions 
of the Member State in which the service is provided; Unchanged 
Whereas the technical reserves, including mathematical 
reserves, should be subject to the rules of and supervision 
by the Member State in which the service is provided 
where the provision of services involves commitments in 
respect of which the State in which the service is received 
No C 72/8 Official Journal of the European Communities 22. 3. 90 
INITIAL PROPOSAL AMENDED PROPOSAL 
wishes to provide special protection for policy-holders; 
whereas, however, if such concern to protect policy­
holders is unjustified, the technical reserves, including 
mathematical reserves, should remain subject to the rules 
of and supervision by the Member State in which the 
undertaking is established; 
Whereas some Member States do not subject life 
assurance contracts and the other operations covered by 
the First Directive to any form of indirect taxation, while 
others apply special taxes; whereas the structure and rate 
of those taxes vary considerably between the Member 
States in which they are applied; whereas it is desirable 
to avoid a situation where those differences lead to 
distortions of competition between undertakings in the 
various Member States; whereas the application of the 
tax arrangements provided for by the Member State in 
which the commitment is entered into is a means of 
remedying such mischief; whereas it is for the Member 
States to establish a method of ensuring that such taxes 
are collected; 
Whereas the First Council Directive of 5 March 1979 
makes express provision for specific rules concerning the 
authorization of agencies and branches belonging to 
undertakings whose head offices are outside the 
Community; 
Whereas it is also desirable to provide for a specific 
procedure for all requests for the authorization of a 
subsidiary of an undertaking governed by the laws of a 
third country or the acquisition of a participation by 
such an undertaking with a view to ensuring that 
Community undertakings benefit from reciprocity in the 
third countries in question; whereas this Directive lays 
down such a procedure, Unchanged 
Whereas some Member States do not subject life 
assurance contracts and the other operations covered by 
the First Directive to any form of indirect taxation, while 
others apply special taxes; whereas the structure and rate 
of those taxes vary considerably between the Member 
States in which they are applied; whereas it is desirable 
to avoid a situation where those differences lead to 
distortions of competition between undertakings in the 
various Member States; whereas, pending further 
harmonization, the application of the tax arrangements 
provided for by the Member State in which the 
commitment is entered into is a means of remedying 
such mischief; whereas it is for the Member States to 
establish a method of ensuring that such taxes are 
collected; 
Unchanged 
Whereas provision should be made for a flexible 
procedure to make it possible to assess reciprocity with 
third countries on a Community basis; whereas the aim 
of this procedure is not to close the Community's 
financial markets but rather, as the Community intends 
to keep its financial markets open to the rest of the 
world, to improve the liberalization of the global 
financial markets in other third countries; whereas, to 
that end, this Directive provides for procedures for 
negotiating with third countries and, as a last resort, for 
the possibility of taking measures involving the 
suspension of new applications for authorization or the 
restriction of new authorizations; 
Whereas it is desirable to take into account, within the 
meaning of Article 8C of the Treaty, the extent of the 
effort which needs to be made by certain economies 
showing differences in development; whereas, therefore, 
it is desirable to grant certain Member States transitional 
arrangements for the gradual application of the specific 
provisions of this Directive relating to freedom to 
provide services; 
Whereas, in view of the differences in the national legis­
lations, it is also appropriate to grant to those Member 
States which so wish transitional arrangements enabling 
them to adapt their legislation before applying in their 
entirety, as regards group insurance contracts linked to a 
contract of employment or the intervention of a broker, 
the provisions of this Directive relating to the case where 
the policy-holder takes the initiative to conclude a 
contract by way of provision of services, 
22. 3. 90 Official Journal of the European Communities No C 72/9 
INITIAL PROPOSAL 
HAS ADOPTED THIS DIRECTIVE: 
TITLE I 
General provisions 
Article 1 
The object of this Directive is: 
(a) to supplement First Directive 79/267/EEC; 
(b) to lay down specific provisions relating to freedom 
to provide services in respect of the activities referred 
to in the First Directive, such provisions being set 
forth in Title III of this Directive. 
Article 2 
For the purposes of this Directive: 
(a) 'First Directive'means Directive 79/267/EEC; 
(b) 'undertaking': 
— for the purposes of Titles I and II, means any 
undertaking which has received official auth­
orization under Article 6 or Article 27 of the 
First Directive, 
— for the purposes of Titles III and IV, means any 
undertaking which has received official auth­
orization under Article 6 of the First Directive; 
(c) 'establishment' means the head office, an agency or a 
branch of an undertaking, having regard to Article 3; 
(d) 'commitment' means a commitment represented by 
one of the kinds of insurance or operation referred 
to in Article 1 of the First Directive; 
(e) 'Member State of the commitment' means the Member 
State where the policy-holder has his habitual 
residence or, if the policy-holder is a legal person, 
the Member State where the latter's establishment, to 
which the contract relates, is situated; 
(f) 'Member State of establishment' means the Member 
State in which the establishment covering the 
commitment is situated; 
(g) 'Member State of provision of services' means the 
Member State of the commitment where the 
commitment is covered by an establishment situated 
in another Member State; AMENDED PROPOSAL 
Unchanged 
Article 1 
Unchanged 
(a) 
(b) to lay down specific provisions relating to freedom 
to provide services in respect of the activities referred 
to in the said Directive, such provisions being set 
forth in Title III of this Directive. 
Article 2 
Unchanged 
No C 72/10 Official Journal of the European Communities 22. 3. 90 
INITIAL PROPOSAL 
(h) 'parent undertaking' means a parent undertaking 
within the meaning of Article 1 of Seventh Council 
Directive 83/349/EEC of 13 June 1983 based on 
Article 54 (3) (g) of the Treaty, on consolidated 
accounts (!); 
(i) 'subsidiary' means a subsidiary undertaking in 
accordance with Article 1 of Directive 83/349/EEC. 
Article 3 
For the purposes of the First Directive and of this 
Directive, any permanent presence of an undertaking in 
the territory of a Member State shall be treated in the 
same way as an agency or branch, even if that presence 
does not take the form of a branch or agency, but 
consists merely of an office managed by the under­
taking's own staff or by a person who is independent but 
has permanent authority to act for the undertaking as an 
agency would. 
TITLE II 
Provisions supplementary to the First Directive 
Article 4 
1. The law applicable to contracts relating to the acti­
vities referred to in the First Directive shall be the law of 
the Member State of the commitment. However, where 
the law of that State so allows, the parties may choose 
the law of another country. 
2. Where, in one of the cases referred to in Article 13, 
the policy-holder has his habitual residence in a Member 
State other than that of which be is a national, the 
parties may choose the law of the Member State of 
which he is a national. 
3. The Member State whose law governs the contract 
may not, in a case falling within Article 13, seek to 
prevent the policy-holder from entering into any contract 
relating to a commitment which may be lawfully 
undertaken in the Member State of establishment. 
O OJ No L 193, 18. 7. 1983. AMENDED PROPOSAL 
(h) 'parent undertaking' means a parent undertaking 
within the meaning of Articles 1 and 2 of Directive 
83/349/EEC O; 
(i) 'subsidiary' means a subsidiary undertaking within 
the meaning of Articles 1 and 2 of Directive 
83/349/EEC: any subsidiary undertaking shall also 
be regarded as a subsidiary of the parent undertaking 
which is at the head of those undertakings. 
Article 3 
Unchanged 
Article 4 
1. Unchanged 
2. Where the policy-holder is a natural person and has 
his habitual residence in a Member State other than that 
of which he is a national, the parties may choose the law 
of the Member State of which he is a national. 
3. Deleted 
(') OJ No L 193, 18. 7. 1983. 
22. 3. 90 Official Journal of the European Communities No C 72/11 
INITIAL PROPOSAL 
4. Where a State includes several territorial units, each 
of which has its own rules of law concerning contractual 
obligations, each unit shall be considered a country for 
the purposes of identifying the law applicable under this 
Directive. 
A Member State in which various territorial units have 
their own rules of law concerning contractual obligations 
shall not be bound to apply the provisions of this 
Directive to conflicts which arise between the laws of 
those units. 
5. Nothing in this Article shall restrict the application 
of the rules of the law of the forum in a situation where 
they are mandatory, irrespective of the law otherwise 
applicable to the contract. 
If the law of a Member State so stipulates the mandatory 
rules of the law of the Member State of the commitment 
may be applied if and in so far as, under the law of that 
Member State, those rules must be applied whatever the 
law applicable to the contract. 
6. Subject to the preceding paragraphs, the Member 
States shall apply to the assurance contracts referred to 
in this Directive their general rules of private inter­
national law concerning contractual obligations. 
Article 5 
The following paragraph is added to Article 23 of the 
First Directive: 
'3. Each Member State shall take all steps 
necessary to ensure that the authorities responsible 
for supervising assurance undertakings have the 
powers and means necessary for supervision of the 
activities of assurance undertakings established within 
their territory, including activities engaged in outside 
that territory, in accordance with the the Council 
Directives governing those activities and for the 
purpose of ensuring that they are implemented. 
Those powers and means must, in particular, enable 
the supervisory authorities to: 
— make detailed inquiries about the undertaking's 
situation and the whole of its business inter alia 
by: 
— gathering information or requiring the 
submission of documents concerning 
assurance business, 
— carrying out on-the-spot investigations at the 
undertaking's premises, AMENDED PROPOSAL 
3. Where a State includes several territorial units, each 
of which has its own rules of law concerning contractual 
obligations, each unit shall be considered a country for 
the purposes of identifying the law applicable under this 
Directive. 
A Member State in which various territorial units have 
their own rules of law concerning contractual obligations 
shall not be bound to apply the provisions of this 
Directive to conflicts which arise between the laws of 
those units. 
4. Nothing in this Article shall restrict the application 
of the rules of the law of the forum in a situation where 
they are mandatory, irrespective of the law otherwise 
applicable to the contract. 
If the law of a Member State so stipulates, the 
mandatory rules of the law of the Member State of the 
commitment may be applied if and in so far as, under the 
law of that Member State, those rules must be applied 
whatever the law applicable to the contract. 
5. Subject to the preceding paragraphs, the Member 
States shall apply to the assurance contracts referred to 
in this Directive their general rules of private inter­
national law concerning contractual obligations. 
Article 5 
Unchanged 
No C 72/12 Official Journal of the European Communities 22. 3. 90 
INITIAL PROPOSAL AMENDED PROPOSAL 
— take any measures with regard to the undertaking Unchanged 
which are appropriate and necessary to ensure 
that the activities of the undertaking remain in 
conformity with the laws, regulations and admin­
istrative provisions with which the undertaking 
has to comply in each Member State and in 
particular with the scheme of operations in so far 
as it remains mandatory, and to prevent or 
remove any irregularities prejudicial to the 
interests of policy-holders, 
— ensure that measures required by the supervisory 
authorities are carried out, if need be by 
enforcement, where appropriate through judicial 
channels. 
Member States may also make provision for the 
supervisory authorities to obtain any information 
regarding contracts which are held by intermediaries.' 
Article 6 Article 6 
1. Article 25 of the First Directive is hereby deleted. Unchanged 
2. Each Member State shall, under the conditions laid 
down by national law, authorize undertakings which are 
established within its territory to transfer all or part of 
their portfolios of contracts for which that State is the 
State of the commitment to an accepting office estab­
lished in that same Member State if the supervisory auth­
orities of the Member State in which the head office of 
the accepting office is situated certify that the latter 
possesses the necessary margin of solvency after taking 
the transfer into account. 
3. Each Member State shall, under the conditions laid 
down by national law, authorize undertakings estab­
lished within its territory to transfer all or part of their 
portfolios of contracts concluded in the circumstances 
referred to in Article 10 (1) to an accepting office estab­
lished in the Member State of provision of services if the 
supervisory authorities of the Member State in which the 
head office of the accepting office is situated certify that 
the latter possesses the necessary margin of solvency 
after taking the transfer into account. 
4. Each Member State shall, under the conditions laid 
down by national law, authorize undertakings estab­
lished within its territory to transfer all or part of their 
portfolios of contracts concluded in the circumstances 
referred to in Article 10 (1) to an accepting office estab­
lished in the same Member State if the supervisory auth­
orities of the Member State in which the head office of 
the accepting office is situated certify that the accepting 
22. 3. 90 Official Journal of the European Communities No C 72/13 
INITIAL PROPOSAL AMENDED PROPOSAL 
office possesses the necessary margin of solvency after Unchanged 
taking the transfer into account and if it fulfils the 
conditions set out in Articles 11, 12, 14 and 16 in the 
Member State of provision of services. 
5. In the cases referred to in paragraphs 3 and 4, the 
supervisory authorities of the Member State in which the 
transferring undertaking is established shall authorize the 
transfer after obtaining the agreement of the supervisory 
authorities of the Member State of provision of services. 
6. If a Member State, under the conditions laid down 
by national law, authorizes undertakings established 
within its territory to transfer all or part of their port­
folios of contracts to an accepting office established in 
another Member State which is not the Member State of 
provision of services, it shall ensure that the following 
conditions are fulfilled: 
— the supervisory authorities of the Member State in 
which the head office of the accepting office is 
situated certify that the latter possesses the necessary 
margin of solvency after taking the transfer into 
account, 
— the Member State in which the accepting office is 
established agrees, 
— the accepting office fulfils the conditions set out in 
Articles 11, 12, 14 and 16 in the Member State of 
provision of services, the law of that Member State 
provides for the possibility of such a transfer and that 
Member State agrees to the transfer. 
7. A transfer authorized in accordance with this 
Article shall be published, under the conditions laid 
down by national law, in the Member State of the 
Commitment. Such transfer shall be automatically valid 
against policy-holders, assured persons and any other 
person having rights or obligations arising out of the 
contracts transferred. 
This provision shall not affect the right of Member 
States to provide that policy-holders may cancel the 
contract within a given period after the transfer. 
No C 72/14 Official Journal of the European Communities 22. 3. 90 
INITIAL PROPOSAL AMENDED PROPOSAL 
Article 7 
Article 22 (2) of the First Directive is replaced by the 
following: Article 7 
Article 22 (2) of the First Directive shall be replaced by 
the following: 
'The Italian Republic shall take all steps to ensure 
that the requirement that undertakings established 
within its territory cede part of their underwriting to 
the Istituto Nazionale di Assicurazioni is abolished 
within two years of the date of implementation of 
this Directive.' 'The Italian Republic shall take all steps to ensure 
that the requirement that undertakings established in 
its territory cede part of their underwriting to the 
"Istituto Nazionale di Assicurazioni" is abolished no 
later than ...' 
Article 8 
1. The heading of Title III of the First Directive is 
replaced by the following: Article 8 
Unchanged 
'TITLE III A 
Rules applicable to agencies or branches established 
within the Community and belonging to under­
takings whose head offices are outside the 
Community'. 
2. The following heading is placed after Article 32 of 
the First Directive: 
'TITLE III B 
Rules applicable to subsidiaries of parent under­
takings governed by the laws of a third country and 
to acquisitions of participations by such parent 
undertakings'. 
Article 9 
Title III B shall comprise an Article 3 2A, the text of 
which is as follows: 
'1. Requests for authorization of a subsidiary 
whose parent undertaking is governed by the laws of 
a third country or the acquisition of a participation 
therein as provided for in paragraph 3 shall be 
subject to the procedure laid down in this Article. 
2. The competent authorities of the relevant 
Member State shall inform the competent authorities 
of the other Member States and the Commission of 
the request for authorization. Article 9 
The following Articles 32a and 32b shall be added to 
Title III B of the First Directive: 
Article 32a 
The competent authorities of the Member States shall 
inform the Commission: 
(a) of any authorization of a direct or indirect 
subsidiary one or more parent undertakings of 
which are governed by the laws of a third 
country. The Commission shall inform the 
Insurance Committee referred to in Article 32b 
(6) accordingly; 
22. 3. 90 Official Journal of the European Communities No C 72/15 
INITIAL PROPOSAL 
3. Member States shall provide that where an 
undertaking governed by the laws of a third country 
is considering the acquisition of a participation in an 
insurance undertaking established in the Community 
such that the latter undertaking will become its 
subsidiary, it shall inform the competent authorities 
of the Member State concerned. These authorities 
shall inform the competent authorities of the other 
Member States and the Commission. 
4. The competent authorities of the Member State 
concerned must suspend their decision regarding 
requests as referred to in paragraphs 2 and 3 until the 
procedure provided for in paragraphs 5 and 6 is 
completed. 
5. The Commission shall, within three months of 
receiving the information provided for in paragraphs 
2 and 3, examine whether all undertakings of the 
Community enjoy reciprocal treatment, in particular 
regarding the establishment of subsidiaries or the 
acquisition of participations in insurance under­
takings in the third country in question. 
6. If the Commission finds that reciprocity is not 
ensured, it may extend suspension of the decision 
referred to in paragraph 4, after having consulted the 
competent authorities of the Member States under 
the collaboration procedure provided for in Article 
38. 
7. The Commission shall present suitable proposals 
to the Council with a view to achieving reciprocity 
with the third country in question.' AMENDED PROPOSAL 
(b) whenever such a parent undertaking acquires a 
holding in a Community insurance undertaking 
which would turn the latter into its subsidiary. 
The Commission shall inform the Insurance 
Committee referred to in Article 32b (6) 
accordingly. 
When authorization is granted to the direct or 
indirect subsidiary of one or more parent under­
takings governed by the law of third countries, the 
structure of the group shall be specified in the notifi­
cation which the competent authorities shall address 
to the Commission. 
Article 32b 
1. The Member States shall inform the 
Commission of any general difficulties encountered 
by their insurance undertakings in establishing them­
selves or carrying on their activities in a third 
country. 
2. Initially no later than six months before the 
application of this Directive, and thereafter period­
ically, the Commission shall draw up a report 
examining the treatment accorded to Community 
insurance undertakings in third countries, in the 
terms referred to in paragraphs 3 and 4, as regards 
establishment and the carrying on of insurance acti­
vities, and the acquisition of holdings in third country 
insurance undertakings. The Commission shall submit 
those reports to the Council, together with any 
appropriate proposals. 
3. Whenever it appears to the Commission, either 
on the basis of the reports referred to in paragraph 2 
or on the basis of other information, that a third 
country is not granting Community insurance under­
takings effective market access comparable to that 
granted by the Community to insurance undertakings 
from that third country, the Commission may submit 
proposals to the Council for the appropriate mandate 
for negotiation with a view to obtaining comparable 
competitive opportunities for Community insurance 
undertakings. The Council shall decide by a qualified 
majority. 
4. Whenever it appears to the Commission, either 
on the basis of the reports referred to in paragraph 2 
or on the basis of other information, that Community 
insurance undertakings in a third country are not 
No C 72/16 Official Journal of the European Communities 22. 3. 90 
INITIAL PROPOSAL AMENDED PROPOSAL 
receiving national treatment offering the same 
competitive opportunities as are available to domestic 
insurance undertakings and that the conditions of 
effective market access are not being fulfilled, the 
Commission may initiate negotiations in order to 
remedy the situation. 
In the circumstances described in the first 
subparagraph above, it may also be decided at any 
time, and in addition to initiating negotiations in 
accordance with the procedure laid down in Article 
32b (6), that the competent authorities of the 
Member States must limit or suspend their decisions: 
— regarding requests pending at the moment of the 
decision or future requests for authorizations, and 
— regarding the acquisition of holdings by direct or 
indirect parent undertakings governed by the laws 
of the third country in question. 
The duration of the measures referred to may not 
exceed six months. 
Before the end of that six months period and in the 
light of the results of the negotiations, the Council 
may, acting on a proposal from the Commission, 
decide by a qualified majority that the measures shall 
be continued. 
Such limitations or suspension may not apply to the 
setting-up of subsidiaries by insurance undertakings 
or their subsidiaries duly authorized in the 
Community, or to the acquisition of holdings in 
Community insurance undertakings by such 
institutions or subsidiaries. 
5. Whenever it appears to the Commission that 
one of the situations described in paragraphs 3 and 4 
has arisen, the Member States shall inform it at its 
request: 
(a) of any request for the authorization of a direct 
or indirect subsidiary one or more parent under­
takings of which are governed by the laws of the 
third country in question; 
(b) of any plans for such an undertaking to acquire a 
holding in a Community insurance undertaking 
such that the latter would become the subsidiary 
of the former. 
22. 3. 90 Official Journal of the European Communities No C 72/17 
INITIAL PROPOSAL AMENDED PROPOSAL 
This obligation to provide information shall lapse 
once an agreement is concluded with the third 
country referred to in paragraph 3 or 4 when the 
measures referred to in the second and third subpara­
graphs of paragraph 4 cease to apply. 
6. The Commission shall be assisted by a 
Committee composed of representatives of the 
Member States and chaired by the Commission 
representative. 
The Commission representative shall submit to the 
Committee a draft of the measures to be taken. The 
Committee shall express its opinion on the draft 
within a time limit which the chairman may lay down 
according to the urgency of the matter. The opinion 
shall be expressed by the majority laid down in 
Article 148 (2) of the Treaty for adoption of 
decisions which the Council is required to take on a 
proposal from the Commission. When a vote is taken 
in the Committee, the votes of the representatives of 
the Member States shall be weighted as laid down in 
the said Article. The chairman shall not vote. 
The Committee shall adopt the proposed measures if 
they are consistent with the Committee's opinion. 
Where the proposed measures are not consistent with 
the Committee's opinion or if no opinion is issued, 
the Commission shall submit to the Council without 
delay a proposal concerning the measures to be 
taken. The Council shall act by a qualified majority. 
If, on the expiry of a period to be laid down in each 
act to be adopted by the Council under this 
paragraph but which may in no case exceed three 
months from the date of referral to the Council, the 
Council has not acted, the proposed measures shall 
be adopted by the Commission. 
7. Measures taken under this Article shall comply 
with the Community's obligations under any interna­
tional agreements, bilateral or multilateral, governing 
the taking-up and pursuit of the business of insurance 
undertakings. 
No C 72/18 Official Journal of the European Communities 22. 3. 90 
ORIGINAL PROPOSAL 
TITLE III 
Provisions relating specifically to freedom to provide 
services AMENDED PROPOSAL 
Unchanged 
Article 10 
1. This Title shall apply where an undertaking, 
through an establishment situated in a Member State, 
covers a commitment in another Member State. Article 10 
1. Unchanged 
2. This Title shall not apply to operations, under­
takings and institutions to which the First Directive does 
not apply. 2. This Title shall apply to: 
— the types of insurance referred to in Article 1 (1) of 
the First Directive, 
— the operations referred to in Article 1 (2) (a) and (b) 
of the First Directive. 
3. This Title shall likewise not apply to commitments; 
— entered into with persons other than natural persons 
acting on their own account, 3. This Title shall not apply to the operations and 
bodies referred to in Article 1 (2) (c), (d) and (e), Article 
1 (3) and Articles 2, 3 and 4 of the First Directive. 
entered into with persons having a commercial, 
business or employment-based relationship with the 
person or persons in respect of whose life or lives the 
assurance is taken out, whether such relationship be 
past, present or future, where the commitment is 
entered into by virtue of such relationship, 
entered into with a person in respect of whose life 
the assurance is taken out, if it is taken out by virtue 
of the employment or business activities of that 
person, 
relationg to the operations referred to in Article 1 (2) 
(a), (c), (d), and (e) and Article 1 (3) of the First 
Directive. 
4. An undertaking shall not cover a commitment in 
another Member State unless it is authorized under 
Article 6 of the First Directive to cover such a 
commitment in its Member State of establishment. 4. Unchanged 
Article 11 
Any undertaking which intends to provide services shall 
first inform the competent authorities of the head office 
Member State, and, where appropriate, of the Member 
State of the establishment concerned, indicating the 
Member State or Member States within whose territory 
it intends to provide services and the nature of the 
commitments it proposes to cover. Article 11 
Unchanged 
22. 3. 90 Official Journal of the European Communities No C 72/19 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Article 12 
1. Each Member State within whose territory an 
undertaking intends, under conditions of freedom to 
provide services, to cover commitments within the 
meaning of Article 10 of this Directive may make the 
taking-up of such activity conditional on official auth­
orization in so far as the commitments are not 
commitments within the meaning of Article 13; to that 
end, it may require that the undertaking: Article 12 
1. Subject to Article 13, each Member State within 
whose territory an undertaking intends, by way of 
freedom to provide services, to cover commitments 
within the meaning of Article 10 of this Directive may 
make the taking-up of such activity conditional on 
official authorization in so far as the commitments are 
not entered into in accordance with the arrangements 
referred to in Article 13; to that end, it may require that 
the undertaking: 
(a) produce a certificate issued by competent authorities 
of the head office Member State certifying that it 
possesses for its activities as a whole the minimum 
solvency margin calculated in accordance with 
Article 19 of the First Directive and that, in 
accordance with Article 6 (1) of the said Directive, 
the autorization enables the undertaking to operate 
outside the Member State of establishment; Unchanged 
(b) produce a certificate issued by the competent auth­
orities of the Member State of establishment indi­
cating the classes in respect of which the undertaking 
is authorized to transact business and certifying that 
those authorities do not object to the undertaking's 
transacting business by way of freedom to provide 
services; 
(c) submit a scheme of operations containing the 
following particulars: 
— the nature of the commitments which the under­
taking proposes to cover in the Member State of 
provision of services, 
— the general and special conditions of the 
assurance policies which it proposes to use there, 
— the premium rates which the undertaking 
envisages applying and the technical bases which 
it proposes to use for each class of business, 
the forms and other printed documents which it 
intends to use in its dealings with policy-holders, — the forms and other printed documents which it 
intends to use in its dealings with policy-holders, in 
so far as these are also required of established under­
takings. 
in so far as these are also required of established 
undertakings. 
2. The competent authorities of the Member State of 
provision of services may require that the particulars 
referred to in paragraph 1 (c) be supplied to them in the 
official language of that State. Unchanged 
No C 72/20 Official Journal of the European Communities 22. 3. 90 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
3. The competent authorities of the Member State of 
provision of services shall have a period of six months 
from receipt of the documents referred to in paragraph 1 
in which to grant or refuse authorization on the basis of 
the compliance or non-compliance of the particulars in 
the scheme of operations submitted by the undertaking 
with the laws, regulations and administrative provisions 
applicable in that State. Unchanged 
Such authorization may not be refused on the grounds 
that some operations in the scheme of operation, which 
are subject in the Member State of establishment of the 
undertaking to supervision by the authorities responsible 
for the supervision of insurance undertakings, are not 
subject to such supervision in the Member State of 
provision of services. 
4. If the competent authorities of the Member State of 
provision of services have not taken a decision by the 
end of the period referred to in paragraph 3, auth­
orization shall be deemed to be refused. Unchanged 
5. Any decision to refuse authorization or to refuse a 
certificate as referred to in paragraph 1 (a) or (b) shall 
be accompanied by the precise grounds therefore and 
communicated to the undertaking in question. 
6. Each Member State shall make provision for the 
right to apply to the courts in respect of a refusal of 
authorization or refusal to issue the certificate referred 
to in paragraph 1 (a) or (b). 
Article 13 
1. Commitments covered by way of freedom to 
provide services shall be subject, not to Article 12, but to 
Article 14 where the policy-holder takes the initiative in 
seeking a commitment from the undertaking. Article 13 
1. Commitments covered by way of freedom to 
provide services shall be subject to Article 14 where the 
policy-holder takes the initiative in seeking a 
commitment from the undertaking. 
The policy-holder shall be deemed to have taken the 
initiative: 
— where the initial contact between the policy-holder 
and the undertaking, regardless of the means used, is 
made by the policy-holder, 
where the contract is concluded in the Member State 
in which the undertaking is established without there 
having been any prior contact between the policy­
holder and the undertaking in the Member State in 
which the policy-holder has his habitual residence. The policy-holder shall be deemed to have taken the 
initiative: 
— where, on the one hand, the contract is entered into 
by both parties in the Member State in which the 
undertaking is established or by each of the parties in 
that party's own State of establishment or of habitual 
residence, and where, on the other hand, the policy­
holder has not been contacted in his State of habitual 
residence by the undertaking or through an insurance 
intermediary or any person authorized to act for it or 
by means of any solicitation of business addressed to 
him personally, 
22. 3. 90 Official Journal of the European Communities No C 72/21 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
where the policy-holder approaches an intermediary 
established in the Member State in which the policy­
holder has his habitual residence and carrying on the 
professional activities defined in Article 2 (1) (a) of 
Directive 77/92/EEC in order to obtain information 
on assurance contracts offered by undertakings estab­
lished in Member States other than his State of 
habitual residence or with a view to entering into a 
commitment through the intermediary with such an 
undertaking. In that event the policy-holder shall sign 
a statement, the text of which is set out under item A 
in the Annex, expressly so requesting. 
2. An undertaking which proposes to cover 
commitments in a Member State under the arrangements 
provided for in this Article shall not solicit business or 
engage in any advertising there relating to such activity 
apart from publishing notices indicating its address and 
the classes in respect of which it is authorized to transact 
business in the Member State of establishment from 
which it proposes to cover commitments. 2. Before entering into a commitment in the cases 
referred to in the first and second indents of paragraph 
1, the policy-holder shall sign a statement, the text of 
which is under item B in the Annex, to the effect that he 
notes that the commitment is subject to the rules of 
supervision of the country of the undertaking which is to 
cover the commitment. 
3. Where the policy-holder takes the initiative in 
seeking the commitment from the undertaking through a 
broker, he shall sign, before the contact with the under­
taking takes place, a statement to the effect that he 
wishes the broker to make enquiries as to the assurance 
arrangements available in one or more Member States 
other than in which he has his habitual residence; such 
broker shall be the person referred to in Article 2 (1) (a) 
of Directive 77/92/EEC. The broker shall not engage in 
any advertising concerning the possibility of seeking 
commitments under the arrangements provided for in 
this Article. 3. Deleted 
4. Before entering into a commitment under the 
arrangements provided for in this Article, the policy­
holder shall sign a statement to the effect that he takes 
note of the fact that the commitment is subject to the 
rules of supervision of the country of the undertaking 
which is to cover the commitment. Deleted 
Article 14 
1. Each Member State within whose territory an 
undertaking intends, under conditions of freedom to 
provide services, to cover commitments within the 
meaning of Article 13 of this Directive shall require that 
the undertaking: Article 14 
1. Each Member State within 
undertaking intends, by way of 
services, to cover commitments 
Article 13 of this Directive shall require that the under 
taking abide by the following procedure: whose territory an 
freedom to provide 
in accordance with 
No C 72/22 Official Journal of the European Communities 22. 3. 90 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
(a) produce a certificate issued by the competent auth­
orities of the head office Member State certifying 
that it possesses for its activities as a whole the 
minimum solvency margin calculated in accordance 
with Article 19 of the First Directive and that, in 
accordance with Article 6 (1) of the said Directive, 
the authorization enables the undertaking to operate 
outside the Member State of establishment; (a) production of a certificate issued by the competent 
authorities of the head office Member State 
certifying that it possesses for its activities as a whole 
the minimum solvency margin calculated in 
acordance with Article 19 of the First Directive and 
that, in accordance with Article 6 (1) of the said 
Directive, the authorization enables the undertaking 
to operate outside the Member State of estab­
lishment; 
(b) produce a certificate issued by the competent auth­
orities of the Member State of establishment indi­
cating the classes in respect of which the undertaking 
is authorized to transact business and certifying that 
those authorities do not object to the undertaking's 
transacting business by way of freedom to provide 
services; (b) production of a certificate issued by the competent 
authorities of the Member State of establishment 
indicating the classes in respect of which the under­
taking is authorized to transact business and 
certifying that those authorities do not object to the 
undertaking's transacting business by way of 
freedom to provide services; 
(c) state the nature of the commitments which it 
proposes to cover in the Member State of provision 
of services. (c) statement of the nature of the commitments which it 
proposes to cover in the Member State of provision 
of services. 
The above procedure shall not apply where an activity 
falling under this Directive is not subject, in the Member 
State of the commitment, to supervision by the adminis­
trative authorities responsible for supervising private 
insurance. 
2. Each Member State shall make provision of a right 
to apply to the courts in respect of a refusal to issue the 
certificate referred to in paragraph 1 (a) or (b). 2. Unchanged 
3. The undertaking may commence activities as from 
the certified date on which the authorities of the 
Member State of provision of services are in possession 
of the documents referred to in paragraph 1. 3. Unchanged 
4. This Article shall also apply where the Member 
State in whose territory an undertaking intends, by way 
of freedom to provide services, to cover commitments 
other than those referred to in Article 13 of this 
Directive does not make the taking-up of such activity 
conditional on official authorization. 4. This Article shall also apply where the Member 
State in whose territory an undertaking intends, by way 
of freedom to provide services, to cover commitments in 
accordance with arrangements other than those referred 
to in Article 13 of this Directive does not make the 
taking-up of such activity conditional on official auth­
orization. 
5. Member States may not prevent the policy-holder 
from entering into any commitment which may be 
lawfully undertaken in the Member State of estab­
lishment unless it is contrary to public policy in the 
Member State of the commitment. 
Article 15 
A policy-holder who concludes an individual life 
assurance contract under conditions of freedom to 
provide services as set out in Article 13 shall have a 
period of at least 30 days from the time when the parties 
entered into the contract within which to cancel the 
contract. Article 15 
1. Each Member State shall prescribe that a policy­
holder who concludes an individual life assurance 
contract in one of the cases referred to in Title III shall 
have a period of between 14 and 30 days from the time 
when he was informed that the contract had been 
concluded within which to cancel the contract. 
22. 3. 90 Official Journal of the European Communities No C 72/23 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
The giving of notice of cancellation by the policy-holder 
shall have the effect of releasing him from any obligation 
arising from the contract. The giving of notice of cancellation by the policy-holder 
shall have the effect of releasing him from any future 
obligation arising from the contract. 
These provisions shall not apply to contracts of two 
months' duration or less. 
The legal effects of cancellation shall be determined by 
the law applicable to the contract as defined in Article 4, 
notably as regards establishing the time when the parties 
entered into the contract. The other legal effects and the conditions of cancellation 
shall be determined by the law applicable to the contract 
as defined in Article 4, notably as regards the 
arrangements for informing the policy-holder that the 
contract has been concluded. 
2. The Member States need not apply paragraph 1 to 
contracts of six months' duration or more. 
Article 16 
Member States' legislation shall provide that an under­
taking established in a Member State may cover within 
that State by way of freedom to provide services from an 
establishment in another Member State at least: Article 16 
Unchanged 
— commitments within the meaning of Article 13 of this 
Directive, the commitments within the meaning of Article 10 of 
this Directive, where they are entered into in 
accordance with the arrangements in Article 13, 
commitments within the meaning of Article 10 but 
not of Article 13 coming within classes in respect of 
which the undertaking established in the first 
Member State lacks authorization there in 
accordance with Article 6 of the First Directive. the commitments within the meaning of Article 10 
entered into in accordance with arrangements other 
than those laid down in Article 13, where they fall 
within classes in respect of which the undertaking 
established in the first Member State lacks auth­
orization there in accordance with Article 6 of the 
First Directive. 
If, however, in the latter case that undertaking has such 
authorization, the first Member State may prevent such 
provision of services. Unchanged 
Article 17 
1. Where an undertaking referred to in Article 11 
intends to amend the information referred to in Article 
12 (1) or 14 (1) (c), it shall submit the amendments to 
the competent authorities of the Member State of 
provision of services. Those amendments shall be subject 
to the provisions of Articles 12 (3) and 14 (1), as the case 
may be. Article 17 
1. Where an undertaking referred to in Article 11 
intends to amend the information referred to in Article 
12 (1) (c), it shall submit the amendments to the 
competent authorities of the Member State of provision 
of services. Those amendments shall be subject to the 
provisions of Articles 12 (3) and 14 (3), as the case may 
be. 
No C 72/24 Official Journal of the European Communities 22. 3. 90 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
2. Where the undertaking intends to extend its ac­
tivities to commitments within the meaning of Article 10 
but not of Article 13 of this Directive, it shall follow the 
procedure laid down in Articles 11 and 12. 2. Where the undertaking intends to extend its ac­
tivities to commitments within the meaning of Article 10 
in accordance with arrangements other than those laid 
down in Article 13 or Article 14 (4) of this Directive, it 
shall follow the procedure laid down in Articles 11 and 
12. 
3. Where the undertaking intends to extend its ac­
tivities to commitments within the meaning of Article 13 
or Article 14 (4) of this Directive, it shall follow the 
procedure laid down in Articles 11 and 14. 3. Where the undertaking intends to extend its ac­
tivities to commitments in accordance with the 
arrangements laid down in Article 13 or Article 14 (4) of 
this Directive, it shall follow the procedure laid down in 
Articles 11 and 14. 
Article 18 
Undertakings which, by virtue of Article 13 (3) of the 
First Directive, carry on simultaneously the activities 
referred to in the Annex to the First Coordination 
Directive (non-life insurance) and those listed in Article 
1 of the First Directive shall not, by way of freedom to 
provide services, cover any commitments in any of the 
classes referred to in the First Directive. Article 18 
1. Undertakings which, by virtue of Article 13 (3) of 
the First Directive, carry on simultaneously the activities 
referred to in the Annex to Directive 73/239/EEC and 
those listed in Article 1 of the First Directive may accept 
commitments in any of the classes referred to in the First 
Directive by way of provision of services as referred to in 
Article 13 of this Directive. They may also accept 
commitments by way or provision of services as referred 
to in Article 12 if the law of the Member State of 
provision of services so allows at the time of notification 
of this Directive, or thereafter and until 3 December 
1995 in the other Member States. 
2. This Article will be reviewed in the light of the 
report to be prepared by the Commission in accordance 
with Article 39 (2) of the First Directive. 
Article 19 
1. Member States of provision of services may 
maintain or introduce laws, regulations or administrative 
provisions justified on policy-holder protection grounds, 
concerning, in particular, approval of general and special 
policy conditions, of forms and other printed documents 
for use in dealings with policy-holders, of scales of 
premiums and of any other document necessary for the 
normal exercise of supervision on condition that the 
rules of the Member State of establishment are insuf­
ficient to achieve the necessary level of protection and 
the requirements of the Member State of provision of 
services do not go beyond what is necessary in that 
respect. Article 19 
1. Unchanged 
2. However, with regard to commitments within the 
meaning of Article 11 of this Directive, Member States 
of provision of services shall not lay down provisions 
requiring approval or notification 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. 2. However, with regard to commitments entered into 
in accordance with the arrangements described in Article 
13 of this Directive, Member States of provision of 
services shall not lay down provisions requiring approval 
or notification 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. 
22. 3. 90 Official Journal of the 
ORIGINAL PROPOSAL 
Article 20 
1. Any undertaking providing services shall submit to 
the competent authorities of the Member State of 
provision of services all documents requested of it for the 
purposes of implementing this Article, in so far as under­
takings established there are also obliged to do so. 
2. If the competent authorities of a Member State 
establish that an undertaking providing services within its 
territory does not comply with the legal provisions 
applicable to it in that State, such authorities shall 
request the undertaking concerned to put an end to the 
irregular situation. 
3. If the undertaking in question fails to comply with 
the request referred to in paragraph 2, the competent 
authorities of the Member State of provision of services 
shall inform the competent authorities of the Member 
State of establishment accordingly. The latter authorities 
shall take all appropriate steps to ensure that the under­
taking concerned puts an end to the irregular situation. 
The nature of those measures shall be communicated to 
the authorities of the Member State of provision of 
services. 
The competent authorities of the Member State of 
provision of services may also apply to the competent 
authorities responsible for the head office of the 
assurance undertaking if the services are being provided 
by agencies or branches. 
4. If, despite the steps thus taken by the Member State 
of establishment, or because such steps prove inadequate 
or are lacking in the Member State in question, the 
undertaking persists in violating the legal provisions in 
force in the Member State of provision of services, the 
latter Member State may, after informing the supervisory 
authorities of the Member State of establishment, take 
appropriate steps to prevent further irregularities, 
including, in so far as it is strictly necessary, the European Communities No C 72/25 
AMENDED PROPOSAL 
3. They may require only non-systematic notification 
of these conditions and other documents, for the purpose 
of verifying compliance with laws, regulations and 
administrative provisions in respect of such 
commitments, although this requirement may not 
constitute a prior condition in order for an undertaking 
to carry on its activities. 
Article 20 
Unchanged 
No C 72/26 Official Journal of the European Communities 22. 3. 90 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
prevention of the further covering of commitments by 
the undertaking by way of freedom to provide services 
within its territory. In the case of commitments covered 
by way of freedom to provide services other than those 
within the meaning of Article 13 of this Directive, such 
steps shall include withdrawal of the authorization 
referred to in Article 12. Member States shall ensure that 
within their territory it is possible to effect the notifi­
cations necessary for such steps. prevention of the further covering of commitments by 
the undertaking by way of freedom to provide services 
within its territory. In the case of commitments covered 
by way of freedom to provide services in accordance 
with arrangements other than those referred to in Article 
13 of this Directive, such steps shall include withdrawal 
of the authorization referred to in Article 12. Member 
States shall ensure that within their territory it is possible 
to effect the notifications necessary for such steps. 
5. The foregoing provisions shall not affect the right 
of Member States to punish irregularities committed 
within their territory. Unchanged 
6. If the undertaking which has committed the irregu­
larity has an establishment or owns property in the 
Member State of provision of services, the supervisory 
authorities of the latter may, in accordance with national 
law, apply the administrative penalties prescribed for 
such irregularity by way of enforcement against such 
establishment or property. 
7. Any step taken under paragraphs 2 to 6 involving 
penalties or restrictions on the provision of services must 
be properly justified and communicated to the under­
taking concerned. Even such measure shall be subject to 
the right to apply to the courts in the Member State in 
which the authorities adopted it. 
8. Where steps are taken under Article 24 of the First 
Directive, the competent authorities of the Member State 
of provision of services shall be informed accordingly by 
the authority which takes them and, where the steps are 
taken under paragraphs 1 and 3 of the said Article, take 
whatever action is necessary to safeguard the interests of 
assured persons. 
In the event of withdrawal of authorization under Article 
26 of the First Directive, the competent authorities of the 
Member State of provision of services shall be informed 
accordingly and shall take appropriate steps to prevent 
the establishment concerned from continuing to conclude 
assurance contracts by way of freedom to provide 
services within the territory of that Member State. 
9. Every two years the Commission shall submit to the 
Council a report summarizing the number and type of 
cases in which, in each Member State, decisions refusing 
authorization have been communicated under Article 12 
or measures have been taken under paragraph 4. 
Member States shall cooperate with the Commission by 
providing it with the information required for the report. 
22. 3. 90 Official Journal of the European Communities No C 72/27 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Article 21 
In the event of an assurance undertaking being wound 
up, commitments arising from contracts underwritten by 
way of freedom to provide services shall be met in the 
same way as those arising from that undertaking's other 
assurance contracts, no distinction being made on 
grounds of the nationality of assured persons or benefi­
ciaries. Article 21 
Unchanged 
Article 22 
1. Where an operation is offered by way of freedom 
to provide services, the policy-holder shall, before any 
commitment is entered into, be informed of the Member 
State in which the head office, agency or branch with 
which the contract is to be concluded is established. Article 22 
Unchanged 
Any document issued to the policy-holder shall contain 
the information referred to in the preceding 
subparagraph. Any document issued to the policy-holder or to the 
insured shall contain the information referred to in the 
preceding subparagraph. 
2. The contract or other document granting cover, 
together with the assurance proposal where it is binding 
upon the proposer, shall specify the address of the estab­
lishment which grants the cover and that of the head 
office. Unchanged 
Article 22a 
Every establishment must inform its supervisory authority 
in respect of operations effected by way of provision of 
services of the amount of the premiums, without 
deduction of reinsurance, receivable by Member State 
and by each of classes I to VI, as defined in the Annex 
to the First Directive. 
This information shall be provided separately for 
commitments covered in accordance with the 
arrangements in Article 12 of this Directive and for those 
covered in accordance with the arrangements in Article 
14. 
The supervisory authority of each Member State shall 
forward this information to the supervisory authorities of 
each of the Member States of provision of services which 
so requests. 
No C 72/28 Official Journal of the European Communities 22. 3. 90 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Article 23 
1. Where the provision of services is conditional upon 
authorization by the Member State of provision of 
services, the amount of the technical reserves, including 
mathematical reserves and the rules on profit sharing and 
on the surrender and paid-up values for the contracts 
concerned shall be determined under the supervision of 
that Member State in accordance with the rules it has 
laid down or, failing such rules, in accordance with 
established practice in that Member State. The covering 
of those reserves by equivalent and matching assets, the 
location of those assets and the application of the rules 
on profit sharing and on surrender and paid-up values 
shall be under the supervision of that Member State in 
accordance with its rules or practice. Article 23 
Unchanged 
2. In all other cases, those various operations shall be 
under the supervision of the Member State of estab­
lishment, in accordance with its rules or practice. 
3. The Member State of establishment shall ensure 
that the reserves relating to all the contracts which the 
undertaking concludes through the establishment 
concerned are sufficient and covered by equivalent and 
matching assets. 
4. In the circumstances referred to in paragraph 1, the 
Member State of establishment and the Member State of 
provision of services shall exchange any information 
necessary for carrying out their respective duties under 
paragraphs 1 and 3. 
Article 24 
Every assurance contract concluded by way of freedom 
to provide services shall be subject only to the indirect 
taxes and parafiscal charges on assurance premiums of 
the Member State of commitment within the meaning of 
Article 2 (c). Article 24 
Without prejudice to any subsequent harmonization, 
every assurance contract concluded by way of freedom 
to provide services shall be subject only to the indirect 
taxes and parafiscal charges on assurance premiums of 
the Member State of the commitment within the 
meaning of Article 2 (e), and, in the case of Spain, to the 
surcharges legally fixed to assist the Spanish body 
'Consorcio de compensacion de Seguros' in its function 
of compensating for losses resulting from the occurrence 
of exceptional events in that Member State. 
The law applicable to the contract pursuant to Article 4 
shall not affect the tax arrangements applicable. Unchanged 
22. 3. 90 Official Journal of the European Communities No C 72/29 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Each Member State shall, subject to subsequent harmon- Subject to future harmonization each Member State shall 
ization, apply to undertakings which provide services in apply to undertakings which provide services in its 
its territory its own national provisions concerning territory its own national provisions concerning measures 
measures to ensure the collection of indirect taxes and to ensure the collection of indirect taxes and parafiscal 
parafiscal charges due under the first subparagraph. charges due under the first paragraph. 
TITLE IV 
Transitional provisions 
Article 24a 
The following transitional arrangements shall apply for 
the benefit of Greece, Spain and Portugal: 
(i) Greece: until 31 December 1998: 
— Greece may limit the commitments for which it 
is the Member State of provision of services to 
those entered into in accordance with the 
arrangements referred to in Article 13, 
— however, Greece may require that the technical 
reserves, including mathematical reserves, 
relating to those commitments, should be 
calculated, covered and located in accordance 
with the legislation in force in Greece. 
(ii) Spain: until 31 December 1995: 
— Spain may limit the commitments for which it is 
the Member State of provision of services to 
those entered into in accordance with the 
arrangements referred to in Article 13, 
— however, Spain may require that the technical 
reserves, including mathematical reserves, 
relating to those commitments, should be 
calculated, covered and located in accordance 
with the legislation in force in Spain. 
(iii) Portugal: until 31 December 1998: 
— Portugal may limit the commitments for which 
it is the Member State of provision of services to 
those entered into in accordance with the 
arrangements referred to in Article 13, 
No C 72/30 Official Journal of the European Communities 22. 3. 90 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
however, Portugal may require that the 
technical reserves, including mathematical 
reserves, relating to those commitments, should 
be calculated, covered and located in 
accordance with the legislation in force in 
Portugal. 
Article 24b 
1. In the case of group assurance contracts entered 
into by virtue of the insured person's contract of 
employment or professional activity, the Member States 
may, until 31 December 1994 limit the commitments for 
which they are the Member State of provision of services 
to those entered into in accordance with the 
arrangements referred to in Article 12. 
2. Member States may, up to three years at the latest 
after the date of application laid down in Article 27 (2), 
consider that the policy-holder shall be deemed to have 
taken the initiative only in the case provided for in the 
first indent of Article 13 (1). 
TITLE IV 
Final provisions TITLE V 
Final provisions 
Article 25 
The Commission and the competent authorities of the 
Member States shall collaborate closely with a view to 
facilitating the supervision of the kinds of insurance and 
the operations referred to in the First Directive within 
the Community. Article 25 
Unchanged 
Each Member State shall inform the Commission of any 
major difficulties to which application of this Directive 
gives rise inter alia to a Member State becoming aware 
of an abnormal transfer of business referred to in the 
First Directive to the detriment of undertakings estab­
lished in its territory and to the advantage of agencies 
and branches located just beyond its borders. 
The Commission and the competent authorities of the 
Member States concerned shall examine such difficulties 
as quickly as possible in order to find an appropriate 
solution. 
Where necessary, the Commission shall submit appro­
priate proposals to the Council. 
22. 3. 90 Official Journal of the European Communities No C 72/31 
ORIGINAL PROPOSAL 
Article 26 
The Commission shall forward to the Council and the 
European Parliament regular reports, the first on ..., on 
the development of the market in assurance and oper­
ations transacted under conditions of freedom to provide 
services. AMENDED PROPOSAL 
Article 26 
Unchanged 
Article 27 
Member States shall amend their national provisions to 
comply with this Directive within 18 months of the date 
of its notification and shall forthwith inform the 
Commission thereof. Article 27 
Member States shall amend their national provisions to 
comply with this Directive within 24 months of the date 
of its notification and shall forthwith inform the 
Commission thereof. 
The provisions amended in accordance with this Article 
shall be applied within 24 months of the date of notifi­
cation of this Directive. The provisions amended in accordance with the first 
paragraph shall be applied within 30 months of the date 
of notification of this Directive. 
Article 28 
Upon notification of this Directive, Member States shall 
ensure that the texts of the main laws, regulations or 
administrative provisions which they adopt in the field 
covered by this Directive are communicated to the 
Commission. Article 28 
Unchanged 
Article 29 
This Directive is addressed to the Member States. Article 29 
Unchanged 
ANNEX 
A. Statement to be signed by the policy-holder under Article 13 (1), second indent 
'I hereby state that I wish (name of intermediary) to provide me with information on assurance 
contracts offered by undertakings established in Member States other than (Member State of habitual 
residence of policy-holder). I understand that such undertakings are subject to the supervisory 
arrangements of the State in which they are established and not to the supervisory arrangements of 
(Member State of habitual residence of policy-holder).' 
B. Statement to be signed by the policy-holder under Article 13 (2) 
'I hereby take note that (name of assurer) is established in (Member State of establishment of assurer) 
and I realize that supervision of that assurer is the responsibility of the supervisory authorities in 
(Member State of establishment of assurer) and not the responsibility of the authorities in (Member 
State of habitual residence of policy-holder).'