A SCHEME OF OPERATIONS IN ACCORDANCE WITH ARTICLE 11 AND COMPLY WITH THE CONDITIONS CONTAINED IN PARAGRAPH 1 ( B ) OF THIS ARTICLE .
3 . THE PRESENT COORDINATING MEASURES SHALL NOT PREVENT MEMBER STATES FRON ENFORCING PROVISIONS REQUIRING , FOR ALL INSURANCE UNDERTAKINGS , APPROVAL OF THE GENERAL AND SPECIAL POLICY CONDITIONS , OF THE TECHNICAL BASES FOR CALCULATING IN PARTICULAR PREMIUM RATES AND RESERVES REFERRED TO IN ARTICLE 17 AND OF ANY OTHER DOCUMENT NECESSARY FOR THE NORMAL EXERCISE OF SUPERVISION .
4 . THE ABOVEMENTIONED PROVISIONS MAY NOT REQUIRE THAT ANY APPLICATION FOR AUTHORIZATION SHALL BE EXAMINED IN THE LIGHT OF THE ECONOMIC REQUIREMENTS OF THE MARKET .
ARTICLE 11
1 . THE SCHEME OF OPERATIONS OF THE AGENCY OR BRANCH REFERRED TO IN ARTICLE 10 ( 1 ) ( C ) AND ( 2 ) SHALL CONTAIN THE FOLLOWING PARTICULARS OR EVIDENCE OF :
( A ) THE NATURE OF THE COMMITMENTS WHICH THE UNDERTAKING PROPOSES TO TAKE ON IN THE HOST COUNTRY ; THE GENERAL AND SPECIAL POLICY CONDITIONS WHICH IT PROPOSES TO USE ;
( B ) THE TECHNICAL BASES WHICH THE UNDERTAKING PROPOSES TO EMPLOY FOR EACH CLASS OF BUSINESS , INCLUDING THE DATA NEEDED TO CALCULATE PREMIUM RATES AND RESERVES REFERRED TO IN ARTICLE 17 ;
( C ) THE GUIDING PRINCIPLES AS TO REINSURANCE ;
( D ) THE STATE OF THE UNDERTAKING'S SOLVENCY MARGIN AND GUARANTEE FUND REFERRED TO IN ARTICLES 18 , 19 AND 20 ;
( E ) ESTIMATES RELATING TO THE EXPENSES OF INSTALLING THE ADMINISTRATIVE SERVICES AND THE ORGANIZATION FOR SECURING BUSINESS AND THE FINANCIAL RESOURCES INTENDED TO COVER THEM ;
AND , IN ADDITION SHALL INCLUDE , FOR THE FIRST THREE FINANCIAL YEARS :
( F ) A FORECAST BALANCE SHEET FOR THE AGENCY OR BRANCH ;
( G ) A PLAN SETTING OUT DETAILED ESTIMATES OF INCOME AND EXPENDITURE IN RESPECT OF DIRECT BUSINESS , REINSURANCE ACCEPTANCES AND REINSURANCE CESSIONS .
2 . THE SCHEME OF OPERATIONS SHALL BE ACCOMPANIED BY THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF THE UNDERTAKING FOR EACH OF THE PAST THREE FINANCIAL YEARS . IF , HOWEVER , IT HAS NOT YET BEEN IN BUSINESS FOR THREE FINANCIAL YEARS IT SHALL BE REQUIRED TO FURNISH THEM ONLY FOR THE FINANCIAL YEARS COMPLETED .
3 . THE SCHEME OF OPERATIONS , TOGETHER WITH THE OBSERVATIONS OF THE AUTHORITIES COMPETENT TO ISSUE AUTHORIZATION , SHALL BE FORWARDED TO THE COMPETENT AUTHORITIES OF THE HEAD-OFFICE MEMBER STATE . THE LATTER AUTHORITIES SHALL COMMUNICATE THEIR OPINION TO THE FORMER WITHIN THREE MONTHS FROM THE RECEIPT OF THE DOCUMENTS ; IF THEIR OPINION HAS NOT BEEN COMMUNICATED UPON THE EXPIRY OF THIS TIME , IT SHALL BE DEEMED TO BE FAVOURABLE .
ARTICLE 12
ANY DECISION TO REFUSE AN AUTHORIZATION SHALL BE ACCOMPANIED BY THE PRECISE GROUNDS FOR DOING SO AND NOTIFIED TO THE UNDERTAKING IN QUESTION .
EACH MEMBER STATE SHALL MAKE PROVISION FOR A RIGHT TO APPLY TO THE