IN SITU AND TO MONITOR CONTINUOUSLY THE ACTIVITIES CARRIED ON BY THE AUTHORIZED INSURER AND THAT , WITHOUT THAT REQUIREMENT , THE AUTHORITY WOULD BE UNABLE TO PERFORM ITS TASK .
54 THE COURT HAS ALREADY STRESSED IN ITS DECISIONS , MOST RECENTLY IN ITS JUDGMENT OF 3 FEBRUARY 1983 ( CASE 29/82 VAN LUIPEN ( 1983 ) ECR 151 ), THAT CONSIDERATIONS OF AN ADMINISTRATIVE NATURE CANNOT JUSTIFY DEROGATION BY A MEMBER STATE FROM THE RULES OF COMMUNITY LAW . THAT PRINCIPLE APPLIES WITH EVEN GREATER FORCE WHERE THE DEROGATION IN QUESTION AMOUNTS TO PREVENTING THE EXERCISE OF ONE OF THE FUNDAMENTAL FREEDOMS GUARANTEED BY THE TREATY . IN THIS INSTANCE IT IS THEREFORE NOT SUFFICIENT THAT THE PRESENCE ON THE UNDERTAKING ' S PREMISES OF ALL THE DOCUMENTS NEEDED FOR SUPERVISION BY THE AUTHORITIES OF THE STATE IN WHICH THE SERVICE IS PROVIDED MAY MAKE IT EASIER FOR THOSE AUTHORITIES TO PERFORM THEIR TASK . IT MUST ALSO BE SHOWN THAT THOSE AUTHORITIES CANNOT , EVEN UNDER AN AUTHORIZATION PROCEDURE , CARRY OUT THEIR SUPERVISORY TASKS EFFECTIVELY UNLESS THE UNDERTAKING HAS IN THE AFORESAID STATE A PERMANENT ESTABLISHMENT AT WHICH ALL THE NECESSARY DOCUMENTS ARE KEPT .
55 THAT HAS NOT BEEN SHOWN TO BE THE CASE . AS HAS BEEN STATED ABOVE , COMMUNITY LAW ON INSURANCE DOES NOT , AS IT STANDS AT PRESENT , PROHIBIT THE STATE IN WHICH THE SERVICE IS PROVIDED FROM REQUIRING THAT THE ASSETS REPRESENTING THE TECHNICAL RESERVES COVERING BUSINESS CONDUCTED ON ITS TERRITORY BE LOCALIZED IN THAT STATE . IN THAT CASE THE PRESENCE OF SUCH ASSETS MAY BE VERIFIED IN SITU , EVEN IF THE UNDERTAKING DOES NOT HAVE ANY PERMANENT ESTABLISHMENT IN THE STATE . AS REGARDS THE OTHER CONDITIONS FOR THE CONDUCT OF BUSINESS WHICH ARE SUBJECT TO SUPERVISION , IT APPEARS TO THE COURT THAT SUCH SUPERVISION MAY BE EFFECTED ON THE BASIS OF COPIES OF BALANCE SHEETS , ACCOUNTS AND COMMERCIAL DOCUMENTS , INCLUDING THE CONDITIONS OF INSURANCE AND SCHEMES OF OPERATION , SENT FROM THE STATE OF ESTABLISHMENT AND DULY CERTIFIED BY THE AUTHORITIES OF THAT MEMBER STATE . IT IS POSSIBLE UNDER AN AUTHORIZATION PROCEDURE TO SUBJECT THE UNDERTAKING TO SUCH CONDITIONS OF SUPERVISION BY MEANS OF A PROVISION IN THE CERTIFICATE OF AUTHORIZATION AND TO ENSURE COMPLIANCE WITH THOSE CONDITIONS , IF NECESSARY BY WITHDRAWING THAT CERTIFICATE .
56 IT HAS THEREFORE NOT BEEN ESTABLISHED THAT THE CONSIDERATIONS ACKNOWLEDGED ABOVE CONCERNING THE PROTECTION OF POLICY-HOLDERS AND INSURED PERSONS MAKE THE ESTABLISHMENT OF THE INSURER IN THE TERRITORY OF THE STATE IN WHICH THE SERVICE IS PROVIDED AN INDISPENSABLE REQUIREMENT .
57 AS REGARDS THE COMMISSION ' S FIRST HEAD OF CLAIM , IT MUST THEREFORE BE CONCLUDED THAT THE FEDERAL REPUBLIC OF GERMANY HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLES 59 AND 60 OF THE TREATY BY PROVIDING IN THE VERSICHERUNGSAUFSICHTSGESETZ THAT WHERE INSURANCE UNDERTAKINGS IN THE COMMUNITY WISH TO PROVIDE SERVICES IN RELATION TO DIRECT INSURANCE BUSINESS , OTHER THAN