Requisite details for purposes of paragraphs 1 to 3U.K.
4(1)The requisite EC details for the purposes of paragraphs 1 and 2 above are–
(a)the member State in which the overseas branch is to be or has been established (“the member State of the branch");
(b)the address of the branch and confirmation that that address is an address for service on the society’s authorised agent;
(c)the name of the society’s authorised agent;
(d)the classes and parts of classes of insurance business to be carried on, and the nature of the risks or commitments to be covered, in the member State of the branch;
(e)details of the structural organisation of the branch;
(f)the guiding principles as to reinsurance of business to be carried on in the member State of the branch, including the society’s maximum retention per risk or event after all reinsurance ceded;
(g)estimates of the following, namely–
(i)the costs of installing administrative services and the organisation for securing business in the member State of the branch; and
(ii)the resources available to cover those costs;
(h)for each of the first three financial years following the establishment of the branch–
(i)estimates of the society’s margin of solvency and the margin of solvency required, and a statement showing how both have been calculated;
(ii)in the case of a society which intends to carry on long term business, the details mentioned in sub–paragraph (2) below as respects the business to be carried on in the member State of the branch; and
(iii)in the case of a society which intends to carry on general business, the details mentioned in sub–paragraph (3) below as respect the business to be so carried on; and
(i)in the case of a society which intends to cover health insurance risks, the technical bases which will be used for calculating premiums in respect of such risks.
(2)The details referred to in sub–paragraph (1)(h)(ii) above are–
(a)a statement showing, on both optimistic and pessimistic bases, for each type of contract or treaty–
(i)the number of contracts or treaties expected to be issued;
(ii)the total premium income, both gross and net of reinsurance ceded;
(iii)the total sums assured or the total amounts payable each year by way of annuity;
(b)a statement setting out, on both optimistic and pessimistic bases, detailed estimates of income and expenditure in respect of direct business, reinsurance acceptances and reinsurance cessions; and
(c)estimates relating to the financial resources intended to cover underwriting liabilities.
(3)The details referred to in sub–paragraph (1)(h)(iii) above are–
(a)estimates relating to expenses of management (other than costs of installation), and in particular those relating to current general expenses and commissions;
(b)estimates relating to premiums or contributions (both gross and net of all reinsurance ceded) and to claims (after all reinsurance recoveries); and
(c)estimates relating to the financial resources intended to cover underwriting liabilities.
(4)The requisite UK details for the purposes of paragraphs 1 and 3 above are–
(a)the names of the society’s managers and main agents in the member State of the branch;
(b)particulars of any association which exists or is proposed to exist between–
(i)the committee of management and the controllers (if any) of the society; and
(ii)any person who will act as an insurance broker, agent, loss adjuster or reinsurer for the society in the member State of the branch;
(c)the names of the principal reinsurers of business to be carried on in the member State of the branch;
(d)the sources of business in the member State of the branch (for example, insurance brokers, agents, own employees or direct selling) with the approximate percentage expected from each of those sources;
(e)copies or drafts of the following, namely–
(i)any separate reinsurance treaties covering business to be written in the member State of the branch;
(ii)any standard agreements which the society will enter into with persons who will be sources of business in the member State of the branch;
(iii)any agreements which the society will enter into with persons (other than employees of the society) who will manage the business to be carried on in the member State of the branch;
(f)in the case of a society which intends to carry on long term business–
(i)the technical bases which the appointed actuary proposes to use for each class of business to be carried on in the member State of the branch, including the bases needed for calculating premium rates and mathematical reserves;
(ii)a statement by that actuary as to whether he considers that the premium rates that will be used in the member State of the branch are suitable;
(iii)a statement by that actuary as to whether he agrees with the information provided under sub–paragraphs (1)(f) and (2)(b) and (c) above; and
(iv)the technical bases used to calculate the statements and estimates referred to in sub– paragraph (2) above; and
(g)in the case of a society which intends to carry on general business, copies or drafts of any agreements which the society will have with main agents in the member State of the branch.
(5)In this paragraph “authorised agent" means an agent or employee of the society who has authority–
(a)to bind the society in its relations with third parties; and
(b)to represent the society in its relations with supervisory authorities and courts in the member State of the branch.