Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance (c. 83)

TITLE V RULES APPLICABLE TO AGENCIES OR BRANCHES ESTABLISHED WITHIN THE COMMUNITY AND BELONGING TO UNDERTAKINGS WHOSE HEAD OFFICES ARE OUTSIDE THE COMMUNITY

Article 51 Principles and conditions of authorisation

1. Each Member State shall make access to the activities referred to in Article 2 by any undertaking whose head office is outside the Community subject to an official authorisation.

2. A Member State may grant an authorisation if the undertaking fulfils at least the following conditions:

(a) it is entitled to undertake insurance activities covered by Article 2 under its national law;

(b) it establishes an agency or branch in the territory of such Member State;

(c) it undertakes to establish at the place of management of the agency or branch accounts specific to the activity which it carries on there and to keep there all the records relating to the business transacted;

(d) it designates a general representative, to be approved by the competent authorities;

(e) it possesses in the Member State where it carries on an activity assets of an amount equal in value to at least one half of the minimum amount prescribed in Article 29(2), first subparagraph, in respect of the guarantee fund and deposits one quarter of the minimum amount as security;

(f) it undertakes to keep a solvency margin complying with Article 55;

(g) it submits a scheme of operations in accordance with the provisions of paragraph 3.

3. The scheme of operations of the agency or branch referred to in paragraph 2(g) shall contain the following particulars or evidence of:

(a) the nature of the commitments which the undertaking proposes to cover;

(b) the guiding principles as to reinsurance;

(c) the state of the undertaking's solvency margin and guarantee fund referred to in Article 55;

(d) estimates relating to the cost of setting up the administrative services and the organisation for securing business and the financial resources intended to meet those costs;

and, in addition shall include, for the first three financial years:

(e) a plan setting out detailed estimates of income and expenditure in respect of direct business, reinsurance acceptances and reinsurance cessions;

(f) a forecast balance sheet;

(g) estimates relating to the financial resources intended to cover underwriting liabilities and the solvency margin.

4. A Member State may require systematic notification of the technical bases used for calculating scales of premiums and technical provisions, without that requirement constituting a prior condition for an assurance undertaking to carry on its business.