Refusal and restriction of authorisation

(1) The supervisory authority refuses authorisation where 1. it is not sufficiently demonstrated, from the scheme of operations and the documents submitted under section 9(2) to (4), that the obligations arising from the insurance policies can be permanently fulfilled, 2. facts exist that justify the assumption that the managers or the members of the supervisory board do not meet the requirements of section 24, or 3. facts exist that justify the assumption that the holder of a qualifying holding in the insurance undertaking or, where the holder is a legal person, also a statutory or constitutional representative, or, where the holder is a commercial partnership, also a partner of the holder, is not reliable or otherwise does not meet the requirements to be set in the interest of a sound and prudent management of the undertaking; in case of doubt, this also applies where facts justify the assumption that he or she raised the funds used to acquire the qualifying holding by an act that objectively satisfies the elements of a criminal offence; 4. for direct insurance undertakings, beyond the cases named in points 1 to 3, also where a) the interests of policyholders are not sufficiently safeguarded according to the scheme of operations and the documents submitted under section 9(2) to (4), b) where authorisation is granted, the insurance undertaking becomes a subsidiary undertaking of an insurance holding company or a mixed financial holding company, and facts justify the assumption that a person who actually directs the insurance holding company or the mixed financial holding company is not reliable or does not possess the professional qualification required to conduct the business of the insurance holding company or the mixed financial holding company, or c) in the case of conducting health insurance business, facts exist that justify the assumption that the undertaking will introduce tariffs that, within the meaning of section 204 of the Insurance Contract Act, grant insurance cover of the same kind as the tariffs of another insurance undertaking affiliated with it within a group, insofar as the interests of policyholders are not sufficiently safeguarded by the introduction of such tariffs.
(2) Authorisation may be refused where facts justify the assumption that effective supervision of the insurance undertaking is impaired. This is in particular the case where 1. the insurance undertaking is integrated into, or closely linked with, an association of undertakings with other persons or undertakings, and this impairs effective supervision of the insurance undertaking through the structure of the network of participations or through inadequate economic transparency, 2. effective supervision of the insurance undertaking is impaired on account of the legal or administrative provisions of a third country applicable to persons or undertakings under point 1, or 3. effective supervision of the insurance undertaking is impaired because persons or undertakings under point 1 are not effectively supervised in the state of their registered office or head office, or because the authority responsible for supervising these persons or undertakings is not prepared to cooperate satisfactorily with the supervisory authority. Authorisation may further be refused where, contrary to section 9(4), the application does not contain sufficient particulars or documents.
(3) Authorisation may not be refused on grounds other than those named in subsections (1) and (2).