Insurance special purpose vehicles

(1) An insurance special purpose vehicle is a company limited by shares or similar, or a legally capable partnership, that is not an existing insurance undertaking and that assumes risks from insurance undertakings, fully funding its exposure to loss risks through the issuance of debt instruments or another financing mechanism, under which the repayment claims of the lenders, or the financing mechanism, are subordinated to the vehicle's reinsurance obligations. The term of the debt instruments or the other financing mechanism must correspond at least to that of the reinsurance contract. Insurance special purpose vehicles with their registered office or head office domestically require the authorisation of the supervisory authority to commence business.
(2) Sections 4, 8(3), 9(1), 10(1), sections 11, 16, 24, 25, 47, points 1, 2, and 5, section 294(2), first, third, and fourth sentences, and (3), (6), and (7), sections 305, 306 to 307, and 310 to 315, with the exception of section 312(1), apply correspondingly to insurance special purpose vehicles.
(3) Where the funds of an insurance special purpose vehicle are not sufficient within the meaning of the European Commission's implementing measure issued under Article 211(2) of Directive 2009/138/EC, the insurance special purpose vehicle must, at the supervisory authority's request, submit to it for approval a plan to restore a sound financial position. The supervisory authority may revoke the authorisation to conduct business where the insurance special purpose vehicle is unable, within a reasonable period set by the supervisory authority, to again demonstrate sufficient funds.