Small insurance undertakings

(1) Small insurance undertakings within the meaning of this Act are primary insurance undertakings 1. whose annual gross written premium income does not exceed the amount named in Article 4(1)(a) of Directive 2009/138/EC, read together with the most recent publication of the adjusted amounts in the Official Journal of the European Union under Article 300, third subparagraph, of Directive 2009/138/EC, 2. whose total technical provisions within the meaning of section 75, before deduction of the recoverable amounts from reinsurance contracts and from special purpose vehicles, do not exceed the amount named in Article 4(1)(b) of Directive 2009/138/EC, read together with the most recent publication of the adjusted amounts in the Official Journal of the European Union under Article 300, third subparagraph, of Directive 2009/138/EC, 3. whose business activity does not include reinsurance activities that exceed a) the amounts named in Article 4(1)(e) of Directive 2009/138/EC, read together with the most recent publication of the adjusted amounts in the Official Journal of the European Union under Article 300, third subparagraph, of Directive 2009/138/EC, in relation to their gross written premium income or their technical provisions within the meaning of section 75, before deduction of the recoverable amounts from reinsurance contracts and from special purpose vehicles, or b) 10 percent of their gross written premium income, or c) 10 percent of their technical provisions within the meaning of section 75, before deduction of the recoverable amounts from reinsurance contracts and from special purpose vehicles, 4. whose business activity does not include insurance activities covering liability, credit, and suretyship insurance risks, unless these are ancillary risks within the meaning of section 10(4), first sentence, 5. that do not conduct cross-border business activity under sections 57 to 59, and 6. that are not pension funds or death benefit funds. Where the primary insurance undertaking belongs to a group, the group's total gross technical provisions may not exceed the amount named in Article 4(1)(c) of Directive 2009/138/EC, read together with the most recent publication of the adjusted amounts in the Official Journal of the European Union under Article 300, third subparagraph, of Directive 2009/138/EC. Where authorisation to conduct business as a primary insurance undertaking is applied for, the first sentence, points 1 to 3, does not apply where it is to be expected that one of the amounts named there will be exceeded within the next five years.
(2) Where a primary insurance undertaking satisfies the conditions of subsection (1) and the threshold amounts fixed in subsection (1) have not been exceeded in the last three consecutive years, the supervisory authority determines, of its own motion, that it is to be regarded as a small insurance undertaking, unless one of these threshold amounts is expected to be exceeded in the next five years.
(3) Where one of the threshold amounts named in subsection (1) is exceeded in three consecutive years, the supervisory authority revokes the determination. From the fourth year, the primary insurance undertaking is no longer regarded as a small insurance undertaking.
(4) On application, a primary insurance undertaking that would be regarded as a small insurance undertaking under subsections (1) and (2) is not to be treated as one.