Financing

(1) The insurance undertakings belonging to a protection fund are obliged to make contributions to the protection fund. The contributions are intended to cover the shortfalls of the insurance contracts taken over, the administrative costs incurred, and other costs arising from the activity of the protection fund.
(2) For fulfilment of the obligations arising from the insurance contracts taken over, the protection fund is liable only with the assets available from the contributions made, after deduction of the costs under subsection (1), second sentence, and with the assets transferred under section 222(2), first sentence. These assets are not liable for the protection fund's other liabilities. A protection fund under section 224 must hold and administer these assets separately from its remaining assets.
(3) The funds accumulated for the assumption of insurance contracts (protection assets) must be invested in accordance with the principles of section 124(1).
(4) The amount of these assets should not fall below 1 per mille of the sum of the net technical provisions within the meaning of sections 341e to 341h of the Commercial Code of all insurance undertakings affiliated with the protection fund.
(5) The affiliated insurance undertakings are obliged to make annual contributions. The sum of the annual contributions of all insurance undertakings belonging to the protection fund for life insurers amounts to 0.2 per mille of the sum of their net technical provisions within the meaning of sections 341e to 341h of the Commercial Code. Each insurance undertaking's individual annual contribution is determined annually by the protection fund according to the procedure laid down in the regulation under subsection (7). Income of the protection fund is distributed to the insurance undertakings belonging to the protection fund in proportion to their contributions. The protection fund must levy special contributions of up to a maximum of 1 per mille of the sum of the net technical provisions within the meaning of sections 341e to 341h of the Commercial Code of the affiliated insurance undertakings, where this is necessary to carry out its tasks. An insurance undertaking's share of the fund's assets is suitable for covering its technical provisions within the meaning of sections 341e to 341h of the Commercial Code.
(6) Subsections (2) to (5) do not apply to the protection fund for health insurers. After taking over the insurance contracts, the protection fund levies, to fulfil its tasks, special contributions of up to a maximum of 2 per mille of the sum of the net technical provisions within the meaning of sections 341e to 341h of the Commercial Code of the affiliated health insurance undertakings.
(7) Further details on the minimum amount of the protection assets, the annual and special contributions, and the ceiling for payments per calendar year are governed by the Federal Ministry of Finance, in consultation with the Federal Ministry of Justice and Consumer Protection, by statutory instrument, which does not require the consent of the Bundesrat. As regards the annual contributions, the kind and scope of the business protected, and the number, size, and business structure of the insurance undertakings belonging to the protection fund, must be taken into account. The level of the contributions should also take into account the financial position and risk profile of the contributors. The statutory instrument may also contain provisions on the investment of the funds.
(8) Enforcement of the protection fund's contribution assessment notices takes place in accordance with the provisions of the Administrative Enforcement Act. The protection fund issues the enforceable copy.