Exemption from supervision

(1) The supervisory authority may exempt mutual insurance associations that need not be entered in the register from ongoing supervision under this Act, where, having regard to the nature of the business conducted and the other circumstances, supervision does not appear necessary to safeguard the interests of policyholders. These conditions may in particular be met by burial funds and by associations with a locally limited scope of activity, a small number of members, and low contribution income. The exemption must be revoked where the supervisory authority becomes aware that the conditions for the exemption have ceased to be met.
(2) Where the supervisory authority has granted an exemption under subsection (1), sections 12, 13, 178(4), sections 193, 213 to 217, 220, and 234j(1) and (3), sections 234g and 235, Part 2 Chapter 2, Part 3, and Part 6, with the exception of sections 305, 306, and 310, do not apply, insofar as ancillary provisions to the exemption or the aforementioned rights of the supervisory authority under sections 305 and 306 are to be enforced; a conversion under the Transformation Act is not permitted.
(3) The Federal Ministry of Finance is authorised, by statutory instrument not requiring the consent of the Bundesrat, to exempt from supervision under this Act public-law insurance undertakings within the meaning of section 1(3) and provident institutions within the meaning of section 2 that are not subject to Land supervision, where, having regard to the statutory provisions on the establishment of the undertakings or to the agreements existing between the undertakings and their sponsoring bodies, supervision does not appear necessary to safeguard the interests of policyholders.