Establishment of a branch

(1) Direct insurance undertakings must notify the supervisory authority of the intended establishment of a branch, stating the member state or contracting state concerned. The notification must contain:
1. the particulars and estimates under section 9(2), points 1 and 2, and (3), points 5 and 6; where health insurance within the meaning of Article 206(2) of Directive 2009/138/EC is to be conducted, also the particulars corresponding to section 9(4), point 5, letter a;
2. particulars on the organisational structure;
3. the name of the proposed general representative, who is vested with sufficient authority to bind the undertaking vis-à-vis third parties and to represent it before administrative authorities and the courts of the other member state or contracting state;
4. the anticipated address, which must also be the business address of the general representative; and
5. where the risks named in Annex 1, point 10, letter a, are to be covered through the branch, a declaration that the undertaking has become a member, in the other member state or contracting state, of the national guarantee fund for compensating victims of accidents caused by uninsured or unidentified vehicles, and of the national insurance bureau.
(2) Within a period of three months after receipt of the documents named in subsection (1), second sentence, the supervisory authority examines the project, alongside its legal admissibility, for the appropriateness of the business organisation and the financial position of the undertaking, and for compliance with the conditions named in section 24(1) by the general representative and by the managers responsible for the branch. If there are no objections, it sends, before expiry of the period, to the supervisory authority of the other member state or contracting state
1. these documents, and
2. a certificate stating that the undertaking has eligible own funds to comply with the Solvency Capital Requirement or the minimum amount of the Minimum Capital Requirement required for the classes of insurance conducted, if that minimum amount is higher, and notifies the undertaking of this. Otherwise, it informs the undertaking, before expiry of the period, that and for what reasons consent to the establishment of the branch is refused. Where the financial position of the undertaking has deteriorated within the meaning of section 132(2), this precludes the issuance of a certificate under the second sentence, point 2, for as long as the rights of policyholders are at risk.
(3) In the case of subsection (2), second sentence, the branch may be established and commence its activity once two months have elapsed since the notification was received by the undertaking, unless the supervisory authority of the other member state or contracting state informs the undertaking of an earlier date.
(4) The insurance undertaking must notify the supervisory authority of any changes to the particulars given under subsection (1), second sentence, points 1 to 4, no later than one month before the intended implementation of the change. Subsection (2) otherwise applies correspondingly.