Commencement of business under freedom to provide services

(1) Direct insurance undertakings must notify the supervisory authority of the intended commencement of business under freedom to provide services, stating the member state or contracting state concerned. At the same time, it must be stated which classes of insurance are to be conducted there and which risks of a class of insurance are to be covered; where health insurance within the meaning of Article 206(2) of Directive 2009/138/EC is to be conducted, the particulars corresponding to section 9(4), point 5, must also be given. Where the risks named in Annex 1, point 10, letter a, are to be covered, the notification must additionally contain: 1. 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, and 2. the name and business address of a representative resident or established in the other member state or contracting state (claims representative), to whom section 24(1) applies correspondingly, who a) collects all information necessary concerning claims and possesses the business facilities necessary for that purpose, b) has sufficient powers to represent the undertaking, judicially or extrajudicially, in particular before administrative authorities, towards persons asserting claims for damages, and to grant powers of attorney in that connection, c) has, until final satisfaction of the claims for damages, sufficient powers to pay out the amounts corresponding to those claims, and d) has the power to represent the undertaking before the authorities of the other member state or contracting state as regards the existence and validity of the insurance contracts.
(2) Within a period of one month after receipt of the documents named in subsection (1), second and third sentences, the supervisory authority examines the legal admissibility of the project. 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, 2. a certificate stating which classes of insurance the undertaking may conduct and which risks of a class of insurance it may cover, and 3. 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 commencing direct insurance business under freedom to provide services is refused. Failure of the supervisory authority to respond by expiry of the period is deemed a refusal. 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 3, for as long as the rights of policyholders are at risk.
(3) In the case of subsection (2), second sentence, the undertaking may commence its activity from receipt of the notification referred to.
(4) Subsections (1) to (3) also apply where the undertaking intends to conduct further classes of insurance or cover further risks, or to appoint a different claims representative.