Freedom to provide services; co-insurance

(1) Direct insurance undertakings that conduct, under freedom to provide services, exclusively the classes of insurance named in Annex 1, points 4 to 7 and 12, and the type of risk named there in point 10, letter b, are not subject to the provisions of this Act.
(2) Direct insurance undertakings that participate, by way of co-insurance, in the insurance business named in section 210(2) of the Insurance Contract Act are also not subject to the provisions of this Act, where they act in this connection, other than through the leading insurer, without a registered office or branch domestically, and the co-insurance does not concern compulsory liability insurance in connection with damage caused by nuclear energy or pharmaceutical products.
(3) Where a direct insurance undertaking abuses the possibility under subsection (2) of involving, as leading insurer, insurance undertakings from other member states or contracting states in co-insurance, the supervisory authority may issue the orders against that undertaking necessary to remedy the abuse. In serious cases, the supervisory authority may further prohibit the undertaking from concluding such co-insurance contracts, or take the measures named in section 304(3). Section 304(4) to (6) applies correspondingly. It is regarded as abuse, in particular, where an undertaking fails to perform the tasks customarily falling to a leading insurer, or involves in the contract insurance undertakings not authorised, under subsection (2), to participate in such a manner.
(4) The Federal Ministry of Finance is authorised, by statutory instrument not requiring the consent of the Bundesrat, to 1. declare subsections (1) and (2) applicable to insurance undertakings of a third country, where the interests of the insured are adequately safeguarded and interests of the Federal Republic of Germany do not conflict, and 2. determine that the provisions on foreign insurance undertakings with their registered office in another member state or contracting state also apply to undertakings with their registered office in a third country, insofar as this is necessary under agreements of the European Union.
(5) Under the conditions of subsection (4), point 1, the Federal Institute may also grant corresponding exemptions in an individual case by administrative act.