Application; procedure

(1) The application under section 67 must be made to the Federal Institute. The application must be accompanied by:
1. the scheme of operations under section 9(2) and (3) and the particulars and documents named in section 9(4) for the branch, and the undertaking's articles of association; at the same time, the members of the organ authorised to represent it by law and of a supervisory organ must be named;
2. a certificate from the competent authority of the home country stating
a) that the undertaking may, at its registered office, acquire rights and incur liabilities, and sue and be sued, under its own name, and
b) which classes of insurance the undertaking is authorised to conduct and which types of risk it actually covers; and
3. the balance sheet and the profit and loss account for each of the last three financial years; where the undertaking has existed for less than three years, it need submit these documents only for the financial years already completed.
(2) The requirements for financial resources are governed by Part 2, Chapter 2, Divisions 1 and 2. They are measured by the scale of business of the branch. The assets forming the equivalent of the Solvency Capital Requirement must be situated, at least in the amount of the Minimum Capital Requirement, domestically, and otherwise in the territory of the member states or contracting states. They may not fall below 50 percent of the absolute floor of the Minimum Capital Requirement fixed by the statutory instrument under section 122(2). The undertaking must further undertake to provide security (a fixed deposit). The fixed deposit amounts to at least 25 percent of the absolute floor of the Minimum Capital Requirement. The fixed deposit is counted towards own funds.
(3) Authorisation may be granted where
1. none of the grounds under section 11 for refusal of authorisation exists,
2. the conditions of section 68(1) and (2) are met, and
3. the amount required as the fixed deposit has been provided.
(4) Where the business is to be extended to other classes of insurance or to a different territory domestically, subsections (1) to (3) apply correspondingly.
(5) Subsection (2), fifth and sixth sentences, subsection (3), point 3, subsection (4), section 70(1), first sentence, point 2, and section 71, first sentence, point 2, do not apply to domestic branches of reinsurance undertakings with their registered office in a third country.