Application

(1) The scheme of operations must be submitted together with the application for authorisation; it must set out the purpose and organisation of the undertaking, the territory of the intended business operations, and the circumstances from which it is to appear that the undertaking's future obligations can be permanently fulfilled.
(2) The following must be submitted as part of the scheme of operations:
1. the articles of association, insofar as they do not relate to general insurance conditions;
2. particulars of which classes of insurance are to be conducted and which risks of a class of insurance are to be covered; for undertakings intending to conduct exclusively reinsurance business, particulars instead of which risks are to be covered by way of reinsurance, and of the types of reinsurance contracts that the reinsurance undertaking intends to conclude with the ceding insurers;
3. the guiding principles for reinsurance and retrocession;
4. particulars of the basic own-funds items intended to cover the absolute floor of the minimum capital requirement; and
5. an estimate of the expenditure required to build up the administration and the network of agents; the undertaking must demonstrate that the funds required for this (organisation fund) are available; where authorisation to conduct the class of insurance named in Annex 1, point 18, is applied for, particulars of the funds available to the undertaking to fulfil the assistance benefit promised.
(3) In addition, the insurance undertaking must submit, as part of the scheme of operations, for the first three financial years:
1. a forecast balance sheet and a forecast profit and loss account;
2. estimates of the future Solvency Capital Requirement, based on the forecast balance sheet and forecast profit and loss account named in point 1, together with the calculation method from which the estimates are derived;
3. estimates of the future Minimum Capital Requirement, based on the forecast balance sheet and forecast profit and loss account named in point 1, together with the calculation method from which the estimates are derived;
4. an estimate of the respective financial resources expected to be available
a) to cover the technical provisions,
b) to comply with the Minimum Capital Requirement and the Solvency Capital Requirement;
5. for non-life insurance and reinsurance,
a) an overview of the anticipated administrative costs, in particular the ongoing overheads and commissions, excluding the expenditure for building up the administration,
b) an overview of the anticipated premium income and the anticipated claims burden; and
6. for life insurance, a plan setting out in detail the estimates of income and expenditure in respect of direct insurance business and of both assumed and ceded reinsurance business. Where the undertaking is not required to prepare a solvency and financial condition report under Chapter 2 Division 2, the estimate under the first sentence, point 4, letter a, need be given only for the technical provisions under the Commercial Code.
(4) In addition, the following must be submitted:
1. particulars of the nature and scope of the business organisation, including
a) the particulars material to assessing the requirements named in section 24; this applies to managers, other persons who actually direct the undertaking, the members of the supervisory board, the responsible actuary, and the other persons responsible for other key tasks,
b) particulars of enterprise agreements of the kind described in sections 291 and 292 of the Stock Corporation Act, and
c) particulars of contracts for the outsourcing of important functions or activities;
2. insofar as qualifying holdings are held in the insurance undertaking,
a) the identity of the holders and the size of the holdings,
b) particulars of the facts required to assess the requirements named in section 16,
c) insofar as the holders of the qualifying holdings are required to prepare annual financial statements: the annual financial statements for the last three financial years, together with audit reports of independent auditors, insofar as such reports are required to be prepared, and
d) insofar as these holders belong to a group: particulars of the group structure and, insofar as such statements are required to be prepared, the consolidated group financial statements for the last three financial years, together with audit reports of independent auditors, insofar as such audit reports are required to be prepared and no obstacles under German law preclude their disclosure to the applicant;
3. particulars of the facts indicating a close link between the insurance undertaking and other natural persons or undertakings;
4. (repealed)
5. for health insurance within the meaning of section 146(1),
a) the principles for calculating the premiums and the technical provisions within the meaning of sections 341e to 341h of the Commercial Code, including the accounting bases, mathematical formulae, actuarial derivations, and statistical evidence used, and
b) the general insurance conditions; and
6. where risks named in Annex 1, point 10, letter a, are covered, the names and addresses of the claims representatives to be appointed under section 163.
(5) Except in the case of applications for authorisation to conduct insurance business as a burial fund or as one of the institutions named in section 1(4), the supervisory authority must, before granting authorisation, consult the competent bodies of the other member states or contracting states where the undertaking
1. is a subsidiary or sister undertaking of an insurance undertaking, a CRR credit institution within the meaning of section 1(3d), first sentence, of the Banking Act, an e-money institution within the meaning of section 1(3d), third sentence, of the Banking Act, or a securities institution within the meaning of section 2(1) of the Securities Institutions Act, and the parent undertaking or the other sister undertaking is already authorised in another member state or contracting state, or
2. is controlled by the same natural persons or undertakings that control an insurance undertaking, CRR credit institution, e-money institution, or securities institution with its registered office in another member state or contracting state. The competent bodies are the authorities of the member states or contracting states in which the parent undertaking, the sister undertaking, or the controlling undertaking has its principal establishment, or in which the controlling persons have their habitual residence. Sister undertakings within the meaning of the first sentence, point 1, are undertakings that have a common parent undertaking. The consultation covers, in particular, the particulars required to assess the reliability and professional qualification of the persons named in section 24, and to assess the reliability of the holders of a qualifying holding in undertakings of the same group within the meaning of the first sentence with their registered office in the member state or contracting state concerned, as well as particulars relating to own funds.
(6) Where the supervisory authority intends to authorise an insurance undertaking that does not fall within the scope of Directive (EU) 2016/2341, whose scheme of operations indicates that part of its activities will be based on the freedom to provide services or the freedom of establishment in another member state, and that these activities are likely to be significant for the market of the host member state, it informs the European Insurance and Occupational Pensions Authority and the supervisory authorities of the member states or contracting states concerned. The information must be sufficiently detailed to permit a proper assessment.