Paragraph 5

United Kingdom

(1)

A UK insurer shall not provide insurance of any class or part of a class in a member State other than the United Kingdom unless the insurer is authorised under section 3 or 4 above to carry on insurance of that class or part of a class or is a member of Lloyd’s and either—

(a)

the requirements of this paragraph have been complied with in relation to the provision of the insurance in that member State; or

(b)

the insurance is provided by the insurer participating in a Community co-insurance operation otherwise than as the leading insurer.

(2)

The requirements of this paragraph are—

(a)

that the insurer has given to the F1Treasury a notice containing the requisite details; and

(b)

that the TreasuryF2have given to the supervisory authority in the member State in which the insurance is to be provided—

(i)

a notice which contains the requisite details; and

(ii)

a certificate in accordance with sub-paragraph (3) below.

(3)

A certificate is in accordance with this sub-paragraph if it—

(a)

attests that the insurer has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—

(i)

Articles 16 and 17 of the first general insurance Directive, and

(ii)

Articles 18, 19 and 20 of the first long term insurance Directive; and

(b)

indicates the classes of insurance business which the insurer is authorised to carry on in the United Kingdom.

(4)

Where the insurer intends to provide insurance in more than one member State, the requisite details may be contained in a single notification but must be set out separately in relation to each member State.

(5)

The Treasury shall, within the period of one month beginning with the date on which the insurer’s notice was received—

(a)

give the notice and certificate referred to in sub-paragraph (2)(b) above to the supervisory authority in the member State in which the insurer intends to provide insurance; or

(b)

refuse to give either or both of those documents.

(6)

The Treasury shall, within the period of one month referred to in sub-paragraph (5) above, notify the insurer—

(a)

that F3they have given the notice and certificate referred to in sub-paragraph (2)(b) above to the supervisory authority in the member State in which the insurer intends to provide insurance, stating the date on which they did so; or

(b)

that F4they have refused to give either or both those documents, stating the reasons for the refusal.

(7)

In the case of a UK company, the Treasury shall not refuse to give the notice referred to in sub-paragraph (2)(b) above unless, having regard to the insurance to be provided in the member State, it appears to F5them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.