1.Each Member State shall make the taking-up of the business of direct insurance in its territory subject to an official authorization.
2.Such authorization shall be sought from the competent authority of the Member State in question by: (a) Any undertaking which establishes its head office in the territory of such state; (b) Any undertaking whose head office is situated in another Member State and which opens a branch or agency in the territory of the Member State in question; (c) Any undertaking which, having received the authorization required under (a) or (b) above, extends its business in the territory of such State to other classes; (d) Any undertaking which, having obtained in accordance with Article 7 (1) an authorization for a part of the national territory, extends its business beyond such part.
3.Member States shall not make an authorization subject to the lodging of a deposit or the provision of security.