1. THE SCHEME OF OPERATIONS OF THE AGENCY OR BRANCH REFERRED TO IN ARTICLE 10 (1) (C) AND (2) SHALL CONTAIN THE FOLLOWING PARTICULARS OR EVIDENCE OF:
(A) THE NATURE OF THE COMMITMENTS WHICH THE UNDERTAKING PROPOSES TO TAKE ON IN THE HOST COUNTRY; THE GENERAL AND SPECIAL POLICY CONDITIONS WHICH IT PROPOSES TO USE;
(B) THE TECHNICAL BASES WHICH THE UNDERTAKING PROPOSES TO EMPLOY FOR EACH CLASS OF BUSINESS, INCLUDING THE DATA NEEDED TO CALCULATE PREMIUM RATES AND RESERVES REFERRED TO IN ARTICLE 17;
(C) THE GUIDING PRINCIPLES AS TO REINSURANCE;
(D) THE STATE OF THE UNDERTAKING'S SOLVENCY MARGIN AND GUARANTEE FUND REFERRED TO IN ARTICLES 18, 19 AND 20;
(E) ESTIMATES RELATING TO THE EXPENSES OF INSTALLING THE ADMINISTRATIVE SERVICES AND THE ORGANIZATION FOR SECURING BUSINESS AND THE FINANCIAL RESOURCES INTENDED TO COVER THEM;
AND, IN ADDITION SHALL INCLUDE, FOR THE FIRST THREE FINANCIAL YEARS:
(F) A FORECAST BALANCE SHEET FOR THE AGENCY OR BRANCH;
(G) A PLAN SETTING OUT DETAILED ESTIMATES OF INCOME AND EXPENDITURE IN RESPECT OF DIRECT BUSINESS, REINSURANCE ACCEPTANCES AND REINSURANCE CESSIONS.
2. THE SCHEME OF OPERATIONS SHALL BE ACCOMPANIED BY THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF THE UNDERTAKING FOR EACH OF THE PAST THREE FINANCIAL YEARS. IF, HOWEVER, IT HAS NOT YET BEEN IN BUSINESS FOR THREE FINANCIAL YEARS IT SHALL BE REQUIRED TO FURNISH THEM ONLY FOR THE FINANCIAL YEARS COMPLETED.
3. THE SCHEME OF OPERATIONS, TOGETHER WITH THE OBSERVATIONS OF THE AUTHORITIES COMPETENT TO ISSUE AUTHORIZATION, SHALL BE FORWARDED TO THE COMPETENT AUTHORITIES OF THE HEAD-OFFICE MEMBER STATE. THE LATTER AUTHORITIES SHALL COMMUNICATE THEIR OPINION TO THE FORMER WITHIN THREE MONTHS FROM THE RECEIPT OF THE DOCUMENTS; IF THEIR OPINION HAS NOT BEEN COMMUNICATED UPON THE EXPIRY OF THIS TIME, IT SHALL BE DEEMED TO BE FAVOURABLE.