1. THE SEPARATE MANAGEMENT REFERRED TO IN ARTICLE 13 (3) MUST BE ORGANIZED IN SUCH A WAY THAT THE ACTIVITIES COVERED BY THIS DIRECTIVE ARE DISTINCT FROM THE ACTIVITIES COVERED BY THE FIRST COORDINATION DIRECTIVE (NON-LIFE INSURANCE) IN ORDER THAT:
- THE RESPECTIVE INTERESTS OF LIFE POLICY-HOLDERS AND NON-LIFE POLICY-HOLDERS ARE NOT PREJUDICED AND, IN PARTICULAR, THAT PROFITS FROM LIFE ASSURANCE BENEFIT LIFE POLICY-HOLDERS AS IF THE UNDERTAKING ONLY CARRIED ON THE ACTIVITY OF LIFE ASSURANCE,
- THE MINIMUM FINANCIAL OBLIGATIONS, IN PARTICULAR SOLVENCY MARGINS, IN RESPECT OF ONE OR OTHER OF THE TWO ACTIVITIES, NAMELY AN ACTIVITY UNDER THIS DIRECTIVE AND AN ACTIVITY UNDER THE FIRST COORDINATION DIRECTIVE (NON-LIFE INSURANCE) ARE NOT BORNE BY THE OTHER ACTIVITY.
HOWEVER, AS LONG AS THE MINIMUM FINANCIAL OBLIGATIONS ARE FULFILLED UNDER THE CONDITIONS LAID DOWN IN THE SECOND INDENT OF THE FIRST SUBPARAGRAPH AND, PROVIDED THE COMPETENT AUTHORITY IS INFORMED, THE UNDERTAKING MAY USE THOSE EXPLICIT ITEMS OF THE SOLVENCY MARGIN WHICH ARE STILL AVAILABLE FOR ONE OR OTHER ACTIVITY.
THE SUPERVISORY AUTHORITIES SHALL ANALYZE THE RESULTS IN BOTH ACTIVITIES SO AS TO ENSURE THAT THE PROVISIONS OF THIS PARAGRAPH ARE COMPLIED WITH.
2. (A) ACCOUNTS SHALL BE DRAWN UP IN SUCH A MANNER AS TO SHOW THE SOURCES OF THE RESULTS FOR EACH OF THE TWO ACTIVITIES, LIFE ASSURANCE AND NON-LIFE INSURANCE. TO THIS END ALL INCOME (IN PARTICULAR PREMIUMS, PAYMENTS BY RE-INSURERS AND INVESTMENT INCOME) AND EXPENDITURE (IN PARTICULAR INSURANCE SETTLEMENTS, ADDITIONS TO TECHNICAL RESERVES, REINSURANCE PREMIUMS, OPERATING EXPENSES IN RESPECT OF INSURANCE BUSINESS) SHALL BE BROKEN DOWN ACCORDING TO ORIGIN. ITEMS COMMON TO BOTH ACTIVITIES SHALL BE ENTERED IN ACCORDANCE WITH METHODS OF APPORTIONMENT TO BE ACCEPTED BY THE COMPETENT SUPERVISORY AUTHORITY.
(B) UNDERTAKINGS MUST, ON THE BASIS OF THE ACCOUNTS, PREPARE A STATEMENT CLEARLY IDENTIFYING THE ITEMS MAKING UP EACH SOLVENCY MARGIN, IN ACCORDANCE WITH ARTICLE 18 OF THIS DIRECTIVE AND ARTICLE 16 (1) OF THE FIRST COORDINATION DIRECTIVE (NON-LIFE INSURANCE).
3. IF ONE OF THE SOLVENCY MARGINS IS INSUFFICIENT, THE SUPERVISORY AUTHORITIES SHALL APPLY TO THE DEFICIENT ACTIVITY THE MEASURES PROVIDED FOR IN THE RELEVANT DIRECTIVE, WHATEVER THE RESULTS IN THE OTHER ACTIVITY. BY WAY OF DEROGATION FROM THE SECOND INDENT OF THE FIRST SUBPARAGRAPH OF PARAGRAPH 1, THESE MEASURES MAY INVOLVE THE AUTHORIZATION OF A TRANSFER FROM ONE ACTIVITY TO THE OTHER.
CONDITIONS FOR CARRYING ON ACTIVITIES