304/2016 Coll.


LAW
Dated 24 August 2016

Amending Act no. 277/2009 Coll., On Insurance, as amended
amended, and other related laws

Parliament has passed this Act of the Czech Republic:
PART ONE


Change Insurance Act
Article I


Act no. 277/2009 Coll., On Insurance, as amended by Act no. 409/2010
Coll., Act no. 188/2011 Coll., Act no. 420/2011 Coll., Act.
428/2011 Coll., Act no. 458/2011 Coll., Act no. 18/2012 Coll., Act no. 399/2012
Coll., Act no. 99/2013 Coll., Act No. . 228/2013 Coll., Act no. 241/2013
Coll., Act no. 303/2013 Coll. and Act no. 375/2015 Coll., is amended as follows:

First Above § 1, the following title "Subject Matter" and heading under § 1
was deleted.

Second In § 1 para. 1 the words "European Communities ^ 1)" is replaced
"The European Union ^ 1)" also follows on directly applicable regulation
EU-40). "

footnotes Nos. 1 and 40 are added:

"1) Council Directive 91/371 / EEC of 20 June 1991 on the implementation of the Agreement
between the European Economic Community and the Swiss Confederation on direct
insurance other than life.

Directive of the European Parliament and Council Directive 95/26 / EC of 29 June 1995
amending Directive 77/780 / EEC and 89/646 / EEC on
credit institutions, Directive 73/239 / EEC and 92/49 / EEC on non-life insurance
, Directive 79/267 / EEC and 92/96 / EEC on life insurance
Directive 93/22 / EEC on investment firms and Directive 85/611 /
EEC on undertakings for collective investment in transferable securities
(UCITS), as amended by European Parliament and Council Directive 2000/12 / EC
2002/83 / EC and 2009/65 / EC.

Directive of the European Parliament and Council Directive 2002/47 / EC of 6 June 2002
on financial collateral arrangements, as amended by European
Parliament and Council Directive 2009/44 / EC.

Directive of the European Parliament and Council Directive 2002/87 / EC of 16 December
2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in
financial conglomerate and amending Council Directive
73/239 / EEC, 79/267 / EEC, 92/49 / EEC, 92/96 / EEC, 93/6 / EEC and 93/22 / EEC and
Directive of the European Parliament and Council Directive 98/78 / EC and 2000/12 / EC, as amended
directives of the European Parliament and Council Directive 2005/1 / EC, 2008/25 / EC and
2010/78 / EU.

Directive of the European Parliament and Council Directive 2002/92 / EC of 9 December
2002 on insurance mediation.

Council Directive 2004/113 / EC of 13 December 2004 implementing
principle of equal treatment between men and women in the access to goods and services and their provision
.

Directive of the European Parliament and Council Directive 2005/1 / EC of 9 March 2005
amending Council Directive 73/239 / EEC, 85/611 / EEC, 91/675 / EEC, 92
/ 49 / EEC and 93/6 / EEC and Directive of the European Parliament and Council Directive 94/19 / EC
98/78 / EC, 2000/12 / EC, 2001/34 / EC, 2002/83 / EC and 2002 / 87 / EC in order
establish a new organizational structure for financial services committees, in
amended by Directive 2009/65 / EC.

Directive of the European Parliament and Council Directive 2007/44 / EC of 5 September 2007
amending Council Directive 92/49 / EEC and Directive 2002/83 / EC
2004/39 / EC, 2005/68 / EC and 2006/48 / EC as regards procedural rules and
evaluation criteria for the prudential assessment of acquisitions and increase
holdings in the financial sector.

Directive of the European Parliament and Council Directive 2009/103 / EC of 16 September 2009
of liability insurance of motor vehicles and
enforcement of the obligation to insure against such liability
(codified version).

Directive of the European Parliament and Council Directive 2009/138 / EC of 25 November 2009
access to insurance and reinsurance activities and the pursuit
(Solvency II), as amended by Directive of the European Parliament and of the Council
2011/89 / EU 2012/23 / EU 2013/58 / EU and 2014/51 / EU.

Directive of the European Parliament and Council Directive 2011/89 / EU of 16 November
2011 amending Directive 98/78 / EC, 2002/87 / EC, 2006/48 / EC and
2009 / 138 / EC as regards the supplementary supervision of financial entities in a financial conglomerate
.

40) European Parliament and Council Regulation (EU) no. 1094/2010 of 24
November 2010 establishing a European Supervisory Authority (European
Insurance and Occupational Pensions), amending || | decision no. 716/2009 / EC and repealing Commission decision 2009/79 / EC. ".

third in § 2 para. 1," Unless other legislation provides otherwise, apply
this Act "is replaced by" this Act shall not apply "

And the words "government subsidized", the words "
retirement savings, supplementary pension savings".

Fourth In footnote no. 2, the first sentence is deleted and the end notes
footnote no. 2 on separate lines following sentences: "Law no. 426/2011
Coll., On pension savings, as amended regulations. law no.
427/2011 Coll., on supplementary pension savings, as amended
regulations. ".

Fifth In § 2, par. 2 letter d) reads:

"D) Mutual life insurance activities,
which concluded with other mutual insurance agreement under which
liabilities are concluded insurance contracts are fully secured, or
according to another insurance company assumes obligations
arising from these contracts. "

6th In § 2 para. 2 point. e) the words "listed in the Directive of the European Parliament and of the Council
governing life insurance and Council Directive
governing non-life insurance ^ 3)" is replaced by "
and insurance companies established in another Member State excluded from the scope
EU directive governing access to insurance and reinsurance business and
its performance and operations excluded by this Directive ".

Footnote. 3 is repealed.

7th In § 2, par. 2 letter g) reads:

"G) grouping without legal personality of providing mutual
security for its members, without the obligation to pay premiums or
establish technical provisions."

8th In § 2, the following paragraph 4 is added:

"(4) This Act shall apply also to reinsurance conducted or fully guaranteed
Czech Republic operated by reasons of public interest
insurance protection, the nature of the insurance risk or situation
market do not receive adequate private security. ".

9th In § 3 para. 1 at the end of the text of letter a) the words "with the exception
insurance company, which is excluded from the scope of the European Union
governing access to insurance and reinsurance business and its
performance."

10th In § 3 para. 1 point. f) the words "Insurance Administration" are replaced
words "the activities directly resulting from authorized insurance activities
especially activities related to the creation of insurance and its administration" and
word "disposal of assets, the source of which
insurance technical reserves "are replaced by" investment ".

11th In § 3 para. 1 at the end of the text of letter g) the words "with the exception
reinsurance, which is excluded from the scope of the European Union
governing access to insurance and reinsurance business and its
performance."

12th In § 3 para. 1 point. l) the words' collateral management handling
assets whose technical provisions reinsurance "
replace the words" the activities resulting directly from authorized reinsurance
especially activities related to the creation and securing his administration ,
investment, provision of statistical or actuarial advice on insurance
, research and analyzes insurance risks
activity holding entity and activity in the financial sector under the Act
governing supplementary supervision of financial conglomerates. "

13th In § 3 para. 1 letter m) to o) are added:

"M) investing disposal of all assets owned by the insurance or reinsurance
,

n) insured event settlement package of activities beginning
investigation intended to determine the obligation to fulfill the insurance event caused
insurance risk, determining the level of performance and ended his
payment authorized person or the victim, or a statement that such
obligation incurred,

o) home Member State, the Member State in which the head office | ||
first insurance company with which the insured risk premium of non-life insurance
,

second insurance company that insured the obligation of life insurance

third undertaking , if it is a hedge. "

14th In § 3 para. 1 letter p) is deleted.

Existing letters r) to v) are renumbered p) to u).

15th In § 3 para. 1 at the end of the text of letter p) the words ";
in the case of life insurance, the Member State in which the insurance company
provides services, means a Member State of the commitment, and in the case of non-life insurance
that Member State means the Member State in which it is located
insurance risk, unless such liability or risk insured

Insurer or its branch, which is located in another Member State
. "

16th in § 3 para. 1 at the end of the text of letter r) the words";
If it is a branch of the undertaking from a third country
established in the territory of the Czech Republic, means it branch by
Civil Code. "

17th in § 3. 1 point. s) and t), § 24 para. 2, § 29 para. 1, § 30.
2, § 33 para. 1, § 35 para. 2 and 3, § 42 para. 2, § 50 par. 4, § 94 paragraph
. 5 and 6, § 112. 3, § 113 paragraph. 1, § 114, paragraph. 2, § 122 paragraph.
1 and § 133 paragraph. 1 the word "appropriate" is deleted.

18th in § 3 para. 1, the letter t) the following point u), which reads:

"u) the European supervisory authority
and Occupational Pensions. "

existing letter u) is designated as letter v).

19th in § 3 para. 2 letters e) to g) shall be deleted.

existing letters h) to r) are designated as letters e) to o).

20th in § 3 para. 2 letter f) shall be deleted.

Background letters g) to o) are renumbered f) to n).

21st in § 3 para. 2 point. f) the words "towards security" is replaced
word "ensuring".

22nd In § 3 para. 2 point. h) and j) the term "investments"
replace the word "assets".

23rd In § 3 para. 2 point. l) the words "assistance activity" is replaced
words "assistance service" and the word "activity" is replaced by
"services".

24th In § 3 para. 2 point. m) Point 4, "or seat" shall be deleted and the words
"their headquarters or a branch office" are replaced by "his branch,
to which the insurance applies."

25th In § 3 para. 2 at the end of subparagraph n) is replaced by a comma and the following letter
o) is added:

"O) outsourcing of activities of insurance or reinsurance arrangements with
service provider, process or activity, through which, and
either directly or through sub-outsourcing,
regardless of whether activities of a provider is subject to supervision, a
undertaking provides execution services
process or activity that would otherwise be performed by itself. ".

26th In § 3 para. 3 point. d) the introductory part of the word "other"
insert the word "business".

27th In § 3 para. 6 the letter a) a new point b), which reads:

"B) the person to participate in another person

first controlling person

second other than controlling person who holds a participation in another person,

3 . a person connected with a person of a single relationship management, or

fourth person has during the reporting period to another person
mostly the same people with those of a member of a statutory or supervisory body, without distinguishing between them
the relationship of control and unified management ".

Existing letters b) to j) are renumbered c) to k).

28th In § 3 para. 6 points c) and d) are added:

"C) an affiliated person

first controlled entity

second other than controlled entity, in which it holds a participation

third controlled entity connected relationship with another person of unified management, or


fourth person has during the reporting period to another person
mostly the same people with membership in the statutory or supervisory bodies or persons attending
its proceedings without the relationship between them control or
unified management,

d) participation, direct or indirect stake in itself or their
totaling 20% ​​of the capital or voting
the rights of other persons. "

29th In § 3 para. 6 at the end of the text of letter e) the words ";
share is assessed similarly as the share of voting rights of the issuer pursuant
law regulating the business on capital markets."

30th In § 3 para. 6 point. f) the word "other" is replaced by "controlled"
and the words' conditions and their aggregation under the law governing business activities on the capital market
^ 8) "including the footnotes Nos. 8 and the reference to
it repealed.

31st Footnote. 9 is repealed, including the reference to a note
footnote.

32nd In § 3 para. 6 point. h) the words "insurance or reinsurance
third country" shall be deleted and the words "mixed financial holding entity"
the words "under the law regulating financial conglomerates."

33rd In § 3 para. 6 point. j) paragraph 2 deleted.

Points 3 and 4 become paragraphs 2 and 3

34th In § 3 para. 6 letter a) reads:


"K) the person with the key functions of the person who effectively run the insurance or reinsurance
or supervises the activities of insurance or reinsurance or
person responsible for risk management, control, ensuring compliance with regulations
internal audit and actuarial activity or the person responsible for the performance
other activities designed by the undertaking as
key; if it is a unitary inner structure of domestic
insurance or reinsurance, the person that controls it, also a member of the || | Management Board ".

35th In § 3, at the end of paragraph 6 is replaced by a comma and
letter l), which reads:

"L) operations intragroup transactions, resulting in an insurance or reinsurance
becoming its debt repayment or fulfillment
claims directly or indirectly dependent on the decisions of others in the same group
or the decisions of another persons closely associated with persons in this group
. ".

36th In § 3, paragraph 7, which including footnote no. 41
reads:

"(7) For the purposes of this Act shall refer

a) underwriting risk the risk of loss or changes causing loss
value of the insurance or reinsurance caused by inadequate
assumptions in determining the amount of the premium
premiums or technical reserves,

b) market risk the risk of loss or of adverse change in the financial
situation resulting, directly or indirectly, from fluctuations in the level and volatility
market prices of assets, liabilities and financial instruments,

c) credit risk is the risk of loss or of adverse change in the financial
situation, resulting from fluctuations in the credit rating of issuers of securities
securities, counterparties and any debtors to which insurance and reinsurance
exposed, in the form of counterparty default risk, or spread risk
credit or market risk concentrations,

d) operational risk the risk of loss resulting from inadequate or failed internal processes
, employees or persons working for the insurance company or reinsurance
, systems or from external events

E) Liquidity risk inability of the insurance or reinsurance
monetize their investments and other assets intended for payment of their debts
when they fall due,

F) concentration risk all risk exposures with a loss potential
which is large enough to threaten the solvency or financial situation
insurance or reinsurance

G) risk-mitigation techniques, all techniques which enable insurance or reinsurance
transfer part or all of their risks to another party
,

H) risk level mathematical function which assigns a monetary amount given
probability distribution forecast and increases monotonically with the level
risk exposure underlying that probability distribution forecast
,

I) ECAI legal entity issuing credit ratings
based on the authorization granted in accordance with directly applicable
EU regulation governing credit rating agencies ^ 41) or
central bank issuing credit ratings for which the
apply this directly applicable legislation.

41) European Parliament and Council Regulation (EC) no. 1060/2009 of 6
September 2009 on credit rating agencies. ".

37th, § 4, the following paragraph 5 reads:

"(5) operate under paragraphs 1 and 2 may only
insurance or reinsurance undertaking whose registered office and registered in the public register or similar
is located in the same State as
her home state supervisory authority. ".

38th § 6 para. 1, first sentence, the words" and activities related thereto
permitted it to the competent supervisory authority "is replaced by" scope | || permit granted by the supervisory authorities. "

39th in § 6, paragraph 3 reads:

" (3) When undertaking its activities in the Czech Republic uses the services

insurance intermediary or independent loss adjuster may in mediating
insurance or reinsurance and claims management use
only person who carries out its activities in accordance with the law
regulating the activities of insurance intermediaries and independent | || loss adjusters. ".

Footnote. 10 is deleted.

40th In § 6, paragraph 4 is repealed.

Former paragraphs 5-7 become paragraphs 4 to 6


41st § 7 including the heading reads:

"§ 7

basic provisions for management and control system

(1) Home insurance and reinsurance domestic leads, maintain and apply
efficient management and control system that ensures proper
and prudent management of its activities and compliance with the requirements under § 7 and 7i;
this system includes at least

a) reasonable and clearly defined organizational structure with clear
identifying and appropriate segregation of duties, | ||
b) an efficient method of transmitting information and

c) risk management, check the compliance, internal audit and actuarial activities
.

(2) the control the system is proportionate to the nature, scale and complexity of activities
home insurance or reinsurance domestic and is subject to regular internal review
.

(3) Home insurance and reinsurance domestic must have its statutory authority approved
written policies, at least in terms of risk management,
internal control, internal audit, possibly also in terms of ensuring
external activities, and to ensure that this concept was implemented;
Case of a one-tier system of internal structure of the insurance or reinsurance
understood for the purposes of this Act, a statutory body
Management Board. Regularly, at least once a year, review its
functionality. Her treatment is required to be done in connection with any
major changes in the management and control system or in some
its area of ​​activity.

(4) To ensure continuity and sound and prudent exercise of their activities
home insurance and reinsurance domestic
take appropriate measures, including the development of contingency plans. For this purpose
employ appropriate and proportionate systems, resources and procedures. ".

42nd Under § 7 following § 7a to 7j, which, including the title added:

" § 7

Requirements for persons with key functions

(1) Home insurance and reinsurance domestic ensure that all persons with
key features of the undertaking were eligible and
credible and not a conflict of interest that would be detrimental to its sound and prudent
management.

(2) Home insurance and reinsurance domestic promptly
Czech National Bank shall notify the changes of persons referred to in paragraph 1
together with all information and documents needed to assess whether these persons are eligible
and trustworthy.

(3) If a person referred to in paragraph 1 ceases to meet the requirements of
paragraph 1 shall without undue delay of this fact relevant
domestic insurance undertaking or domestic reinsurance, which shall without undue delay
Czech National Bank .

(4) A person who proposes a change in the person of the statutory body of domestic
domestic insurance or reinsurance, demonstrates that one of this change
determines that the person meets the requirements under paragraph 1.

§ 7b
Risk


(1) Home insurance and reinsurance domestic must have an effective system
risk management strategy covering and reporting procedures necessary
systematic identification, measurement, monitoring, managing and internal reporting
risks it is or might They could be exposed. The risk management system must allow
risk assessment individually and in their entirety, including
evaluating their interdependencies. The risk management
appropriately integrated into the organizational structure of the insurance or reinsurance
persons mentioned in § 7, paragraph. 1 it has in the decision-making processes
due respect.

(2) The risk management system shall cover the risks included in the calculation of the Solvency Capital Requirement
according to § 74 and the risks that
not covered or not fully included in the calculation thereof;
risk management system covers at least

A) underwriting and reserving,

B) asset-liability management,

C) investment, in particular derivatives and similar commitments

D) management of liquidity risk and concentration risk,

E) operational risk management and

F) reinsurance and other risk mitigation techniques.

(3) The written policy under § 7 para. 3 involves practices and techniques
risk management in accordance with paragraphs 2 and 6 and in the case of applying a coefficient
volatility also the criteria for its use. This concept is
liquidity plan takes into account the cash flows relating to the assets and liabilities,

Subject if compensatory adjustment pursuant to § 54b or volatility adjustments
according to § 54c and 54d. In the case of investment risk, which includes
especially market risk, credit risk and liquidity risk, the domestic
domestic insurance and reinsurance obliged Czech National Bank
demonstrate compliance with the provisions of § 60 and 61.

(4) If the domestic insurance undertaking or domestic reinsurance
in the calculation of technical provisions and Solvency Capital Requirement assessment of credit risk
processed ECAI
not rely solely on such assessment and apply if possible, while also
other suitable method of evaluation.

(5) Where a domestic insurance undertaking or domestic reinsurance
uses or intends to use a full or partial internal model for the calculation of the Solvency Capital Requirement
according to § 77 applies
risk management also on duty

A) to design and implement the model

B) to test and validate the model

C) to document the model and its changes

D) to analyze the functionality of the model and to produce summary reports and

E) to inform the statutory or supervisory body about the functioning of the internal
model of the areas in which it is necessary to ensure the improvement and serving
this body Information about the progress and results of correcting identified deficiencies
.

(6) Assets and Liabilities Management pursuant to paragraph 2. b)
includes regular evaluation of the sensitivity of technical provisions and eligible capital

A) against the assumptions of extrapolation of the relevant risk-free yield curve and


B) in the case of compensatory adjustments pursuant to § 54b

First against the assumptions on which it based its calculation, including
calculating basic range, and the potential impact of a forced sale of assets at
eligible capital,

Second to change the composition of the portfolio associated with asset and

Third to reduce compensatory adjustments to zero, or

C) in the case of volatility adjustments pursuant to § 54c also

First against assumptions for calculating the volatility
including the possible impact of a forced sale of assets applicable to capital and

Second to reduce the volatility adjustments to zero.

(7) Rules and frequency of evaluation pursuant to paragraph 6
down implementing legislation.

§ 7c

Own risk and solvency assessment

(1) Home insurance and reinsurance domestic
as part of its risk management system performs its own risk assessment and
margin; risk and solvency assessment includes at least

A) the overall solvency needs with regard to individual
risk profile, approved risk tolerance limits and the overall strategy
insurance or reinsurance

B) ongoing compliance with the requirements regarding technical provisions according to §
52-57 and capital requirements according to § 73 and 79; in the case of
compensatory adjustments or volatility adjustments
evaluate compliance with regulatory capital requirements through how taking into account and without taking into account these adjustments
and

C) the extent to which the risk profile of the insurance or reinsurance
deviates from the assumptions underlying the Solvency Capital Requirement in accordance with § 73
, calculated in accordance with the standard formula in accordance with § 76
or through partial or full internal model in accordance with § 77.

(2) For the purposes of paragraph 1 point. a) domestic insurance undertaking or domestic reinsurance
introduce, maintain and apply procedures that are appropriate
nature, scale and complexity of the risks associated with its business and which enable it
sufficiently reliably identify and assess the risks to which the | || or they could be exposed in the short and long term.
The legitimacy of the methods used his own risk and solvency assessment
must be demonstrable.

(3) In the case under paragraph 1. c) if the home insurance or reinsurance
domestic uses an internal model, will assess together with
recalibration that adjusts internal values ​​
risk rate risk and calibration of the Solvency Capital Requirement.

(4) Own risk and solvency assessment is an integral part of the overall strategy
home insurance or domestic reinsurance
that it take into account in their strategic decisions. The insurance or reinsurance
shows Czech National Bank appropriateness of the methods used to
this assessment.


(5) Insurance and reinsurance performs risk and solvency assessment
regularly and immediately after any significant change in their risk profile
and the results of any assessment informs the Czech National Bank
. Risk and solvency assessment serves to calculate a capital requirement
. The Solvency Capital Requirement shall be adjusted only in
accordance with § 90a, 91c, 95a and 95b.

§ 7d
Internal control


(1) Home insurance and reinsurance domestic leads, maintain and apply
effective internal control system, which includes at least
accounting practices and procedures, internal control framework, appropriate mechanisms
information at all levels of insurance or reinsurance
checking the compliance with the laws governing their activities
.

(2) ensuring compliance check activities of domestic insurance or reinsurance
domestic legislation in accordance with paragraph 1
includes proposals for statutory and supervisory body of the insurance or reinsurance
to ensuring such compliance, submission information || | assessment of the possible impact of any changes in the legal environment on
operating activities of domestic insurance or reinsurance domestic and
identifying and assessing the risks of non-compliance with such laws and regulations
.

§ 7e
Internal audit


(1) Home insurance and reinsurance domestic leads, maintain and apply
effective internal audit, which includes assessing the appropriateness and effectiveness
internal control system and other elements of the management and control system
.

(2) Internal audit is an objective and independent operational activities.

(3) All findings and recommendations made in the implementation of internal audit
receives statutory or supervisory body of the domestic insurance undertaking or domestic reinsurance
appropriate measures to ensure their implementation.

§ 7f
Actuarial Business


(1) Home insurance and reinsurance domestic establish and maintain an effective system to ensure performance
actuarial activities, which includes

A) to coordinate the calculation of technical provisions,

B) ensuring the appropriateness of the methodologies, models and underlying assumptions
applied when calculating technical provisions,

C) assessing the adequacy and quality of the data used in the calculation of technical provisions
,

D) comparing the value of the best estimate is experience

E) informing the statutory or supervisory body of the reliability and adequacy
calculation of technical provisions

F) oversee the calculation of technical provisions under § 52-57,

G) considering the overall underwriting policy, including the method of determining tariffs
premiums and their adequacy,

H) assessment of the adequacy of reinsurance arrangements,

I) activities contributing to the effectiveness of risk management, particularly construction
risk models that are used to calculate
capital requirements according to § 73 to 79b and its own risk assessment
and solvency under § 7c, and

J) assessment of compliance of distributions from investment agreement with
insurance contract.

(2) the performance of activities under paragraph 1, insurance or reinsurance
appoint only a person who demonstrates knowledge of actuarial and financial mathematics and
expertise and experience with professional and
other standards consistent with the activities performed so that
they performed by persons with knowledge and experience appropriate to the nature, scale and complexity
risks associated with the business of an insurance or reinsurance
.

§ 7 g

Rules for outsourcing activities

(1) if a domestic insurance undertaking or domestic reinsurance externally
their particular activity, will not affect its responsibility for the implementation
obligations under this Act or a directly applicable regulation
European Union.

(2) The undertaking referred to in paragraph 1 shall establish measures to exclude
give undue risk resulting from failure
service providers and ensure

) Synergies with the service provider undertaking to be as
Czech National Bank and

B) access to the institutions of the undertaking, the Czech National Bank or
another supervisor, which the undertaking is subject to, and
auditor pursuant to § 80 paragraph. 2 to data on the following to manage the activities of the insurance or
reinsurance.


(3) The undertaking under paragraph 1 is under the management and control system
written policy for outsourcing some activities
.

(4) Outsourcing of critical or important activities
is prohibited if it would lead to

A) materially impairing the quality control system
insurance or reinsurance

B) unduly increasing the operational risk

C) impairing the capacity of the Czech National Bank or other supervisory authority
which the undertaking is subject to, monitor the performance of its duties
or

D) undermining the quality and continuity of supply of services to policyholders.

(5) Home insurance and reinsurance domestic
give notice to the Czech National Bank of every decision
outsourcing of critical or important work. For each subsequent material developments like this
secured operating informs the Czech National Bank without undue delay
.

§ 7h

Control system on an individual basis and on a group level

(1) Home insurance or reinsurance domestic leads, maintain and apply
control system on an individual basis.

(2) The control system at group level is governed by § 92c.
Policies and management practices, organizational structure, processes and mechanisms used
members in the group are mutually consistent and interconnected and capable
produce information needed for decision-making processes within
group and for the purposes of supervision.

§ 7i
Implementing measures


Directly applicable regulations of the European Union are governed

A) elements of the systems according to § 7, 7b to 7e

B) activities according to § 7b and 7d to 7f,

C) requirements according to § 7a and activities with which they are subject, and

D) conditions for outsourcing or insurance or reinsurance
activities, especially for service providers who have
located in third countries.

§ 7j

Control system of insurance and reinsurance from a third country

For a branch of the undertaking from a third country established for
Czech Republic must be procedures necessary to fulfill the requirements under §
7 to 7i at the level of the insurance or reinsurance, with the exception
implementation and maintenance management and control system at the level
group. ".

43rd § 8-10 are deleted, including the title.

44th in § 11 from the title, the words" and the education and practice "are deleted.

45th in § 11 para. 2 first and second sentences with the word" documents "
inserted the word" not older than 3 months. "

46 . In § 11 para. 3 first sentence, the words "natural persons document"
words "not older than 3 months."

47th in § 11, paragraphs 7-9 deleted.

48th § 12 including the heading deleted.

49th in § 13 para. 1, the second sentence is replaced by the sentence "It covers
to carry on insurance business for all risks falling into
these sectors, unless specifically requested permission to operate
insurance business to certain risks falling into these sectors. ".

50th In § 13 para. 1 last sentence, the words "the extent specified in the application"
replaced by "desired range".

51st In § 13 at the end of paragraph 1 the sentence "If conditions
according to § 49 may operate domestic insurance and reinsurance activities.".

52nd In the 13 paragraph. 2, the word "real" is deleted.

53rd In § 13 para. 5 of the first sentence the words "permit domestic insurance
to carry on insurance activities on the basis of a written application founder
domestic insurance companies whose registered office and headquarters to be in the Czech Republic
" is replaced by " based domestic insurance
authorization to carry on insurance activities on the basis of an application filed electronically
to which it shall attach documents proving
conditions set out in paragraph 6 ".

54th In § 13 para. 5, second sentence, and § 36 para. 5, second sentence, the words "
if the elements laid down in this Act" are deleted.

55th In § 13 at the end of paragraph 5 sentence "Particulars of the application, including attachments
proving the fulfillment of conditions pursuant to paragraph 6 of its
formats and other technical requirements laid down by a
regulation.".

56th In § 13 paragraph 6 reads:

"(6) The Czech National Bank shall grant an authorization under paragraph 5 if


A) is satisfied headquarters in paragraph 2

B) with respect to the desired extent and nature of business of the undertaking given by
assumed that the conditions
undertake insurance activities provided by this Act or a directly applicable regulation
European Union, in particular its financial stability, adequacy of personnel, | || technical and organizational requirements,

C) identification data are communicated to every person who has to have
qualifying holding in the insurance company, and this was a prerequisite for sound and prudent management
insurance company,

D) any person who is to act as a person under § 7 paragraph. 1
meets the eligibility and credibility

E) close links between the insurance company and other parties do not prevent the effective exercise
insurance supervision under this Act,

F) the effective supervision of the insurance under this Act shall prevent
laws of a third country governing one or more persons with
which has close links have insurance or difficult law enforcement in this
State

G) the amount of capital insurance qualifies under § 18

H) undertaking's assets come from criminal activity or from unidentified sources
and is evidenced origin
capital and other financial resources

I) the proposed control system makes the assumption
its functionality and effectiveness,

J) the demonstrated ability to hold own funds in the amount
Solvency Capital Requirement in accordance with § 73 and
minimum capital requirement under § 79 and 79a

K) the applicant has submitted a business plan for insurance
supported by realistic economic calculations,

L) the applicant has the name, surname, date of birth and home address
individuals or business name or name and registered office
legal persons proposed to function claims representatives appointed by each Member
State is to be operated insurance premiums by insurance
industries referred to in point B, point 10. a)
Annex no. 1 hereto, and

M) the applicant stated in the application truthful information. ".

57th in § 13 par. 7, the words" authorization to pursue insurance activity by
classes of life insurance "is replaced
"authorization to pursue insurance activity according to insurance industry
listed in part A of the Annex no. 1 hereto."

58th § 15 including the title reads:

"§ 15 || |
Business Plan home insurance

The business plan of home insurance according to § 13 par. 6 point. k)
applicant shall

A) one or more of the classes, or risk falling into
these industries, if not all of the risks to be insured
given sector or group of sectors, for which the permission should be granted

B) the method of calculating insurance premiums; for life insurance, including
statistical data on which this calculation is based

C) the method of calculation of technical provisions

D) the basic principles of outward reinsurance,

E) Items primary capital amounting
lower limit of the minimum capital requirement under § 79a

F) the estimated costs of installing the operating system and the organization
business and the way of covering these costs; in the case of the operation
insurance under non-life insurance mentioned in part B
18 Annex no. 1 hereto as well as financial and technical resources for
security assistance services

G) for the first three financial years

First in the case of insurance according to non-life insurance
estimate of revenues and costs broken down by costs associated with the introduction
activities and the running costs, especially overhead costs and rewards
insurance intermediaries, and an estimate of gross premiums and | || claims costs,

Second in the case of insurance according to classes of life assurance
estimates of revenue and expenditure of the insurance
activities with regard to direct insurance and reinsurance cessions,

Third a summary of assets and liabilities, which are valued assets and liabilities by
§ 51

Fourth estimate of the future Solvency Capital Requirement in accordance with § 73 and
future Minimum Capital Requirement according to § 79
projected balance sheet, which will be valued assets and liabilities according to §

51, including the method of calculation used to derive those estimates, and

Fifth estimates of the financial resources earmarked for the settlement of the commitments from the
insurance business and the fulfillment
SCR and MCR and

H) proposals or basic principles for the relocation of activities has to be
some of the activities after the authorization transferred outside the territory of the Czech Republic
.. "

59th in § 16 para. 1 and 2, § 25 par. 3 point. b), § 29 par. 3, § 31 para.
1, § 32 par. 5 first and second sentence, § 38 par. 1 and 2, § 43 paragraph . 3
point. b), § 94 paragraph. 2 point. b), § 94 paragraph. 5, § 112. 3, § 114, paragraph
. 4, § 128 paragraph. 1 point. e) , § 128 paragraph. 4 and 5 and § 133 paragraph. 3
word "relevant" is deleted.

60th in § 16 para. 3, § 32 par. 5, § 38 par. 3, § 125 and §
133 title, the word "relevant" is deleted.

61st in § 16 par. 3 and § 38 par. 3, the words "conflict of interest and || | acquired education and practice "is replaced by" and competence "and the words"
participation in management "is replaced by" key functions ".

62nd in § 16 paragraph 4 is deleted. || |
paragraph 5 shall be renumbered 4.

63rd in § 16 para. 4, the number "4" is replaced by "3".

64th in § 17 at the end of the text of paragraph 1, the words "; It is
apply mutatis mutandis to the insurance company that was granted an authorization pursuant to § 13 paragraph
. 7. "

65th in § 17 paragraph 2 reads:

" (2) The activities of the insurance company pursuant to paragraph 1 may not lead to
simultaneous operation of insurance by classes of life and
non-life insurance have been harmed the interests of policyholders, and
other persons entitled to benefits from insurance. ".

66th in § 17 the following paragraphs 3-7 are added:

"(3) Home insurance is calculated in accordance with paragraph 1, without prejudice to the
§ 73 and 79,

A) a notional life Minimum Capital Requirement for life insurance
attributable to its operations in life insurance or reinsurance so
as if only pursued that activity, and

B) a notional Minimum Capital Requirement for non-life insurance
attributable to its operations in non-life insurance or reinsurance so
as if only pursued that activity.

(4) Home insurance referred to in paragraph 1 has adequate
value of items eligible basic own funds according to § 63 at least
amount of notional Minimum Capital Requirement under paragraph 3
These minimum capital requirements applicable to one of the
activities must be covered from other activity. Items eligible basic
capital amount each notional Minimum Capital Requirement
is determined according to § 71 para. 4th

(5) Where the minimum capital requirements covered under paragraph 4
insurance company pursuant to paragraph 1 may be used to fulfill
solvency capital requirement under § 73 explicit items applicable
capital, which are still available for one or other activity.

(6) Home insurance under paragraph 1 of its accounting results, so that
resources for life and non-life insurance were separated
total revenues, in particular insurance premiums, payments by reinsurers and investment returns, and
costs, in particular insurance settlements, additions to technical provisions, reinsurance
and operating costs for insurance activities were scheduled according to their
origin. This applies mutatis mutandis for assets to match liabilities of
life and non-life insurance, where the individual instruments and transactions must be
revenues and expenses uniquely assigned
to life or non-life insurance and the transfer of these assets between life and
non-life parts can be realized only transfer between portfolios at market price
. Items common to both activities shall be entered in accordance with methods of apportionment laid
insurance company that is before using
to the Czech National Bank for approval. These methods are considered
approved if the Czech National Bank within one month from the date of receipt
disagrees; It shall apply mutatis mutandis to their
change.

(7) The Czech National Bank continuously analyzes the performance of the insurance
under paragraph 1 in both life and non-life insurance
to verify compliance with the requirements of paragraphs 1 to 6
When the amount of primary capital attributable to one of the activity is less than

Minimum capital requirements pursuant to paragraph 4, The Czech National Bank
to deficient activity of eligible basic own
remedial measures pursuant to this Act, regardless of the results of the second
activity. Such measures may involve the authorization of a transfer of explicit
listed items eligible basic own funds from one activity to
other. ".

67th in § 18 par. 1 point. A) the number" 90000000 "replaced by" 105 000 000
. "

68th in § 18 par. 1 point. b) 1, the number" 65000000 "is replaced
number" 70000000 "and in point 2, the number "90000000" is replaced by
'105,000,000. "

69th in § 18 par. 6, second sentence, the words" also available
rate margin will not fall below the required solvency margin specified in §
76 or below the amount of the guarantee fund provided for in § 77 "
replaced by" the insurance company will continue to meet the conditions of performance
solvency capital requirement in accordance with § 73. "

70. In § 18 par. 6 of the last sentence, the words "apply § 517 par. 2 and § 518
" is replaced by "do not apply provisions on the protection of creditors during
capital reduction by."

71. § 19 including the title reads:

"§ 19

The change in the scope of activities of domestic insurance companies

(1) Changes in the scope of activities of domestic insurance companies is subject to prior approval
Czech National Bank pursuant to a request filed electronically,
by the Czech National Bank will decide within a period and under conditions pursuant to § 13 paragraph
. 5 and 6; Czech National Bank permit change if the insurer

A) has demonstrated that it has eligible capital amounting
Solvency Capital Requirement in accordance with § 73 and
minimum capital requirement under § 79 and 79a

B) presented a revised business plan pursuant to § 15, which translates
required changes

C) the claims representative appointed in accordance with § 13 para. 6 point. l), is to be
insurance according to the insurance industry in Part B of Section 10
point. a) Annex no. 1 hereto,

D) submit a revised concept of the control system in accordance with §
7 with projecting the desired changes and

E) stated in the application truthful information.

(2) Home insurance is required to demonstrate that he possesses the applicable
capital of the Solvency Capital Requirement in accordance with § 73 and
Minimum Capital Requirement in accordance with § 79 and 79a for action in
life and non-life insurance, if operated

A) life insurance under one or more classes
listed in Part A of the Annex no. 1 hereto and requesting the extension
its activities on insurance classes of non-life insurance referred to in paragraph 1 or 2
part B of Annex no. 1 to this Act, or

B) only insured by insurance classes of non
mentioned in paragraph 1 or 2 of Part B of the Annex no. 1 hereto and requests
expansion of its operations for one or more classes of life insurance mentioned
part A of Annex no. 1 hereto.

(3) Requirements for the application of paragraphs 1 and 2, including attachments
demonstrating the fulfillment of the conditions of its formats and other technical requirements
in the implementing legislation. ".

72nd in § 20 paragraph. 1 point. b) and § 21 para. 1 point. b) the words "paragraph.
3 "are deleted.

73rd in § 20 para. 1 point. B), § 21 para. 1 point. B) and § 40 para. 2
point. B) the word "possess the required solvency margin, and meet the requirements
guarantee fund" is replaced by "comply with the solvency and
minimum capital requirement under this Act."

74th in § 20 par. 2 and 3 in § 21 para. 2 and 3, the words "exclusion
conflict of interest and on education and experience" are replaced by "a character '.

75th in § 20 para. 2" has required solvency margin "
replaced by" complies with the solvency and minimum capital requirement
under this Act. "

76th in § 20 par. 2 and 3, § 22 paragraph. 2 and 4, § 23 Sec. 2, § 29 para. 4 and
in § 128 paragraph. 5, the word "appropriate" is deleted.

77th in § 20 para. 4, § 29 para. 2, § 30 . 1 point. a), § 35 para. 1
point. b), § 35 para. 2 and 3, § 110 paragraph. 2 and 3, § 111 paragraph. 1 and 2, § 114, paragraph
. 1, § 117 paragraph. 2 and § 128 paragraph. 4, the word "appropriate" is deleted.

78th in § 20 par. 4 of the first sentence, the word "performed" is replaced by
'run ".

79th Footnotes Nos. 13 and 14 are deleted, including references to

Footnotes.

80th In § 21 para. 2 last sentence, the word "change" is replaced
"establishment of a branch in a third country."

81st In § 22 paragraph. 2 point. a) and § 29 para. 1 point. d) the words
"possesses the required solvency margin" is replaced by "meets
solvency and minimum capital requirement".

82nd In § 22 paragraph. 4 the words "required solvency margin"
replace the words "capital of the Solvency Capital Requirement."

83rd In § 23 para. 1 point. b) the words "according to § 15" are replaced by "
except for information that Czech National Bank may acquire pursuant to the Act governing
basic registers".

84th In § 23 para. 1, letter d) reads:

"D) information about changes in its activities, other than pursuant to § 19, and
change in its legal status and other changes that may prevent or hinder
sound and prudent operation of the activity of home insurance
or reinsurance supervision in insurance
under this Act ".

85th In § 23 para. 1 after letter e) the following new paragraph f), which reads:

'F) information on the takeover of the insurance portfolio of the insurance company from another
Member State or third country, or to take over the tribe
reinsurance contracts of insurance or reinsurance undertakings of another Member State or third
state, " .

Existing letter f) shall become point g).

86th In § 24 para. 1, second sentence, the words "this request" is replaced
"complete application or the receipt of further data under § 25 par. 3" and
end of the text of the second sentence, the words "or its extension by
§ 25 paragraph. 3 ".

87th In § 24 para. 1 sentence last word "in" is replaced by "on".

88th In § 24 paragraph 3 reads:

"(3) The particulars of the application, including attachments proving the fulfillment of conditions
according to § 25 paragraph. 1, its formats and other technical requirements determined
implementing legislation.".

89th In § 25 paragraph 1 reads:

"(1) The Czech National Bank assesses the request according to § 24 para. 1
with respect to the possible effect of the applicant's domestic insurance companies and approve it if

a) the person or persons who ask for consent to acquire participation
meet the conditions of credibility

b) a person who is to act as a person under § 7 paragraph. 1
satisfies a condition of eligibility credibility

c ) insurance will continue to be able to meet prudential requirements under
this Act or under the law regulating supplementary supervision
entities in financial conglomerates,

d) the structure of the group, which included a home insurance has become, || | allows you to exercise effective supervision, effectively exchange information between supervisory authorities
and does not hinder their area of ​​responsibility between the institutions

e) the condition of the financial health of the applicant with regard to
business which, in as proposed acquisition or increase
participation, operates or intends to operate and

f) in connection with the proposed acquisition, there is a reasonable suspicion that
occur or might occur to launder the proceeds of crime or | || to terrorist financing or attempted, or that the proposed acquisition could increase
risk of such conduct. ".

90th In § 25 par. 3 of the introductory part, the words "
filed an application pursuant to § 24 para. 1 suffers from incomplete or if other defects" are replaced
"for examining the application according to § 24 para. 1 necessary to add more | || information "and" to eliminate shortcomings in the application, or "the
deleted.

91st In § 25, paragraph 7 is deleted.

92nd Footnote. 16 is deleted, including the reference to a note
footnote.

93rd In § 29 para. 1, § 30 paragraph. 1 point. b) and § 30.
2, the words "European Communities" are replaced by "European Union".

94th In § 30 paragraph. 2 point. a) the words "possesses the required degree
margin specified in § 76" is replaced by "meets
Solvency and Minimum Capital Requirement."

95th In § 30 paragraph. 2 point. d) the word "appointed"
replaced by "established".

96th In § 31 para. 2, the word "covenant-17)" is replaced by "contract, and possibly
scales of premiums and forms used in insurance
conducting its insurance activities in the Czech Republic."

Footnote. 17 is deleted.

97th In § 31 paragraph 3 is deleted.

98th Under § 31 the following § 31a, including the heading reads:

"§ 31a

Special provisions


(1) Community underwriters Lloyd's for the purposes of this Act
considered as insurance and reinsurance undertakings of another Member State.

(2) A person who concluded the insurance contract with the community
underwriters Lloyd's, in the event of a dispute arising out of legal relationships
in connection with a closed insurance the same status as a person who
concluded a contract with an insurance company the usual type. ".

99th in § 32 par. 1, first sentence, the words" of its branch "
replaced by" established its branch plant in the Czech Republic
. "

100th In § 32 at the end of paragraph 1 the sentence "If conditions
according to § 49 par. 3 of the insurance company from a third country to operate in the territory
Czech Republic and reinsurance activities.".

one hundred and first in § 32 par. 2, after the word "life" the words "or other
international treaty, which is part of the legal system."

102nd in § 32 par. 3 the second sentence is replaced by the sentence "It covers
to carry on insurance business for all risks falling into
these sectors, unless specifically requested permission to operate
insurance business to certain risks falling into these sectors.".

103rd In § 32 para. 4 the word "written" be deleted and the words "that
elements laid down in this Act" shall be replaced
"submitted electronically to which it shall attach documents proving
conditions referred to in paragraph 6 '.

104th In § 32 at the end of paragraph 4, the sentence "Particulars of the application, including attachments
proving the fulfillment of conditions pursuant to paragraph 6 of its
formats and other technical requirements laid down by a
regulation.".

105th In § 32 paragraph 6 reads:

"(6) The authorization referred to in paragraph 1 Czech National Bank granted if it is not
inconsistent with the declared international treaties, and if the insurance company from a third country


a) with respect to the required the scope and nature of its activities gives
assumed that the conditions
undertake insurance activities provided by this Act or a directly applicable regulation
European Union, in particular its financial stability, adequacy of staffing, technical and organizational
assumptions

b) in accordance with the legislation of the country of its head office to operate
insurance activity according to classes of life and non-life insurance
a desired range of activity is not in contradiction with this
privilege, c

) establishes the Czech Republic its branch

d) propose to the branch manager the person who fulfills the conditions
competence and credibility

e) in the territory of the Czech Republic assets whose value
at least equal to one half the lower limit of the minimum capital requirement under
§ 79a and inserted at least one-quarter of those assets as collateral on behalf
specifically established for this purpose by banks based in the Czech Republic or
foreign bank branch located in the Czech Republic, which
not be treated without the consent of the Czech national Bank, and proves their
origin

F) must undertake to fulfill the Solvency Capital Requirement in accordance with § 73
and the Minimum Capital Requirement in accordance with § 79 and 79a, while at
their calculation takes into account only activities performed in the Czech Republic
, || |
G) submit a business plan for the branch according to § 34 relating to its
activity, which is to be operated in the Czech Republic, founded
realistic economic calculations

H) has a functional and effective management and control system

I) appoint a claims representative in the Czech Republic and in other Member States
charged with handling claims from insurance, if it is to be
insurance according to the insurance industry in Part B of Section 10
point. a) Annex no. 1 hereto,

J) is closely linked with others in a way that would prevent the effective exercise
insurance supervision under this Act,

K) itself or one or more persons closely linked
not governed by the laws of a third country, which would prevent the effective exercise
insurance supervision under this Act or would lead to difficult
enforcement of obligations under this law, and

L) indicated in the application truthful information. ".

106th In § 33 paragraph 2 deleted.

Existing paragraph 3 shall be renumbered 2.


107th § 34 including the title reads:

"§ 34

Business Plan insurance branch from a third country

The business plan insurance branch of a third country in accordance with § 32 par. 6
point. G) enters || |
a) one or more of the classes, or risk falling into
these industries, if not all of the risks to be insured
given sector or group of sectors, for which the permission should be granted
|| | b) the method of calculating insurance premiums, with life insurance
including statistical data on which this calculation is based

c) methods for calculating technical provisions,

d) the basic principles of outward reinsurance,

e) the amount of eligible own funds and eligible basic own funds
insurance according to § 63 compared to the Solvency capital requirement and
minimum capital requirement under § 73 and 79 and the estimate
future Solvency capital requirement
future minimum capital requirement based on the projected balance sheet
including the method of calculation used to derive those estimates

F) the estimated costs of installing the operating system and the organization
business and the way of covering these costs;
operation in case of insurance under the non-life insurance mentioned in part B
18 Annex no. 1 hereto as well as financial and technical resources for
security assistance services

G) for the first three financial years

First in the case of insurance according to non-life insurance
estimate of revenues and costs broken down by costs associated with the introduction
activities and the running costs, especially overhead costs and rewards
insurance intermediaries, and an estimate of gross premiums and | || claims costs,

Second in the case of insurance according to classes of life assurance
estimates of revenue and expenditure of the insurance
activities with regard to direct insurance and reinsurance cessions,

Third a summary of assets and liabilities, which are valued assets and liabilities by
§ 51

Fourth estimate of the future Solvency Capital Requirement in accordance with § 73 and
future Minimum Capital Requirement according to § 79
projected balance sheet, which will be valued assets and liabilities according to §
51, including the method of calculation used to derive these estimates,

Fifth estimates of the financial resources earmarked for the settlement of obligations from insurance
activity carried on in the Czech Republic and the fulfillment
Solvency and Minimum Capital Requirement and

H) proposals or basic principles for the relocation of activities has to be
some of the activities after the authorization transferred outside the territory of the Czech Republic
.. "

108th Under § 34 is inserted new § 34a, including the heading reads:

"§ 34a

Changes in the activities of the Company from a third country

(1) Changes in the data, which were the content of an application for authorization
and its Annexes, with the exception of changes in the scope of permitted activities
pursuant to paragraph 2 and the information that Czech National Bank may acquire pursuant to the Act
regulating basic registers, the insurance company from a third country
must without delay notify the Czech national Bank;
change statutes or equivalent document shall be submitted in full with
track changes. Any change in the branch manager
insurance from a third country is subject to prior approval by the Czech National Bank on
an application submitted electronically, which contains information about the person newly
proposed to the position of branch manager. Czech National Bank this request
assessed according to § 32 paragraph. 6 point. d).

(2) Change in scope of insurance business insurance from a third country
subject to the prior approval of the Czech National Bank on the basis of an application filed electronically
decided upon within a period pursuant to § 32 para. 4;
Czech National Bank permit change if the insurer

A) has demonstrated that it has eligible capital amounting
Solvency Capital Requirement in accordance with § 73 and
minimum capital requirement under § 79 and 79a

B) presented a revised business plan pursuant to § 34, which translates
required changes

C) claims representatives appointed pursuant to § 32 paragraph. 6 point. i) if it is to be
insurance activity according to insurance classes specified in
point B, point 10. a) Annex no. 1 hereto,


D) submit a revised concept of the control system in accordance with §
7 with projecting the desired changes and

E) stated in the application truthful information.

(3) Requirements for the application of paragraphs 1 and 2, including attachments
demonstrating compliance with the conditions of those paragraphs, the
formats and other technical requirements in the implementing legislation. ".

109s. in § 35 para. 1 and 3 and § 118 paragraph. 4, the word "appropriate" is deleted.

110th in § 35 para. 1 point.) the words "required solvency margin specified
in § 76 "is replaced by" Solvency capital requirement
according to § 73. "

111th in § 35 para. 1 point. b) the word" d) "is replaced by" e). "| ||
112th in § 35 para. 1 point. c) the words "that are intended to cover
requirements guarantee fund" is replaced by "the amount of the minimum capital requirement
according to § 79".

113th in § 35 par. 4 of the first sentence the words "competent authority" shall be replaced
word "authority" and the second sentence, the word "appropriate" is deleted.

114th V § 36 para. 1 second sentence deleted.

115th in § 36 para. 5 first sentence, the word "grants", the word
"founded" and "the written request of the founder of the domestic reinsurance | || whose registered office and headquarters to be in the Czech Republic "
replaced by" requests submitted electronically to the applicant accompanied
documents proving compliance with the conditions set out in paragraph 6 ".

116th In § 36, at the end of paragraph 5 sentence "Particulars of the application, including attachments
proving the fulfillment of conditions pursuant to paragraph 6 of its
formats and other technical requirements laid down by a
regulation.".

117th In § 36 paragraph 6 reads:

"(6) The Czech National Bank shall grant an authorization under paragraph 5 if

a) is satisfied headquarters under paragraph 2

b) with respect to the desired extent and nature of the activity
reinsurance assumed that the conditions given by conducting reinsurance business
provided by this Act or a directly applicable regulation
European Union, in particular its financial stability, adequacy of staffing,
technical and organizational requirements, c

) were disclosed personally identifiable information to any person who should have qualified
participation in reinsurance, and this was a prerequisite for sound and prudent management
reinsurance

d) any person who is to act as a person by § 7a paragraph. 1
meets the eligibility and credibility

e) close links between the reinsurance undertaking and other persons not prevent the effective exercise
insurance supervision under this Act
f
) effective supervision in insurance according to this Act shall prevent
laws of a third country governing one or more persons with whom
reinsurance should have close links nor difficult
law enforcement in this country || |
G) the amount of capital of an undertaking qualifies under § 39

H) reinsurance assets come from criminal activity or from unidentified sources
and is evidenced origin
capital and other financial resources

I) the proposed control system, including risk management system
was a prerequisite for its functionality and effectiveness,

J) the demonstrated ability to hold own funds in the amount
Solvency Capital Requirement in accordance with § 73 and
minimum capital requirement under § 79 and 79a

K) the applicant has submitted a business plan for the reinsurance according to § 37
underpinned by realistic economic calculations and

L) the applicant stated in the application truthful information. ".

118th § 37 including the title reads:

" § 37

Domestic reinsurance business plan

The business plan pursuant to § 36 para. 6 point. a) the applicant states

A) a description of the nature of the insurance or reinsurance for risks for which to be
permission granted

B) the kinds of reinsurance arrangements which the reinsurance undertaking proposes to conclude within
accepting insurance or reinsurance of risks to ensure

C) a description of the creation and use of technical provisions, including the method of calculating
their amount and description of the basic principles of the transfer of risks taken into
ensure

D) Items primary capital amounting
lower limit of the minimum capital requirement under § 79a

E) the estimated cost of setting up the administrative services and the organization
business and the way to cover these costs,

F) for the first three financial years


First estimating revenues and costs broken down by costs associated with the introduction
activities and the running costs, especially overhead costs and rewards
reinsurance intermediaries, and an estimate of gross reinsurance,
commissions and compliance costs of reinsurance contracts,

Second estimates of revenue and expenditure of
of reinsurance activities with regard to acceptances and reinsurance cessions,

Third a summary of assets and liabilities, which are valued assets and liabilities by
§ 51

Fourth estimate of the future Solvency Capital Requirement in accordance with § 73 and
future Minimum Capital Requirement in accordance with § 79
based on the projected balance sheet, which will be valued assets and liabilities according to §
51, including the method of calculation used to derive these estimates; and

Fifth estimates of the financial resources earmarked for the settlement of the commitments from the
hedging activities and to fulfill Solvency and Minimum Capital Requirement and


G) proposals or basic principles for the relocation of activities has to be
some of the activities relocated after the authorization. ".

119th In § 38, paragraph 6 is repealed.
| || 120th in § 40 paragraph 1 reads:

"(1) changes in the domestic reinsurance activity subject to prior approval
Czech national Bank on the basis of applications submitted electronically, the details of which
including annexes demonstrating
conditions pursuant to letters a) to d) formats and other technical requirements determined
implementing legislation, and the Czech national Bank shall decide
period and under conditions pursuant to § 36 para. 5 and 6; Czech National Bank is changing
permit, if reinsurance

A) has demonstrated that it has eligible capital amounting
Solvency Capital Requirement in accordance with § 73 and
minimum capital requirement under § 79 and 79a

B) presented a revised business plan pursuant to § 37, which translates
required changes

C) submit a revised concept of the control system in accordance with §
7 with projecting the desired changes and

D) stated in the application truthful information. ".

121st in § 40 par. 2 point. B) the words" paragraph. 3 "are deleted.

122nd in § 40 para. 4 of the first sentence the words" education and experience "are replaced
words" and competence ".

123rd in § 40 para. 5, the words "international agreements" shall be replaced
"international treaties that are part of the legal order."

124th in § 40 para. 6 point. b) the words "according to § 37" the words "
, with the exception of information that the Czech national Bank to gain by
law regulating the basic registers."

125th in § 40 para. 6 point. c) the words ", particularly the contract about
separation of the activities when the major character, agreements on sharing
costs, relocation of activity 'shall be deleted.

126th in § 40 para. 6 after subparagraph d) the following new letter e), added:

"e) information on takeover reinsurance portfolio from insurance or reinsurance
from another Member State or third country, or."

existing letter e) is designated as letter f).

127th § 41 including the heading deleted.

128th in § 42 para. 1, second sentence, the words "this request" is replaced
" the receipt of a complete application or additional information under § 43 par. 3 "
word" its "before the word" their "and at the end of the text
second sentence the words" or its extension under § 43 par. 3 " .

129th In § 42 para. 1 sentence last word "in" is replaced by "on".

130th In § 42 paragraph 3 reads:

"(3) The particulars of the application, including attachments proving the fulfillment of conditions
according to § 43 para. 1, its formats and other technical requirements determined
implementing legislation.".

131st In § 43 para 1 reads:

"(1) The Czech National Bank assesses an application pursuant to § 42 para. 1
with respect to possible impact on the applicant's domestic reinsurance and approve it if

a) the person or persons who ask for consent to acquire participation
meet the conditions of credibility

b) a person who is to act as a person under § 7 paragraph. 1
satisfies a condition of eligibility credibility

c ) reinsurance will continue to be able to meet prudential requirements under
this Act or under the law regulating supplementary supervision
entities in financial conglomerates,

d) the structure of the group, which includes the domestic reinsurance has become, || | allows you to exercise effective supervision, effectively exchange information between authorities

Supervision and delimitation of competences between the institutions

E) the condition of the financial health of the applicant with regard to
activities that reinsurance undertaking in which the proposed acquisition or increase
participation, operates or intends to operate, and

F) in connection with the proposed acquisition, there is a reasonable suspicion that
occur or might occur to launder the proceeds of crime or financing of terrorism
or attempted, or that the proposed acquisition
could increase the risk of such conduct. ".

132nd in § 43 para. 3 first sentence, the words" filed an application pursuant to § 42 para. 1
suffer from incomplete or if other defects "are replaced by"
assessment of an application pursuant to § 42 para. 1 necessary to add additional information "and"
to eliminate shortcomings in the application, or "shall be deleted.

133rd in § 43, paragraph 7 is deleted. || |
134th In § 46, the words "and related activities" are deleted.

135th in § 47 paragraph 1 reads:

"(1) Unless otherwise provided in this Act , an international treaty that is part
law, or else the decision of the European Commission, the reinsurance
third country to conduct reinsurance business in the Czech Republic
only through its branch as the branch set up on the territory
Czech Republic based on the authorization by the Czech national Bank. ".

136th In § 47 para. 2, first sentence, the words "or a change in this activity
grants" and "writing" are deleted, the words "third country" shall be inserted
word "grants" and the word "application" the words "
filed electronically."

137th In § 47 at the end of paragraph 2 sentence "Particulars of the application, including attachments
proving the fulfillment of conditions pursuant to § 48 para. 1, 3 or 4
, its formats and other technical requirements laid down by a
regulation. ".

138th In § 47 paragraph 3 and 4 added:

"(3) If the European Commission decided that the solvency regime
third country applied to reinsurance activities based on its territory
is equivalent scheme implemented for this activity in the European Union,
assess the hedging a reinsurance contract concluded
well as reinsurance contracts concluded reinsurance from another Member State
unless the agreements concluded between the European Union and third countries differently.
This applies mutatis mutandis to interim equivalence with the Solvency
regime of a third State, decided by the European Commission.

(4) if elected by the European Commission that the solvency regime in a third country
applied to reinsurance activities based on its territory
ceased to be equivalent or provisionally equivalent, such reinsurance
obliged to promptly bring its activities in the Czech Republic
into compliance with this law. this does not affect
liabilities arising from reinsurance contracts entered into
time such a decision. " .

139th § 48 including the title reads:

"§ 48

Enabling reinsurance from a third country

(1) Authorisation according § 47 para. 2 Czech National Bank granted if it
is not in conflict with international treaties, which are part of the legal
order, and if a third country reinsurance

) with respect to the desired extent and nature of the reinsurance activity
gives the grounds that the conditions conducting reinsurance business
provided by this Act or directly applicable regulation
European Union, in particular its financial stability, adequacy of staffing, technical and organizational
assumptions

b) in accordance with the legislation of the country of its head office to operate
reinsurance and scope required Business is not inconsistent with
scope of hedging activities under this authorization

c) establishes the Czech Republic its branch

d) propose to the branch manager the person who fulfills the conditions || | competence and credibility

e) in the territory of the Czech Republic assets whose value is at least equal to one half
lower limit of the minimum capital requirement under
§ 79a and placed at least one quarter of the minimum as principal on account
specifically established for this purpose by banks based in the Czech Republic or
foreign bank branch with which can not be treated without consent
Czech national Bank, and proves their origin,

F) must undertake to fulfill the Solvency Capital Requirement in accordance with § 73
and the Minimum Capital Requirement in accordance with § 79 and 79a, while at

Their calculation takes into account only activities performed in the Czech Republic
,

G) submit a business plan related to its activities, to be
operated in the Czech Republic, supported by realistic economic calculations
whose contents are governed similarly § 37

H) has a functional and effective management and control system

I) is closely linked with others in a way that would prevent the effective exercise
insurance supervision under this Act,

J) alone or with one or more persons closely linked
not governed by the laws of a third country, which would prevent the effective exercise
insurance supervision under this Act or would lead to difficult
law enforcement this state, and

K) stated in the application truthful information.

(2) Permission to carry on reinsurance activities
granted for non-life reinsurance, life reinsurance, or both
hedging activity. The Czech National Bank may be required to limit the scope of activity,
if not sufficiently proved the applicant's ability to operate safely
reinsurance activities to the extent specified in the request.

(3) Changes in the data, which were the content of an application for authorization
and its Annexes, with the exception of changes in the scope of permitted activities pursuant to paragraph 4
and information that Czech National Bank may acquire pursuant to the Act
regulating the basic registers reinsurance undertaking from a third country
must without delay notify the Czech national Bank;
change statutes or equivalent document shall be submitted in full with
track changes. Any change in the branch manager
reinsurance from a third country is subject to prior approval by the Czech National Bank at the request of
, which contains information on the proposed new entity to function
branch manager and data demonstrating compliance with the conditions referred to in paragraph 1
point. d).

(4) Changes in the scope of permitted activities from a third country reinsurance
subject to the prior approval of the Czech National Bank on request;
Czech National Bank to authorize the change, if reinsurance

A) has demonstrated that it has eligible capital amounting
Solvency Capital Requirement in accordance with § 73 and
minimum capital requirement under § 79 and 79a

B) presented a revised business plan pursuant to paragraph 1. g), in which
reflect changes requested

C) demonstrate compliance with the conditions set out in paragraph 1. a), b) and e
)

D) submit a revised concept of the control system in accordance with §
7 with projecting the desired changes and

E) stated in the application truthful information.

(5) A request under paragraph 3 or 4 Czech National Bank shall decide within a period
according to § 47 para. 2. '.

140th in § 49 para. 2 the words "and activities related "are deleted.

141st in § 49 para. 3 first sentence, the word" announced "is deleted and the word
" contract "with the words" that is part of the law ".

142nd In § 49 at the end of paragraph 3 the sentence "If the European Commission
decided that the solvency regime in a third country applied to activities
insurance companies based on their territory with authorization to operate || | reinsurance is equivalent scheme implemented this activity
in the European Union, assess the hedging contracts concluded such
insurance as well as reinsurance contracts concluded such
insurance company from another Member State. This shall apply mutatis mutandis in case
interim equivalence of the solvency regime in a third country, which
decided by the European Commission under European Union law. ".

143rd in § 49 para. 4 point. A) the term "investments"
replace the word "investment."

144th in § 49 para. 4 point. b) the words "required solvency margin"
replaced by 'solvency and minimum capital requirements "
number" 2 "is deleted and the words" available solvency margin "shall
word" capital ".

145th in § 49 par. 5 of the first sentence the words" one
values ​​of the available solvency margin of the insurance company according to § 76
calculated separately for insurance and reinsurance lack of "replaced
" the Company fails to comply with the solvency and minimum capital requirement
for any activity "and the second sentence the word "available solvency margin
" be replaced by "capital."

146th in § 50 para. 1, the word "person" is replaced by "institutions" and

Word "abroad" is replaced by "laws of the State
its registered office or place of business".

147th In § 50 par. 3, the words "financial investments or determine the value,
in which it may be in financial placement" is replaced by "assets held
to offset its liabilities from insurance or reinsurance activities or
determine the value, in which it is possible to compensate for this. "

148th In § 50 par. 3 point. a) the words "such an agreement" is replaced
'agreement pursuant to paragraph 2 ".

149th In § 50 para. 4 the word "announced" is deleted and the word "agreement"
the words ", which is part of the legal order."

150th Under § 50 the following § 50a, including the heading reads:

"§ 50a

Domestic hedging purpose entity

(1) Hedge special purpose entity based in the Czech Republic may
operate under § 50 para. 1 only under the conditions of granting
authorized for this activity by the Czech national Bank.

(2) the Czech national Bank authorization under paragraph 1 shall be granted on the basis
applications filed electronically, if the applicant meets the conditions set
directly applicable EU regulation
governing harmonized approach in the field of special purpose vehicles.
O request, the Czech national Bank pursuant to rule within this directly applicable regulation
. Particulars of the application, including attachments proving the
specified conditions, its formats and other technical
requirements in the implementing legislation unless determined by directly applicable regulation
.

(3) the activities of domestic hedge targeted persons shall apply mutatis mutandis
provisions of this law on domestic reinsurance, and the extent to which
are not regulated by the directly applicable EU regulation governing
harmonized approach in the field of special purpose vehicles. ".

151st In the second part of Title IV and V, including the title added:

'TITLE IV

VALUATION OF ASSETS AND LIABILITIES, TECHNICAL PROVISIONS, INVESTMENTS AND SOLVENCY OF INSURANCE AND REINSURANCE




Part 1 Valuation of assets and liabilities and technical reserves

§ 51

Valuation of assets and liabilities

(1) For the purposes of this Act, a domestic insurance company, insurance company from a third country
, domestic reinsurance and reinsurance third country appreciates

a) asset price at which they could be exchanged between knowledgeable, willing parties
carry out such conversion under normal conditions, and

b) liabilities of the price at which they could be transferred or
settled, between knowledgeable, willing parties such transfer or settlement under normal conditions
.

(2) When valuing liabilities can not modify its value based on the credit rating
undertaking.

(3) in the valuation of assets and liabilities insurance and reinsurance pursuant to paragraph 1
uses methods and assumptions set
directly applicable EU regulation on the harmonization of methods and assumptions for
valuation of assets and liabilities.

§ 52
Technical reserves


(1) Home insurance and reinsurance domestic
creates to offset the obligations of all her insurance or reinsurance activities
which are likely or certain, but uncertain as to amount or
moment of occurrence technical reserves. This shall apply mutatis mutandis
for the insurance company from a third country and reinsurance third country in relation to
commitments from insurance or reinsurance activity carried on within
Czech Republic, unless an international treaty, which is part
the rule of law, otherwise.

(2) The value of technical reserves is equal to the sum of the values ​​of
best estimate and a risk margin, and corresponds to the amount that an insurance or reinsurance
under paragraph 1 had to pay for immediate transfer
respective commitments from insurance or reinsurance
activities to another undertaking.

(3) The calculation of technical provisions used by insurance and reinsurance
referred to in paragraph 1, information from financial markets and generally available data on underwriting risks
and ensures compliance with the calculation of these data and information
.

(4) Insurance and reinsurance undertakings referred to in paragraph 1 shall be calculated technical reserves
prudent, reliable and objective manner.

(5) The insurance company from another Member State or reinsurance company from another Member State
who operates an insurance or reinsurance activity in the territory

Czech Republic, creates technical reserves to balance the obligations of this
activities in accordance with the legislation of the home Member State.

§ 53

The best estimate

(1) The best estimate corresponds to the probability-weighted average
future cash flows, taking into account the time value of money for
using the appropriate risk-free yield curve.

(2) The calculation of the best estimate is based on current and
credible information and realistic assumptions and executed under
using appropriate actuarial and statistical methods.

(3) Cash flow projections used in calculating
best estimate reflects all increases and decreases in cash
necessary to offset liabilities from insurance or reinsurance activities,
and throughout their duration.

(4) Home insurance and reinsurance domestic calculates values ​​
best estimate without subtracting debts from reinsurance underwritten
including claims for securing special-purpose entities.

§ 54
The risk premiums


(1) The risk margin shall be such as to ensure that the technical provisions
value is the amount you would any other insurance or reinsurance
could seek to take over the liabilities of insurance or reinsurance activities
insurance or reinsurance according to § 52 paragraph. 1
and was able to honor them.

(2) The best estimate and the risk margin is calculated separately.
It does not apply if it can be future cash flows related to liabilities
insurance and reinsurance replicated reliably using
financial instruments for which it is widely available to their
credible market price. In this case, the value of technical provisions associated with
those future cash flows determined based on the market price of these instruments
.

(3) If the value of the best estimate and the risk margin determined
separately calculates the risk premium as the cost of providing
eligible capital needed to meet the Solvency Capital Requirement
according to § 73 para. 2, that is associated with the respective obligations of
insurance or reinsurance activities, and throughout their duration
. The rate used to determine the cost of providing such capital
(hereinafter "the rate of cost of capital") is defined
directly applicable EU regulation governing the calculation methods and assumptions
risk premiums and is the same for all insurance and reinsurance by
§ 52 paragraph. 1st

§ 54a

Risk-free yield curve

Relevant risk-free yield curve according to § 53 par. 1 provides
directly applicable legislation of the European Union governing the respective time
risk-free interest rate structure.

§ 54b

Compensatory adjustment risk-free yield curve

(1) For the calculation of best estimate liabilities portfolio of life insurance or reinsurance
or annuities from life insurance or collateral
can use compensatory adjustment appropriate risk-free yield curve
, if the conditions specified in the Implementing
legal regulation. Such a procedure is subject to prior approval by the Czech National Bank
at the request of the undertaking pursuant to § 52 paragraph. 1
filed electronically. Upon approval, the use of compensatory adjustments
mandatory, except in accordance with paragraph 3

(2) If the undertaking ceases to qualify for compensatory adjustments
use appropriate risk-free yield curve, without undue delay


A) shall notify the Czech National Bank and

B) take remedial measures to restore compliance with those conditions
so this was restored within 2 months from the date
date on which he ceased to meet these conditions; the measures taken
notify the Czech National Bank.

(3) If within the period referred to in paragraph 2 undertaking
does not restore compliance with the conditions referred to in paragraph 1 shall not later than the date of expiry of this period
stop using the appropriate compensatory adjustments
risk-free yield curve. Proceed in accordance with paragraph 1, the first
lapse of 24 months from the date on which this adjustment no longer applicable.

(4) Compensatory adjustment is calculated for each currency in which it is expressed
obligation or annuity under paragraph 1 and the procedure laid down

Implementing regulation. Compensatory adjustment does not apply to those
obligations or annuities for which the relevant risk free yield curve to calculate the best estimate
already has the volatility adjustment pursuant to §
54c and 54d.

§ 54c

Volatility adjustment risk-free yield curve for the currency of commitment

(1) For the calculation of the best estimate of the portfolio of insurance liabilities and reinsurance
can use volatility adjustment to the respective
risk-free yield curve. The volatility adjustment applies only to
neextrapolovanou part of the relevant risk-free yield curve according to §
54a. Extrapolation of the risk-free yield curve where the procedure pursuant to the first sentence
based on the risk-free yield curve adjusted by a factor
volatility.

(2) volatility adjustment for each currency in which it is expressed
commitment, based on the spread between interest income, which could be achieved
of assets in the reference portfolio for the respective
currency and basic risk-free yield curve for this currency.
Reference portfolio for each currency is representative
assets expressed in the currency in which the insurance or reinsurance invest with the aim
cover the value of best estimate liabilities denominated in that currency.

(3) The coefficient of volatility 65% ​​exchange margin
adjusted for risk, which is calculated as the difference between the span
pursuant to paragraph 2 and part of this range, which corresponds to the real
estimate of expected losses, unexpected credit risk or any
further risks to which they are exposed to the reference asset portfolio.

(4) The Solvency Capital Requirement in accordance with § 73 does not cover the risk of loss
eligible capital, which arises from changes in volatility adjustments.

§ 54d

Volatility adjustment risk-free yield curve for state

(1) For each State commitment for the currency of this state monetary span
Risk adjusted according to § 54c paragraph. 3 percentage increase before applying
factor, the difference between the margin of the state adjusted for risk and || | twice Monetary margin, adjusted for risk, if this difference is positive and
range for a given country, adjusted for risk is higher than
100 basis points. The increased volatility adjustment can be used to calculate the value
best estimate of insurance or reinsurance obligations
incurred on its territory arising from insurance or reinsurance
activities conducted on the insurance market of the country.

(2) Foreign exchange margin for the state adjusted for risk is calculated similarly
currency margin adjusted for risk, however, is based on a reference
portfolio of assets, which represents the assets invested insurance and reinsurance
to cover their commitments from insurance or reinsurance activities
realized on the market of the country
denominated in the currency of that country.

§ 54e

The ban on the use of the volatility adjustment for risk-free yield curve

(1) volatility adjustment shall not apply if the relevant risk free yield curve
to calculate the best estimate regarding
obligations under § 54b paragraph. 1 already includes balancing adjustment.
Solvency Capital Requirement in accordance with § 73 does not cover the risk of loss
eligible capital, which arises from changes in volatility adjustments.

(2) If the Czech National Bank in exercising supervision under this Act
that applying a coefficient of volatility insurance or reinsurance
according to § 52 paragraph. 1 does not fulfill the conditions laid down in this Act, impose measures
remedy or may prohibit the use of this treatment.

§ 54f

Technical Information

In the procedure under § 54a to 54d uses undertaking
technical data by directly applicable EU
governing technical information for the respective currency. For
currencies and national markets for which it is not directly applicable regulation of the European Union
volatility, at the appropriate time structure
risk-free interest rate to calculate the best estimate apply
no volatility adjustment.

§ 55

Other factors taken into account when calculating technical provisions

(1) When calculating technical provisions into account

A) all costs related to the management of liabilities from insurance and reinsurance business
,

B) the rise in prices, costs and benefits and


C) any anticipated payments to policyholders and beneficiaries, including
future discretionary income, excluding payments according to § 65

(2) In calculating the technical provisions shall also take into account the value of financial
guarantees and contractual options included in insurance and reinsurance contracts
. To determine the probability of exercise contractual options
policyholders, including early termination of contracts apply
realistic assumptions based on current and credible information.
These assumptions implicitly or explicitly take into account the impact that
to exercise such options may be future changes in financial and other conditions
.

§ 56
Breakdown of commitments


(1) For the purpose of calculating technical provisions with liabilities from insurance and reinsurance business
divided into homogeneous risk groups.
Directly applicable legislation of the European Union provides insurance products for
basic breakdown of commitments under the first sentence.

(2) Receivables from reinsurance contracts and special purpose entities for hedging
are counted separately according to the rules specified in § 52 paragraph. 1, § 53 paragraph
. 1-3, § 54 and § 55. In calculating these receivables
account the time difference between the indemnity and the payment from the counterparty.
Calculation result is adjusted for expected losses from counterparty default.
This adjustment is based on the evaluation of the probability of default of the counterparty
and expected losses from the failure.

§ 57

Internal processes and procedures when calculating technical provisions

(1) Insurance and reinsurance pursuant to § 52 paragraph. 1 ensures suitability,
completeness and accuracy of the data used in the calculation of technical provisions.
If you do not have enough data of adequate quality to allow the calculation of technical provisions
use a reliable actuarial method to
part of its liabilities from insurance and reinsurance receivables
or from hedging contracts, and for hedging purpose-built persons can
to calculate the value of best estimate use reasonable approximations, including
individual approaches.

(2) internal processes and procedures ensure that the calculation of the best estimate
and assumptions used in the calculation are regularly compared
experience. If, on the basis of this comparison is
identified systematic deviation between experience and calculation values ​​
best estimate, insurance and reinsurance pursuant to § 52 paragraph. 1
adjusted adequately and used actuarial methods and assumptions
.

(3) Insurance and reinsurance pursuant to § 52 paragraph. 1 at the invitation of the Czech National Bank
demonstrate that their level of technical reserves is adequate and
their methodologies and underlying statistical data to calculate
applicable and appropriate.

§ 58
Implementing measures


Directly applicable regulations of the European Union are governed

A) actuarial and statistical methodologies to calculate the best estimate
according to § 53 par. 2

B) the relevant risk free yield curve, which is used in calculating the value of best estimate
according to § 53 par. 1

C) the circumstances in which technical provisions are calculated as a whole, or
summing the values ​​of a best estimate and a risk margin, including
methods that are used in the calculation of technical provisions
as a whole | ||
D) the methods and assumptions to be used in calculating the risk
margin including the determination of the amount of eligible capital
related to liabilities from insurance and reinsurance rates and costs
capital,

E) the types of insurance on the basis of the commitments of the insurance and reinsurance activities
segmented in order to calculate technical provisions,

F) rules, the observance will ensure the appropriateness, completeness and accuracy
data used in the calculation of technical provisions, and cases where
it is appropriate to use approximations to calculate the best estimate, not including individual
approaches

G) the methods to be used when calculating the adjustment result according to § 56 paragraph
. 2, and

H) simplified methods and techniques to calculate technical provisions
ensure the actuarial and statistical methods referred to in points
) and d) are proportionate to the nature, scale and complexity
risk taken.

§ 59

Determination of the amount of premiums


(1) Home insurance and insurance from a third country provides
amount of insurance on the basis of realistic actuarial assumptions and
corresponding methods of its calculation to ensure continued
ability to meet all its commitments from the insurance business;
It shall apply mutatis mutandis when determining the amount of premiums
domestic insurance company, insurance company from a third country, the domestic reinsurance and reinsurance
third country.

(2) In determining the amount of insurance and calculation of indemnity
forbidden to apply the criterion contrary to the principle of equal treatment under the law regulating
equal treatment and legal means of protection against discrimination
. The application of actuarial methods
gender-insurance risk assessment,
whose purpose is to safeguard the ability to fulfill the commitments from the
insurance or reinsurance activities, provided that no distinction
amount of premiums and benefits by sex. Likewise
not affect the use of age or disability as a determining factor in
determining the amount of insurance and calculation of coverage for insurance
those insurance risks for which the insurance risk assessment
based on relevant actuarial methods
and statistical data, there is a difference in the amount of insurance or indemnification
reasonable.

(3) In fulfilling the requirements of paragraph 1 can in the case of insurance companies engaged in life insurance
take into account all aspects of her
financial situation, apart from resources other than premiums and income earned
him and are systematic and sustained so that they can in the long term
threaten its solvency.

(4) The undertaking shall demonstrate compliance with the requirements under paragraphs
1-3 at the invitation of the Czech National Bank. In case of failure to meet these requirements
The Czech National Bank remedial measures.
Part 2

Investing


§ 60

Principle of prudent investing

(1) Home insurance, domestic reinsurance undertaking, a third
state and a third country reinsurance

A) invests solely in assets whose risks are properly
able to identify, measure, monitor, manage, control and report
and appropriately take into account when assessing their overall
needs, and therefore continuously evaluates the impact of risk factors on their investment
and all assets, especially assets held for filling
Solvency and minimum capital requirement invests so
ensure safety, liquidity and profitability of the total portfolio;
Location of these assets may not reduce their availability

B) assets to match liabilities invested in a manner that is
proportionate to the nature and duration of the commitment of the insurance and reinsurance activities
in the best interest of all policyholders and beneficiaries
persons being taken into account eventual goal published investment policy;
To provide insurance in case of conflict of interest

C) diversifies its investments so as to avoid excessive
reliance on any particular asset, issuer or group of persons or geographical area
excessive accumulations of risk in the portfolio as a whole,
while investment in assets issued same issuer or issuers
belonging to the same group shall not expose the insurance undertakings to excessive risk concentration
; It does not apply to assets according to § 61 paragraph. 1 and 2

D) in the case of investing in assets that are not traded on a regulated market
European or foreign markets similar
regulated market does not exceed a prudent level; It does not apply to assets
according to § 61 paragraph. 1 and 2

E) on assets held in relation to the liabilities of insurance where the investment risk is borne by the policyholder
proceed in accordance with § 61 and

F) derivative contracts concluded under the condition that the obligations arising from them
contribute to a reduction of risks or facilitate efficient portfolio management
; letters a), c) and d) is applicable in this case
analogy.

(2) directly applicable regulations of the European Union are governed

A) the identification, measurement, monitoring, managing and reporting of risks arising from investments
pursuant to paragraph 1. a) negotiation and
derivative contracts pursuant to paragraph 1. f) and

B) Investment in marketable securities and other financial

Tools that originated securitisations, including the consequences of non
rules.

§ 61

Special provisions for life insurance with investment risk policyholder


(1) insurance indemnity falling within the insurance industry
life insurance can be directly linked to the value of the Shares
investment fund or asset value of the Fund's internal insurance company,
which can be divided into shares. Technical provisions relating to
these commitments should be the maximum possible extent
represented by these shares or, where units are not established, by assets of the internal fund.

(2) insurance indemnity falling within the insurance industry
life insurance can be directly linked to a share index or other
reference value than values ​​specified in paragraph 1. In this case
must be technical reserves relating to these commitments
the maximum extent possible the shares represented
corresponding to the reference value or, where units are not established, secure and
marketable assets corresponding to the maximum extent possible assets to
underpinning the particular reference value.

(3) Should the obligation under paragraph 1 or 2 guarantees a yield of
investment performance or some other guaranteed benefit, insurance proceeds in the event
investing in assets held to cover the corresponding additional technical provisions
according to § 60 par. 1 point. c), d) and f).

§ 62
Evidence of assets


(1) Home insurance and insurance from a third country keeps records
assets held to match liabilities, and the emergence of the commitment of her
insurance or reinsurance activities, the payment of which these assets are intended
and keep this record up to date. If
operates such undertaking insurance business in both non-life and in
life insurance, keep separate records for each type of business, with
except the insurance company, which operates insurance activity according to classes of life
insurance and insurance
by the non-life insurance mentioned in part B, points 1 and 2 of Annex
No. 1 of this Act; in this case leads to all activities
one register. If the insurance company operates also hedging activity that
measured by premiums received and the amount of technical reserves in excess of one
according to § 18 paragraph. 4 point. a) points 1-3 leads for insurance and reinsurance
separate records.
Part of the records of the assets are derivative contracts pursuant to § 60 par. 1 point. F).

(2) Seriously, if property rights in rem in favor of a creditor or a third party
and consequently property or its part can not be used to compensate
commitments from insurance or reinsurance activities, this can not be
Estate or a portion regarded as assets in accordance with paragraph 1 from the date on which the subject
substantive law took effect.

(3) In cases where the property registered in the register of assets pursuant to paragraph 1
stuck right in rem in favor of a creditor or a third party, and
without fulfilling the conditions set out in paragraph 2, or the property || | subject to a reservation of title in favor of a creditor or a third party,
or if the creditor is entitled to demand the set-off of their claims against the claims
insurance companies referred to in paragraph 1 shall be decided
disposal of such property in case of bankruptcy of such insurance
reinsurance or under the law regulating bankruptcy and settlement.

(4) Composition of assets entered in the register of the assets referred to in paragraph 1
time of commencement of insolvency proceedings in case of bankruptcy
domestic insurers or insurers from a third country is no longer may not be changed and the
records of these assets without the consent of the Czech national Bank
perform any repairs except for corrections of clerical errors.

(5) Notwithstanding paragraph 4 is added to those assets also
income from them, and the value of net premiums received with respect to the relevant
insurance industry for the period between the commencement of insolvency or winding-up proceedings and
moment payment of insurance benefits or to transfer
insurance portfolio.

(6) If the result of the sale of assets recorded in the records of assets pursuant to paragraph 1
less than their estimated value shown in the evidence,
insolvency administrator or liquidator shall notify the Czech National Bank
reasons for this difference.
Part 3



Solvency of insurance and reinsurance
Section 1

Capital


§ 63
Breakdown of capital


(1) Capital home insurance or reinsurance domestic
up the sum of the primary capital and supplementary capital.

(2) Primary capital consists of the value of the assets exceeds the value of liabilities valued under §
51-58 less the value of own shares held
domestic insurance undertaking or domestic reinsurance and value
subordinated liabilities.

(3) Additional capital shall consist of items other than basic own funds, which
be called up to absorb losses; in supplementary capital can include

A) unpaid share capital, the repayment of which has not been called,

B) letters of credit and guarantees

C) any further claims of domestic home insurance or reinsurance.

(4) If an item of supplementary capital or paid to its
repayment has been called, is considered an asset and cease to be part
additional capital.

§ 64
Approval of supplementary capital


(1) The items of capital to be taken into account when determining the capital
domestic home insurance or reinsurance
subject to prior approval by the Czech National Bank at the request of domestic
domestic insurance or reinsurance filed electronically.

(2) The amount ascribed to each item of supplementary capital
reflects its loss-absorbency and is based on prudent and realistic assumptions
. If an item of supplementary capital
fixed nominal value, the amount equals this value when the value
appropriately reflects its loss-absorbency.

(3) The Czech National Bank for each item approves supplementary capital

A) its monetary value, or

B) the method of determining its value, with the value determined by this method
during a period designated by the Czech National Bank shall be deemed approved
her.

(4) The Czech National Bank in approving the supplementary capital items considered


A) the status of the counterparties in terms of their ability and willingness to pay
,

B) the enforceability of resources with regard to the legal form of the item, as well as
to any conditions which could hinder or redeemed
request items, and

C) information on the results of previous calls to repay the
supplementary capital that the domestic insurance undertaking or domestic reinsurance
to the additional capital raised, it is possible if the information
reliably used to assess the expected outcome of future
challenges.

§ 65
Surplus funds


Retained earnings, not intended for distribution to policyholders and
authorized persons are deemed surplus funds.
If the criteria of § 68 para. 1, does not consider this fund as
liabilities from insurance and reinsurance business.

§ 66
Implementing measures


Directly applicable regulations of the European Union are governed

A) approval of the supplementary capital items in accordance with § 64 and

B) the treatment of participations in entities in the banking sector and
investment services in relation to the determination of capital.

§ 67

Rules for breakdown of capital

(1) Items of capital for the purposes of this Act are classified into classes 1-3
depending on whether they are primary or supplementary capital, and
extent of their constant availability and subordination.

(2) The entry of capital is considered

A) is still available, is permanently available, or can be requested
to fully absorb losses on continued operation or in the event of bankruptcy or liquidation
home insurance or domestic reinsurance

B) subordinate, if in the event of bankruptcy or liquidation of the domestic
domestic insurance or reinsurance to absorb losses available
total amount of the item and is payable only after the fulfillment of all other
commitments, including those from insurance or reinsurance
towards policyholders and beneficiaries.

(3) In assessing the degree of permanent availability or subordination items
capital, not only today but in the future, domestic
domestic insurance and reinsurance takes into account its duration in particular, whether the set
maturity; If the item has a capital fixed maturity
take into account the relative its duration compared with the

Duration of the commitment of the insurance or reinsurance business and further
take into account whether an item

A) contains early repayment of the nominal amount, possibly,
the conditions under which the early repayment request

B) is exempt from mandatory, fixed payments and

C) is exempt from financial liabilities.

§ 68

The main criteria for the breakdown of capital

(1) Class 1 consists of primary capital items, which are predominantly
character items according to § 67 par. 2 point. a) and b).

(2) Class 2 consists of primary capital items, which are predominantly
character items according to § 67 par. 2 point. b)
and items of capital which are predominantly nature items under § 67 para. 2
point. a) and b).

(3) Class 3 form entry primary or supplementary capital,
which can not be classified in accordance with paragraph 1 or 2.

§ 69
Breakdown of capital


(1) Home insurance and reinsurance while domestic division
capital to meet the criteria pursuant to § 68 and the list of capital items in accordance with § 70 point.
A).

(2) If the item is listed capital according to § 70 point. a)
domestic insurance undertaking or domestic reinsurance incorporate it in accordance with § 68 and
without undue delay, request Czech National Bank to approve such
integration; This application is submitted electronically.

§ 70
Implementing measures


Directly applicable regulations of the European Union are governed

A) a list of capital items to determine their inclusion under § 68 and

B) methods used by the Czech National Bank in approving the assessment and integration
capital items not included in the list referred to in subparagraph a).

§ 71

Eligibility and limits capital

(1) The applicable value capital items of Tier 2 and 3
to cover the Solvency Capital Requirement in accordance with § 73 para. 2,
unless otherwise directly applicable regulation, subject to quantitative limits under §
72 point. a), by

A) the proportion of Tier 1 capital under the applicable capital
higher than one third of the total eligible own funds and

B) the eligible amount of Tier 3 capital items is less than one
third of the total eligible own funds.

(2) The use of items of primary capital to Tier 2
compliance with the minimum capital requirement under § 79 shall apply
quantitative limits according to § 72 point. a), while the proportion of Tier 1 capital
eligible basic own funds is higher than
half of the total eligible basic own funds.

(3) The amount of own funds to meet the Solvency Capital Requirement
according to § 73 para. 2 equals the sum of the value of capital items
Tier 1, the eligible amount of Tier 2 capital items referred to in paragraph 1 and the applicable values ​​
capital items of class 3.

(4) The primary own funds to meet the minimum capital requirement
according to § 79 equals the sum of the values ​​of items
capital Tier 1 and the value of the primary capital included in own funds items
Class 2 paragraph 2.

§ 72
Implementing measures


Directly applicable regulations of the European Union are governed

A) the quantitative limits applicable to value capital items
Class 2 and 3 to meet the Solvency Capital Requirement
quantitative limits on the use of items of primary capital to Tier 2
compliance with the Minimum Capital Requirement and

B) the adjustments relating to the applicability of capital to meet the Solvency Capital Requirement
, to take account of transferability
those items of capital, as earmarked funds can be
used only to cover losses arising from a particular segment of liabilities
or particular risks.
Section 2


SCR

§ 73
Basic provisions


(1) Home insurance and reinsurance domestic use
is maintaining capital at least equal to the Solvency Capital Requirement, with
regard to the full range of its activities.

(2) Home insurance and reinsurance domestic
counts Solvency Capital Requirement standard formula, possibly in combination with
partial internal model or through a full internal model
.

(3) The calculation of the Solvency Capital Requirement through

Full internal model or partial internal model including a written policy changes
a full or partial internal model
subject to prior approval by the Czech National Bank pursuant to § 77, said
written policy should specify the changes in total or || | partial internal model to smaller and significant character;
Prior approval by the Czech National Bank is also subject

A) modification of a written policy changes to full or partial internal model
and

B) change in full or partial internal model, an important character
and also change the model of minor nature, if not in accordance with
approved a written policy changes to full or partial internal model
.

(4) Home insurance and domestic reinsurance, which is a member of
controlling the undertaking may use to calculate their Solvency Capital Requirement
group internal model or
conditions of use change if joined a joint application
parent undertaking and its subsidiaries and granted if
to supervisor approval by the group.

(5) partial internal model can be used to calculate

A) the capital requirements through one or more risk modules, or sub
Basic Solvency Capital Requirement
according to § 76 par. 2

B) the capital requirement for operational risk according to § 74 para. 4 point.
D), or

C) the adjustment capacity of technical provisions and deferred taxes
obligation to absorb losses in accordance with § 76 par. 1st

(6) partial internal model can be applied to the whole business of insurance or reinsurance
and on one or more major areas of this
activities, while respecting the requirements under § 78 para. 2 and 4 | || account the limited scope of the partial internal model.

§ 74

Calculation of the Solvency Capital Requirement

(1) When calculating the Solvency Capital Requirement
domestic insurance and reinsurance domestic based on the assumption that it will be in its
operations continue.

(2) The calculation of the Solvency Capital Requirement
domestic insurance and reinsurance domestic take into account all measurable risks
which it is exposed. The calculation includes measurable risks arising from
obligations arising from existing treaties and agreements, which it still expects
that will be closed during the next 12 months.
For liabilities arising from existing contracts covers the Solvency Capital
only unexpected losses.

(3) The Solvency Capital Requirement corresponds to the value of the primary capital
risk home insurance or reinsurance for domestic
99.5% confidence level and a time horizon of 1 year.

(4) SCR involves the least risk

A) underwriting,

B) market,

C) credit and

D) operational, which includes legal risk, except
risks arising from strategic decisions and reputational risk.

(5) Home insurance and reinsurance domestic
when calculating the Solvency Capital Requirement into account the effect of risk mitigation techniques
if the credit and other risks arising from the use of these techniques
adequately for this calculation.

(6) Home insurance and domestic reinsurance may
when calculating capital requirements for life, non-life and health underwriting risk
, with the prior consent of the Czech National Bank, within
standard formula, replace a subset of its parameters parameters
specific to that undertaking. These parameters are calibrated
based on internal data of the insurance or reinsurance
or data which are directly related to its activity, using standardized methods
. When approving verify the Czech National Bank
completeness, accuracy and appropriateness of the data used.

§ 75
Frequency of calculation


(1) Home insurance and reinsurance domestic
counts Solvency Capital Requirement at least annually and continuously monitors the amount
eligible capital and SCR. If
its risk profile deviates significantly from the assumptions underlying the last
which she reported Solvency Capital Requirement

Solvency Capital Requirement without delay and recalculate the result
notify the Czech National Bank.

(2) Home insurance and reinsurance domestic shall at the request
Czech National Bank to recalculate the Solvency Capital Requirement.
Czech National Bank may request the conversion of this, if you assume that
risk profile since the last reported Solvency Capital Requirement
changed significantly.

§ 76

Basic provisions for calculating the Solvency Capital Requirement standard formula


(1) The Solvency Capital Requirement standard formula is the sum
Basic Solvency Capital Requirement,
capital requirement for operational risk and the adjustment for the ability
technical provisions and deferred taxes absorb losses.

(2) The method of calculating the Basic Solvency Capital Requirement
including the calculation of capital requirements for individual risk modules and sub-modules
taking into account risk insurance and reinsurance activities and their methods
aggregation, calculation of capital requirement for operational || | risks and identify the items
capacity of technical provisions and deferred tax liability to absorb losses and other essentials
calculating the Solvency capital requirement standard formula
by the implementing legislation, unless
determined directly applicable regulation European Union governing
calculating the Solvency capital requirement.

(3) When calculating the Solvency Capital Requirement in accordance with the standard formula
risk profile of the domestic insurance undertaking or domestic
deviates significantly from the assumptions underlying the calculation according
standard formula, Czech National Bank may require at
calculating

A) the capital requirements through underwriting risk module
domestic insurance undertaking or domestic reinsurance was used for her
specific parameters under the conditions of § 74 para. 2 and 3, or

B) the Solvency Capital Requirement or parts used
home insurance or reinsurance domestic
a full or partial internal model.

§ 77

Granting approval to the calculation of the Solvency Capital Requirement
through full or partial internal model as its changing


(1) The Czech National Bank is consenting to the calculation of the Solvency Capital Requirement
through full internal model or
any major changes if it is proven that the requirements set in
§ 78.

(2) The Czech National Bank is consenting to the calculation of the Solvency Capital Requirement
through a partial internal model or
with a significant change, if

A) the limited scope of application of the model properly justified

B) the resulting Solvency Capital Requirement reflects more appropriately the risk profile of
home insurance or domestic reinsurance

C) the design is in accordance with the principles in accordance with § 74 and allowing full integration
partial internal model to the standard formula for calculating
Solvency Capital Requirement and

D) it is shown that the requirements under § 78.

(3) In the case of an application for approval with the calculation of the Solvency Capital Requirement
through a partial internal model
which only covers certain sub-modules of a specific risk module
some parts of the business or home insurance
domestic reinsurance in relation to that specific risk module, or parts of
sub-modules and components activities, the Czech national Bank may require the submission
real transition plan to expand the scope of application
model. This plan contains information on how domestic
domestic insurance or reinsurance undertaking intends to extend the range of applications
internal model to other sub-modules or parts of its business
so as to ensure that the model covers a major part of her || | insurance or reinsurance activities related to the risk
module.

(4) Filing Czech National Bank pursuant to paragraphs 1 and 2 shall be subject to prior approval
statutory body of the domestic insurance undertaking or domestic reinsurance
. Czech National Bank shall decide on such requests within 6
months from receipt of a complete application. Czech National Bank request

Approved if the insurance systems for identifying, measuring, monitoring, managing and reporting
risk are adequate and that the internal model meets the requirements set
this Act, unless determined
directly applicable regulation of the European Union.

(5) The Czech National Bank may domestic insurance undertaking or domestic reinsurance
which has been granted approval to use an internal model
order for a specified period from the granting of permission to submit her
estimate of the Solvency Capital Requirement by
standard formula.

(6) directly applicable regulations of the European Union are governed

A) the procedure for approval of an internal model including content
request under paragraphs 1 and 2

B) adjustment of standards to calculate the Solvency Capital Requirement
using an internal model using
partial internal model

C) procedures for the approval of major changes to an internal model and changes in the concept of these changes
and

D) procedures for the complete integration of the partial internal model to
standard formula for the calculation of the Solvency Capital Requirement.

§ 78

Special provisions for calculating the Solvency Capital Requirement
through full or partial internal model

(1) Statutory body home insurance and reinsurance domestic
responsible for the continuous and proper functionality and suitability of the design of a full or partial internal model
for calculating the Solvency Capital Requirement and
consider that this model appropriately reflects
risk profile of such an undertaking.

(2) Home insurance and domestic reinsurance is required for the calculation of the Solvency Capital Requirement
through full or partial internal model
observe the test-use standards
statistical quality standards, calibration standards and validation | || documentation standards set by the implementing legislation.

(3) Home insurance and reinsurance domestic
least annually evaluates the causes and sources of profits and losses, and in every major part of its business by
standard set by the directly applicable regulation
European Union regulating the use of internal models.
The categorization of risk and attribution of profits and losses take into account its risk profile.

(4) Home insurance and reinsurance on domestic demand Czech National Bank demonstrates


A) projection used her full or partial internal model
into its management and control system, especially in relation to the management
risks associated with its operations, decision-making processes, assessment
economic and solvency capital and its allocation including
own risk and solvency assessment under § 7c, or

B) the implementation of the SCR calculation
through full or partial internal model in accordance with
time intervals, which uses the internal model for managing
risk in its management and control system under a) ;
This does not affect the provisions of § 75 para. 1 and

C) take into account the causes and sources of profits and losses and its risk profile
categorization of risk internal model.

(5) The Czech National Bank may require that the domestic insurance undertaking or domestic reinsurance
use its internal model for the respective comparative
portfolio using assumptions based on external data
if required by the internal calibration verification model and its compliance with specifications
generally accepted market practice. This shall apply mutatis mutandis
if the Czech National Bank, for the purpose of supervision or within
approval of a full or partial internal model to calculate
Solvency Capital Requirement, the major changes or changes in the concept
these changes will require the use of an internal model
domestic insurance undertaking or domestic reinsurance provided by the reference portfolio.

§ 78a

Failure to comply with requirements for the internal model

(1) Home insurance undertaking or domestic reinsurance company which was granted
agreement with the calculation of the Solvency Capital Requirement
through full or partial internal model, and that
ceases to meet the requirements for its application, submit information || | submit without undue delay to the Czech national Bank for approval a plan

Restore compliance with these requirements, including deadlines for implementation.
It does not apply if the information submitted by the non-compliance without undue delay
Czech National Bank demonstrates that the impact of this non-compliance
to use an internal model is insignificant.

(2) The Czech National Bank will assess the feasibility plan to restore compliance pursuant to paragraph 1
and the deadline for its implementation, which may shorten
its decision if it considers it to be disproportionate. If the Czech National Bank with
this plan does not agree, or if the domestic insurance undertaking or domestic reinsurance
that plan failed, it may require home insurance undertaking or domestic reinsurance
calculation of the Solvency Capital Requirement standard formula
; This applies even in the case where domestic
domestic insurance or reinsurance undertaking does not fulfill this plan.

§ 78b

Return to the standard formula

Home insurance or reinsurance domestic asking for a change
calculating the Solvency Capital Requirement or part of the calculation
through full or partial internal model to calculate
by the standard formula is required in the application for the change
filed electronically, the Czech national Bank to demonstrate the suitability of this change
particularly with respect to measurable risks to which the insurance or reinsurance
exposed.
Section 3

The minimum capital requirement


§ 79
Basic provisions


(1) Home insurance and reinsurance domestic use
constantly maintains the primary capital at least equal to the minimum capital requirement
calculated quarterly frequency. The minimum capital requirement
corresponds to the amount of eligible basic own funds below which would
policyholders and beneficiaries would be exposed to an unacceptable level of risk
if insurance and reinsurance continued its work.

(2) The minimum capital requirement is calculated as a linear function
group or subgroup variables, and technical reserves
insurance or reinsurance written premiums, capital
risk, deferred tax and administrative costs, while
these variables measured net of reinsurance. Linear function
calibrated to the Value at Risk of the basic capital of an insurance or reinsurance
a confidence level of 85% over a one-year
.

(3) The Minimum Capital Requirement shall not be less than 25% nor higher than
45% of the value of the SCR
calculated in accordance with § 73 para. 2, or the increased capital requirement under § 95a.
This does not affect the provisions of § 79a. For the purposes of determining the margin by
first sentence is not required quarterly
calculation of the Solvency Capital Requirement. If the minimum capital requirement
the undertaking given by either of these limits is
undertaking obliged the Czech National Bank
justify this situation.

(4) The calculation of the Minimum Capital Requirement shall be governed
directly applicable regulation of the European Union, while conducted in a manner that allows
its revision.

§ 79a

The lower limit of the minimum capital requirement

Minimum capital requirement according to § 79 shall not be lower than

A) 2.5 million euros for the domestic insurance company carrying on insurance
activity of one or more non-life insurance by
points 1-9 and points 16 to 18 of Part B of the Annex no. 1 hereto, || |
B) 3.7 million euros for the domestic insurance company carrying on insurance
activity of one or more non-life insurance by
points 10 to 15 of Part B of the Annex no. 1 hereto no matter
that currently operates one or more classes according to the letter and
)

C) 3.7 million euros for the domestic insurance company carrying on insurance
activity of one or more classes of life insurance
listed in Part A of Annex no. 1 hereto,

D) 3.6 million euros for the domestic reinsurance, in addition to domestic
captive reinsurance

E) 1.2 million euros for the domestic captive reinsurance

F) the sum of the amounts referred to in subparagraphs a) and c) or letters b) and c)
depending on the extent of the insurance activity for the domestic insurance
operating simultaneously insurance activity according to classes of life and non-life insurance
, or


G) the sum of the amounts referred to in subparagraphs a) and c) or letters b) and c)
depending on the extent of the insurance activity and point d)
domestic insurance company conducting both insurance and reinsurance activities,
whose reinsurance exceeds any of the values ​​according to § 18 par. 4
point. and).

§ 79b

Solvency Capital Requirement and the Minimum Capital Requirement
undertakings from a third country

(1) Branch of the undertaking from a third country has
eligible capital pursuant to § 63 to 79a. Assets held for filling
SCR are located in the Czech Republic
at least equal to the minimum capital requirement, the remaining part
is located within the Member States.

(2) For the calculation of the Solvency Capital Requirement and the Minimum Capital Requirement
undertakings from a third country with
provisions of § 73 to 79a similarly to that included in the calculations
only activity carried her branch in the Czech Republic or
activity within the Member States, if the Czech national Bank
supervision authority under § 35.

(3) The eligible amount of basic capital intended to cover the minimum capital requirement
and the absolute floor of this requirement
pursuant to § 71, the eligible amount of basic capital
shall not be less than half the amount under § 79a. Principal composed according to § 32 paragraph
. 6 point. e) shall be counted towards the amount of eligible basic own
to meet the minimum capital requirement.
TITLE V


Accounting, auditing and reporting obligations INSURANCE AND REINSURANCE

§ 80
Accounting and auditing


(1) Home insurance, domestic insurance and reinsurance
from another Member State, the insurance company from a third country reinsurance
another Member State and reinsurance third State that its activities on the territory of the Czech Republic
operates through a branch, leads
accounts under the law regulating accounting.

(2) The undertaking, which according to the law regulating accounting
prepares its financial statements or the consolidated financial statements
is obliged to have these financial statements and consolidated financial statements
audited by statutory auditor or audit firm (hereinafter only
"auditor"), which determines undertaking
manner specified in the law regulating auditing activities.

(3) Home insurance, domestic insurance undertaking from a third country or reinsurance
a third state is obliged to notify the Czech National Bank
auditor selected for verification of financial statements or consolidated financial statements
which is entitled to refuse the chosen auditor.
The undertaking is required to notify the Czech National Bank
auditor before his appointment under paragraph 2. The refusal of the Czech National Bank
selected auditor is undertaking is required to notify
within 30 days of receipt decisions of his refusal Czech national Bank
selection of a new auditor.

(4) Notification of selection of an auditor home insurance, domestic
reinsurance, insurance company from a third country or a third country reinsurance
under paragraph 3 contains

A) the name of the statutory auditor or audit firm and the name
registration number assigned by the Chamber of Auditors of the Czech Republic,

B) the duration and scope of the auditor's previous activities in the field of accounting
insurance or reinsurance

C) a description of the activities currently undertaken in the field of auditing insurance or reinsurance
or other financial institutions

D) disciplinary measures taken by the Chamber of Auditors of the Czech Republic or another
similar institutions abroad to the auditor, when it has been accepted, and


E) an affirmation of the auditor on the absence of interconnection under paragraph 5
point. a) the insurance or reinsurance undertaking in which he has performed
verification of financial statements or the consolidated financial statements.

(5) The Czech National Bank refuses auditor if

A) is or has been in the past 2 years, before performing the audit of the financial statements or
consolidated financial statements Geitner,
supervisory body, the Audit Committee, proxy or representative
branch, the person with the key functions or domestic employee

Insurance, domestic reinsurance, insurance company from a third country or
reinsurance from a third country, which has done the financial statements
or consolidated accounts, or

B) its experience in accounting or insurance or reinsurance
his previous experience in auditing insurance or reinsurance
not provide a presumption of proper auditing of financial statements or
consolidated financial statements, with respect to the scope and
complexity of the activities performed by the undertaking in which he has performed
verification of financial statements or the consolidated financial statements.

§ 80a
Extraordinary audit


(1) The Czech National Bank may order the domestic insurance undertaking or domestic reinsurance
perform extraordinary audit

A) if it considers that the financial statements and consolidated financial statements
been carried out in accordance with the law, or

B) fails to meet its auditor notification obligation established in the law regulating auditing activities
.

(2) In view of the findings, the Czech National Bank shall determine the conditions
extraordinary performance audit, particularly the scope and manner of
extraordinary audit, and determines the auditor to perform an extraordinary audit.

(3) extraordinary audit costs borne by the Czech National Bank. If
extraordinary audit confirms the grounds on which the Czech National Bank
ordered to perform extraordinary audit shall pay the auditor who conducted the original audit
, Czech National Bank had incurred costs of implementing
extraordinary audit, to the extent which relates to the financial statements
or consolidated accounts, other costs extraordinary audit
bears Czech national Bank.

§ 81

Other verification auditor

(1) The Czech National Bank may impose a domestic insurance company,
domestic reinsurance, an insurance company from a third country or a third country reinsurance
sure if such a need emerges from the shortcomings identified in
activities of insurance or reinsurance, auditor to perform the audit

A) of the control system or a part thereof, or

B) the disclosed information pursuant to § 82 para. 3
report on solvency and financial condition.

(2) The decision referred to in paragraph 1 shall provide the Czech National Bank
reasonable time to perform the verification, which shall not be less than 3
months from the effective date of this decision, and

A) the definition of information whose reliability requires the auditor to express
and

B) in the case of verification under paragraph 1. a) defining areas
control system to be subjected to an audit.

(3) The decision referred to in paragraph 1 is not admissible decomposition.

(4) The undertaking referred to in paragraph 1, the auditor
necessary assistance, including providing information about their
internal controls, verifying that management and control system
or the disclosed information in the report on solvency and financial | || situation concerned. For the selection of an auditor to § 80 paragraph. 3-5
apply mutatis mutandis.

(5) The verification referred to in paragraph 1, the auditor report, which
undertaking shall submit to the Czech National Bank.
Terms and structure of the reports by the implementing legislation.

Publishing information on the activities of insurance and reinsurance

§ 82

(1) Home insurance or reinsurance domestic latest
four months after the reporting period, submit to the Czech National Bank
its annual report and consolidated annual report pursuant to the law regulating
accounts, which include the financial statements certified auditor, and
publish it in a manner allowing remote access. If the general meeting or member meeting
home insurance or general meeting
domestic reinsurance accounts or consolidated accounts in that
does not approve, send it to the insurance or reinsurance
Czech National Bank together with the reasons for which has not been approved, and a way of resolving comments
general meeting or meetings of members; These data simultaneously
manner allowing for remote access. This does not affect the obligation
home insurance or reinsurance domestic ensure
approval of the financial statements or the consolidated financial statements and approved

Financial statements or publish consolidated financial statements.

(2) Home insurance, domestic reinsurance undertaking, a third
state and reinsurance third state is obliged to disclose the extent
manner and within the deadlines set by the implementing legislation
information about themselves, about the composition shareholders and group structure, which is
part, if not the content of the report referred to in paragraph 3. Information about
legal, management and organizational structure, including placing all control
person and important associates and subsidiaries belonging to the group
to publish annually at group level; It shall apply mutatis mutandis to
insurance holding company and mixed financial holding company with
based in the Czech Republic.

(3) Home insurance, domestic reinsurance undertaking, a third
state and reinsurance third State is obliged to publish a report on
solvency and financial condition and the nature and effect of significant changes in its business
after the approval of the competent authority such
insurance or reinsurance, unless such information is part of the group
report on the solvency and financial condition according to § 92 l. When used
compensatory adjustment under § 54b, a report on solvency and financial
situation in parts valuation for solvency purposes
also contains information on how to use it, the description of the portfolio of liabilities from life insurance or reinsurance
or annuities from life insurance or reinsurance and
description of the portfolio assigned to the asset to which it relates buffer
treatment, including quantification of the impact of the decline in compensatory adjustments
zero on its financial situation. If a coefficient
volatility under § 54c Insurance Company's report on the solvency and financial condition
state together with a quantification of the impact of the reduction to zero
on its financial situation. With the exception of information concerning management
capital may not be with the prior consent of the Czech National Bank
report on solvency and financial condition published information that is sensitive or confidential
. On the basis of this consent may report pursuant to sentence
first containing a link to information already published by another
legislation.

(4) The information is considered sensitive if its disclosure could be damaging to the status
domestic insurance and reinsurance domestic
in the competitive environment, particularly in the case of information on products or systems
, or which, if shared with other competitors, could devalue the investment
home insurance or reinsurance to domestic
such products or systems. Information is considered confidential if
a domestic insurance undertaking or domestic reinsurance obliged to maintain secrecy about her
.

(5) Where any domestic insurance undertaking or domestic reinsurance
possibility of not disclosing sensitive or confidential information in a report by
paragraph 3, of which the disclosure requirement in question, and the reason for non-disclosure
.

(6) Contents of information intended for public disclosure including information on which
not exercise the option referred to in paragraph 3, form, method, structure
frequency and deadlines for disclosure of information provides a directly applicable regulation
European Union.

(7) Prior to the insurance falling within the insurance industry
life insurance, the undertaking shall communicate to interested insurance
specific reference to the report on its solvency and financial condition.
This information must be provided clearly, accurately, and writing in the language of the Member State
commitment.

§ 82a

(1) The Czech National Bank ordered domestic insurance company,
domestic reinsurance, an insurance company from a third country or a third country reinsurance
publish without delay information on

A) MCR, where an insurance or reinsurance
not able to submit a short-
him or Czech National Bank is not received within the time limit under § 98a paragraph. 2;
Information must include the amount in which this requirement was not met,
and reasons of this situation and its consequences, including any
measures taken to remedy or

B) compliance with the Solvency Capital Requirement of insurance or reinsurance
if the Czech National Bank approves a realistic recovery plan
under § 98-2 months from the date when non-compliance was observed; information

Must include the amount in which this requirement was not met and the reasons
this situation and its consequences, including any measures taken to remedy
.

(2) Unless the case pursuant to paragraph 1. a)
minimum capital requirement is met within 3 months from the finding of non-compliance, or
unless in the case pursuant to paragraph 1. b) being renewed
Solvency Capital Requirement within 6 months from the date when it was
compliance occurs, Czech National Bank ordered domestic insurance company,
domestic reinsurance, an insurance company from a third country or reinsurance
third country to publish this fact without undue delay after
expiry of this period, including an explanation of the causes of its origin and consequences
. At the same time publish all adopted and the measures envisaged to remedy
.

(3) The Czech National Bank may inland insurance, domestic reinsurance
insurance from a third country or a third country reinsurance order
publish information in relation to other developments in the insurance or reinsurance
which significantly
affects the relevance of the information disclosed pursuant to § 82 para. 3, including information on its nature and
impact on its operations.

(4) An appeal lodged against the decision of the Czech National Bank pursuant to paragraphs 1-3
no suspensive effect.

(5) Home insurance, domestic reinsurance undertaking, a third
State or third country reinsurance on its own decision
publish other information or explanation regarding its
solvency and financial condition.

§ 83

Information duty to the Czech National Bank

(1) Home insurance undertaking, a third country, domestic
reinsurance or reinsurance undertaking from a third country shall submit to the Czech National Bank
information about themselves, their financial situation applied
prudential rules and its activities and information according to § 7b paragraph.
6 and § 7c. Unless otherwise provided in this Act or directly applicable legislation of the European Union
otherwise, presents the insurance company from a third country and reinsurance
from a third country Czech National Bank information on the extent to which the
relate to her insurance or reinsurance activities
on the territory of the Czech Republic. Content, form, frequency, deadline and
information provision in the implementing legislation, unless specified
directly applicable EU regulation.

(2) Home insurance submitted to the Czech National Bank information on the amount
annual volume of written premiums, without deduction of reinsurance, by
claims costs and commissions to intermediaries for
previous calendar year concerning its activities
life and non-life insurance by type of insurance in accordance with
directly applicable regulation of the European Union, provided for under the law
establish branches and activities carried on under the freedom to provide services
. The information is processed separately for each of these activities
by the Member State in which this activity is carried out.
In the case of liability insurance for damage caused by vehicle operation with
also presents information on the frequency of insurance claims and the average amount
cost of claims for the previous calendar year. Content
form, frequency, deadline and submission of such information provides
implementing legislation, unless specified
directly applicable EU regulation.

(3) The Czech National Bank sends the information under paragraph 2
in summary form and structure pursuant to Annex no. 2 to this Act
supervisory authority of the relevant Member State who so requests.

(4) Home insurance undertaking, a third country, domestic
reinsurance or reinsurance undertaking from a third country shall submit to the Czech National Bank


A) an invitation to the General Meeting Notice of the General Meeting and the minutes of the General Meeting
without undue delay after they were drawn, and

B) documents and other materials, information and explanations necessary for the performance
supervision by the Czech National Bank may request.

(5) Home insurance or reinsurance domestic
notify the Czech National Bank of any contract relating to finite reinsurance activities or
this collateral, immediately after its conclusion, including
submit a copy of such contract. Insurance from a third country and

Reinsurance from a third country rise to the obligation only when
such agreements are secured liabilities arising in the Czech Republic
. This undertaking is required to identify
measure, monitor, manage, control and report the Czech National Bank
risk that the commitments that are contained in these agreements or
activities arising.

(6) finite reinsurance for the purposes of this Act means for securing
case where clearly defined the maximum possible loss of insurance
expressed as the maximum economic risk transferred, arising both from
transfer of significant underwriting risk as well as risk transfer
timing exceeds throughout the duration of the obligation arising from reinsurance contracts
premiums by a limited but for the insurance
substantial sum, on condition that the reinsurance contract contains provisions concerning
| ||
A) clear and substantial consideration of the time value of money, or

B) the balance of economic experience between the parties within the agreed timeframe
aimed at achieving a transfer
hedged risk.

(7) The provisions of paragraphs 1 to 6 are without prejudice to § 92a paragraph. 1, § 92b
paragraph. 1 and § 92k paragraph. 1st

§ 83a
Qualitative requirements


(1) Information pursuant to § 83 paragraph. 1, 2 and 4 point. b) must

A) reflect the nature, scale and complexity of the insurance or reinsurance
particular risks arising from its activities,

B) be accessible, complete in all material respects, comparable and consistent over time
and

C) be relevant, reliable and comprehensible.

(2) In order to meet the requirements of paragraph 1 is an insurance and reinsurance
put in place appropriate systems and structures ensuring the ongoing appropriateness of the information submitted
including written policies approved by its
statutory authority.

§ 83b

Limitation information duties to the Czech National Bank

(1) If the regular submission of information pursuant to § 83 paragraph. 1
was with regard to the nature, scale and complexity of the risks associated with the activity of insurance or reinsurance
too burdensome, the Czech National Bank limit
submitting information

A) with a frequency of less than one year, if those submitted at least annually, or


B) for each item, if it is possible, if necessary oversight
obtained upon request within a reasonable time.

(2) Paragraph 1 shall not apply where it would lead to a distortion
effectiveness of supervision by the Czech National Bank or threaten the stability of financial systems
European Union. Restrictions pursuant to paragraph 1 can only be used by insurance and reinsurance
whose aggregate market share represents more than 20% on the market
life or non-life insurance in the Czech Republic, which is
life insurance given the amount of annual gross technical provisions
and non-life insurance volume of annual gross written premiums.
For purposes of this limitation, the Czech National Bank will give priority to insurance and reinsurance
with the smallest market share.

(3) In the case of the undertaking, which is part of the group, is a condition
procedure under paragraph 1 of the Czech National Bank to demonstrate that
regular submission of information with a frequency of less than 1 year or after each
items disproportionate with regard to the nature, scale and complexity
risks associated with the activities of this group.

(4) The Czech National Bank if the procedure under paragraphs 1 to 3 for each
insurance or reinsurance account the

A) annual volume of premiums written, the amount of technical provisions and
assets

B) the volatility of claims

C) market risks to which it is exposed,

D) the level of risk concentration

E) the total number of the classes of life and non
insurance

F) the possible effect of asset management to financial stability

G) internal systems and structures for the provision of information for supervisory purposes including
written policy under § 83a par. 2

H) the suitability of the control system,

I) the amount of eligible capital designated to carry
Solvency Capital Requirement and the Minimum Capital Requirement and

J) whether it is a captive insurance or reinsurance and related
risk. ".

Footnotes. 19, 21-28, 38 and 39 are deleted, including

Links to footnotes.

152nd In the third part of Title I, Parts 1 and 2, including the title added:

"Part 1

Basic provisions

§ 84

Scope of Insurance Supervisors

(1) The industry performed by the Czech National Bank in order
protection of policyholders, insured and beneficiaries with a view to preserving financial stability
insurance and reinsurance undertakings in exercising supervision
Czech national Bank

a) thoroughly considering the potential impact of their decisions on the stability || | affected financial systems in the European Union, particularly in the case
emergency situations, taking into account the information available at the time the decision
; in times of exceptional movements in financial markets
into account at the Czech national Bank supervision also to
potential pro-cyclical effects of their progress and

b) acting in conjunction with the European supervisory authority and the supervisory
authorities of other Member States, including the exchange of information;
legal relations with the European supervisory authority is governed by a directly applicable European Union regulations
.

(2) the industry is based on a prospective approach
proportionate to the nature, scale and complexity of the risks associated with the activities
by undertaking a systematic screening on its activities
and respect this law and other laws set
obligations. Supervision is exercised in a transparent and accountable manner with
regard to the protection of confidential information with regard to the prevention
creating a situation prejudicial to the interests pursuant to paragraph 1

(3) subject to the supervision of insurance undertakings which
in the Czech Republic operated
insurance or reinsurance activity, the extent provided by law, service providers under § 7 g
and other physical and legal persons, unless so determined
this Act or any other legislation.

(4) In the exercise of supervision in insurance
Czech National Bank also cooperates with other European supervisory authorities established
directly applicable regulations of the European Union, the supervisory authorities of third countries, international organizations
, with the central authorities
and organizations working in the insurance field.

(5) In exercising insurance supervision, the Czech National Bank employs
recommendation of the European supervisory authority.

§ 85

Subject of Insurance Supervisors

Subject to supervision by the Czech National Bank in relation to persons under § 84 par. 3
compliance with this Act and other legislation to the extent
relate to insurance and reinsurance activities, especially

A) compliance activities performed with granted permission or right
establish branches or the freedom to provide services,

B) management of home insurance or reinsurance undertaking in terms of domestic security
meet its commitments and undertakings of third country
or reinsurance undertaking from a third country in terms of security
ability to fulfill its obligations from its activities in the Czech Republic;
insurance in case of a third country also in terms of security
ability to fulfill its obligations from its activities in other Member States
if the Czech National Bank Supervisory Authority in accordance with § 35

C) above, the process of creation and use of technical provisions, respecting the principle
prudent investment of assets and calculation of the Solvency
minimum capital requirement and capital adequacy applicable
domestic insurers, the insurance company from a third country, the domestic reinsurance or
reinsurance from a third country

D) the fulfillment of the obligations imposed by the Czech National Bank

E) accounting,

F) command and control system

G) financial and technical resources for security assistance
services if the insurance activity by industry
non-life insurance mentioned in part B, paragraph 18 of Annex no. 1 to this
law,

H) ongoing compliance with the requirements for full or partial internal models
where the insurance or reinsurance undertaking uses a full or partial internal model to calculate
Solvency Capital Requirement

I) activities pursuant to § 87 para. 2, or

J) consistency of the insurance activity with statutory requirements
negotiations with parties interested in insurance, policyholders, insured
and beneficiaries.


§ 86


Power Supervision
(1) The supervision of the home insurance or reinsurance domestic
including the activities carried out through a branch or
form of temporary provision of services falls within the exclusive competence of the Czech National Bank
, with the exception of the oversight exercised by the host Member | || State. If the supervisory authorities of another Member State informed the Czech
National Bank of facts that testify to the unfavorable development
financial situation of the domestic insurance undertaking or domestic reinsurance or
this situation may adversely affect, the Czech National Bank will verify these facts
and in case of deficiencies impose corrective measures
.

(2) The supervision of the activities of the insurance company from another Member State and the activities
undertaking from another Member State, which operates its
insurance or reinsurance business in the Czech Republic, falls, with the exception of §
110 and 111, the exclusive competence of the supervisory authority of the home Member State
such insurance or such reinsurance.
This does not affect the powers of the Czech National Bank pursuant to the law regulating
some measures against the legalization of proceeds from crime and terrorist financing
.

(3) The supervision of the activities of third country insurance and reinsurance activities
over from a third country within the scope of operation in the Czech Republic
falls within the scope of the Czech National Bank if the
law or international treaty which is part of the law,
provides otherwise; if the insurance company from a third country in accordance with § 35, the Czech National Bank


A) is selected supervisory authority, within its scope
exercise supervision over the activities of the insurance company from a third country in the whole range of its
activity carried out on the territory of the Member States through its subsidiaries
or

B) is not elected by the supervisory authority, within its scope
exercise supervision over the activities of the insurance company from a third country to the extent that it is not practiced
elected by the supervisory authority of another Member State.

(4) The Czech National Bank shall exercise supervision under paragraphs 1 and 3
based on data submitted in accordance with this Act or
data obtained from other sources, or on the basis of data obtained inspection carried out directly by
persons covered by this Act, insurance supervision.
These forms of supervision appropriately combine and apply timely and adequately
nature, scale and complexity of the risks associated with the business of an insurance or reinsurance
.

(5) The Czech National Bank with the authorities and persons under § 128 paragraph. 3
exchange information and documents that are necessary for the purposes
supervision.

(6) Persons acting for insurance or reinsurance are to provide
Czech National Bank at its written request, any information concerning
their activities for this undertaking;
person employed by undertaking a service provider according to § 7 g
or any other person who performs for an insurance or reinsurance activities
other than employment (hereinafter referred to as "a person working for an insurance or reinsurance
").

(7) Service provider according to § 7 grams is obliged to allow Czech National Bank
supervised outsourced activities of insurance or reinsurance
subject to its supervision under this Act in their
premises.

§ 86a

Identification of the worsening financial situation of the insurance and reinsurance

(1) Insurance and reinsurance pursuant to § 86 par. 1 and 3
implement procedures to detect the worsening of its financial situation and, if such
deterioration occurs, it shall forthwith notify the Czech National Bank; It is
apply mutatis mutandis in cases where not met the Solvency Capital Requirement or
minimum capital requirement, or where there is
risk that the requirement is not met within the next 3 months.

(2) next, if the reduction in compensatory adjustments or volatility adjustments
to zero for non-compliance with the Solvency Capital Requirement
undertaking pursuant to paragraph 1, the Czech National Bank
simultaneously with information on evaluation by § 7b paragraph. 6
analysis of measures that would lead to the renewal of its compliance activities
SCR, and increase usable
capital or by reducing its risk profile.

§ 86b


Tools for assessing the ability of prudent operation of the activity

(1) The Czech National Bank prepares and uses reasonable
quantitative tools to assess the ability of the insurance or reinsurance
subject to its supervision comply with rules of prudent operation of its business
provided for in this Act or directly applicable EU regulation.
These tools can be developed for possible future events or
changes in economic conditions that could affect the financial situation
undertaking.

(2) The Czech National Bank may, as part of the assessment under paragraph 1
require the conduct adequate tests, home insurance or reinsurance
domestic and for these tests to determine the underlying assumptions or scenarios
. Home insurance or reinsurance domestic
send the test results to the Czech National Bank within the period specified in the request for his
design, which must reflect the complexity and scope of tests, but not
less than 30 days from the date of receipt.

(3) If the Czech National Bank on the basis of the results of
assessment under paragraphs 1 and 2 compromising the ability of domestic insurance
domestic or undertaking to comply with rules of prudent conduct of its
actions specified by this Act or a directly applicable
regulations of the European Union, shall impose appropriate corrective action and determined to
reasonable deadline.

§ 86c

Review and evaluation

(1) The Czech National Bank in the supervision conducted periodically review and evaluate
strategies, processes and reporting procedures established
undertaking to be subject to its supervision, in order
fulfill the obligations stipulated by this Act or a directly applicable | || EU regulation; review and evaluation includes an assessment

A) compliance with the qualitative requirements relating to the management and control system
,

B) the risks to which the undertaking faces or may face

C) the ability of undertakings to assess those risks with regard
to the environment in which it operates, and

D) procedures to identify deteriorating financial situation of an insurance or reinsurance
.

(2) The Czech National Bank in the periodic review and evaluation
pursuant to paragraph 1 shall review and evaluate compliance with the particular requirements

A) management and control system including its own risk assessment and
solvency

B) technical provisions

C) the capital requirements

D) rules on investment

E) the quality and adequacy of capital and

F) continuous performance requirements for full or partial internal models
where the insurance or reinsurance undertaking uses a full or partial internal model
.

(3) The Czech National Bank assesses the adequacy of the methods and procedures
designed and implemented by the undertaking for
identifying possible events or future changes in the economic environment
which could have negative effects on its overall
financial situation. Czech National Bank assesses the ability of insurance or reinsurance
withstand those possible events or future changes in economic environment
.

(4) The Czech National Bank will invite the undertaking to the
reasonable time to remedy the situation in their activities, or she saves
remedial measures to remedy the deficiencies identified during the review and evaluation
under paragraphs 1 to 3

(5) The frequency and scope of the review and evaluation referred to in paragraphs 1-3
Czech National Bank determined having regard to the nature, scale and complexity of activities
undertaking.
Part 2

Group supervision

Section 1


The scope of group supervision

§ 87
Basic provisions


(1) Unless otherwise provided below, supervision pursuant to this part
Czech National Bank carries out of the home insurance or reinsurance domestic
which

A) participates in at least one insurance or reinsurance (hereinafter
'insurance or reinsurance undertaking')

B) is a controlled entity of the insurance holding person domiciled in a Member State
or mixed financial holding entity based in
Member State

C) is a controlled entity of the insurance holding person domiciled in a third country
mixed financial holding entity established in a third country or

Insurance from a third country or a third country reinsurance or

D) is a controlled entity of the insurance holding person mixed
activities, to the extent pursuant to § 92p,

(Hereinafter "group supervision").

(2) The group supervision, unless stipulated otherwise, the inspection


A) maintaining eligible capital of at least EUR
group Solvency Capital Requirement

B) intra-group transactions

C) concentrations of risk groups

D) persons in the management insurance holding company and mixed financial holding entity and


E) compliance management and control system at the group level;

Without prejudice to the provisions on supervision over the activities of insurance and reinsurance
on an individual basis according to § 84 to 86c.

(3) In exercising group supervision take account of the Czech National Bank
all factors which affect or may affect the financial situation
home insurance or reinsurance domestic and concern

A) controlled or affiliated person of home insurance or reinsurance domestic
,

B) persons who are participating in the domestic insurance undertaking or domestic reinsurance
and

C) controlled by or affiliated persons of a person who participates in the domestic
domestic insurance or reinsurance.

§ 88

Exceptions surveillance activities

(1) The Czech National Bank may, if the group supervisor, the
group supervisor, after consultation with the relevant supervisory authorities
exclude a person

A) which is based in a third country where there are legal impediments to the transfer
necessary information

B) which is to exercise oversight over the activities of domestic insurance or reinsurance
domestic group of negligible interest; It does not apply
case where the exclusion of group supervision relates more persons
together form part of a group with a significant meaning or

C) if the inclusion of its financial situation was on the supervisory
of the home insurance or reinsurance domestic group
misleading or inappropriate.

(2) If the domestic insurance undertaking or domestic reinsurance excluded
group supervisor of group supervision
grounds pursuant to paragraph 1. b) c) Czech National Bank has the right to request
for the purposes of supervision by the last person undertaking pursuant to paragraph 5
any information about this undertaking.

(3) The Czech National Bank if the group supervisor may, after consultation with
supervisory authorities to refrain from carrying out the supervision of risk concentration
under § 92a or supervision of intra-group
according to § 92b, where an insurance or reinsurance undertaking, the insurance holding
person domiciled in a Member State or a mixed financial holding
person domiciled in a Member State is an affiliated person
regulated entity or a mixed financial holding entity || | subject to supplementary supervision under the law regulating
supplementary supervision of financial conglomerates, or it is that person.

(4) The exercise of group supervision shall not constitute the exercise of supervision in relation to
insurance from a third country insurance holding company, insurance holding entity
a mixed-mixed financial holding
person or reinsurance undertaking from a third country , considered separately. This
not prevent supervision in accordance with § 92.

(5) to insurance or reinsurance undertaking, the insurance holding
person or a mixed financial holding company pursuant to § 87 para. 1 point.
) And b) shall not apply to group supervision if it is a controlled entity
another insurance or reinsurance or insurance holding
person or mixed financial holding entity established in a Member State
; unless such controlled person is considered for the purposes of this Act
the last person undertaking at the level of the European Union, which is subject
§ 89b up to 92 meters (hereinafter referred to as "the last person holding
participation") ; This is without prejudice § 89.

§ 88a

Special provisions for supervision of mixed financial holding entity

(1) The Czech National Bank if the group supervisor may, after consultation with
supervisory authorities concerned that the oversight
mixed financial holding entity governed only by the applicable provisions of the law regulating
supplementary supervision of financial

Conglomerates if this mixed financial holding company
apply equivalent provisions of this Act and the act regulating
supplementary supervision of financial conglomerates, in particular as regards
risk-oriented supervision.

(2) The Czech National Bank if the group supervisor may, after
agreement with the supervisor on a consolidated basis in
banking sector and the investment services sector, the surveillance
over mixed financial holding entity governed only by the provisions
applicable to most sectors under the law regulating
supplementary supervision of financial conglomerates, when this
mixed financial holding company subject to the equivalent provisions of this Act and the act regulating
the activities of banks or law regulating business
on the capital market, particularly in terms of risk-based supervision.

(3) The Czech National Bank shall notify the decisions taken by
paragraphs 1 and 2 of the European Supervisory Authorities established
directly applicable European Union regulations.

§ 89

Supervision subgroup

(1) The Czech National Bank may, after consultation with the supervisor
group and the last person sponsoring decide to subordinate domestic
domestic insurance or reinsurance undertaking or domestic
insurance holding entity or mixed financial holding
persons pursuant to § 87 para. 1 point. a) and b) who is not domiciled in the same Member State as the ultimate
person undertaking (hereinafter called "the last domestic
person undertaking"), a national surveillance subgroup. In this case
§ 89b up to 92 meters shall apply mutatis mutandis, without prejudice to the provisions
paragraphs 2 to 7. That's a decision the Czech National Bank justifies
group supervisor and the last person undertaking within
European Union.

(2) Supervision of the group at the last domestic entities undertaking at national level
Czech National Bank performs under § 89b to 92c,
the extent of this supervision will apply depending on the nature
subgroups.

(3) If the Czech National Bank in supervising the subgroup at the national level
apply the provisions of § 89b to 91H, uses the last
country by sponsoring national
same method of calculation of the group Solvency Capital Requirement,
which uses the last person undertaking.

(4) If the Czech National Bank used the last person
domestic undertaking at national level to § 89b 91H and if the last person
undertaking and its affiliates are under § 90a permission to perform the calculation
the group Solvency capital requirement, as well
Solvency capital requirement of insurance and reinsurance
group using the internal model, follow the same procedure and domestic
last person undertaking.

(5) If the risk profile of the last domestic entities undertaking
at national level deviates significantly from the assumptions used for
internal model approved at EU level, and if that person does not properly
comments Czech National Bank Czech national Bank
this person may increase the solvency capital requirement
group Solvency capital requirement at sibling
determined on the basis of such a model. In exceptional cases where such an increase would
group Solvency Capital Requirement
not adequate, the Czech National Bank may order that person to
calculate its Solvency Capital Requirement on the basis
standard formula. The reasons for such a decision, the Czech National Bank
explain to the group supervisor.

(6) The last person holding the domestic participation in national,
by the Czech National Bank applied to § 89b 91H can not grant permission under § 91a
to take on any entity controlled subject to § 91c and
91d.

(7) Paragraph 1 shall not apply where the last person holding domestic
participation at the national level is controlled entity last person undertaking,
which has a permit under § 91b to this latest domestic person || | undertaking subject to § 91c and 91d.

§ 89a

Supervision subgroup covering several Member States

(1) The Czech National Bank may conclude an agreement with supervisory authorities of other

Member States in which it operates another last person holding
participation at the national level. The content of the agreement is the procedure for ensuring the performance
supervision of a subgroup covering several Member States. The conclusion of this agreement
Czech National Bank shall inform the group supervisor and
last person undertaking.

(2) If an agreement under paragraph 1, the Czech National Bank
not supervise any subgroup among the last persons holding
participation at the national level in this group according to § 89 if
not a subset pursuant to paragraph 1

(3) The provisions of § 89 is to supervise the subgroup comprising more
Member States shall apply mutatis mutandis.
Section 2


Group Solvency Capital Requirement

§ 89b

Supervision group Solvency Capital Requirement

(1) Home insurance and domestic reinsurance undertaking subject to performance
group supervision pursuant to § 87 para. 1 point. a) and b) to ensure
level of ongoing maintenance
group Solvency Capital Requirement.

(2) Where a domestic insurance undertaking or domestic reinsurance undertaking
subject to group supervision fails to comply
group Solvency Capital Requirement, saves her Czech National Bank if the body
group supervision measures remedy. The provisions of § 86b and 98 shall apply mutatis mutandis
.

(3) Home insurance undertaking or domestic reinsurance undertaking subject to performance
group supervision, notify the Czech National Bank of failure
group Solvency Capital Requirement, or if there
risk that the requirement is not met in the next 3 months
without undue delay after finding out.
Czech National Bank shall inform the other supervisors in
college of supervisors in accordance with § 92f (hereinafter "the College") as soon as he learns
. The College will assess the financial situation of the group.

§ 89c
Frequency of calculation


(1) Home insurance or reinsurance undertaking subject to the performance of domestic
group supervision report to the Czech National Bank, as the supervisory authority
over a group calculate the group Solvency Capital Requirement
within the time limit, form and manner in accordance with § 92k paragraph. 1
or at any time at the request of the Czech national Bank, within 30 days of its receipt,
soon as possible but within 30 working days of the date on which it is to be
group Solvency capital requirement reported. If the group does not follow
undertaking under the first sentence, has
Czech National Bank, as a group supervisor,
calculate the group Solvency Capital Requirement, insurance holding entity
mixed financial holding person or group
Czech national Bank, as a group supervisor, after consultation with
other supervisors and the group itself determined.

(2) Home insurance, domestic insurance or reinsurance
holding entity, mixed financial holding entity or person in the group
under paragraph 1 constantly monitors whether
group Solvency Capital Requirement corresponds to the risk profile of the group. If
group's risk profile changes significantly from the assumptions under which it was
group Solvency Capital Requirement was last calculated, is obliged
Solvency Capital Requirement and recalculate
submit to the Czech National Bank. Czech National Bank may require
recalculation of the group Solvency Capital Requirement, unless
assumes that the group's risk profile has changed significantly.

(3) The calculation of the group Solvency Capital Requirement
by the method based on consolidated data (hereinafter referred to as "method
Accounting consolidation"). Czech National Bank if the supervisor
group, may, after consultation with the other supervisory authorities within the college
allow calculate the group Solvency Capital Requirement
Deduction and aggregation method or a combination of both.
In the case of non-compliance with the minimum amount
group Solvency Capital Requirement in accordance with accounting consolidation method, the Czech National Bank
similarly under § 98a paragraph. 1 to 3 criteria for using these methods
governed by a directly applicable regulation of the European
Union governing technical principles and methods of calculation of the Solvency capital requirement.


(4) Where a controlled undertaking included in the calculation of the Solvency Capital Requirement
has its headquarters in another Member State
, used in the calculation of the Solvency Capital Requirement
Solvency Capital Requirement and the capital of insurance | || in an amount determined by that Member State.

(5) When calculating the Solvency Capital Requirement
assets and liabilities are valued in accordance with § 51.

(6) The Czech National Bank if the group supervisor shall determine, after consultation with
other supervisory authorities within the college and the person
pursuant to paragraph 1, which controls the group, in accordance with the method used
calculation of the group Solvency capital requirement by
paragraph 3, the method of determining the proportional share held by the controlling entity in
associated individuals if

A) there are no capital ties between some people in the group

B) direct or indirect holding of the responsible person or property
voting rights of another person qualifies as a participation because
such an interest to exercise significant influence over such person or

C) a person from controlling person of another person on the basis of the actual implementation
decisive influence on a person.

(7) An implementing regulation provides, in accordance with relevant regulations
European Union rules for the calculation of the Solvency Capital Requirement and
rules for calculating capital at group level, including
definition of its items.

§ 89d

Related insurance from third countries and reinsurance from third countries

(1) If the calculation of the group Solvency Capital Requirement
included insurance from a third country or a third country reinsurance,
whose operation is subject to obtaining a permit in a third country and fulfilling
Solvency Capital Requirement which is based on a decision of the European Commission or
group supervisor equivalent or comparable
provisionally take into account this fact when calculating
Solvency capital requirement including the amount of its eligible
capital provided for under the rules of that third State.

(2) The Czech National Bank if the group supervisor, at the request
person undertaking or on its own initiative verifies whether
solvency regime in a third state is at least comparable with the solvency requirement
under this Act. About this issue
measures of a general nature, and after consultation with the other supervisors and the European
supervisor. Such a measure respects the earlier
similar decision in relation to that State, except when it is justified
significant changes in supervision under this Act or changes in sight
third country. Criteria for validation of comparability is governed
directly applicable regulation of the European Union. The procedure under the first sentence
apply if the European Commission has adopted a decision on the comparability
or interim comparability of solvency regime in a third country.

(3) If the Czech National Bank group supervisor and
if they disagree with the decision of the group supervisor on
comparability in accordance with paragraph 2, may, within 3 months of receipt of the notification
of that decision, express its disagreement
European supervisory authority and request a review.

(4) If the solvency regime in a third country
evaluated as comparable or provisionally comparable to the requirements of the relevant regulations
European Union or the European Commission decided that
solvency regime in a third country applied to
reinsurance activities are based in its territory ceased to be comparable or provisionally
comparable not take into account the Solvency capital requirement and
eligible capital in accordance with paragraph 1 from a third country insurance or reinsurance
third State will
purpose of calculating the Solvency capital requirement regarded as a related insurance or reinsurance
. In this case, it calculates its Solvency Capital Requirement and
capital intended for its performance under this Act.

§ 89e

Affiliated persons from the banking sector and the investment services sector

(1) Where a domestic insurance undertaking or domestic reinsurance undertaking subject
group supervision and capital participation in the person of the banking sector

Or investment services sector, this includes participation in the calculation
group Solvency Capital Requirement. For these purposes
used method of accounting consolidation method or the deduction of aggregated data
under the law regulating financial conglomerates.
Method of accounting consolidation is used in cases where the Czech National Bank, as an institution
group supervisor, has no doubts about the integrated management and control
and control system applicable to companies that are included in
consolidation. The method is applied consistently and can not be changed.

(2) At the request of the undertaking pursuant to paragraph 1
filed electronically or ex officio, the Czech National Bank, as
group supervisor, equity participation under paragraph 1 deducted from eligible capital
groups eligible for the Solvency capital requirement
.

§ 89f
The intermediate holding entity


(1) When calculating the Solvency Capital Requirement of an insurance or reinsurance
that through an insurance holding
entity or a mixed financial holding entity
participation in the related insurance or reinsurance or insurance or reinsurance from third
State shall take into account the situation of such an insurance holding entity
or intermediate mixed financial holding entity.
For the purposes of this calculation, the intermediate insurance holding
person or intermediate mixed financial holding entity considers
insurance or reinsurance undertaking subject to the rules laid down in this Act
calculating the Solvency Capital Requirement and conditions laid down for use
capital.

(2) In cases where an intermediate insurance holding
person or intermediate mixed financial holding entity
holds subordinated debt or other eligible own funds subject to the limits
according to § 71, is considered the capital for use only within the limit
calculated in the manner in accordance with § 71 of the total eligible capital
at group level as compared to the Solvency capital requirement at group
level.

(3) Applicable capital of an insurance holding
person or intermediate mixed financial holding entity that would
require prior authorization from the supervisory authority pursuant to § 64 if it were
held by an insurance or reinsurance undertaking, may be taken into account
when calculating the Solvency capital requirement only if he was allowed
group supervisor.

§ 89 g

Deduction participation

If the domestic insurance undertaking or domestic reinsurance undertaking subject to performance
group supervisor at the request of the Czech National Bank within a reasonable time
submit the information about the affiliated person domiciled in a Member State or in a third country
necessary to calculate solvency
capital requirement minus the book value of equity in the associate
person from the funds to cover its group Solvency capital requirement
. About this deduction, the Czech National Bank
decision on its own initiative. In the case of deducting the unrealized gains
resulting from such equity capital
not considered applicable to the performance of the group Solvency Capital Requirement.
Section 3


Calculation of the group Solvency Capital Requirement

§ 90

The basic rules for calculating the group Solvency Capital Requirement


(1) The calculation of the group Solvency Capital Requirement
performed according to standard formula or through group
internal model.

(2) The rules of capital applicable to the performance of the group
Solvency Capital Requirement and how to calculate it are governed similarly
§ 63 to 78b.

§ 90a

Approval of an internal model for the calculation of the group Solvency Capital Requirement
and
Solvency Capital Requirement of the related insurance and reinsurance

(1) Where a domestic insurance undertaking or domestic reinsurance undertaking
subject to group supervision and group intends to use an internal model to calculate
group Solvency Capital Requirement and
calculating the Solvency Capital Requirement of her associates
insurance and reinsurance undertakings or conditions for the use of such a model

Change requests, together with its affiliates
Czech National Bank if the group supervisor, for prior approval
; application is submitted electronically. This shall apply mutatis mutandis to a request filed jointly
affiliates
insurance holding entity or mixed financial holding entity. For the purposes of administrative proceedings
this undertaking
considers the joint trustee. The Czech National Bank may, in its decision on granting consent
determine the conditions under which the domestic insurance undertaking or domestic
reinsurance undertaking subject to group supervision, or its affiliated
person is authorized to use an internal model.

(2) The Czech National Bank shall, without delay, a complete application for supervisory authorities
College and in its assessment of coordinate cooperation with those
supervisors. A complete application under paragraph 1 shall
6 months from the date of its receipt. In doing so the decision was issued
agreement with all relevant supervisory authorities.
Agreement with these institutions shall be given in the Decision.

(3) If during the period referred to in paragraph 2 Czech National Bank or other
supervisor in the college asks for the opinion of the European supervisory authority
Czech National Bank shall decide without undue delay after receipt of the opinion
which it is bound.

(4) If the Czech National Bank of the opinion of the European supervisory authority
inform the supervisory authorities within the college.

(5) If a request under paragraph 1 of the decision within the period referred to in paragraph 2
does not decide where a case The European Supervisory Authority or
absence of a decision proposed by the directly applicable European Union
, the Czech national Bank decides on such applications
separately. While respecting the opinions of the other supervisors and
explanation for any deviation from these positions.
Decision to send the applicant and all supervisors in the college.
Section 4


Group Solvency Capital Requirement
insurance holding entity or mixed financial holding entity

§ 91

(1) If the domestic insurance undertaking or domestic reinsurance entity controlled
insurance holding entity or a mixed financial holding
person, the calculation of the group Solvency Capital Requirement
according to § 89b and 89c at the level of the insurance holding
person or mixed financial holding entity.

(2) For the purposes of the calculation pursuant to paragraph 1 own funds to carry
Solvency Capital Requirement, an insurance holding entity
or mixed financial holding people down like the use
capital of domestic insurance and Solvency Capital Requirement || | insurance holding entity or mixed financial holding entity
similarly determined as the Solvency capital requirement
domestic insurers.
Section 5


Group Solvency Capital Requirement groups with centralized risk management


§ 91a

Centralized group risk management

(1) If the domestic controlling entity, which is the last person holding
participation, intends to apply a system of centralized group risk management
according to § 91c to 91F in relation to its controlled insurance or reinsurance company, is
obliged to ask the supervisory authority of the Member State in which that
controlled person resides consent.

(2) If the Czech National Bank has adopted since the last person undertaking
application for a permit to take its controlled domestic insurance or reinsurance
qualifying for centralized risk management group
according to § 91c 91F, communicate its content to other supervisory authorities within the college
once it is complete.

(3) The persons referred to in paragraphs 1 and 2 shall be subject to the provisions of § 91c to 91F
if

A) the controlled entity is not excluded from the group supervisor

B) risk management processes and internal control mechanisms controlled entity
are identical with those procedures and mechanisms applied
controlling entity and meet the requirements for prudent management of the controlled entity,

C) group supervisor controlling entity granted permission to develop
risk and solvency assessment pursuant to § 92c paragraph. 6

D) group supervisor has granted permission to the controlling entity
submit a joint report on the solvency and financial condition according to §
92 liters paragraph. 2 and

E) controlling entity has received approval under § 91b.


(4) An application for consent to the use of a centralized risk management
group to which the applicant attached a copy of a decision pursuant to paragraph 3.
C) to e), comprises

A) a description of the control system of the last people
undertaking involves the controlled person to whom the scheme is intended
centralized group risk management apply,

B) the expected impact of the scheme centralized risk management
controlled entity belonging to the group supervisor and to policyholders and

C) a description of the last person undertaking complies with the requirements
supervisors College of the prudent management of the controlled entity to which it is
regime centralized group risk management apply.

§ 91b

Consent with centralized risk management group

(1) An application pursuant to § 91a decide together supervisors within
college.

(2) The Czech National Bank acts so that the decision was issued
together in agreement with all supervisory authorities within the college, within three months
from the date when the complete application is received by all supervisory authorities within the college.

(3) If during the period referred to in paragraph 2 Czech National Bank or other
supervisor in the college asks for the opinion of the European supervisory authority
Czech National Bank shall decide without undue delay after receipt of the opinion
which it is bound.

(4) Unless the supervisory authorities of the College for a decision within
3 months of receipt of a complete application and does not decide where a case
European supervisory authority, or the absence of a decision by the proposed direct || | applicable regulations of the European Union decides Czech national Bank
if the group supervisor. The decision
account of the views expressed during the relevant period all supervisory authorities within the college.

(5) The decision on the application under § 91a and paragraph 4
Czech National Bank account of the views of supervisors in the college. In its decision
explanation for any deviation from these positions. The decision is delivered also
supervisory authorities within the college.

§ 91c

Determination of the Solvency Capital Requirement
home insurance or reinsurance as a domestic entity controlled by the

(1) SCR home insurance or
domestic reinsurance covered by permits centralized
risk management, which is an entity controlled by the last person undertaking,
calculated on the basis of an internal model by § 90a or pursuant
standard formula.

(2) deviates If the risk profile of the insurance or reinsurance
pursuant to paragraph 1 that the SCR calculation
group uses an internal model significantly from the assumptions underlying the calculation
group internal model and measures remedy not remedied the situation
state, Czech national Bank may propose to the College

A) an increase in the capital requirement for the Solvency Capital Requirement
home insurance or reinsurance domestic
under paragraph 1; for this increase applies similarly to § 95a or

B) in exceptional cases where the increase under point a) it is not appropriate to oblige
calculation of the group Solvency Capital Requirement
standard formula.

(3) deviates significantly if the risk profile of the undertaking pursuant to paragraph 1
calculating the Solvency Capital Requirement standard formula
, the assumptions for the calculation and measures to remedy
not remedied the situation state, Czech national Bank may propose
in exceptional cases college

A) provide that person an obligation to compensate when calculating the life, non-life
and health underwriting risk subgroup parameters
used to calculate the standard formula
parameters specific to that person or

B) increase in accordance with paragraph 2. and).

(4) Unless the Czech National Bank with the group supervisor
to proceed pursuant to paragraph 2 or 3, any competent authority has
supervisory college law within 1 month from the date of submission of the proposal to the College || | transfer the case to the European supervisory authority for an opinion. In this case
Czech National Bank shall decide without undue delay after
receipt of this opinion, which it is bound.

(5) The decision shall be delivered to the undertaking referred to in paragraph 1
and college.

§ 91d

Failure to comply with the Solvency Capital Requirement


(1) If the Czech National Bank non-compliance with the Solvency Capital Requirement
domestic insurance undertaking or domestic reinsurance, which covers
permits centralized risk management and which is controlled by a person
last person undertaking, shall impose an obligation to submit for approval
recovery plan. For this plan to § 98 paragraph. 2-5
apply mutatis mutandis.

(2) The Czech National Bank shall submit a draft restoration plan for college
consultation promptly after receiving it. Czech National Bank
acts so that a decision on the approval of the recovery plan was issued
agreement with all supervisors involved in the college, but later
within 4 months of the date on which the findings referred to in paragraph 1 has occurred.

(3) Unless the Czech National Bank with the group supervisor
on the financial recovery plan within the period referred to in paragraph 2 or within
directly applicable regulations of the European Union, the matter may be referred to the opinion
European supervisory authority. Czech National Bank in this case
decide without undue delay after receipt of the opinion
which it is bound.

(4) Paragraph 3 shall not apply in case of emergency under § 91H
point. b); in this case determined by the Czech National Bank separately.
The decision shall be delivered to the undertaking referred to in paragraph 1
College.

§ 91e

Worsening financial situation

(1) If the Czech National Bank in accordance with § 86b that occurred
worsening financial situation of the domestic insurance undertaking or domestic reinsurance
covered by permits centralized risk management and that
is an entity controlled by the last person undertaking, it shall immediately inform the College
. Along with this information before the college draft
remedial measures.

(2) The Czech National Bank acts so that the decision approving
proposed remedial measures were issued in agreement with all authorities
supervisors involved in the college, but no later than one month from the date on which
College was informed pursuant to paragraph 1

(3) Unless the Czech National Bank with the group supervisor
on the proposed remedies within the period referred to in paragraph 2 may be
case was referred to the decision of the European Supervisory Authority.
Czech National Bank in this case decided in accordance with the decision of the European
supervisory authority without undue delay after its delivery.

(4) Paragraph 1 and the last sentence of paragraph 2 and 3 shall not apply in case of emergency
according to § 91H point. b); In such a case decided in
period under paragraph 2 Czech National Bank separately.

(5) The decision shall be delivered to the undertaking referred to in paragraph 1
and college.

§ 91F

MCR

(1) If the Czech National Bank non-compliance with the Minimum Capital Requirement
home insurance or domestic reinsurance, which is covered
permits centralized risk management and which is controlled by a person
last person undertaking, shall impose an obligation to submit for approval a plan
short-term financing. For this plan to apply §
98a similarly.

(2) The Czech National Bank will send a short-college
immediately after it is received, and informs him about other measures to remedy
which in this context imposed.

§ 91 g

Extinction permission to use the centralized risk management

(1) The right home insurance or reinsurance domestic accordance with § 91a
paragraph. 1 or 2 mode to use centralized group risk management
expires, unless one of the conditions under § 91a paragraph. 3, and it
or within a reasonable period referred to in paragraph 3, the decision supervisor
group referred to in paragraph 6. This authorization can restore procedure according to §
91b.

(2) Determine if the Czech National Bank as a group supervisor, after consulting the college
exclusion operated insurance or reinsurance
group supervision, without undue delay inform the relevant decision of its
supervisory authority and the last person undertaking.

(3) The last person undertaking responsible for ongoing compliance
requirements under § 91a paragraph. 3 point. b) to d). Where their
non-compliance, it shall notify the Czech National Bank if the body
group supervisor and the supervisory authority of the State in whose territory

Respective controlled undertaking has its headquarters. The last person
undertaking also submit for approval a plan to restore compliance
requirements within a reasonable period identified shortcomings.

(4) The Czech National Bank if the group supervisor, checks whether
last person undertaking ongoing compliance with the requirements under § 91a paragraph
. 3 point. b) to d). This verification carried out at least once a year or on the initiative
oversight body supervising over the controlled
undertaking to be established in another Member State
included in the group supervision. Unless the stimulus that serious reasons for filing the complaint
led the Czech National Bank is the competent supervisory authority
request. Unless the Czech National Bank group supervisor may require
group supervisor performance verification in accordance with this paragraph
if it can be reasonably doubt the fulfillment of the requirements under § 91a paragraph
. 3 point. b) to d).

(5) If the Czech National Bank in the verification referred to in paragraph 4 that
danger of non-compliance pursuant to § 91a paragraph. 3 point. b) to d), saves
controlling entity an obligation to submit a plan to ensure
restore compliance with those conditions within a reasonable period of time.

(6) If the Czech National Bank, as a group supervisor that
plan under paragraph 3 or 5 fails to restore compliance
or the last person sponsoring it failed to comply with or failed in
deadline, decides to terminate the use of centralized regime
risk management group. Before deciding submit their intention to discuss
College. About his decision without undue delay
competent supervisory authority.

§ 91H
Implementing measures


Directly applicable regulations of the European Union are governed

) Criteria for assessing the fulfillment of conditions pursuant to § 91a,

B) criteria for assessing emergency situations and

C) procedures used by supervisory authorities when exchanging information, exercising
rights and obligations pursuant to § 91b to 91 grams.

§ 91i

Insurance and reinsurance insurance holding company controlled by a person or
mixed financial holding entity

The domestic insurance or reinsurance undertaking, which is a controlled entity
insurance holding entity or a mixed financial holding
person with § 91a to 91H apply mutatis mutandis.

§ 92

Leaders in the insurance holding company or mixed financial holding entity


(1) insurance holding company and mixed financial holding entity
ensure that its statutory body, member of its statutory
institution or any other individual who, alone or jointly with other persons
manages its activities, or legal person which is its
statutory body or its member (hereinafter the "person in the leadership") was
person capable and trustworthy for the performance of their functions and ensure
requirements of this Act. For those in leadership to § 7a
apply mutatis mutandis.

(2) If the person in command of an insurance holding entity or mixed financial holding
person fails to fulfill any of the conditions referred to in paragraph 1
is an insurance holding entity or mixed financial holding
person of this fact without undue
delay notify the Czech national Bank. The Czech National Bank shall decide on the ban of
Business leaders in the insurance holding company or mixed financial holding entity
once it learns.

(3) An insurance holding entity of a third country or a mixed financial holding
person from a third country can not acquire participation in domestic
domestic insurance or reinsurance if the person in leadership
prove compliance with the requirements under paragraph 1 ; Without prejudice to § 24-27 and § 42 to 45.


(4) If the impact of leaders in the insurance holding company or mixed financial holding
person might cause harm
sound and prudent management of the domestic insurance undertaking or domestic reinsurance
apply paragraph 2, § 26 . 2 and § 44 para. 2 mutatis mutandis.
Section 6


Risk concentrations, intra-group transactions and management system

§ 92a

Supervision of risk concentration

(1) Home insurance, domestic reinsurance, insurance holding
person and mixed financial holding entity subject to oversight

Group regularly, at least once a year, informs
Czech National Bank if the supervisor this group, a significant
risk concentration at group level.

(2) The information referred to in paragraph 1 provides the Czech National Bank
domestic insurance undertaking or domestic reinsurance, which is the last person holding
participation. Unless a group headed by an insurance or reinsurance
provide this information to the insurance holding entity, mixed financial holding
person or undertaking in the group identified
group supervisor, after consultation with other supervisors and
group.

(3) For the purposes of the information referred to in paragraph 1 Czech National Bank if
group supervisor, after consultation with the other relevant
supervisors determine

A) the type of risks that the group must promptly inform
taking into account the specifics of the group and its risk management system
and

B) appropriate limits significant risk concentration with respect to the amount
solvency capital requirement, technical provisions, or both
those values ​​beyond which there is information duty.

(4) The supervision of risk concentration referred to in paragraph 3 Czech National Bank
tracks the potential danger of transmission of risks within the group
risk of conflict of interest and the level and volume risks.

§ 92b

Supervision of intra-group

(1) The insurance and reinsurance, insurance holding entity or mixed financial holding
person subject to group supervision regularly
least once a year, informs the Czech National Bank if
group supervisor of all significant transactions between
insurance and reinsurance undertakings in the group, including operations
individuals who are with any person in a group of closely linked
; a very significant intra-group transactions
inform, without undue delay.

(2) The Czech National Bank if the group supervisor,
determined after consultation with the other supervisory authorities
types of operations within the group, of which insurance and reinsurance group obliged
each case without undue delay. The provisions of § 92a paragraph
. 2 and 3 shall apply mutatis mutandis.

§ 92c

Supervision of the management and control system at the group level

(1) The requirements for risk management and internal control in accordance with § 7 and 7i are
apply mutatis mutandis at group level. All persons in the group according to § 87 paragraph
. 1 point. a) and b) use a consistent risk management systems and
internal controls and reporting procedures enabling them to control
group level.

(2) Internal control systems in a group containing at least

A) appropriate mechanisms for calculating and assessing compliance
group Solvency Capital Requirement and

B) sound reporting practices and accounting procedures, according to which
monitor and manage the intra-group transactions and risk concentrations.

(3) The Czech National Bank if the group supervisor, performs
control systems and reporting procedures referred to in paragraphs 1 and 2 and Control
own risk and solvency assessment at group level in accordance with paragraph
4, in accordance with § 92e up to 92 meters.

(4) insurance or reinsurance undertaking, the insurance holding
person or a mixed financial holding entity conducts its own assessment
risk and solvency at group level under § 7c.

(5) If the calculation of the group Solvency Capital Requirement
performed using consolidation accounting, insurance or reinsurance undertaking
participation or insurance holding entity or mixed financial holding entity
provide the Czech National Bank as supervisor | || group of explaining the difference between the sum of the SCR
requirements of all insurance and reinsurance companies in the group and the group
Solvency capital requirement.

(6) The Czech National Bank if the group supervisor decides
at the request of the insurance or reinsurance undertaking or
insurance holding entity or mixed financial holding entity for carrying out risk assessments
and solvency under § 7c same level
groups and at the subsidiaries in the group and create a single
document containing all the assessments to be submitted to all
competent supervisory authorities; application is submitted electronically. before his

Decision shall consult the members of the college and take into account their opinions
.

(7) In accordance with paragraph 6 shall not affect the obligations of the controlled entity
according to § 7a.
Section 7


The rights and duties of the group supervisor

§ 92d

Group supervisor

(1), the group supervisor is responsible for coordination and exercise of group supervision
.

(2) The relevant national supervisors supervising
group of the supervisory authority which supervises the activities

A) all insurance and reinsurance group,

B) the undertaking which controls the group,

C) of the undertaking, which is a controlled entity
insurance holding entity or mixed financial holding entity that controls
group

D) insurance or reinsurance, which is a controlled entity
insurance holding entity or mixed financial holding entity with the same
seat as this undertaking, if more than one
undertaking from a Member State
entity controlled by the insurance holding company, or mixed financial holding
person

E) the undertaking which has the largest balance sheet total if
group manages more than one insurance holding persons or mixed financial holding
entities domiciled in different Member States and
each of these states has its headquarters At least one controlled by the insurance or reinsurance
,

F) of the undertaking, which is a controlled entity
insurance holding entity or mixed financial holding entity based
in a Member State other than that of any undertaking in
group, which has the largest balance sheet total,

G) of the undertaking which has the largest balance sheet total and
which is part of a group that does not have a controlling person, or

H) the undertaking which has the largest balance sheet total in
cases not covered by points a) to g).

(3) Paragraph 2 shall not apply if the competent supervisory authorities
agree that the use of these criteria is not appropriate because of the structure
group and the relative importance of the insurance and reinsurance
group based in different Member States.
In this case, no later than 3 months after the date on which the one or more
supervisory authorities a request for the determination supervisor
group other than under paragraph 2, decide together on determining
that authority. This assessment can be done only once in a calendar year
. Before this decision, the group supervisor
seek the opinion of the group concerned.

(4) The Czech National Bank, as the supervisory authority may, within
under paragraph 3 seek a ruling from the European Supervisory Authority if
not within that time decided to determine the group supervisor.
If the European Supervisory Authority asked the relevant supervisory authority of
decision, that decision is binding on a joint decision of the authorities
supervision, which shall be issued without undue delay after receiving
decision of the European supervisory authority.

(5) The Czech National Bank if the group supervisor, deliver
decision pursuant to paragraph 3 of the person who manages the group and others
authorities in the college.

§ 92e

The rights and duties of the group supervisor

(1), the group supervisor

A) coordination of the gathering and exchange of information related
group supervisor and the activity of insurance and reinsurance undertakings that are
its part,

B) supervises the financial situation of the group and its evaluation

C) assesses the group's activities with regard to compliance with the rules
calculation, assessment and performance group Solvency Capital Requirement
, monitoring and reporting risk concentration and operations within
group

D) evaluate the control system and the fulfillment of requirements
members of the management and supervisory body of the person undertaking,

E) direct supervision over the activities of the group in cooperation with the competent supervisory authorities
through regular meetings, which are held
least once a year, or in any other way and taking into account the nature, scale and complexity
risks associated the activities of insurance and reinsurance
which are part of the group, and


F) provides other activities entrusted to the group supervisor and
decisions and take action to remedy matters pursuant to this Act.

(2) If the Czech National Bank as a group supervisor
information from a supervisor subgroup of a subgroup
inform the college.

(3) If the Czech National Bank group supervisor may
ask the European Supervisory Authority to resolve the situation, where the supervisory authority
The group does not perform properly obligations under paragraph 1 or if the members of the college
cooperating to an extent which has to ensure efficient and effective decision-making and
rapprochement of positions.

§ 92f
College


(1) The Board is a permanent, flexible groupings of supervisors to facilitate
decisions in the exercise of group supervision. Arises under an agreement
group supervisor to other supervisory authorities.
Its members are the group supervisor, who chaired the College,
supervisors of insurance and reinsurance of all Member States
, which are controlled by the headquarters of the insurance and reinsurance
group, and the European Supervisory Authority . The activities of the college may participate
and supervisory authorities of Member States where there are significant branches
insurance and reinsurance companies or their affiliates.

(2) Any supervisory authorities concerned may, where
not reached an agreement under paragraph 1 or when the group supervisor does not fulfill its tasks
or if supervisors do not cooperate, refer the matter to the European body
oversight. In this case, the Czech National Bank if
group supervisor decides in accordance with the decision
European supervisory authority and its decision to deliver without undue delay
the other relevant supervisory authorities.

(3) The Board ensures effective cooperation, exchange of information and consultation
between supervisory authorities within the college to promote the convergence
opinions and coordinate their activities in the supervision
group. The number of members of the college may be for some of its activities
reduced.

(4) The agreement referred to in paragraph 1 shall at least establish a procedure for joint decision-making
under § 90a, 92d and 95b and for consultations under paragraph 3 and § 89b paragraph
.
Third
(5), the group supervisor and the other supervisors, including
European Supervisory Authority might be in the agreement referred to in paragraph 1
entrusted with additional tasks, which will lead to a more effective exercise of group supervision, and if that
not a threat to the implementation of control activities of individual members
college.

§ 92 g

Exchange of information between the group supervisor

(1) The Czech National Bank, as the supervisory authority communicated without undue delay
group supervisor and EBA
supervisory information relevant for the exercise of group supervision, especially
information on the activities of the insurance or reinsurance undertaking
its activities in the Czech Republic and other persons belonging to the group
and information relating to the group's activities, especially its legal
management and organizational structure and of its solvency and financial condition.
If the Czech National Bank group supervisor, tells
important information for exercising group supervision, including
information received from other supervisory authorities, the College
or on request members of the college.

(2) The Czech National Bank may, in the case where no other supervisory authorities
receive information pursuant to paragraph 1 or if a request for such information exchange
been rejected or not settled in a fortnight
period, refer the matter European supervisor and ask him about
cooperation.

(3) The Czech National Bank as a member of the college of supervisors without delay
request a meeting of all its members, if

A) failure to find the Solvency Capital Requirement and the Minimum Capital Requirement
home insurance or reinsurance domestic
group

B) identify compliance with the group Solvency Capital Requirement, or


C) there was another exceptional situation.

(4) The scope and content of the exchange of information pursuant to paragraph 1 shall be governed
directly applicable EU regulation governing the coordination of activities and
exchange of information between supervisory authorities.

§ 92h

Consultation between supervisory authorities

(1) The Czech National Bank before the decision had an impact on activity

Other supervisors consult with supervisors in the college

A) a change in the ownership or organizational structure or management structure
home insurance or reinsurance domestic group that
requires approval by the Czech National Bank

B) any decision on extension of time pursuant to § 98 paragraph. 3, or

C) the imposition of a penalty or the adoption of remedial measures, including an increase
capital requirement under § 95a or use restrictions
internal model for the calculation of the Solvency Capital Requirement in accordance with § 73 to
78b.

(2) The Czech National Bank in cases under subsection 1. b) c)
regarding home insurance or reinsurance domestic
without undue delay consult their approach with the supervisor
group.

(3) If the Czech National Bank in the supervision group
decide on the basis of information provided by another supervisory authority, before deciding
consult their approach with other relevant
supervisors.

(4) In urgent cases, or if the consultation may jeopardize the effectiveness
decision, the Czech National Bank may not proceed according to paragraphs 1
third In this case it shall inform the other relevant supervisory authorities.

(5) The provisions of paragraphs 1 to 4 are without prejudice to § 92j.

§ 92i

Request information from another supervisor

(1) The Czech National Bank as a group supervisor in accordance with § 92d paragraph
. 3, the exercise of this oversight request information regarding
persons residing in another Member State, which is the controlling entity
home insurance or reinsurance undertaking subject to domestic supervision
group under this Act, the supervisory authority of the Member State
in which the person resides.

(2) If the information in paragraph 1 has been granted to another body
supervision, require her Czech National Bank from this supervisor.

§ 92j

Cooperation with supervisors in other sectors of the financial market

(1) If the domestic insurance undertaking or domestic reinsurance and
bank or securities dealer whose activities are subject to supervision by
other Member States are closely linked, or if it affects them the same person
participation, the group supervision exercised in close cooperation with the Czech national Bank
with the supervisory authority responsible for supervising the activities of the
bank or securities dealer.

(2) The Czech National Bank with supervisory authorities pursuant to paragraph 1
exchange information necessary for the exercise of group supervision.

§ 92k

Transmission of information and verification

(1) Home insurance and domestic reinsurance undertaking subject to supervision
The group, through a secure control system
gathering data and information necessary for the supervision
group. This information is regularly inform the Czech National Bank. Content
form, frequency, deadline and providing this information provides
implementing legislation, unless specified
directly applicable EU regulation. This does not affect the powers of the Czech National Bank
demand and other related information. Czech National Bank as an institution
group supervisor may, taking into account the nature, scale and complexity
risks associated with the activities of the group and maintain its financial stability
limit the submission of information concerning the activities of the group with a frequency of less than 1
year, or the submission of information on individual items,
if the restriction applies to all insurance and reinsurance
group.

(2), the group supervisor, if he is not Czech National Bank may
request information pursuant to paragraph 1, unless already provided
Czech National Bank, or for reasons of urgency. If desired
information communicated by the undertaking, it shall communicate the written request
person belonging to the group.

(3) The Czech National Bank may verify the information referred to in paragraphs 1 and 2
right on the spot, with

A) domestic home insurance or reinsurance undertaking which is subject to supervision
over a group under this Act,

B) affiliates of the undertaking pursuant to subparagraph a)

C) the controlling entity of the undertaking referred to in subparagraph a) or

D) affiliated person of the controlling entity of the undertaking by
letter a).

(4) Verify the information with the persons referred to in paragraph 3. b) to d)

Czech National Bank may, if these persons reside, instead
business or registered office in the Czech Republic.

(5) To be validated information, which relates to the insurance company from another Member State or
reinsurance from another Member State or other
persons residing in the territory of another Member State which is controlled
the person controlling person or a controlled entity of the controlling entity
home insurance or reinsurance undertaking subject to domestic supervision
group under this Act, the Czech national Bank of this verification
competent supervisory authority, or perform verification agreement with that | || supervisory authority itself or through its authorized another person.

(6) If the competent supervisory authority of another Member State in connection with the performance
group supervision required by the Czech National Bank
verify information concerning home insurance or reinsurance
domestic or other persons residing or otherwise established in the Czech Republic
which is part of the subject in the Member State
supervision of the group, the Czech national Bank performs verification itself or by allowing
carry out this verification the competent supervisory authority that requests it,
or enable this verification carried out by the auditor or the Czech national Bank
authorized person. The chosen approach informs the supervisor
group. On-site verification may also attend accredited representative
European Supervisory Authority, if such verification is carried out jointly
2 or more supervisors.

(7) The Czech National Bank may, in the case where no other supervisory authorities
verified information in accordance with paragraph 6, or is not able to verify their
Czech National Bank or her authorized person or if
request for such verification It has been rejected or not settled within 14
days of receipt of the request, refer the matter to the European supervisory
and ask for assistance.

§ 92 l

Report on solvency and financial position of the Group

(1) Home insurance undertaking or domestic reinsurance undertaking or an insurance holding
domestic entity or a mixed financial holding
person shall publish an annual report on the solvency and financial condition
group according to § 82 par. 3 to 6th

(2) On the basis of the consent of the Czech National Bank, as a supervisor
group, the message may be referred to in paragraph 1 shall jointly
per person pursuant to paragraph 1 and the controlled entity in the group; In this case the message contains


A) information about the group as a whole and

B) separately information about each controlled entity in the group
included in the joint report by the scope of § 82 para. 3 to 6

(3) Before granting an agreement in accordance with paragraph 2 Czech National Bank
its intention to consult with members of the college of supervisors and its
decisions take into account their views.

(4) If the report referred to in paragraph 2 does not include information whose publication is
domestic insurance undertaking or domestic reinsurance group
liable under this Act, and in the case of material, the Czech National Bank
orders her to publish that information later.

(5) The content, form, structure and deadlines for the publication of the report referred to in paragraphs 1 and 2
governed by a directly applicable EU regulation.

§ 92 meters

Remedial Measures

(1) If the insurance or reinsurance group
meet the requirements under § 89b to 92c or in the event of another threat to solvency, or in
where intra-group transactions or risk concentrations are a threat to the financial
position of the insurance or reinsurance group,
the Czech national Bank the necessary remedial measures, as a

A) the group supervisor with respect to insurance holding entity
or mixed financial holding entity or

B) the supervisory authority of the home insurance or reinsurance
domestic group.

(2) If an insurance holding company or mixed financial holding
person under subsection 1. a) their seat in another Member State
Czech National Bank as a group supervisor shall inform the supervisory authority
that State of its findings and request the adoption of the necessary measures to remedy
.

(3) If the undertaking from its headquarters in another Member State
, Czech National Bank, as a group supervisor,

Inform the supervisory authority of the State of their findings in order
taking the necessary remedial measures.

(4) remedial measures pursuant to paragraph 1, § 95 para. 1 and 2 point.
A) to c) in the case of an insurance holding entity or mixed financial holding entity
apply mutatis mutandis. If not remedied within the time limit set by
Czech National Bank, the Czech National Bank towards
insurance holding company or mixed financial holding entity
according to § 120 para. 2 point. E).

(5) The Czech National Bank is coordinating its remedial measures pursuant to paragraph 4
with the relevant supervisory authority and the group supervisor
if he is not alone.

Group controlled entity based in a third country

§ 92n

(1) In the case of controlling persons pursuant to § 87 para. 1 point. c) evaluate
Czech National Bank if the group supervision exercised by the supervisory authority
third country, at least on a comparable level with oversight by
under this Act, on the basis of the criteria by directly applicable EU regulations
. Evaluation is carried out in cooperation with the European
supervisory authority of the Czech National Bank as a group supervisor of
ex officio or at the request of the controlling party or any insurance or reinsurance
group activity permits granted in a Member | || State if the conditions under § 92d paragraph. 2 was
supervisory authority over the group. Czech National Bank issue a general measure of comparability
supervision that respects the former
similar analysis in relation to that State except where this is justified
significant changes in supervision under this Act or changes in sight | || third country. This does not apply if the European Commission adopted a decision on the comparability
or interim comparability of supervision.
Before issuing measures of a general nature relating to such comparability
Czech National Bank shall consult the relevant supervisory authorities with
and the European Supervisory Authority.

(2) If a controlling person referred to in paragraph 1
itself an entity controlled by the insurance company from a third country reinsurance from a third country or
insurance holding entity from a third country or a mixed financial holding
person from a third country , performs the evaluation
comparability of group supervision only at the level of the person who is
insurance company from a third country reinsurance from a third country or
insurance holding entity from a third country or
mixed financial holding entity of the third State and who heads the group. If
However, this assessment does not lead to a positive conclusion on the comparability
Czech National Bank may carry out this assessment at a lower level group
if at this level there is a controlling person of an insurance or reinsurance
subject to group supervision which is either
insurance from a third country, the third country reinsurance or insurance holding
person from a third country or a mixed financial holding entity of
third country. The Czech National Bank shall notify its conclusion on the comparability
respective group.

(3) it was granted a general measure of comparability
according to paragraph 1 and if no part of the domestic insurance undertaking or domestic reinsurance
whose balance sheet total exceeds the balance sheet value of the controlling
entities based outside European Union is the group supervision exercised
supervisory authority of the third country. The provisions of § 92d up to 92 meters for
cooperation with the supervisory authority shall apply mutatis mutandis.

(4) If the Czech National Bank, unless acting supervisor
group disagrees with the conclusion of the acting group supervisor
comparability of group supervision exercised by the supervisory authority
third State may, within 3 months from the date of receipt of this conclusion
refer the matter to the European supervisor and ask him about
cooperation.

§ 92o

(1) If you can not sight under § 92n paragraph. 1 evaluated as comparable
or if the European Commission has decided that the solvency regime of a third country
applied to the business of insurance and reinsurance companies based in the
this state has ceased to be comparable or provisionally comparable
apply for insurance and reinsurance skupinovému subject to supervision
whose controlling entity has its registered office in a third country, § 89b up to 92 meters analogy
with the exception of § 91a to 91H. General principles and procedures in accordance with these

Provisions apply to insurance holding company headquartered in
third State or mixed financial holding company headquartered in
third country which is subject to supervision skupinovému.

(2) In the case referred to in paragraph 1 for the calculation of the group Solvency Capital Requirement
controlling insurance or reinsurance
based in a third country considered as home insurance
or domestic reinsurance. To determine the amount of eligible capital
such insurance or reinsurance shall apply mutatis mutandis § 63-72 and
to calculate its Solvency Capital Requirement shall apply mutatis mutandis § 89d.
For the calculation of the Solvency Capital Requirement
insurance holding entity based in a third country mixed financial holding
persons established in a third country shall apply mutatis mutandis § 73 to § 78b and 89f.

(3) The Czech National Bank does not proceed if, according to paragraph 1 may prescribe
domestic insurance undertaking or domestic reinsurance group according to § 87 paragraph
. 1 point. c) in which no group supervision performed or not performed
under § 92n paragraph. 1, the establishment of a mixed financial holding
person or an insurance holding entity, which are located on the territory of a Member State
, or use other procedures to ensure supervision
group under this Act. Such a procedure is the Czech National Bank
required to submit for approval by the group supervisor, unless
him alone, and consult with supervisors in the college. About this
its decision to the European Commission.

§ 92p

Group managed an insurance holding entity with mixed activity

Domestic insurance companies or domestic reinsurance undertaking subject to group supervision
and whose parent company is an insurance holding entity
mixed activity with § 92b, 92 grams and 92 meters to 92k
apply mutatis mutandis. Czech National Bank, as a group supervisor,
oversees operations between such insurance or reinsurance and insurance holding
mixed-activity which is its
controlling entity and its affiliates. ". || |
153rd Footnote. 29 is deleted.

154th In part three, Title I, part 3, including heading deleted.

155th in § 94 paragraph. 1 the words "under the law regulating the exercise of state control
^ 30) 'including footnote no. 30 repealed.

156th in § 94 paragraph. 3 of the introductory part of the word" only "is deleted. || |
157th in § 94 paragraph. 3 point.), the word "or" is deleted.

158th in § 94 paragraph. 3 letter b) reads:

"b ) a person authorized in writing to the supervisory authority of another Member State
, if it is to control the activities of an insurance branch in another Member State
reinsurance or branch in another Member State or
service provider according to § 7 grams, or " .

159th in § 94 paragraph. 3 the following point c) is added:

"C) other than the person referred to in subparagraphs a) and b) writing to charge
Czech National Bank."

160th In § 94 paragraph. 3 final part, the words "control
worker" be replaced by "controlling".

161st In § 94 paragraph. 4 and § 126 par. 1, "Control officers
Czech National Bank," replaced by "controlling person".

162nd In § 94 paragraph. 4 point. c) the number "2" is replaced by "3".

163rd In § 94 paragraph. 5, the first sentence the words "control officers"
replaced by "controlling" and "point.) And b)" is deleted.

164th In § 94 paragraph. 6, the words "enforcement officers"
replaced by "controlling".

165th In § 94, paragraph 7 is deleted.

166th Under § 94, the following new § 94a and 94b, which, including the title added:

"§ 94a

on-site supervision at the branch home insurance or reinsurance

(1) In the case where the home insurance or reinsurance operates its
insurance or reinsurance business through a branch located
in another Member State, the Czech national Bank, after having first informed
supervisory authority of the Member State in whose territory the branch is located,
performed on the spot supervision. This supervision may also persons || | delegated authority of the Member State in whose territory the
given branch; it applies mutatis mutandis in case of on-site supervision by the service provider
.

(2) the Czech national Bank may, in case of refusal
requests for cooperation in the supervision on the spot at the branch home insurance or domestic

Undertaking established in another Member State
supervisory authority of another Member State or pending this request within a reasonable time
refer the matter to the supervisory authority and ask for assistance.

(3) Paragraph 1 shall apply mutatis mutandis in case of on-site supervision of branch
home insurance or reinsurance undertaking situated in a third country or
service provider if the legislation of that third State
provide otherwise.

§ 94b

Supervision on-site service provider established in another Member State

(1) The Czech National Bank may, after having first informed the supervisory authority
Member State in whose territory the service provider according to §
paragraph 7 g. 1, to carry out surveillance on the spot with that provider.

(2) Unless it such an exercise supervision possible or difficult, can
reasonable time refer the matter to the supervisory authority and ask for the cooperation
.. "

167th V § 95 paragraph 1 and 2 added:

"(1) If the Czech national Bank in exercising supervision over the activities
home insurance or reinsurance undertaking of the home
breach of obligations which relates to the operation
insurance or reinsurance activities, including outsourced activities,
prescribed by this Act or any other legislation or rules state
whose territory is carried out, saved without undue delay this
insurance or reinsurance undertaking measures to remedy to remedy deficiencies
determine a reasonable time period. This does not affect the right of the Czech National Bank
impose such conduct insurance or reinsurance fine pursuant to §
120th

(2) If the persons mentioned in § 7, paragraph. 1, branch manager
domestic insurance undertaking or domestic reinsurance abroad or
claims representative appointed for the handling of claims in the liability insurance of vehicle
ineligible or credibility, directing
Czech national Bank within the time you make a change of such persons or
stores shortcoming noted in the activity of insurance or reinsurance
related to the exercise of such a person be removed. ".

168 . In § 95 after paragraph 2 the following paragraphs 3 and 4 are added:

"(3) the Czech national Bank may domestic insurance undertaking or domestic reinsurance
order a change of auditors conducting the financial statements
or the consolidated accounts and the reasons pursuant to § 80a.

(4) The Czech National Bank may order the domestic insurance undertaking or domestic reinsurance
increase in technical reserves to a level that matches
calculation under § 52-57, or a change in the method of calculation of such reserves,
if it finds when calculating technical provisions did not proceed according
these provisions. Part of the remedial measures may be
procedure referred to in paragraph 6 point. b). ".

Former paragraphs 3-7 become paragraphs 5 to 9

169. In § 95 para. 5 of the introductory part of the word" outstanding "
the word "cumulative."

170th in § 95 para. 6 in the introductory part of the word "management"
replaced by "activities" and the word "character" the words
" and scale. "

171st in § 95 para. 6 at the end of the text of letter a) the words" or
plan for short-term financing. "

172nd in § 95 of the end of paragraph 6 is replaced by a comma and
letters f) to i) are added:

"f) to limit the variable remuneration of persons under § 7 paragraph. 1, if the undertaking
does not maintain capital according to § 73 and 79;
domestic insurance, domestic reinsurance undertaking, a third country or
reinsurance from a third country shall determine the amount of variable internal
regulation, which is part of the concept under § 7 para. 3,

G) impose adjust the composition of capital, home insurance or reinsurance domestic
replacing the primary capital items, which can be
in accordance with applicable regulations of the European Union to include primary
capital, a similar item, or a proportional increase in the capital

H) saves withhold accessories, profit sharing or similar payment
arising from the entry of the primary capital of domestic insurance or reinsurance
domestic, which can be in accordance with applicable regulations of the European Union
included in the primary capital or

I) increase the Solvency Capital Requirement or home insurance

Domestic reinsurance under § 95a. ".

173rd in § 95 para. 7 and 8, the number" 4 "is replaced by" 6 ".

174th in § 95 . 8, the word 'appropriate' is deleted.

175th In § 95, the following paragraph 10 is added:

"(10) the Czech national Bank may refrain from initiating proceedings on imposing || | remedial measures, if given the importance and extent of the violation or threat
protected interest which is identified lack of prejudice,
nature of the shortcoming, and its aftermath, the circumstances under which it occurred
lack or respect to conduct home insurance or reinsurance
domestic shortages after finding Obviously, the purpose of which would be achieved
execution proceedings on imposing remedial measures
been achieved. Will not start if the Czech National Bank
proceedings on imposing remedial measures, carry on the record in the file and the matter aside.
The decision to defer the matter is not issued. ".

176th Under § 95, the following new § 95a and 95b, which, including the title added:

" § 95a

Increase SCR

(1) The Czech National Bank may domestic insurance undertaking or domestic reinsurance
increase the solvency capital requirement if its

A) risk profile deviates significantly from the assumptions used

First the calculation of the Solvency Capital Requirement in accordance with the standard formula
and the Czech National Bank has decided to use an internal model according
§ 77, and the undertaking, the internal model evolves, or
if the requirement to use an internal model was not suitable or || | inefficient

Second the calculation of the Solvency Capital Requirement
calculated using an internal model or partial internal model of
due to insufficient capture some quantifiable risks and
adaptation of the model did not result in a reasonable time to remedy, or

Third to determine the compensatory adjustments or volatility adjustments or

B) management and control system deviates significantly from the parameters in accordance with § 7,
and these variations hinder the ability of the insurance or reinsurance
properly identify, measure, monitor, manage and control risks that it is or would
They could be exposed to, and report on, and can be reasonably
assume that the remedial measures did not result in a reasonable time to remedy the deficiencies
.

(2) Increase the Solvency Capital Requirement under paragraph 1
point. a) paragraphs 1 and 2 shall be calculated so that the domestic insurance undertaking or domestic reinsurance
meet the requirements of § 74 para. 2 and 3
Increase SCR is reasonable
significance of the risks arising from variations in paragraph 1 point. a)
point 3 or deficiencies pursuant to paragraph 1. b).

(3) The Czech National Bank regularly, at least once a year,
checks whether there are grounds for the increase
Solvency Capital Requirement in accordance with paragraph 1, otherwise this increase is canceled. In the case pursuant to paragraph 1
. a) paragraph 2 and paragraph 1 point. b) The Czech National Bank
stores domestic insurance undertaking or domestic reinsurance undertaking remedial measures with the aim
remedy the deficiencies that led to the imposition increase
SCR.

(4) The Solvency Capital Requirement in accordance with § 73 para. 2 including
increase referred to in paragraph 1 shall be replaced
inadequate Solvency Capital Requirement; but for the purposes of calculating the risk margin according to §
54 par. 3 of the Solvency Capital Requirement disregarded his
increase under subsection 1. b).

(5) The provisions of paragraphs 1 to 4 shall apply mutatis mutandis to increase
Solvency Capital Requirement the insurance or reinsurance
third country under § 79b paragraph. 2nd

(6) Increase the Solvency Capital Requirement under paragraph 1
point. a) Section 2 shall apply mutatis mutandis also in the case of home insurance and home insurance
progressing according to § 73 paragraph. 4. If, in such a case
increase Solvency Capital Requirement calculated on the basis
group internal model was not adequate,
the Czech national Bank require the calculation of the Solvency capital requirement standard formula
and
impose an increase in the solvency capital requirement under this calculation.

(7) directly applicable EU regulation governing the procedure in

Decision to impose an increase in the SCR,
conditions and method of calculation thereof and the repeal of this requirement.

§ 95b

Increase group Solvency Capital Requirement

(1) If the risk profile of the group is not adequately reflected in the calculation
group Solvency Capital Requirement under §
90, or if the control system at the group level
significantly deviates from the parameters under § 92c , Czech national Bank may raise
Solvency capital requirement
home insurance or reinsurance undertaking subject to group supervision.

(2) In assessing whether the group Solvency Capital Requirement
reflects the risk profile of the group and whether the management and control system
group level corresponds to the requirements under this Act, take into account the Czech National Bank
outside circumstances under § 95a paragraph. 1 also

A) the existence hardly quantifiable risks at group level which
not adequately captured by the standard formula or an internal group used
model

B) a capital add-controlled or affiliated insurance or reinsurance
ordered her supervisor and

C) significant deviations from the risk profile of the assumptions on which it is based
compensatory adjustments or volatility adjustment.

(3) To increase the group Solvency Capital Requirement
§ 95a apply mutatis mutandis. ".

177th In § 96 the number" 3 "is replaced by" 5 ".
|| | 178th in § 97 paragraph 1 reads:

"(1) the Czech national Bank may interim measures, if necessary, to
been provisionally arranged conditions in the domestic insurance undertaking or domestic reinsurance
, or if it is a concern that could be compromised
ability to meet its commitments, as well

A) domestic insurance undertaking or domestic reinsurance

First prohibit conclude other insurance or reinsurance contracts and not to stretch
already assumed liabilities of the insurance or reinsurance

Second restrict or prohibit the deal without the consent of the Czech National Bank
their assets, or

Third prohibit proceed without the consent of the Czech National Bank pursuant to a decision
statutory body, supervisory body, the General Meeting or Member Meeting
or

B) suspend a person under § 7 paragraph. 1 discharge of its functions. ".

179th In § 97, paragraph 3 shall be added:

" (3) The Czech National Bank as the supervisory authority of the host Member State
proceed under subsection 1. b) also in the case if it is a
imposition of interim measures request the supervisory authority of the home Member State
insurance company from another Member State or reinsurance
another Member State, for it marked assets. ". || |
180th in § 98 paragraph. 1 introductory part of the word "approval"
insert the word "real".

181st in § 98 paragraph. 1 point.), the words "does not fulfill the requirements set out"
replaced by "acts in contradiction with."

182nd in § 98 paragraph. 1, letter b) reads:

"b) fails to comply with the Solvency capital requirement or if there
risk of non compliance in the following three months
or ".

183rd in § 98 paragraph. 2 introductory part of the word" contain "|| | words "procedures and the information set by the Czech national Bank
," and the word "minimum" shall be inserted the word "not."

184th in § 98 par. 2 letter c) reads: | ||
"c) a summary of assets and liabilities, which are valued assets and liabilities
according to § 51".

185th in § 98 paragraph. 2 point. d) the words "to cover underwriting liabilities and the required solvency margin
" is replaced by "the settlement received
commitments and to fulfill Solvency and Minimum Capital Requirement
".

186th In § 98, at the end of paragraph 2 is replaced by a word "and" and
following point f) is added:

"F) changes in the risk profile and business strategy, if
proposed.".

187th In § 98 paragraph 3 and 4 added:

"(3) The undertaking in which the situation described in paragraph 1
point. B) shall, in accordance with the recovery plan necessary measures with the aim of re
achievement of the level of capital intended to filling
Solvency capital requirement or to change your
risk profile so that within 6 months from the date when discovered
failure of the SCR, this requirement

Met. This period Czech National Bank may, upon request
insurance or reinsurance filed electronically increased by up to 3
months, in the event of a situation according to § 98b
for the time strictly necessary to restore the performance of the SCR, || | maximum of 7 years from the date of publication.

(4) The undertaking referred to in paragraph 3 shall, every three months
date of approval of the recovery plan of the Czech National Bank report on the development
financial situation, describing the measures taken and their results. If not
Czech National Bank proved that in the meantime there have been changes
ensuring resumption performance
Solvency Capital Requirement, cancel any extended period under paragraph 3
If there is a further deterioration in the financial situation of an insurance or reinsurance
Czech national Bank may also proceed in accordance with § 95 para. 6 point. b) a
§ 95 para. 8. In this case, designate the assets to which it has the
measures to remedy the concern. ".

188th in § 98 the following paragraphs 5 and 6, are added:

"(5) the undertaking referred to in paragraph 1 shall submit
Czech national Bank to approve the recovery plan referred to in paragraph 2-2
months after discovering that the facts by paragraph 1 point.
B).

(6) In the absence of approval of a restoration plan, an insurance or reinsurance
obliged to submit to the Czech National Bank within one month from the date
on which the Czech National Bank announced its reservations to the approval
revised recovery plan. If the Czech National Bank nor the revised recovery plan does not approve
proceed depending on the nature and seriousness of the shortcomings identified
according to § 95; if threatened meet commitments
insurance or reinsurance initiate proceedings to revoke the authorization pursuant to §
116th. "

189th Under § 98, the following new § 98a and 98b, which including titles are added :

"§ 98a


Short-term financing plan
(1) The Czech National Bank ordered domestic insurance undertaking or domestic reinsurance
submit for approval a plan for short-term financing
if it finds that compliance with the Minimum Capital Requirement or
there is a risk that the compliance in the following
3 months.

(2) The undertaking referred to in paragraph 1 shall submit
Czech National Bank for approval a plan of short-term financing of up to 1
month after discovering that the facts pursuant to paragraph 1

(3) short-term financing plan must be realistic to 3 months
from finding out pursuant to paragraph 1
recover usable primary capital at least at the level of the Minimum Capital Requirement or to reduce
risk profile so that
ensure compliance with the minimum capital requirement, an insurance or reinsurance under paragraph 1.
For the content of the short-term financing used § 98 paragraph. 2
analogy.

(4) If it is necessary to ensure the fulfillment of the commitments
insurance or reinsurance Czech National Bank may also proceed according to § 95 paragraph
. 6 point. b) and § 95 para. 8. In this case, designate the assets covered
with this measure to remedy the concern.

§ 98b

Application for declaration of an emergency situation deteriorated

(1) The Czech National Bank may ask the European Supervisory Authority on the declaration
extremely aggravated the situation as it is unlikely that insurance and reinsurance
representing a significant market share in the industry or the insurance industry as a whole
achieve reuse
determining the level of eligible capital intended to meet the Solvency capital requirement
or changes in its risk profile, so that was filled
Solvency capital requirement. Such a situation occurs when the
financial situation of the insurance or reinsurance undertakings or this industry
seriously or adversely affected

A) the fall in value of financial instruments traded on financial markets
who is quirky, sharp and steep,

B) environment of persistently low interest rates, or

C) the strong impact of catastrophic events.

(2) The Czech National Bank in cooperation with the European Supervisory
regularly evaluates the duration of the conditions referred to in paragraph 1. Termination
extremely deteriorated situation will announce the European Supervisory Authority depending

On these findings, in cooperation with the Czech National Bank. ".

190th in § 99 para. 1, the first sentence be deleted.

191st in § 99 para. 1 the word "forced administration in home insurance or reinsurance
domestic Czech national Bank also introduced if there was"
replaced by "the Czech national Bank may impose in a domestic insurance
or domestic reinsurance receivership, if necessary
due protection of the rights of policyholders, insured and licensed persons or in the interest
maintain financial stability, especially if there has been "a word
" measures "the words" remedial. "
| || 192nd In § 99, at the beginning of paragraph 2, the following sentence "Managing the introduction
receivership may commence issuing a decision on imposing forced administration
.."

193rd in § 99 par. 2 ", in addition to the general requirements set
administrative Procedure, the reason for the imposition of forced administration," replaced by the word "also".

194th in § 99 par. 3, the first sentence following the sentence "An appeal lodged
against this decision has no suspensive effect. ".

195th In § 99 par. 4, letter a) reads:

"A) the competency of its organs administrator, except as allowed
remonstrance or complaint against the decision of the Czech National Bank, which
introducing forced administration in home insurance undertaking or domestic reinsurance
decision to increase or capital reduction or
against the decision to cancel the joint-stock companies or cooperatives;
administrator shall submit to the person who is entitled to file a remonstrance or action on his
written request to the extent needed a copy of the documentation available
insurance reinsurance and allow you to take from them copies and extracts
".

196th In § 99 par. 7 at the end of the text of letter a) the words "or
entry into force of the decision to revoke the permit to operate
insurance or reinsurance activities."

197th In § 99 par. 7 point. c) the word "declaration" is replaced
"the decision on".

198th In § 100, paragraph 1 reads:

"(1) The Czech National Bank to appoint the administrator and his deputy of special
of the list of trustees maintained by the law on insolvency administrators
.".

199th In § 100, paragraphs 2 and 3 are deleted.

Former paragraphs 4-7 become paragraphs 2 to 5

200th In § 100 paragraph. 2, the word 'natural' shall be deleted and the words "exercised
activity of a responsible actuary" is replaced by "
was a person with a key function."

Two hundred and first In § 100, at the end of paragraph 3 the second sentence "
method for determining reimbursement of cash expenses and remuneration of the forced administrator and his deputy
and method of payment in the implementing legislation.".

202nd In § 100, the following paragraph 6 is added:

"(6) stops if an administrator or his representative to comply with the conditions of his appointment
inform without delay the Czech National Bank, which
promptly appoint another manager or his representative
. ".

203rd In § 101 paragraph. 1 first sentence, the word "restore" the word
"financial".

204th In § 101, paragraph 2 deleted.

The former paragraphs 3 to 6 shall be renumbered 2 to 5

205th In § 101 paragraph. 2, first sentence, the words "for performance" are deleted.

206th In § 101 paragraph. 5, the first sentence the words "4 and 5" is replaced by "3 and 4
" and the word "appropriate" shall be deleted.

207th In § 102 para. 1, first sentence, the words "and previous measures for
remedy imposed by the Czech National Bank has not led to improvement in the economic situation
" replaced ", or if its business
significant shortcomings persist."

-208. In § 102, paragraph 3 shall be added:

"(3) The Czech National Bank may in its decision to suspend the authorization referred to in paragraph 1
determine its duration or condition whose fulfillment
restrictions or obligations laid down in the decision expires.".

209th In § 103. 2, the word "procedure" is deleted.

210th In § 103 paragraph. 3, the word "closed" is replaced by "with the insurance
risk or commitment" and the words "unless provided otherwise by this Act" is
deleted.

211th In § 103 paragraph. 4, the second sentence is replaced by the sentence

"If it is a transfer of insurance contracts concluded with insurance risk or commitment to the territory


a) the Czech Republic may be accepting only domestic insurer
insurance company, insurance company from another Member State acting
the Czech Republic in accordance with this Act and subject to the establishment of a branch

Czech Republic also insurance from a third country

B) another Member State is accepting insurance by insurance
§ 105, or

C) a third country, is accepting insurance insurance company pursuant to § 105a.. "

212th in § 104. 1, second sentence, the words" approval
transfer of the insurance portfolio or part thereof "shall be replaced 'approval of the proposed transfer by
§ 103. 2 or a request under § 103. 3 ".

213th in § 104. 2 and 4 and § 107 par. 2 and 4, the word "procedure"
replaced by the word "transfer".

214th in § 104. 2 point. b) and § 107 par. 2 point. b)
word "means" is replaced the word "assets".

215th in § 104. 2 point. c) and § 107 par. 2 point. c) the words
'solvency adjusted solvency margin "is replaced || | 'solvency capital requirement under § 73 ".

216th in § 104. 3 and § 107 par. 3, the words" fulfillment of obligations "
replaced by' settlement obligations."

217th in § 104. 4 letters a) to c) are added:

") information and documents proving that after this conversion will
dispose of eligible capital to meet Solvency capital || | requirement under § 73; in the case of an insurance company that does not follow
law, such document is written confirmation of the authority executing
oversight of its activities on the fulfillment of similar solvency requirements and
meet operational prerequisites for managing the transferred insurance portfolio or
parts thereof

B) a summary of assets to match liabilities of the transferred premiums
portfolio or its part and

C) expected changes in the economy due to the transfer
insurance portfolio or part thereof, including the expected development
Solvency Capital Requirement in accordance with § 73 in the first 3
accounting periods after this transfer. ". || |
218th in § 104. 5, after the word "publish" the words "
manner enabling remote access, and in at least one nationally distributed daily newspaper
."

219th in § 104, paragraph 6 reads:

"(6) the technical elements of a transfer under § 103. 2 and requests
under § 103. 3 and their formats in the implementing legislation.
Proposal transfer under § 103. 2 and the request under § 103. 3
submitted electronically. ".

220th § 105 including the title reads:

" § 105

Transfer of insurance portfolio or part of it within the Member States

(1) Home insurance may, after approval by the Czech National Bank to transfer
insurance portfolio or part thereof on insurance contracts with insurance
risk or commitment on the territory of another Member State, to an insurance company from
Member State which fulfills the conditions for the transfer of these contracts or
its branch established in the territory of a Member State; This applies even in the case
insurance from a third country if it has a branch located at
territory of another Member State.

(2) The Czech National Bank within one month of receipt
applications for approval of transfer of the insurance portfolio or its part
filed electronically for the content and process management are used in § 103 and 104
mutatis mutandis, to request an opinion on this transfer of supervisory authority

A) the home Member State of the accepting insurance, unless the
domestic insurance company, and

B) of the Member State where the insurance contract, and also
Member State in which the branch is located domestic insurance company,
case of an insurance portfolio managed by the affiliate.

(3) The Czech National Bank has approved the request of the domestic insurance
transfer within 30 days of the date on which

A) receives the consent of the supervisory authority of the Member State
accepting insurance undertaking, and on condition that the supervisory authority of the home Member State
accepting insurance undertaking certify that after taking into account
transfer will be accepting this insurance dispose applicable | || capital to meet the solvency capital requirement under § 73, and

B) to receive the consent of the supervisory authority of the Member State where the
insurance contract, at the latest, after vainly
expire three months from the date of dispatch of the request by the Czech National Bank
express an opinion on the transfer of insurance strain or a part thereof.

(4) The Czech National Bank a request under paragraph 1 shall be refused if

A) receives a dissenting opinion pursuant to paragraph 3. a)
within 3 months from the date of dispatch of the request for an opinion; not received an opinion on this

Period is considered as tacit consent

B) accepting the insurance company does not meet the conditions for the transfer of these contracts, or


C) transferring the insurance company following the transfer
ceased to meet the Solvency Capital Requirement in accordance with § 73

(5) Transfer of insurance portfolio or part
on insurance contracts with insurance risk or commitment of the Czech Republic
concluded by the insurance company from another Member State of the undertaking
preliminary consultation via the supervisory authority of the home | || Member State with the Czech national Bank; It also applies to the transfer
insurance portfolio managed by a subsidiary of the insurance company.

(6) Transfer of insurance portfolio or part thereof pursuant to paragraph 1
domestic insurance company shall publish in the Czech Republic and in a Member State of the commitment or
Member State where the insurance risk is situated in the manner specified
law of that Member State.
Transfer of insurance portfolio or its part in accordance with paragraph 5 of the insurance company from another Member State
public in a manner according to § 104. 5th

(7) If the Czech National Bank has been requested to give its opinion on the
transfer of the insurance portfolio or its part
authority of the Member State or third country supervisory authority, express their opinion within 3 months from the date
on receipt of the application; except where the Czech National Bank
this period, shall be deemed to have consented to such a transfer, except
confirm that after taking account of transfers will be accepting domestic insurance
dispose of eligible capital to meet solvency || | capital requirement under § 73 ".

221st Under § 105, the following new § 105a and 105b, which, including the headings
added:

" § 105a

Transfer of insurance portfolio or part of the insurance company from a third country

(1) Home insurance may transfer insurance portfolio or part
on insurance contracts with insurance risk or commitment
in the territory of a third State, to an insurance company from a third country or to its branch located in the territory
a third country where the insured risk or commitment
only after the approval of this procedure, the Czech national Bank.
Czech National Bank within one month of receipt of the request for approval of the transfer
insurance portfolio or part thereof shall seek the opinion
this transfer supervisory authority of the third country headquarters or branches
accepting insurance. For the content of the application process in these proceedings
apply § 103 and 104 appropriately.

(2) The Czech National Bank has approved the request of the domestic insurance
transfer within 30 days of receipt of the approval of the supervisory authority
third country accepting the insurance company, on the condition that
supervisor home Member State of the accepting insurance
certify that after taking account of transfers will be accepting this insurance
meet solvency requirements similar to those established by this Act
.

(3) The Czech National Bank a request under paragraph 1 shall be refused if

A) receives a dissenting opinion pursuant to paragraph 2 to 4 months from the date of dispatch
request for an opinion; non-receipt of an opinion within that period, the
considered as tacit consent

B) accepting the insurance company does not meet the conditions for the transfer of these contracts, or


C) transferring the insurance company following the transfer
ceased to meet the Solvency Capital Requirement in accordance with § 73

§ 105b
Common provisions


(1) On the date when the transfer of the insurance portfolio or its part, enters
accepting insurance to all the rights and obligations of the transferring
insurance companies that were the subject of transfer of the insurance portfolio or its part
; contract relating to the intermediation of insurance transferred
insurance contracts concluded by insurance transferring to this day
deem contracts concluded accepting insurance.

(2) In case of transfer of insurance portfolio or its part regarding
insurance contracts administered by a branch of the insurance company from a third country
established in the territory of the Czech Republic to a branch of the insurance company from a third country
established in the territory of another Member State, in addition to the conditions under § 105
subject to the approval of the transfer of the Czech national Bank further that
supervisory authority of the Member State assuming branches within the period under § 105
paragraph. 4 point. a) confirm that the right of a Member State taking over the branch

Such a transfer is possible and that it agrees to the transfer;
not received an opinion within this period shall be deemed to consent.

(3) Uses If the insurance company from a third country, which is the transferring or accepting
insurance, benefits under § 35 and the Czech National Bank
no supervisory authority pursuant to § 35 para. 2, ask the Czech National Bank
opinion under paragraph 2, § 105 para. 3 point. a) or § 105a paragraph
. 2 supervisor according to § 35 para. 2. '.

222nd in § 106 para. 2, the word "procedure" is deleted.

223rd in § 106 para. 3, the words " unless provided otherwise by this Act "are deleted
.

224th in § 107 par. 4 letters a) to c) are added:

") information and documents proving that after this conversion will
dispose of eligible capital to meet the Solvency capital requirement
according to § 73; in the case of the undertaking which
governed by this Act, such document is written confirmation of the authority
executing its oversight activities on the performance of similar
solvency requirements and meet operational prerequisites for managing
transferred Tribe reinsurance contracts or part

B) a summary of assets to match liabilities of the transferred trunk
reinsurance contracts or its part and

C) a summary of expected changes in the economy as a result of the transfer
reinsurance portfolio or its part, including
anticipated development of the Solvency Capital Requirement in accordance with §
73 after the transfer of the first 3 periods after the transfer. . "

225th in § 107, the following paragraph 6 is added:

" (6) the technical elements of a transfer under § 106 para. 2 and requests
according to § 106 para . 3 and their formats in the implementing legislation.
Proposal transfer under § 106 para. 2 and the request under § 106 para. 3
submitted electronically. ".

226th § 108 including the title reads:

" § 108

Transfer reinsurance portfolio or its part within Member States


(1) Domestic reinsurance or home insurance, after approval
Czech National Bank to transfer reinsurance portfolio or its part
including contracts concluded under the right to establish branches or
freedom to provide services, to reinsurance from another Member State or
to an insurance company from another Member State is authorized to operate
reinsurance. Czech National Bank within one month from the date of receipt
application for approval of the transfer of reinsurance portfolio or its part
seek the opinion that transfer
supervisory authority of the home Member State accepting reinsurance or insurance companies.
For the content of this application shall apply § 106 and 107 appropriately.
Czech National Bank approves the request, unless the supervisor certify that after taking account of transfers
will be accepting reinsurance or insurance
dispose of eligible capital to meet the Solvency Capital Requirement
according to § 73

(2) The Czech National Bank a request under paragraph 1 shall be refused if

A) receives a dissenting opinion referred to in paragraph 1-4 months from the date of dispatch
request for an opinion; non-receipt of an opinion within that period, the
considered as tacit consent

B) accepting reinsurance or insurance company has to assume those contracts
corresponding range of permissions, or

C) transferring reinsurance or insurance company would cease after the transfer
meet the solvency capital requirement under § 73.

(3) If the Czech National Bank has been requested to give its opinion on the transfer
reinsurance portfolio or its part
supervisory authority of a Member State shall express its opinion within 3 months of receipt of the request
. . "

227th Under § 108, the following new § 108a, including the heading reads:

" § 108a

Transfer reinsurance portfolio or its part to
reinsurance or insurance from a third country

(1) Domestic reinsurance or home insurance, after approval
Czech National Bank to transfer reinsurance portfolio or its part
including contracts concluded under the right to establish branches or
freedom to provide services, to reinsurance from a third country or
insurance from a third country authorized to conduct reinsurance business,
if it is in this state supervised over this activity
comparable to those under this Act. Czech National Bank within 1 month

Date of receipt of the request for approval of the transfer
reinsurance portfolio or its part filed electronically request an opinion on this
transfer of supervisory authority of the home of a third country accepting reinsurance or insurance
. Content of this application shall apply § 106 and 107
appropriately. Czech National Bank approves the request, unless that authority
supervisors certify that after taking account of transfers will be accepting reinsurance or insurance
meet the solvency requirements laid down by law
regulations of a third country.

(2) The Czech National Bank a request under paragraph 1 shall be refused if

A) does not receive an opinion under paragraph one to three months from the date of dispatch
request for an opinion

B) accepting reinsurance fulfills the conditions for the transfer of these contracts, or


C) transferring reinsurance or insurance company would cease after the transfer
meet the solvency capital requirement under § 73.

(3) If the transfer of reinsurance portfolio or its part regarding
hedge contracts managed by a subsidiary of an insurance or reinsurance
from a third country established in the territory of the Czech Republic to a branch of an insurance or reinsurance
third State established in the territory of another Member State
is beyond § 108 subject to the approval of this transfer
Czech national Bank, the supervisory authority of the Member State taking over the branch within
pursuant to paragraph 2. a) confirm that the law of the Member State assuming
branch, such a transfer is possible and that it agrees to the transfer;
not received an opinion within this period shall be deemed to consent. ".

228th headline below § 109 reads:" Information on supervision. "

229th in § 109 para. 1 at the end of subparagraph d) the word "or" shall be deleted and the
final part, the words "competent authorities" is replaced by
"institutions."

230th in § 109 para. 1 after letter e) the following subparagraphs f) and g), which
added:

'f) restrictions on the disposal of assets or

G) the withdrawal of the issued permit. "

231st in § 109 para. 2 number" VIII "is replaced by" IX. "

232nd in § 109, the following paragraph 3, which reads:

"(3) the Czech national Bank publishes and updates in a manner allowing remote access
general procedures, methods, criteria and other general data and
information relating to the performance of its oversight according to § 86b and 86c and in aggregate form
statistics on corrective measures taken against
supervised insurance and reinsurance. This information is published on the
single electronic location and in a common format, and the extent and deadlines set
directly applicable regulation of the European Union. ".

233rd Under § 109, the following new § 109a up 109c, which, including the headings
added:

"§ 109a

Information provided by the European Supervisory Authority

(1) The Czech National Bank communicates to the European Supervisory Authority
about the undertaking which granted or revoked permission to operate
insurance or reinsurance activities, and within 30 days after
of legal force the decision. This shall apply mutatis mutandis
for extensions of the already authorized insurance or reinsurance
or in the event of a partial withdrawal.

(2) The Czech National Bank shall provide the European Supervisory Authority annually
information on the average capital per
domestic insurance undertaking or domestic reinsurance and distribution of this increase
Czech National Bank in the previous year, measured as a percentage
Solvency capital requirement, calculated separately, for


A) all insurance and reinsurance

B) insurance companies operating insurance business under its industry
life insurance

C) insurance undertakings carrying on insurance business under non-life insurance
,

D) Insurance companies and mixed activity

E) reinsurance.

(3) For any information referred to in paragraph 1 shall notify the Czech National Bank also
number increases capital requirements according to the grounds mentioned in paragraph 95a §
.
First
(4) The Czech National Bank shall report annually to the European Supervisory Authority on

A) the availability of long-term guarantees for insurance products in the domestic market and
insurance and reinsurance activities as long-term investors to
capital market

B) the number of insurance and reinsurance companies using compensatory adjustment,

Volatility adjustment extension period pursuant to § 98 paragraph. 3 and equity risk sub-module
taking into account long-term liabilities

C) the effect of the use of compensatory adjustments, the volatility adjustment mechanism
symmetric adjustment parameters of the equity risk sub-module and the use and impact of the sub-module
equity risk takes into account the long-term commitment
on the financial position of insurance and reinsurance, both on nationally,
and anonymously at the level of the insurance or reinsurance

D) the impact of compensatory adjustments, the volatility adjustment mechanism
symmetric adjustment parameters of the equity risk sub-module and the use and impact of the sub-module
equity risk takes into account the long-term performance
obligations arising from obligations on insurers and investment policy
reinsurance and excess that do not provide relief to the capital,

E) the impact of any extension of time for health according to § 98 paragraph. 3
procedure for insurance and reinsurance in restoring the level of required capital
intended to meet the Solvency Capital Requirement or
reduce the risk profile to ensure compliance
the Solvency capital requirement

F) the number of undertakings, the number of groups using restrictions
submission of information on individual items pursuant to § 83b paragraph. 1
point. b) and § 83b paragraph. 3 and § 92k paragraph. 1, along with the amount of their
capital requirements, insurance premiums, technical provisions and assets
expressed as a percentage of the total amount of capital requirements
premiums, technical reserves and assets of all domestic insurance and reinsurance companies or groups
according to § 87

G) procedure under § 20 par. 3, § 22 paragraph. 4 and § 110 paragraph. 4 and 5

H) the authorization was granted by the insurance or reinsurance company controlled by a person from a third country
including the undertaking from a third country, which
qualifying holding in an insurance or reinsurance
authorized to carry on insurance or reinsurance activity granted
Czech national Bank, including the structure of such groups

I) barriers and other issues insurance and reinsurance companies authorized to operate
insurance or reinsurance activities
granted by the Czech National Bank in their establishment or activities in third countries and


J) functioning of the college and any problems if the supervisor
group.

(5) The information pursuant to paragraph 4. g) to i) the Czech National Bank
sent simultaneously to the European Commission. Information pursuant to paragraph 4. h)
also sends the supervisory authorities of the other Member States.

§ 109b

Information to the supervisory authorities of other Member States and
central banks, monetary authorities, supervisory authorities over payment
market and the European Systemic Risk Board

(1) The Czech National Bank informs the supervisory authorities of other Member States
information relating to the insurance industry or at their request, if
this information directly related to their activities in the insurance and
used for purposes || |
A) checking compliance with the conditions for insurance and reinsurance
activities

B) to impose sanctions,

C) assessing the appeal in an administrative proceeding against the decision
supervisory authority or

D) legal proceedings.

(2) The Czech National Bank may disclose information regarding the performance
supervision under this Act, other entities, where such information
relating to the performance of their activities, and if they

A) central banks of the European System of Central Banks and other bodies with powers similar
monetary authorities, including information that helps
performance of their monetary policy and related operations, oversight
clearing systems, the settlement securities
security and stability of the financial system

B) other administrative authorities responsible for overseeing payment systems, or

C) the European Systemic Risk Board.

(3) In an emergency situation tells the Czech National Bank information pursuant to paragraph 2
. a) without undue delay.

§ 109c

Providing information to the Ministry of Finance

If the Czech National Bank in the supervision of insurance
emergency situation, including adverse developments in financial markets,
which would result in a threat to financial stability in the Czech Republic
, without undue delay of this fact

Ministry of Finance and other central institutions whose competencies
include the preparation of legislation related to insurance and financial institutions
.. "

234th in § 110 after paragraph 1, the new paragraph 2, which reads:

"(2) the Czech national Bank may in identifying or verifying the facts
under paragraph 1, require such insurance documents, information and
necessary explanations concerning its activities in the territory Czech Republic
and the insurance company is obliged to meet her. ".

paragraphs 2 to 4 are renumbered as paragraphs 3 to 5

235th in § 110 paragraph. 4 first sentence the word "taken by the"
replaced by "corrective imposed," the word "taken" is replaced
word "saved" and the words "no action" the words "
to remedy." || |
236th in § 110, paragraph 4 at the end of the sentence "the Czech national Bank
can simultaneously refer the matter to the European supervisory authority with a request to cooperate
.."

237th in § 110, paragraph. 5 the number "3" is replaced by "4" and the words "and 2" is
replaced by "up to 3".

238th In § 111 paragraph. 1 first sentence, the word "action" words
"in this area".

239th In § 111 paragraph. 2, first sentence, the words "made relevant" are replaced
words "corrective imposed".

240th In § 111 at the end of paragraph 2 sentence "Czech National Bank
can simultaneously refer the matter to the European Supervisory
asking for cooperation.".

241st Under § 111, the following new § 111a, including the heading reads:

"§ 111a

on-site supervision at the branch of the undertaking from another Member State


(1) The Czech National Bank may be possible after the authority informed || | supervision of the home Member State of detection or verification
facts pursuant to § 110 paragraph. 1 and § 111 paragraph. 1 spot at the branch
insurance company from another Member State or reinsurance undertaking from another Member State
established on Czech territory Republic.

(2) Unless it such an exercise supervision possible or difficult, can
reasonable time refer the matter to the supervisory authority and request its
cooperation. This shall apply mutatis mutandis in supervision on-site
service provider established in the Czech Republic. ".

242nd In § 112, paragraph 2, including footnote no. 31 repeals.

Existing paragraph 3 shall be renumbered 2.

243rd In § 112. 2 sentences first and second, the word "property"
replaces the word "assets".

244th In § 113 paragraph. 1 and § 114 paragraph. 1, after the word "remedial"
inserted the words "for disposal".

245th In § 113 paragraph. 2 point. b) the words "responsible premiums
mathematics" is replaced by "persons responsible for fulfilling the requirements of
§ 7j."

246th In § 113 paragraph. 2 point. c) the word 'appointed' shall be replaced by
"established".

247th In § 113, after paragraph 2 the following paragraph 3 is added:

"(3) The Czech National Bank may insurer from a third country or reinsurance
third state to enact

a) the change of auditor performing the verification of financial statements or
consolidated financial statements; § 95 para. 3 in this case
apply mutatis mutandis, or

b) an increase in technical reserves to a level that corresponds to the calculation according
§ 52-57, or a change in the method of calculation of such reserves if it finds || | when calculating technical provisions did not proceed under these provisions
. ".

The former paragraphs 3 to 6 shall be renumbered 4 to 7

248th In § 113 paragraph. 4, in the introductory part of the word "management"
replaced by "activities".

249th In § 113 paragraph. 4 at the end of the text of letter a) the words "or
plan for short-term financing."

250th In § 113 paragraph. 4 point. b) the word 'territory' is replaced by
"territory".

251st In § 113 paragraph. 6, the words "and 3" is replaced by "and 4", the number "97"
is repealed and the number "98", the following text "98a".

Was 252. In § 113 paragraph. 7, the number "4" is replaced by "5" and the words
"corrective action", the words "for disposal".

253rd In § 114 paragraph. 1, second sentence, the word "property" is replaced by
"assets", the word "positioned" before the word "placed" and the word
"measures" the words "corrective".

254th In § 114 paragraph. 4 of the first sentence, the word "property" is replaced by
"assets" in the second sentence, the number "3" is replaced by "2".

And 255. § 115 including the title deleted.


256th In § 116 paragraph 1 and 2 added:

"(1) The Czech National Bank shall withdraw the domestic insurance undertaking or domestic reinsurance
authorization to pursue insurance or reinsurance
activities that have been imposed if

a) the insurance or reinsurance overindebted;
insurance or reinsurance is over-indebted if the aggregate monetary value
its liabilities exceeds the value of its assets, the valuation shall be carried out in accordance
with this Act and the law regulating accounting

b) measure imposed did not remedy to restore its solvency
ability

c) has been authorized to carry on insurance or reinsurance activity
based on untrue or incomplete data mentioned
governing the granting of such permit or concealed such a statement,

d) its financial situation does not meet its commitments lasting
of insurance or reinsurance activities,

e) failed to comply with the minimum capital requirement and failed to plan
short-term financing or not such a plan Czech national Bank
approved

F) moved their headquarters outside the Czech Republic,

G) failed to 3 months plan approved short-term financing or

H) of this undertaking requests.

(2) The Czech National Bank may domestic insurance undertaking or domestic reinsurance
withdraw permission to carry out insurance or reinsurance
activities that have been imposed if

) No longer meets one of the conditions for the operation of the insurance or reinsurance activities
,

B) repeatedly or egregiously violated
obligation stipulated by this Act or directly applicable EU regulation related to
insurance or reinsurance activity, or repeatedly or seriously breached
obligation stipulated by the Czech National Bank | || adopted pursuant to this Act or a directly applicable regulation
European Union

C) within 1 year from the date of entry into force of the decision ordering it
granted permission to carry out insurance or reinsurance
did not commence licensed activity or

D) not provide insurance or reinsurance for more than 6 months
.. "

257th in § 116 paragraph. 3, second sentence, the words" This is not 'replaced
"That not "and" g) "is replaced by" h). "

258th in § 116 paragraph. 4 first sentence, the word" Act "the words" in
extent that the related to insurance and reinsurance
activities to settle obligations from her pursuit of insurance and reinsurance business
. "

259th in § 117 paragraph. 1 introductory part, the words" ag) "is replaced
words ", g) and h)."

260th in § 117 paragraph. 3 at the end of the text of the first sentence the words "
extent that it relates to the insurance and reinsurance
activities to settle obligations from her pursuit of insurance and reinsurance business
. "

261st in § 117 paragraph. 4 the words" inform the Czech national Bank appropriate "
replaced by" inform about "and the words" so that they can take appropriate measures
"is deleted.

262. In § 118, paragraph 1 reads:

"(1) For the reasons stated in § 116 and 117 of the Czech National Bank
its decision to withdraw the undertaking and part of the permitted
insurance or reinsurance activities, and to engage in insurance activities under one
or more of the classes, or to carry on reinsurance business
life or non-life reinsurance, as was
reinsurance or insurance company is authorized to operate both types
reinsurance business simultaneously, limiting the activities under § 116 paragraph. 4 and §
117, paragraph. 3, in this case refers only to the part of the activities to
which the decision to withdraw authorization. ".

263rd In § 118 paragraph. 2 first sentence, the words "§ 116 paragraph. 1"
inserted the words "and 2" in the second sentence, the words "withdraw authorization"
inserted the words "or a change in its scope" .

264th In § 118 paragraph. 4 at the end of the text of the first sentence the words "and
third States where the undertaking operates."

265th In § 118 paragraph. 4 second sentence, the words "Together with those authorities
Supervisors shall adopt" is replaced by "Czech National Bank shall, in cooperation with those
supervisors".

266th In § 118 paragraph. 4, third sentence, the words "This is true" is replaced by "
It is used".


267th In § 119 para. 1 letter a) reads:

"A) a person who according to § 7 paragraph. 4 proposes a change in the person of a member of the statutory body
home insurance or domestic reinsurance
give false information or conceal any of the authority of the insurance or reinsurance
which about the change decides. "

268th In § 119 para. 1 point. b) the words "her" words
"direct or indirect".

269th In § 119 para. 1 point. c) the word "no" and deleted the word "notify"
be replaced by "notifies".

270th In § 119 para. 1 point. d) the words "pursuant to § 8. 1 and 2 or
got into a conflict of interest pursuant to § 10" is replaced by "credibility and
contrary to § 7 paragraph. 3" and the words "and of the Czech national Bank "is
deleted.

271. In § 119 para. 1 point. e) the words "to the group"
words "contrary to § 92k paragraph. 1 and 2".

272nd In § 119 para. 1 point. e) and § 122 paragraph. 1, "a group"
replaced by "the group."

273rd In § 119 para. 1 letter f) and g) added:

'F) a person who acts as manager or his representative, contrary
with § 100 paragraph. 6 immediately informs the Czech National Bank that
longer fulfills the conditions for their appointment,
| || g) a person who performs the function of a liquidator, contrary to § 124 paragraph. 4
promptly informs the Czech national bank that
ceased to fulfill the conditions for his appointment. "

274th In § 119 para. 1 after letter g), new letters h) to j)
added:

"H) a person who performs the function of a liquidator, contrary to § 124 paragraph. 3
not with due diligence

i) a person employed by undertaking acts in contravention of § || | paragraph 86. 6

j) a person working for the undertaking or a person belonging to the group
prevents or seriously impedes the exercise of oversight failure to provide
cooperation or non-compliance of the invitation given under this Act, or ".

Existing letter h) shall become point k).

275th In § 119 para. 1 point. k) the words "as a member of"
replaced by the word "member" and the word "supervisory" before the word "control".

276th In § 119 para. 2, "to e)" are replaced by "until k)" and the words
"and for an offense under paragraph 1. F) to h) a fine of up to 50 000 CZK" is deleted
.

277th At the end of the title of § 120, the words "
entrepreneurs and individuals."

278th In § 120 para. 1 introductory part of the word "person"
words "or a person".

279th In § 120 para. 1 letter a) reads:

"A) the application pursuant to § 13 para. 5, § 19 para. 1, § 32 para. 4, § 34a
paragraph. 2, § 35 para. 2, § 36 para. 5, § 40 paragraph. 1, § 47 para. 2, § 48 paragraph
. 4, § 49 para. 1-3, § 50a paragraph. 2, § 54b Sec. 1, § 64 para. 1, § 69
Sec. 2, § 77 par. 4, § 90a paragraph. 1, § 91a paragraph. 2, § 92c paragraph.
6 § 92n paragraph. 1, § 103. 3, § 105 para. 1, § 105a paragraph. 1, § 106
paragraph. 3, § 108 paragraph. 1, § 108a paragraph. 1 or § 122 paragraph. 1 shall
untrue information ".

280th In § 120 para. 1, at the end of subparagraph c) the word "or" is deleted.

281. In § 120 para. 1, letter d) reads:

"D) a person who, under § 7 paragraph. 4 proposes a change in the person of a member of the statutory body
home insurance or domestic reinsurance
give false information or conceal any of the authority of the insurance or reinsurance
, who decides about this change ".

282nd In § 120 at the end of paragraph 1 is replaced by a comma and the letters
e) to j) are added:

"E) as a person working for an insurance or reinsurance proceeds
inconsistent with § 86 par. 6

f) as a person belonging to a group in conflict with § 92k paragraph. 1 and 2 | || comply with the obligation to provide domestic insurance undertaking or domestic reinsurance
which under this Act shall be subject to supervision
group the information necessary for the exercise of supervision or obligation
provide similar information to the Czech national Bank
| || g) as a person who acts as a liquidator in conflict with § 124
paragraph. 4 immediately informs the Czech national bank that
ceased to fulfill the conditions for their appointment,

h) as the person who performs the function of a liquidator in conflict with § 124
paragraph. 3 does not with due diligence

i) fails to secrecy under § 127 or

j) as a person employed for the undertaking or a person belonging to a group
prevents or seriously impedes the exercise of oversight
providing no cooperation or non-compliance of the call given by this

Act. ".

283rd in § 120 paragraphs 2 and 3 added:

" (2) The undertaking commits an administrative offense by

A) carries on insurance or reinsurance activity inconsistent with permission
to pursue those activities granted by the Czech National Bank,

B) contrary to § 6 para. 1 proceeds in a manner that damages property
entrusted to third parties, or threatens their safety or
stability or security and stability of related persons or any other way
proceeds contrary to the rules of prudent management,

C) contrary to § 7 does not introduce and maintain effective internal control system
,

D) contrary to § 7a fails to cast the relevant parties

E) contrary to § 7, paragraph. 2 and 3, § 23, 34a, 40, 82, 82a or 83 fails to properly
Information obligation or duty to disclose information,

F) does not submit documents and other materials requested by the Czech National Bank
according to § 82, 83 or 110

G) within the prescribed period fulfill any of its obligations under § 95, 95a, 95b
, 98, 98a, 110, 111 or 113,

H) in contravention of § 6 para. 3 uses insurance mediation or
collateral, or the activity of independent loss adjuster events
service person who performs this activity illegally

I) acts in contradiction with the approved recovery plan or
approved plan of short-term financing

J) fails to meet the deadline set enforceable by the Czech National Bank
remedial measures, or

K) prevents or seriously impedes the exercise of supervision or failure to provide synergy
longer conforms to the invitation given under this Act.

(3) The insurance company commits an administrative offense by

A) acts in contravention of § 59 para. 2, or

B) fails to provide those interested in insurance policyholder or information under this Act or
Civil Code or the law governing the activities
insurance intermediaries and independent loss adjusters
events related to insurance. ".

284. in § 120 para. 4 point.), the words "to the position of the person in the lead
person who was Czech national Bank consent"
replace the words "into the key functions of a person who is not an authorized person or
credible. "

285th in § 120 para. 4 point. b) the words" in the lead "is replaced
's key functions" and the words "for approval of the Czech national Bank
with the performance of its functions in leadership "is replaced by"
competence or credibility. "

286th in § 120, paragraph 5 reads:

" (5) An administrative offense by paragraphs 1 and 3 shall be fined up to 1,000
000 CZK for an administrative offense under paragraphs 2 and 4 shall be fined up to 50 000 CZK 000
.. "

287th in § 121 paragraph 3 and 4 are added:

"(3) Liability for an administrative offense a legal person shall cease to exist if
administrative authority did not commence proceedings within one year from the day when the
aware of it, but at the latest within 5 years from the date on which it was committed.

(4) The liability for conduct that occurred in entrepreneurial
natural person or in direct connection therewith, shall be subject to the provisions of this
Act on liability and sanctions to legal persons. ".
|| | 288th in § 121 par. 6, the first sentence be deleted.

289th in § 121, paragraph 7, which reads:

"(7) Prior to the initiation of an administrative offense Czech national Bank
preliminary assessment act that founded suspicion that committed an administrative offense
. If and Czech National Bank has concluded that the specific
facts suggest that it was committed administrative offense and that
committed by a particular person, initiate the proceedings on an administrative offense;
control from the start, however, may be waived if given the importance and extent
violation or threat to the protected interest which was an act of prejudice,
way the crime was committed, its consequences, the circumstances under which the offense was
committed, or due to the behavior of the offender after the crime clear that
purpose, which could be achieved by carrying out proceedings on administrative offense
been achieved. Will not start if the Czech National Bank
proceedings on administrative offense, makes a record of it in the file and the matter aside.
The decision to defer the matter is not issued. ".

290th in § 122 paragraph. 1 at the end of the text of the first sentence the words'
basis of an application filed electronically."
|| | 291st in § 122, paragraph 2 reads:

"(2) An application under paragraph 1 of the Czech national Bank approved if the applicant

Proves that after the conversion of the domestic insurance undertaking or domestic reinsurance
meet the conditions laid down by the law and that there is no danger to the rights of participants
insurance or reinsurance. Particulars of the application, including attachments
demonstrating the fulfillment of the conditions of its
formats and other technical requirements in the implementing legislation. ".

292nd in § 122 paragraph. 3 point. B) the words" or activity with the activities related
"are deleted.

293rd in § 122, paragraph 4 reads:

" (4) Converting notify your home insurance policyholders no later than one month
after its approval by the general meeting or member meeting
team. ".

294th in § 122, the following paragraph 5 is added:

" (5) For the merger, division and transfer name is used in § 103 to 108a
appropriately. ".

295th in § 123 paragraph. 2," which keeps a list of liquidators'
deleted.

296th In § 123 at the end of paragraph 2 sentence "
appeal filed against the decision of the Czech national Bank on the appointment or dismissal of a liquidator
home insurance or reinsurance domestic no suspensory effect.".

297th in § 123 paragraph 3 and 4 added:

"(3) costs related to the exercise of the liquidator are paid from the assets
home insurance or domestic reinsurance sufficient if
her property on payment of remuneration and compensation of the liquidator
finished his expenses paid by the state. Method for determining reimbursement of cash expenses and remuneration of the liquidator
, the maximum amount payable by the state and the method of payment
in the implementing legislation.

(4) Assets held for settlement of its liabilities and assets amounting
minimum capital requirement under § 79 is used primarily for the settlement
claims arising from the insurance business. ".

298th in § 123 Sec. 6, second sentence, the words "This is true" is replaced by "
That applies."

299th in § 123 paragraph. 7, after the word "insurance" the words "or locking
. "

300th in § 124 Subsection 1 reads:

" (1) The Czech national Bank shall appoint a liquidator from a particular part
list of trustees maintained by the law on insolvency administrators
.. "

three hundred and first in § 124 paragraphs 2 and 3 are deleted.

Former paragraphs 4 and 5 become paragraphs 2 and 3

302nd in § 124, paragraph. 2, "actuary"
replaced by "a person with a key function."

303rd in § 124 paragraph. 3, after the word "liquidator" the words "exercises || | its activities with due diligence "and the words" liquidator, "are inserted
words" no later than 31 March, the annual report ".

304th In § 124, the following paragraph 4 is added:

"(4) If the liquidator ceases to meet the conditions for their appointment, inform the
without undue delay, Czech National Bank, which
without undue delay appoint another liquidator.".

305th In § 126, paragraph 3 shall be added:

"(3) The Czech National Bank may dispose of the information referred to in paragraph 1
only for the performance of duties under this Act, unless another
legal regulation. Breaching the duty of confidentiality does not provide the authority
law enforcement and for the needs
administrative or judicial proceedings, provided that the information
concern third parties acting with a view to restoring financial health
undertaking. ".

, 306. In § 127 paragraph. 1, first sentence, the word "supervisory"
replaced by the word "control" and the words "insurance intermediaries and independent loss adjusters
" are deleted.

307th In § 128 paragraph. 1 at the end of the text of letter c) the words "or
administrative proceedings concerning an administrative offense".

308th In § 128 paragraph. 1 the following letters m) and n), added:

"M) financial arbiter in connection with an investigation under the Act
governing its scope, or

n) of the Ministry of Interior in matters relating to private health insurance
foreigners".

309th In § 128 paragraph. 1 final, the words "
body or authority under a) to j)" is replaced by "competent authority".

310th In § 128 paragraph. 3 of the introductory part, the words "
competent supervisory authorities of the Member States" is replaced by "
Czech National Bank and the supervisory authorities of other Member States' supervisory authorities of third countries and
an exchange of information between the Czech national Bank ".


311th In § 128 paragraph. 3 letter d) reads:

'D) independent actuaries of insurance and reinsurance undertakings carrying out supervision
those undertakings and the authorities responsible for the
those experts in the performance of their activities ".

312th In § 128 paragraph. 7, after the word "under" the words "of this
law".

313th In § 129 paragraphs 2-9 added:

"(2) If the cause of an insurance claim pursuant to paragraph 1
traffic accident, the insurance company will provide its written request
information regarding this incident by the municipal authority with extended powers or
police of the Czech Republic, to the extent and under the conditions
according to the law governing road traffic.

(3) the insurance company uses to carry out the tasks under this Act data

a) of the basic population register ,

b) of the population records information system and

c) the information system of foreigners.

(4) used by information pursuant to paragraph 3. a)

a) the name or names, surnames,

b) date of birth,

c) the date of death, if it is issued by a court decision declaring the death,
day which is in the decision as the date of death or the date on which the data subject
declared dead survived, and the effective date of this decision
and

d) the address of residence.
|| | (5) used by information pursuant to paragraph 3. b)

A) the name or names, surname, maiden name,

B) date of birth,

C) the date of death,

D) a day that was in the court decision on declaration of death listed as
date of death or the date on which the data subject declared dead survived
and

E) address of permanent residence, including previous addresses
residence.

(6) used by the data pursuant to paragraph 3. c)

A) the name or names, surname, maiden name,

B) date of birth,

C) citizenship, or multiple citizenships,

D) the type and address of residence and

E) start of residence, or date of termination of residence.

(7) Data that are kept as reference data in the basic register
population, the use of population records information system or information system
foreigners only if they are in the shape of the previous
status quo.

(8) The data referred to in paragraphs 4-6, in the individual case
use only data that are necessary in this case.

(9) The information referred to in paragraphs 4-6 gives the competent public authority
manner allowing remote access. ".

314th Under § 129a, the following new § 129b and 129c, which, including the title | || added:

"§ 129b
Sharing information


(1) For the purpose of preventing and detecting insurance fraud and other
infringement insurers inform each other and share
information about matters relating to insurance
natural and legal persons and mediation, including information on Agents
insurance participants and other persons involved in harmful or
insured event, and even through a legal entity that is not
insurance, reinsurance or insurance broker.

(2) The person about whom the information under paragraph 1 result, has the right to request
learn free of charge with the data kept on him.

(3) The insurance company accesses the data obtained, other insurance companies as well as
if it were information from its own activities.

§ 129c

Amount expressed in euro

(1) Amount expressed in this Act in euro during the period from 31
December to 30 December of the following calendar year converted to
amount in Czech Koruna exchange rate announced by the Czech National Bank for
31st October of the year in which that period starts.

(2) Changing the amounts expressed in this Act in euro shall be used
latest date by which expires 12 months from the date of publication
European Commission in the Official Journal of the European Union. ".

315. In § 131 paragraph. 1 point. c) points 1 and 2, the word "euro"
is replaced by the word "euro".

316th Under § 131, the following new § 131a, which with its title reads:

"§ 131a

Special provisions for co-insurance within the Member States

(1) If the co-insurance covered by one or more major insurance risks
located on the territory of the Member States and subject to the conditions provided for in paragraph 2
, then


A) the amount of technical provisions determined by the different co-insurers
rules fixed by their home Member State, or by
customary practice in that State, in the absence of such rules,

B) the total technical reserves is at least equal to the technical reserves set
lead co according to the rules of its home Member State and


C) in the event of liquidation of the insurance commitments arising from its participation in the co
met as well as liabilities from concluded
insurance contracts without distinction of nationality
policyholders and other beneficiaries.

(2) The provisions of paragraph 1 shall apply if

A) the risk is covered by a single contract at an aggregate premiums for insurance
same period two or more insurers, of which at least one
domestic insurance company,

B) soupojistilem is a leading home insurance or insurance of
another Member State

C) for the purpose of covering the risks referred to in paragraph 1 to the leading co-insurer
treated as if it were an insurance covering the whole
risk

D) at least one of the co-insurers participates in the contract through
office or a branch established in a Member State other than the head of the joint insurer
and

E) the leading co-insurer provides insurance conditions, premium rates and
fulfill other obligations associated with that of its functions.

(3) If the conditions referred to in paragraphs 1 and 2, then § 22 and § 23 paragraph
. 2, the domestic insurance companies apply only if the leading
co-insurer. This shall apply mutatis mutandis to fulfill its obligations towards
national bureau and the guarantee fund in another Member State and
obligation to establish the territory of another Member State of the claims representative if
vehicle insurance premiums by
class listed in part B, point 10. a) Annex no. 1 to
this Act.

(4) If both the conditions under paragraphs 1 and 2, then § 28 and 30
the insurance company from another Member State applies only if
lead co. This shall apply mutatis mutandis to fulfill its obligations towards
Czech Insurers' Bureau under the law regulating
liability insurance for damage caused by vehicles.

(5) The Czech National Bank

A) exchanges with national supervisory authorities information concerning
risk coverage under paragraph 1

B) assess in cooperation with the European Commission and the supervisory authorities
under a) implementation of co-insurance under paragraph 1, in particular
evaluates the performance of duties and the head of the joint insurer assesses the legitimacy
risk coverage through this co.

(6) Home insurance, which is involved in co
referred to in paragraph 1 shall be obliged to collect, store and other co-insurers
mutually shared statistics regarding the extent of the operations co
within the European Union, which involved, and keep a list
Member States concerned by the co-insurance operations concerned. ".

317th In the title under § 134, the words" Commission of the European Communities'
replaced by "European Commission". | ||
318th in § 134 paragraph. 1, "informs the Commission of the European Communities'
replaced by" advises the European Commission "and the words" legislation
European Communities "is replaced by" European Union legislation " .

319th in § 134 paragraph. 2, "the Commission of the European Communities'
replaced by" European Commission ".

320th in § 134, paragraph 3 shall be added :

"(3) the Ministry of Finance informs the European Commission insurance risks,
covered by compulsory insurance, including legislation
related to the insurance and information that must be included in
certificate of the insurance contract if the issuance of such certificates
requires. ".

321st In the title of the sixth, after the word "enabling," the word
"FINAL".

322nd § 136 reads:

"§ 136

(1) The Czech National Bank will issue a decree to implement § 7b paragraph. 7, § 13 paragraph
. 5, § 19 para. 3, § 24 para. 3, § 32 para. 4, § 34a paragraph. 3, § 36 paragraph
. 5, § 40 para. 1, § 42 para. 3, § 47 para. 2, § 50a paragraph. 2, § 54b paragraph
. 1 and 4, § 78 para. 2, § 81 paragraph. 5, § 82 para. 2, § 89c paragraph. 6, §
100, paragraph. 3, § 104. 6, § 107 par. 6, § 122 paragraph. 2 and § 123 paragraph.
third

(2) the Czech national Bank will issue a decree to implement § 76 par. 2, § 83

Paragraph. 1 and 2, § 92k paragraph. 1, if their execution has been issued
directly applicable legislation of the European Union.

(3) application model form pursuant to this Act, the Czech National Bank
publish on its website. ".

323rd Under § 136, the following new § 136a, which reads:
| || "§ 136a

(1) Insurance and reinsurance are not obliged until 31 December 2020 in its
report on the solvency and financial condition pursuant to § 82 para. 3
separately disclose information relating to an increase in the capital requirement or the impact
specific parameters in the calculation of the Solvency capital requirement
.

(2) The deadlines for submitting the information pursuant to § 83 paragraph. 1 and 2 for the following period
replaced by the following deadlines:

A) 20 weeks after the end of the reference year, which ends
before 30 June 2016 and no later than 1 January 2017

B) 18 weeks after the end of the reference year, which ends soon
30th June 2017 and no later than 1 January 2018,

C) 16 weeks after the end of the reference year, which ends soon
30th June 2018 and no later than 1 January 2019

D) 14 weeks after the end of the reference year, which ends soon
30th June 2019 and no later than 1 January 2020,

E) eight weeks after the reference quarter, which ends earlier than 1
January 2016 and no later than 1 January 2017

F) seven weeks after the reference quarter, which ends earlier than 1
January 2017 and no later than 1 January 2018,

G) six weeks after the reference quarter, which ends earlier than 1
January 2018 and no later than 1 January 2019, and

H) 5 weeks after the reference quarter, which ends earlier than 1
January 2019 and no later than 1 January 2020.

(3) The deadlines for disclosure of information pursuant to § 82 para. 6
for the following periods replaced by the following deadlines:

A) 20 weeks after the end of the reference year, which ends
before 30 June 2016 and no later than 1 January 2017

B) 18 weeks after the end of the reference year, which ends soon
30th June 2017 and no later than 1 January 2018,

C) 16 weeks after the end of the reference year, which ends soon
30th June 2018 and no later than 1 January 2019, and

D) 14 weeks after the end of the reference year, which ends soon
30th June 2019 and no later than 1 January 2020.

(4) For domestic insurance and reinsurance domestic, which is subject
group supervision, and insurance holding company and mixed financial holding
person at group level to the deadline referred to in paragraphs 2 and 3
for submissions under § 92k extending for six weeks. ".

324th Annex no. 1 part a, section IV." paragraph. 1 point. d)
Directive of the European Parliament and Council Directive 2002/83 / EC concerning life insurance
"replaced by" paragraph. 3 point. a) point iv)
Directive of the European Parliament and Council Directive 2009/138 / EC. "

325th Annex no. 1 Part A, section VI., the words" actuarial "
replaced by" actuarial "and the word" which "shall be replaced
word" when. "

326th Annex no. 1 of point VIII." paragraph. 2 point. e)
Directive of the European Parliament and Council Directive 2002/83 / EC concerning life insurance
"replaced by" paragraph. 3 point. b) iii)
Directive of the European Parliament and Council Directive 2009/138 / EC. "

327th Annex no. 1, Part B, point 13.), the word" responsibility "
repealed .

328th Annex no. 1, part b, point 13. b) and c) the words "
liability for damages" is replaced by "harm".

329th V Annex no. 2 point XIV., the word "harm" is replaced by "harm". Article II





Transitional provisions first, if the effective date of this Act Home insurance or reinsurance
domestic meets the solvency requirements according to § 76 paragraph
. 1 of Act no. 277/2009 Coll., as amended effective prior to the date of entry into force of this Act
, but not of primary own funds to cover
minimum capital requirement under § 79 of Act no. 277/2009 Coll., as amended
effective from the date of entry into force of this Act, shall
meet this requirement within one year of the date of effectiveness
this law. in the event of failure to comply with this obligation
Czech national Bank shall proceed in accordance with § 116 of Act no. 277/2009 Coll., as amended
effective from the date of entry into force of this Act.

Second Home insurance or domestic reinsurance, which is used to calculate the capital requirement
full or partial internal model,

Obliged to 31 December 2017 when calculating the minimum capital requirement
apply percentages in accordance with § 79 para. 2 of Law no.
277/2009 Coll., As amended, effective from the date of entry into force of this Act, | || solely on solvency capital requirement calculated by the standard formula
.

Third Forced administration imposed by Act no. 277/2009 Coll., As amended
effective date of this Act, which has not to date
entry into force of this Act is completed, will be completed by Law no. 277
/ 2009 Coll., as amended effective on the effective date of this Act.

Fourth Breach of the obligations stipulated by law no. 277/2009 Coll., As amended
effective date of this Act shall be assessed and management of
impose remedial measures or sanctions kept in connection with this violation is governed
Act no. 277/2009 Coll., as amended
effective on the effective date of this Act.

Fifth Proceedings on imposing measures to remedy the identified deficiencies or
imposition of a fine, which was initiated until the effective date of this
Act shall be completed and corrective measures or sanctions shall be imposed pursuant
Act no. 277/2009 Coll ., as amended effective on the effective date of this Act
.

6th Procedure for granting authorization and management approval or granting
prior consent commenced prior to the effective date of this Act
be completed pursuant to Act no. 277/2009 Coll., As amended effective date
force of this Act .

7th Home insurance, domestic reinsurance undertaking, a third country or reinsurance
from a third country, which before the effective date of this Act
asked the Czech National Bank to withdraw the authorization to operate
insurance or reinsurance business in its entirety || | this permit or has been until now such authorization decisions
Czech national Bank revoked, is governed by Act no. 277/2009 Coll., as amended
effective date of this Act.

8th If the undertaking pursuant to paragraph 7
entered into liquidation on 31 December 2018 governing the date of 1 January 2019
Act no. 277/2009 Coll., As amended, effective from the date of entry into force
this Act.

9th The Czech National Bank may decide to shorten the period under point 8
if it is necessary to ensure the fulfillment of the commitments
such an undertaking.

10th After a period during which the undertaking under point 7 controls
effective date of this Act, Act no. 277/2009 Coll., As amended
effective date of this Act, shall not enter into new
insurance or reinsurance contracts and extend commitments already assumed
.

11th Points 7-10 apply only to insurance or reinsurance

A) is not part of the group, or is part of a group that
all insurance and reinsurance until the effective date of this Act
ceased to conduct insurance or reinsurance contracts,

B) is in liquidation and the liquidator's report on the liquidation process,
its financial statements or other reports and documents pursuant to § 124 paragraph.
3 of Law no. 277/2009 Coll., As amended, effective from the date of entry into force of this Act
submitted to the Czech National Bank does not
risk to meet its commitments, or

C) requested the withdrawal of authorization pursuant to paragraph 7

12th The Czech National Bank publishes a list of the insurance and reinsurance
according to item 7, which provides supervisory authorities of the other Member States.

13th After a period of 10 years from the date of entry into force of this Act is to

A) Class 1 in accordance with § 68 of Act no. 277/2009 Coll., As amended, effective from the date of
entry into force of this Act, include items of primary capital, which


First They were issued before the effective date of this Act or a directly applicable regulation
European Union, depending on whichever occurs first
,

Second You can by Act no. 277/2009 Coll., as amended effective prior to the date of entry into force of this Act
, items included in the calculation of the available solvency margin
, but up 50% of the required solvency margin, and

Third according to § 68 of Act no. 277/2009 Coll., as amended, effective from the date of
entry into force of this Act have not been classified as Class 1 or 2, and

B) Class 2 according to § 68 of Act no. 277/2009 Coll., As amended, effective from the date of
entry into force of this Act, include items of primary capital, which



First They were issued before the effective date of this Act or a directly applicable regulation
European Union, depending on whichever occurs first
and

Second possible under the previous legislation to include items
calculating the available solvency margin, however, up to 25% of the required solvency margin
.

14th The requirements of the directly applicable European Union according to § 60 paragraph
. 2 of Act no. 277/2009 Coll., As amended, effective from the date of entry into force of this Act
relating
investment in marketable securities or other financial instruments
based on the securitization of loans, apply for insurance
and reinsurance, which invest in such instruments issued before 1 January 2011
if new underlying exposures are added or replaced
after 31 December 2014.

15th If home insurance, domestic reinsurance undertaking, a
a third country or reinsurance undertaking from a third country fulfills the date of entry into force of this Act
requirements under § 76-79 of the Act no. 277/2009
Coll., As amended, effective until the effective date of this Act, but fails
solvency capital requirement under this Act until the day
31st December 2016 by the end of the month January 2017 the Czech National Bank
information to report on progress towards the achievement of the level of
capital to meet the solvency capital requirement under § 73
Act no. 277/2009 Coll., as amended effective on the date of entry into force of this Act
, or to reduce its risk profile to ensure
compliance with this requirement no later than 31 December 2017. Until
compliance with this requirement shall report every three months to the Czech national Bank
report on measures taken and progress towards the levels
eligible capital or to reduce the risk profile in order
ensure compliance with the Solvency capital requirement. If
of this report or other findings Czech National Bank show that
situation does not achieve the consistent, adopted by the Czech National Bank
measures in accordance with § 98 of the Act no. 277/2009 Coll., As amended, effective
date of entry into force of this Act.

16th If the domestic insurance undertaking or domestic reinsurance and the last person holding
participation at European Union level under § 88 par. 5 of Law no.
277/2009 Coll., As amended, effective from the date of entry into force of this Act, || | headquarters in the Czech Republic where these form part of the person who has
risk profile significantly different from the rest of the group, this may be the last person
undertaking in the Czech Republic until the day of March 31, 2022 to request
Czech national bank for approval using group
internal model in accordance with § 90a of Act no. 277/2009 Coll., as amended, effective from the date of
entry into force of this Act, to this part of the group.

17th Paragraphs 13-15, 18-23 and § 136a paragraph. 3 of Law no. 277/2009 Coll., As amended
effective from the date of entry into force of this Act shall apply mutatis mutandis
group level according to § 87 para. 1 of Act no. 277/2009 Coll., as amended
effective from the date of entry into force of this Act. Paragraph 15 also
event that insurance and reinsurance undertakings under § 3 para. 6
point. d) of the Act no. 277/2009 Coll., as amended, effective from the date of entry into force of this Act
or insurance and reinsurance group
comply adjusted solvency margin in accordance with § 79 of the Act no. 277/2009 Coll., | || amended effective on the effective date of this Act, but
not comply with Solvency capital requirement under § 89b
Act no. 277/2009 Coll., as amended, effective from the date of entry into force of this Act
.

18th For liabilities arising from insurance and reinsurance contracts
entered into before the effective date of this Act, including
obligations arising from treaties that date or subsequently renewed or extended
, and which were created technical reserves in accordance with § 65 || | paragraph. 4 and 5 of the Act no. 277/2009 Coll., As amended effective date
force of this Act may be home insurance, domestic reinsurance
insurance from a third country or a third country reinsurance
after prior consent Czech national Bank in determining the risk-free yield curve
according to § 54a of Act no. 277/2009 Coll., as amended, effective
effective date of this Act, apply editing
risk-free yield curve, which is calculated for each currency liability as the difference


A) above the technical interest rate pursuant to § 65 par. 4 and 5 of Law no.
277/2009 Coll., As amended effective on the effective date of this Act,
in force on 31 December 2015 and

B) the annual effective interest rate once expressed discount rate
whose use in portfolio liabilities permitted for this adjustment leads to
value, which is equal to the best estimate of the portfolio
obligations calculated in accordance with § 53 of the Act no. 277/2009 Coll., as amended
effective from the date of entry into force of this Act.

19th For the year 2016 would amount to the risk-free yield curve of 100% of the difference
by points 18. a) and b). At the end of each subsequent year, the
treatment decreases linearly, so that the date of 1 January 2032 amounted to 0%.
If home insurance, domestic reinsurance undertaking, a third
State or third country reinsurance utilizes an adjustment under § 54c to 54d
Act no. 277/2009 Coll., As amended, effective from the date of entry into force || | this law, the relevant risk free yield curve under paragraph 18
point. b) includes this adjustment.

20th If home insurance, domestic reinsurance undertaking, a
a third country or a third country reinsurance proceed in accordance with paragraphs 18 and 19
, then in case of liabilities to which this procedure applies

) Does not apply § 54b of the Act no. 277/2009 Coll., As amended, effective from the date of
commencement of this Act,

B) does not include these liabilities in calculating the adjustment pursuant to § 54c and 54d of Act No.
. 277/2009 Coll., As amended, effective from the date of entry into force of this Act
,

C) proceeds in accordance with point 23 and

D) in its report pursuant to § 82 par. 3 of Law no. 277/2009 Coll., As amended
effective from the date of entry into force of this Act, stating that uses
transitional provisions for the risk-free yield curve by
points 18 and 19, and quantification of impact in the non-application of this transitional measure
on its financial position.

21st Home insurance, domestic reinsurance undertaking, a third
State or third country reinsurance, which on the effective date of this Act does not fulfill
amount of technical provisions in accordance with § 52 of the Act no.
277/2009 Coll., As amended effective from the date of entry into force of this Act, may
prior consent of the Czech national Bank used
transient decrease in technical provisions. This reduction applies to the level of risk
homogenous groups according to § 56 par. 1 of Act no. 277/2009 Coll., As amended
effective from the date of entry into force of this Act.
Reduction corresponds to the difference between the amount of technical provisions pursuant to § 52 of the Act no. 277/2009 Coll., As amended
effective from the date of entry into force of this Act, from which
deducted from the amount of recoverable amounts of reinsurance including || | receivables for securing special purpose entities, and above technical
reserves calculated under the previous legislation, which is deducted from
amount of recoverable amounts of reinsurance;
where an insurance or reinsurance proceeds from the effective date of this Act
according to § 54c and 54d of Act no. 277/2009 Coll., as amended, effective from the date of entry into force of this Act
, technical provisions according to § 52 Law no.
277/2009 Coll., as amended, effective from the date of entry into force of this Act,
is calculated using the volatility adjustments to the risk-free yield curve
. 2016 is a reduction equal to 100% of the difference thus calculated and
at the end of each year thereafter decreases so that on 1 January 2032
reached 0%.

22nd Czech National Bank may require recalculation of amounts under point 21
every 24 months. If the risk profile of home insurance,
domestic reinsurance, insurance company from a third country or reinsurance
third country has changed substantially, this may require a recalculation even more
. The amount of deductible amounts Czech National Bank may modify
if the reduction in accordance with paragraph 21 could lead to a decline in requests
financial resources in comparison with the requirements under § 51-79 of the Act no. 277/2009
Coll. amended the effective date of this Act.

23rd If home insurance, domestic reinsurance undertaking, a
a third country or a third country reinsurance proceed in accordance with point 21

A) proceeds in accordance with paragraphs 18 and 19

B) and if they failed without deduction Solvency Capital Requirement
according to § 73 Act no. 277/2009 Coll., As amended, effective from the date of

Commencement of this Act, submit to the Czech National Bank no later
31 March of the following calendar year, a report outlining
measures that were in the previous calendar year
taken to achieve the level of eligible capital or reduce its
risk profile to restore compliance with the Solvency capital
requirement under § 73 of the Act no. 277/2009 Coll., as amended, effective from the date of
entry into force of this Act, and

C) in its report pursuant to § 82 par. 3 of Law no. 277/2009 Coll., As amended
effective from the date of entry into force of this Act, stating that uses
transitional provisions pursuant to paragraph 21, and
quantify the impact at the non-application of the transitional measures on its financial position.

24th Home insurance, domestic reinsurance undertaking, a third
State or third country reinsurance, which progresses in accordance with points 18 to 23
, without undue delay, Czech National Bank, without
use of this procedure would not meet the solvency capital
requirement under § 73 of the Act no. 277/2009 Coll., as amended, effective from the date of
entry into force of this Act. Within 2 months from the date of such determination
Czech National Bank submits a plan of measures aimed at achieving
of the level of capital or to reduce the risk profile of
order to ensure compliance with the Solvency Capital Requirement in accordance with § 73 of Act No.
. 277/2009 Coll., as amended, effective from the date of entry into force of this Act
later than the last day of the transitional period according
paragraphs 19 and 21, during which the plan can be updated.

25th Insurance and reinsurance under point 24 shall submit to the Czech National Bank
no later than March 31 of the following calendar year, a report indicating
measures that were in the previous calendar year
taken to ensure compliance with the Solvency Capital Requirement
according to § 73 Act no. 277/2009 Coll., as amended, effective from the date of entry into force of this Act
by the last day of the transitional period
in paragraphs 19 and 21. the Czech national Bank consent to the use process || | accordance with points 18 to 23 canceled if the messages or other
findings show that comply with Solvency capital requirement
later than the last day of the transitional period is unrealistic.

26th Own risk and solvency assessment under § 7c paragraph. 1 point. b)
Act no. 277/2009 Coll., as amended, effective from the date of entry into force of this Act
, home insurance, domestic reinsurance undertaking, a
a third country or a third country reinsurance performs both the absence
considering the procedure under paragraphs 18 to 23 If the Czech national Bank
concludes that the risk profile of the insurance or reinsurance
deviates significantly from the assumptions on which they are transitional measures
by 18 points until 23 established, it shall proceed in accordance with § 95a of Act no. 277/2009
Coll., as amended, effective from the date of entry into force of this Act.

27th Czech National Bank during the transitional period according to paragraphs 19 and 21
report annually to the European Supervisory Authority on

A) the number of insurance and reinsurance undertakings using the procedure described in points 18 to 22
,

B) the impact of using the procedure in points 18 to 22 on the financial position
insurance and reinsurance, both nationally and anonymously
level of the insurance or reinsurance

C) where the insurance or reinsurance proceed in accordance with paragraphs 18 to 22
, and whether they are in accordance with the plans to achieve a level of eligible
capital or to reduce the risk profile to ensure compliance with the Solvency
capital requirement, and the prospects for reducing
depending on transitional measures under paragraph 24, including
measures according to paragraph 25, which was received or expected to be taken
undertakings and the Czech national Bank, reflecting | || regulatory environment in the Czech Republic.
Article III

Repealing provisions


Repealed:

First Decree no. 433/2009 Coll., On the method of submission, form and requisites
statements of insurance and reinsurance.

Second Decree no. 434/2009 Coll., Which implements certain provisions of the Insurance Act
.

Third Decree no. 359/2010 Coll., Amending Decree no. 433/2009 Coll., On
method of submission, form and requisites statements of insurance and reinsurance
.


Fourth Decree no. 424/2012 Coll., Amending Decree no. 433/2009 Coll., On
method of submission, form and requisites statements
insurance and reinsurance, as amended by Decree no. 359/2010 Coll.

Fifth Decree no. 326/2013 Coll., Amending Decree no. 434/2009 Coll.
Implementing certain provisions of the Insurance Act.
PART TWO


Amendment to the Act on Trades
Article IV


In § 3 para. 3 point. a) Act no. 455/1991 Coll., on Trade
(Trade Act), as amended by Act no. 591/1992 Coll., Act No.
. 600/1992 Coll., Act no. 273/1993 Coll., Act no. 303/1993 Coll., Act No.
. 38/1994 Coll., Act no. 42/1994 Coll., Act no. 200/1994 Coll., Act No.
. 237/1995 Coll., Act no. 286/1995 Coll., Act no. 147/1996 Coll., Act No.
. 19/1997 Coll., Act no. 49/1997 Coll., Act no. 79/1997 Coll., Act no. 217/1997 Coll
., Act no. 280/1997 Coll., Act no. 15 / 1998 Coll., Act no.
157/1998 Coll., Act no. 356/1999 Coll., Act no. 360/1999 Coll., Act no.
363/1999 Coll., Act no. 29 / 2000 Coll., Act no. 121/2000 Coll., Act no.
122/2000 Coll., Act no. 123/2000 Coll., Act no. 124/2000 Coll., Act.
151/2000 Coll., Act no. 158/2000 Coll., Act no. 247/2000 Coll., Act no.
258/2000 Coll., Act no. 362/2000 Coll., Law no. 409 / 2000 Sb., Act no.
458/2000 Coll., Act no. 100/2001 Coll., Act no. 120/2001 Coll., Act no.
256/2001 Coll., Act no. 274 / 2001 Coll., Act no. 477/2001 Coll., Act no.
281/2002 Coll., Act no. 162/2003 Coll., Act no. 224/2003 Coll., Act.
228/2003 Coll., Act no. 354/2003 Coll., Act no. 438/2003 Coll., Act no.
38/2004 Coll., Act no. 167/2004 Coll., Law no. 257 / 2004 Coll. of Law no.
499/2004 Coll., Act no. 127/2005 Coll., Act no. 215/2005 Coll., Act no. 253/2005 Coll
., Act no. 62 / 2006 Coll., Act no. 109/2006 Coll., Act no.
179/2006 Coll., Act no. 186/2006 Coll., Act no. 130/2008 Coll., Act.
189/2008 Coll., Act no. 230/2008 Coll., Act no. 254/2008 Coll., Act no. 285/2008 Coll
., Act no. 155/2010 Coll., Law no. 160 / 2010 Coll., Act no. 375/2011 Coll
., Act no. 428/2011 Coll., Act no. 53/2012 Coll., Act no. 167/2012 Coll
., Law no. 199 / 2012 Coll., Act no. 201/2012 Coll., Act no. 202/2012 Coll
., Act no. 221/2012 Coll., Act no. 407/2012 Coll., Act.
241/2013 Coll., Act no. 279/2013 Coll., Act no. 303/2013 Coll. and Act No.
. 127/2014 Coll., The words "and responsible actuaries ^ 12)"
deleted.
PART THREE


Amendment to the Act on Reserves for tax base
Article V


In § 6 of Act no. 593/1992 Coll., On reserves for determining the tax base from income
, as amended by Act no. 244/1994 Coll., Act no. 363/1999 Coll., Act || | No. 492/2000 Coll., Act no. 261/2007 Coll., Act no. 296/2007 Coll. and
Act no. 278/2009 Coll., paragraph 1 reads:

"(1) Insurance reserves, which expenses (costs)
to achieve, assure and maintain income, a technical provision except
other technical provisions created by the legislation governing accounting amounting
in which is accounted for by these legal regulations
. ".
Article VI



Transitional provisions
For tax on income taxes for the taxable periods prior to the date
entry into force of this Act and for the taxable period commencing
before the effective date of this Act, as well as the rights and obligations with them
related, apply § 6 par. 1 of Law no.
593/1992 Coll., as amended effective prior to the effective date of this Act
.
PART FOUR


Changing the law on vehicle insurance
ARTICLE VII


Act no. 168/1999 Coll., On liability insurance for damage caused
operation of a vehicle and amending some related Acts (
vehicle insurance), as amended by Act no. 307/1999 | || Coll., Act no. 56/2001 Coll., Act no. 320/2002 Coll., Act no. 47/2004
Coll., Act no. 377/2005 Coll., Act no. 57/2006 Coll., Act no. 296/2007
Coll., Act no. 137/2008 Coll., Act no. 274/2008 Coll., Act no. 278/2009 Coll
., Law no. 281 / 2009 Coll., Act no. 341/2011 Coll., Act no. 18/2012
Coll., Act no. 160/2013 Coll., Act no. 239/2013 Coll., Act no. 303/2013 | || Coll., Act no. 354/2014 Coll. and Act no. 250/2016 Coll., is amended as follows:

First In § 3b paragraph. 1, after the word "premium" the words "in accordance with the conditions set
law regulating the insurance industry" and the words "

Namely the creation of sufficient assets source of which are technical
provision under the law regulating insurance-11a) "is deleted.

Footnote. 11a is deleted.

§ 2. In paragraph 3b. 2 ", and confirm the responsible insurance premiums
math-11b) of the correctness of the method of determining the amount of insurance" shall be deleted
.

Footnote. 11b is deleted.

3rd § 6 para. 2 at the beginning of the letter b) the words'
efficiently incurred costs related to health care and the injured animal. "

fourth in § 6 paragraph. 3, the words "Damage pursuant to paragraph 2. a) to c)
replacing "shall read" Unless otherwise agreed, the insurer
settlement to the extent and in the amount referred to in paragraph 2 ".

fifth in § 9, the following paragraph 6, which reads:

"(6) the investigation pursuant to paragraph 3 is not conditional upon the completion of proceedings under
paragraph 5, which is not subject to the decision on compensation for damage.
This does not affect the provisions of paragraph 2. ".

6. In § 9b paragraph. 6, the words" § 18 par. 9 "is replaced by" § 18.
10 ". || |
seventh § 10 including the title reads:

"§ 10

Insurer's right to reimbursement of the amounts paid

(1) The insurer against the insured has the right to compensation what for him
filled, if it proves that the insured

A) the harm caused intentionally,

B) regardless worthy reason failed to fulfill an obligation under the Act
regulating traffic on roads draw up a common
traffic accident or traffic accident report, which is vermin
events, and consequently was difficult or
precluded the possibility of a proper investigation of the insurer under § 9. 3 of this Act or the insurer
option to exercise the right to compensation indemnity

C) regardless worthy reason left the place of accident or otherwise
impossible to determine the actual cause of the accident

D) caused injury to the operation of a vehicle, which he used illegally,

E) regardless worthy reason failed to fulfill an obligation under § 8. 1-3
and consequently was difficult or impossible
opportunity for proper investigation of the insurer under § 9. 3,

F) irrespective of the reason, as a worthy vehicle driver refused to submit to challenge
Czech Republic Police
test for the presence of alcohol, narcotic or psychotropic drugs or medication labeled
ban on driving a motor vehicle

G) drove a car and did not hold an appropriate driving license, with the exception
driving by a person who is learning to drive a vehicle or consist
test of driving, and always under the supervision of a teacher or an authorized
driver trainer for individual training

H) drove the vehicle at the time he was suspended business activities
drive vehicle

I) driving a vehicle under the influence of alcohol, narcotic or psychotropic substances or drug
labeled prohibition to drive a motor vehicle or

J) handed over control of the vehicle the person referred to in subparagraphs g), h), i).

(2) The insurer against the insured has the right to compensation what for him
filled, if it proves that the insured violated the fundamental obligation
on the road that ran
vehicle | ||
A) that its construction or technical condition does not meet
safety on the road, serving the people
passengers and goods, or

B) the technical capability to operate the vehicles are not approved

And this violation was causally related to the occurrence of the harm that
insured is obliged to compensate.

(3) The operator of a vehicle shall be jointly and severally liable with the person pursuant to paragraph 1
insurer for a claim for compensation for amounts paid pursuant to paragraph 1
. g), h), i) and j), unless he proves that he could not conduct this
persons affected.

(4) The insurer is against the policyholder is entitled to reimbursement of the amount that
paid for the injury caused by the vehicle if its
cause was the fact that for knowingly false or incomplete answers
insurer could determine when arranging insurance, and that
was for an insurance contract is essential.

(5) Should the insured breach any of the obligations set out in § 8.
1 to 3, the insurer is entitled to require the reimbursement of costs associated with the investigation
insured event or other costs resulting from the breach
these obligations. This is without prejudice to the right of the insurer to cover
amounts paid pursuant to paragraph 1. E).


(6) The sum of compensation required under paragraphs 1 to 5 shall not be greater than the supply
paid by the insurer as a result of harmful events with which this right
insurer related. ".

Eighth in § 16b Sec. 4, at the end of the text of the first sentence the words "in the capital city of Prague
her district."

ninth in § 16b paragraph. 4, the words "point. c) "is replaced by" point. b) ".

10th in § 18 par. 1, the third sentence is replaced by the phrase" The activities of the Bureau
the relevant provisions of the law regulating the insurance industry. ".

11th in § 18 paragraph. 2 point. b) the word "operates" is replaced by
"negotiates" and the words "insurance" is inserted after the word "operates".

12th in § 18 paragraph 6 reads:

"(6) a member of the Office shall be liable for its debts, which has created the Office
corresponding assets, and in the same proportion as its
share in the total amount of the contributions of all members of the Bureau.
Data on their assets and liabilities office provides to its members and the Czech National Bank
.. "

Footnote. 22 is deleted.

13th In § 18 after paragraph 6 the following paragraph 7 is added:

"(7) a member of the Office shall take into account in their own
calculating the Solvency capital requirement in accordance with the law regulating insurance
risk of changes in the amount of the guarantee under paragraph 6. to this the office evaluates
purpose under the Act regulating all risks insurance, which is
exposed, this calculation provides members of the Office and the Czech national Bank
.. "

Former paragraphs 7 to 10 are referred to as paragraphs 8 to 11

14th in § 18 par. 11, first and second sentences are deleted.

15th In § 18, paragraph 12, which reads:
|| | "(12) to perform the tasks under this Act uses data from the Office
basic population register, data from records information system
population and data from the foreigners information system to the extent and under the conditions
according to the law regulating insurance similarly as the insurance company. ".

16th In § 25 par. 1, "Operation Bureau pursuant to § 18 par. 2 point.
A), b), d) and f)" is replaced by "Managing the guarantee fund pursuant to § 18 paragraph
. 2 point. ) and other activities of the Office pursuant to § 18 par. 2 point.
b), d) and f) and paragraph. 6, 7, 9 and 11 ".

17th In § 25 par. 2 first sentence, the word "measures" the words
"in order to remedy".

18th In § 25 par. 2, second sentence, the words "imposed measures"
inserted after the word "remedial".

19th In § 26 par. 2 at the end of the text of the first sentence the words "or legatee
".

20th In § 26, paragraph 3 shall be added:

"(3) If the vehicle is excluded from the property to the Trust Fund,
fulfill obligations under this Act the trustee.".
PART FIVE


Amendment to the Act on Financial Conglomerates
Article VIII


Act no. 377/2005 Coll., On Supplementary Supervision of Banks,
credit unions, insurance companies and securities dealers in
financial conglomerates and amending certain other laws (Act on Financial
Conglomerates), as amended by Act no. 57/2006 Coll., Act no. 138/2006 Coll
., Act no. 230/2006 Coll., Act no. 278/2009 Coll., Act.
281/2009 Coll., Act no. 139/2011 Coll., Act no. 37/2012 Coll., Act no.
89/2012 Coll., Act no. 91/2012 Coll., Law no. 228 / 2013 Coll., Act no. 241/2013 Coll
., Act no. 135/2014 Coll. and Act no. 186/2016 Coll., is amended as follows
:

First In § 5 para. 2 point. b) the words "required solvency margin"
replaced by "Solvency Capital Requirement."

Second In § 20 para. 1 the words "required solvency margin"
replace the words "Solvency Capital Requirement."
PART SIX


Amendment to the activities of institutions for occupational retirement provision
Article IX


Act no. 340/2006 Coll., On the activities of institutions for occupational retirement
insurance, as amended by Act no. 248/2008 Coll., Act no. 281/2009 Coll.
Law no. 260 / 2011 Coll., Act no. 241/2013 Coll., Act no. 336/2014 Coll.
And Act no. 205/2015 Coll., Is amended as follows:

First In § 10a para. 3 in the first sentence the words "have the training and experience necessary for
management of the institution" is replaced by "eligible".

Second In § 10a par. 3, third sentence, the words ", vocational attainment
education and experience required" is replaced by "and competence".

Third In § 10d paragraph. 3, the second sentence deleted.

Fourth In § 10d paragraph. 4 point. b) the words "correspond to the maximum technical

Interest rate set by the Czech National Bank pursuant to the law regulating
insurance "is replaced by" must be set realistically. "

Fifth in § 10e paragraph 2 reads:

" (2 ) For purposes of calculating the minimum amount of additional assets by
paragraph 1 shall apply solvency rules under § 10ga to 10gd.. "

sixth Under § 10g of the following new § 10ga to 10GE, including the heading || | added:

"Solvency rules

§ 10ga

(1) Institutions based in the Czech Republic according to § 10e paragraph. 1
constantly keeps an available solvency margin at least equal to the required extent
solvency with regard to the whole range of its activities.

(2) The available solvency margin includes the assets of the institutions headquartered in the Czech Republic
free from any foreseeable liabilities, less any intangible items
including

A) the paid-up capital,

B) assets not held for settlement of commitments made,

C) the profit or loss after deduction of dividends to be paid and

D) profit reserves appearing in the balance sheet to cover potential losses that
not intended for distribution to members or beneficiaries.

(3) The available solvency margin shall be reduced by the amount of own shares directly held
institutions based in the Czech Republic.

(4) The supervisory authority may, upon request, an institution based in the Czech Republic
decide that the available solvency margin also includes

A) Zillmerised or partially Zillmerised
Technical reserves and technical provision Zillmerised
equal to acquisition costs included in the premium, if
zillmerizace method is not used, or if it is less than acquisition
costs included in the premium; thus calculated value shall not exceed 3.5%
sum of the differences between the sums of life assurance and occupational retirement provision
and
technical reserves for all policies for which Zillmerising is possible, the difference is reduced
the amount of any undepreciated acquisition costs
included in the assets

B) any hidden net reserves arising from the valuation of assets, if not exceptional
nature or

C) one half of the unpaid share capital, if the paid-up part
capital amounts to 25% of the share capital, up to 50%
available solvency margin or the required solvency margin
according to § 10 gigabytes, according to whichever is lower.

(5) An application under paragraph 4 institutions based in the Czech Republic
accompanied by documentation demonstrating compliance with the conditions in paragraph 4.

§ 10 gigabytes

(1) The required solvency margin equals the sum of items

A) 4% of the technical reserves relating to liabilities from operating
occupational retirement provision, securing acceptances or
cessions ensure multiplied by the ratio of total technical
provisions net of reinsurance cessions to the gross total technical reserves
but at least 85% of the previous financial year, and

B) in the case of insurance contracts where risk insurance amount is not
negative figure, 0,3% of the sum insured multiplied by the ratio, which
shall not be less than 50% over the previous financial year, the total risk | || sum insured that you institutions based in the Czech Republic
charged to retained after reinsurance cessions and retrocessions to the total amount
risk premium including reinsurance; for short-term insurance
death of insured period not exceeding three years, 0.1% of the sum insured
indicated and 0.15% for the insurance period longer than 3
years but less than 5 years .

(2) For capital redemption operations referred to in Part A, paragraph VI of Annex no. 1 to
Act no. 277/2009 Coll., On Insurance, as amended,
the required solvency margin equal to 4%
technical provisions, calculated pursuant to paragraph 1. and).

(3) For operations under point V of Annex no. 2 to the Act no. 277/2009 Coll., On
insurance, as amended, the required rate
be equal to 1% of assets.

(4) In the case of insurance under Part A, section III and operations under Part A, points
VII and VIII of the Annex no. 1 to the Act no. 277/2009 Coll., On Insurance,
amended, the required solvency margin equal to the sum of the following items



A) the extent to which institutions based in the Czech Republic
bears the investment risk, 4% of technical provisions, calculated
pursuant to paragraph 1. a)

B) the extent to which institutions based in the Czech Republic
bears investment risk but the allocation to cover management expenses is fixed
for a period longer than 5 years, 1% of technical reserves
calculated pursuant to paragraph 1. a)

C) the extent to which institutions based in the Czech Republic
bears the investment risk and the allocation to cover management expenses is not fixed
for more than 5 years, the amount corresponding to 25% of the net administrative
cost of the previous financial year pertaining to such business, and

D) the extent to which institutions based in the Czech Republic
covers a death risk, 0,3% of risk calculated pursuant to paragraph 1
. b).

§ 10gc

(1) For supplementary insurance under Part A, section I, point. c) Annex no. 1
to Act no. 277/2009 Coll., on Insurance, as amended
regulations, the required solvency margin calculated on the basis yearlong
amount of premiums or contributions, or of the average
amount of claims for the past three financial years.

(2) The amount of the required solvency margin shall be equal to the higher of the results
referred to in paragraphs 3 and 4

(3) The premium basis shall be calculated using the higher of gross
written premiums or contributions, and gross earned premiums or contributions
. To sum payable premiums or contributions in direct
business in the previous financial year, including payments related
premiums or contributions, plus the total amount of premiums received
in the previous year. From this sum was deducted the total amount
premiums or contributions canceled in the previous financial year and
total amount of taxes and levies pertaining to the premiums or contributions
included in the aggregate. The amount so calculated is divided so that the first part
amounted to 50 million euros and the second rest, while 18%
first portion and 16% of the second shall be added together. This sum is multiplied by the ratio existing
for the previous three financial years between the amount of claims
performance, which carries institutions based in the Czech Republic, after deduction
recoverable under reinsurance and the gross amount of claims.
This ratio shall not be less than 50%.

(4) Basis of indemnity is calculated by adding together the amount
claims paid in respect of direct insurance
without deduction of claims borne by retrocessionaires or reinsurance for the period
accordance with paragraph 1. This the sum is added the amount of claims from
reinsurances or retrocessions accepted during the same period and the amount
reserves for outstanding claims established at the end of the previous reporting period
both direct insurance and reinsurance acceptances.
From this sum shall be deducted the amount of recoveries during the period referred to in paragraph 1
The remaining amount shall be deducted the amount of provisions for outstanding
claims established at the beginning of the second financial year preceding the last accounting
closed accounting
period as from direct insurance and reinsurance acceptances from. One third
thus obtained sum is divided so that the first portion amounted to 35 million euros and the rest
second part, the first part of the 26% and 23% of the second summed with
. This sum is multiplied by the ratio existing in the previous 3
financial year between the amount of claims borne by institutions
based in the Czech Republic, after deduction of transfers for reinsurance and the gross amount of claims
. This ratio shall not be less than 50%.

(5) If the required solvency margin as calculated in paragraphs 2-4
lower than the required solvency margin of the previous year, the required solvency margin
least equal to the required solvency margin in
previous year multiplied by the ratio the amount of technical reserves
claims outstanding at the end of the previous reporting period and
amount of technical provisions for claims outstanding at the beginning
previous financial year. In these calculations technical provisions
calculated net of reinsurance but the ratio may be greater than 1.

§ 10gd


Guarantee Fund

(1) One third of the required solvency margin in accordance with § 10 gigabytes and 10gc
constitute the guarantee fund. This fund consists of items under § 10ga
paragraph. 2, with the consent of the supervisory authority, also of items under § 10ga
paragraph. 4 point. b).

(2) The guarantee fund may not be less than € 3,000,000.

(3) The amount referred to in paragraph 2 shall be subject to review in the light of changes
European Index of Consumer Prices as published by Eurostat. Changing
amounts expressed in this Act in euro shall be applied no later than the date on which
expires 12 months from the date of publication of the European Commission
Official Journal of the European Union.

§ 10GE
Conversion of amounts


Amount expressed in this Act in euro during the period from 31
December to 30 December of the following calendar year
converted to an amount in Czech crowns at the foreign exchange market, which
Czech National Bank announced in October last year in which this
season starts. ".



PART SEVEN EFFECTIVENESS oF ARTICLE X



This Act shall the day of its publication. Hamáček vr





Zeman Sobotka