Rs 0.961.1 October 10, 1989 Agreement Between The Swiss Confederation And The Economic Community European Concerning Direct Insurance Other Than Insurance On Life (With Annexes, Protocol, Exchange Of Letters, Vat Statement And Final Act)

Original Language Title: RS 0.961.1 Accord du 10 octobre 1989 entre la Confédération suisse et la Communauté économique européenne concernant l’assurance directe autre que l’assurance sur la vie (avec annexes, protocole, échange de lettres, décl. et acte final)

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
0.961.1 original text agreement between the Swiss Confederation and the Community European economic concerning direct insurance other than the life insurance concluded on 10 October 1989, approved by the Federal Assembly on 30 January 1992, Instruments of ratification exchanged on June 24, 1992, entered into force on 1 January 1993 (State on September 24, 2002) provision of the agreement between the Confederation Switzerland and the Community European economic concerning direct insurance other than life insurance Section I provisions of Base art. 1 objective of the agreement this agreement is intended to establish, on a reciprocal basis, the necessary and sufficient conditions to allow the agencies and branches under the control of companies whose head office is located in the territory of a Contracting Party and who wish to settle or who are established in the territory of the other contracting party access to self-employment of direct insurance other than life insurance or to exercise this activity.

Art. 2 material scope Appendix n 1 defines classes of insurance, subject to the scope of this agreement.

Art. 3 exceptions to the material scope Appendix n 2 lists insurance, operations and companies not subject to the scope of this agreement.

Art. 4 application of the internal law in force in each Contracting Party is applicable: - to the points that are not governed by this agreement; - as well as issues pertaining to points governed by this agreement, insofar as they are not regulated by the agreement.

Art. 5 principle of nondiscrimination the contracting parties undertake to introduce and apply the provisions of this agreement according to the principle of non-discrimination.

Art. 6 supervisory authority within the meaning of this agreement, when it comes to the community, the supervisory authority is the competent authority of the Member State on whose territory the Head Office of the company or on the territory of which is located a branch or agency has access to the activity of direct insurance or this activity.

Section II Conditions of access art. 7 obligation of approval 7.1 each Contracting Party is subject to authorization given by the supervisory authority access to the activity of direct insurance in its territory of an enterprise who fixed his headquarters.
7.2 in addition, each Contracting Party is subject to authorization given by the control authority opening its territory to an agency or branch of a company whose head office is located on the territory of the other Contracting Party.
7.3 in addition, it is subject to authorization given by the control authority opening its territory to an agency or branch of a company whose head office is outside the territories to which this agreement applies according to article 43.

Art. 8 scope of accreditation 8.1 Accreditation is valid for the coverage of risks located throughout the territory under the jurisdiction of the authority which granted the approval unless insofar as the applicable law so permits, the applicant seeks permission to carry on business only in a part of this territory.
8.2 a risk is situated in the territory under the jurisdiction of a supervisory authority: - in the case of insurance buildings, or to buildings and their contents, insofar as it is covered by the same insurance policy, when the property is located on that territory; - in the case of insurance relating to vehicles of any kind , when the vehicle is registered in that territory; - in the case of a contract of a duration less than or equal to four months relative to risks incurred during a trip or a holiday, regardless of the branch concerned, when the licensee has subscribed the contract territory; - in all cases not explicitly covered by the previous indents When the policyholder has his habitual residence in that territory or, if the licensee is a legal entity, when the establishment of the person to which the contract relates is located on this territory.

8.3 approval is given by branch. It covers the entire branch, except if the applicant does not wish to ensure that part of the risk covered by that branch, as they are attached to the letter A of schedule n 1.
However:-the supervisory authority has the right to license for groups of branches referred to in the letter B of Appendix n 1 giving him the corresponding appellation which is expected; - the approval given to a branch or group of branches also applies to the guarantee of the ancillary risks included in another branch, if the conditions provided for in the annex C n 1 are met.

Art. 9 legal form Annex n 3 lists the legal forms that can adopt the company whose headquarters is located in the territory of a Contracting Party.

Art. Conditions of approval 10.1 10 each Contracting Party requires that a company with its head office in the territory of the other Contracting Party and seeking approval for opening its territory to an agency or branch fulfils the following conditions: has) Communication of its statutes and the list of its administrateurs.b) Production of a certificate issued by the authority of control of the Contracting Party in the territory of which the head office is located , attesting:-the company soliciting adopted one of the legal forms referred to annex n 3; - that the company limit its objects to the activity of insurance and operations which therefrom directly, excluding any other commercial activity; - the branches that the company is authorized to offer; - that it has the minimum level of guarantee referred to in paragraph 3.2 of Protocol No. 1 or (, as appropriate, of the minimum solvency margin calculated in accordance with paragraph 2.2 of the same protocol, if the minimum solvency margin is higher than the minimum of the guarantee fund; - risk it guarantees actually;-the existence of financial resources referred to in the letter f) of article 1 of Protocol No 2.

(c) presentation of the programme of activities in accordance with Protocol No 2, with the balance sheet and the profit and loss account of the undertaking for each of the last three financial. However, when the company has less than three financial years, it must provide for closed fiscal years, if it is:-the creation of a new company resulting from the merger of existing companies. -or of the creation of a new company by one or more existing businesses in order to practice a branch of insurance determined, previously operated by one of the companies concerned.

(d) appointment of a general representative having his domicile and residence in the territory under the jurisdiction of the authority of the Contracting Party concerned and with sufficient powers to commit the company to third parties and to represent it to the authorities and the courts of that Contracting Party. If legal provisions of a Contracting Party admit that the agent is a corporation, it must have its head office in that party and appoint in turn, to represent it, a natural person fulfilling the above conditions.

10.2 this agreement does not preclude that contracting parties apply provisions which provide for all companies the need, during the approval, approval of General conditions and special insurance policies, prices and any other document necessary for the normal exercise of control.
However, for the risks referred to in paragraph 2.1 of Protocol No 2, the contracting parties do not provide for provisions requiring approval or systematic disclosure of General and special insurance policy conditions, rates and forms and other printed that the company intends to use in its dealings with decision-makers. In order to monitor compliance with the legislation, administrative or regulatory relating to these risks, they may require that the communication is not systematic of these conditions and other documents, although this requirement cannot constitute a condition precedent to the exercise of its activity for the company.
Within the meaning of this agreement, the General and special policy conditions do not include specific conditions intended to meet in a case determined in the particular circumstances of the risk to be covered.
This agreement doesn't do nor obstacle to that contracting parties submit companies seeking approval for the branch 18 of the letter A of schedule n 1 means direct or indirect control in staff and equipment, including the qualification of medical teams and the quality of the equipment available to them to meet their commitments under this branch.

Art. 11 grant of approval 11.1 each Contracting Party undertakes to grant the approval if the conditions provided for in article 10 are met and provided that respected the other provisions which are subject to companies whose head office is located on its territory.

11.2 the contracting parties do not depend on the approval of a deposit or a bond.
11.3 in addition, the contracting parties undertake that any application can be considered the economic needs of the market.
11.4 the general designated agent may be disqualified by the supervisory authority for reasons related to repute or technical qualifications.

Art. 12 extension of the scope of accreditation 12.1 each contracting party make subject to a new approval any extension of activity was the subject of a first approval under the provisions of articles 7 and 8.
12.2 each Contracting Party requires, for the expansion of the activities of the agency or branch, either to other branches, or in the case referred to in paragraph 8.1, that the applicant of approval presents a program of activity in line with Protocol No. 2 and provide the certificate referred to in the letter b) paragraph 10.1.

Art. 13 13.1 accreditation procedure accreditation must be requested from the control authority, the company whose headquarters is located in the territory of the other Contracting Party.
13.2 the programme of activities in accordance with Protocol No 2, along with observations of the control authority to give approval, is transmitted by the latter to the supervisory authority of the Contracting Party in the territory of which the head office is located.
It made its opinion at the first, within three months of receipt of the documents. In the case of silence at the end of this period, the opinion of the Authority consulted is deemed favourable.
13.3 the control authority from whom approval was sought the company soliciting notify its decision is relative at the latest on the expiry of a period of six months after receipt of the application for approval.

Art. 14 refusal of accreditation 14(1) any decision of refusal of approval must be justified and notified to the undertaking concerned.
14.2 each Contracting Party provides for an appeal against any decision to refuse. The same remedy is provided for the case where the supervisory authority would not rule on the application for approval to the expiry of a period of six months from the date of receipt.

Section III conditions under art. 15 choice of assets contracting parties not prescribe any rules as to the choice of the assets that need those representing technical reserves that are the subject of articles 19 to 23. Subject to the provisions of paragraph 18.2 and articles 20, 21 e 23 so that paragraphs 29.2 and 29.3, the contracting parties restrict the disposal of movable or immovable assets making part of the heritage companies.

Art. 16 constitution of the solvency margin 16.1 each Contracting Party requires any company whose headquarters is located on its territory the constitution of a solvency margin sufficient relative to all its activities.
16.2 the definition and the methods of calculation and representation of this solvency margin and the minimum guarantee fund setting are set out in Protocol No 1.

Art. 17 17.1 solvency State control authority of the Contracting Party in the territory of which the Head Office of the company is situated must verify the State of solvency of the company for all its activities.
17.2 the controlling authority of the other Contracting Party is obliged to provide all information necessary to enable him to ensure that audit, if she gave the company approval to open an agency or branch.
17.3 each Contracting Party requires companies having their headquarters on its territory to report annually, for all their operations, their situation and their solvency and, regarding the coverage of risks classified under branch 18 of the letter A in annex n 1, other means available to them to honour their commitments insofar as its law provides for control of these means.

Art. 18 financial recovery 18.1 for the restoration of the financial situation of a company whose solvency margin does not reach the minimum prescribed in paragraph 2.2 of Protocol No. 1, the control authority of the Contracting Party in the territory of which the head office is located requires a reorganization plan to be submitted for its approval.
18.2 If the solvency margin does not reach the guarantee fund defined in article 3 of Protocol No. 1, the controlling authority of the Contracting Party in the territory of which the Head Office of the company is requires it a short-term financing plan to be submitted for its approval.
In addition, it may restrict or prohibit the free disposal of the assets of the company. It shall inform the supervisory authority of the Contracting Party in the territory of which this company has approved branches or agencies. That authority, at its request, take the same measures.
In the hypothesis contemplated in this paragraph, the supervisory authority may also take any measure to safeguard the interests of policy holders.

Art. 19 constitution of technical reserves 19.1 each Contracting Party in the territory in which a company operates requires it to establish sufficient technical reserves.
19.2 the amount of reserves is determined according to the rules laid down in each Contracting Party or otherwise according to the established practices in each Contracting Party.
19.3 in addition, each Contracting Party requires any company established on its territory and covering of risks is included in the branch 14 of the letter A in annex n 1 (credit insurance) a balancing reserve which will serve as a loss technical potential or the rate of higher than average loss appearing in this branch at the end of the year.
Appendix n 5 contains the methods of calculation of the balancing reserve and the conditions for exemption from the obligation to fund such a provision.
The balancing reserve should be calculated according to the rules laid down by each Contracting Party, in accordance with one of the four methods set out in annex n 5 and considered equivalent. A competition of the amounts calculated in accordance with the methods, the reserve balance is not being applied on the solvency margin.
The company must keep available to the controlling authority of accounting stating and technical results and the technical provisions related to this activity.

Art. 20 congruence and location of the representation of 20.1 technical reserves technical reserves must be represented by equivalent and congruent localized assets on the territory under the jurisdiction of the authority of each Contracting Party. However, each Contracting Party may grant relaxations in the rules of congruence and the location of assets.
20.2 by "congruence", he must hear the representation of the due commitments in a currency by assets expressed or realizable in the same currency.
20.3 by "localization of assets" means the presence of movable or immovable assets in the territory under the jurisdiction of the authority of the Contracting Party concerned without so long as movable assets shall be subject to a deposit and that real estate assets must be subject to restrictive measures such as the registration of mortgage. Assets represented by claims are considered to be located in the territory under the jurisdiction of the supervisory authority of the Contracting Party where they are feasible.
Subject to these provisions, the terms of location are the regulation of each Contracting Party.

Art. 21 definition of the representation of the technical reserves 21.1 the regulations in force in each Contracting Party in the territory in which a business operates, defines the nature of the assets, and if necessary, the limits within which they may be admitted representing technical reserves, as well as the rules for valuation of these assets.
21.2 the 'nature of the assets' include different categories of real estate and securities and their specific differentiations such as those relating to the debtor which emanates the debt part of the representation of the technical reserves.
21.3 If a Contracting Party accepted the representation of technical reserves by claims on reinsurers, it sets the allowed percentage or arranges to be fixed. It cannot in this case, notwithstanding what is provided in paragraph 20.1, require the location of these receivables.

Art. 22 review the supervisory authority of the Contracting Party on the territory of which the Head Office of an enterprise is located shall ensure that the balance sheet of the company present to the technical reserves assets equivalent to commitments in all countries where it operates.

Art. 23 failure to comply with requirements about technical reserves


If an agency or branch does not comply with the provisions referred to in articles 19 to 21, the supervisory authority of the Contracting Party in the territory in which it operates can ban, after having informed of the intention of the supervisory authority of the Contracting Party on whose territory lies the headquarters, the free disposal of assets located within its territory.
The supervisory authority of the Contracting Party in the territory of which the agency or branch concerned carries on its activity, can also take any measure to safeguard the interests of policy holders.

Art. 24 portfolio transfer 24.1 in the conditions provided for by the law in force in each Contracting Party concerned, the controlling authority permits companies established in the territory within its jurisdiction to transfer all or part of their portfolios of contracts to an assignee that is established in the same territory as the transferor undertaking, if the supervisory authority of the Contracting Party in the territory of which the Head Office of the assignee is located attests that it has taking into account the transfer of the necessary solvency margin.
24.2 the transfer authorized in accordance with subsection 24.1 is being, in the territory under the jurisdiction of the supervisory authority of the Contracting Party where the assignor and the assignee are established, a measure of advertising under the conditions provided for by the law in force in each Contracting Party concerned. This transfer is opposable right to policyholders, policyholders, as well as any other person having rights or obligations arising out of the contracts transferred. However, this paragraph does not obstacle to what in each of the contracting parties of the provisions provide for the faculty, for policyholders, to terminate the contract within a period of time determined from the transfer.

Art. 25 approval of the conditions and the rate of 25.1 this agreement does not preclude that contracting parties apply the provisions which provide for all enterprises and all branches the need, during the fiscal year, approval of General conditions and special insurance policies, prices and any other document necessary for the normal exercise of control.
However, for the risks referred to in paragraph 2.1 of Protocol No 2, the contracting parties do not provide for provisions requiring approval or systematic disclosure of General and special insurance policy conditions, rates and forms and other printed that the company intends to use in its dealings with decision-makers. In order to monitor compliance with the legislative, administrative provisions or regulations related to these risks, they may require that the communication is not systematic of these conditions and these other documents.
For these risks, the contracting parties may maintain or introduce prior notification or approval of the rate increases proposed that as part of a general price control system.
25.2 this agreement doesn't do nor obstacle to that contracting party submit the companies that received approval for the branch 18 of the letter A of schedule n 1 means direct or indirect control in staff and equipment, including the qualification of medical teams and the quality of the equipment available to them to meet their commitments under this branch.
25.3 in the sense of this agreement, the General and special conditions fonts do not include specific conditions intended to meet in a case determined in the particular circumstances of the risk to be covered.

Art. 26 documentation contracting parties require companies operating on their territory, the provision of documents which are necessary for the exercise of control, as well as the statistical documents and, with regard to the coverage of risks classified under branch 18 of the letter A of schedule n 1, they specify the means available to them to honour their commitments where their laws provide for a control of these means.

Section IV revocation art. 27 conditions to withdraw the authority of a Contracting Party may withdraw from a company with its head office in the territory of the other contracting party accreditation she gave him to open an agency or branch, when the agency or branch: has) no longer meets the conditions for access forgotten the source) lack seriously the obligations imposed under the regulation which is applicable , especially with regard to the constitution of technical reserves.

Art. 28 the removal procedure 28.1 prior to the withdrawal of approval, the control authority consults the supervisory authority of the Contracting Party on whose territory the Head Office of the company is.
If it considers to have to suspend the activity of an agency or branch referred to in article 27 before the end of this consultation, it shall immediately inform that same authority.
28.2 any decision of withdrawal of accreditation or suspension of activity must be justified and notified to the undertaking concerned.
28.3 each Contracting Party provides for an appeal against such a decision.

Art. 29 withdrawal of approval granted to 29.1 headquarters when the supervisory authority of a Contracting Party in the territory of which the head office is located off approval it has provided to the company, it shall notify the control authority of the other Contracting if it granted an approval to open an agency or branch. This last authority must also to the withdrawal of its approval.
29.2 in the case referred to in paragraph 1, the control authority of the Contracting Party in the territory of which the head office is located takes with the competition authority of the other Contracting Party of any measure to safeguard the interests of policy holders and restricts the free disposal of the assets of the company including when this step has not already been taken in application of paragraph 18.2 and article 23.
29.3 29.1 paragraphs and, where appropriate, 29.2 shall apply also when the company voluntarily renounce the authorisation which has been granted.

Section V cooperation of supervisory authorities art. 30 terms for collaboration contracting parties take all necessary measures to allow their supervisory authorities to work closely as part of the implementation of this agreement.

Art. 31 objectives of collaboration 31.1 control authorities are working together to check the respect by companies of such financial guarantees as defined in articles 16 and 19 to 21, and in particular for enforcement of the measures referred to in articles 18 and 23.
31.2 in the case where companies are allowed to cover the risks classified under branch 18 letter Appendix No. 1, they also work together to check the resources of these companies to conduct assistance operations that they are committed to perform, where their laws provide for a control of these means.

Art. 32 exchange of information control authorities shall communicate all documents and information relevant to the exercise of control.

Art. 33 33.1 secrecy obligation articles 30 to 32 cannot in any circumstances be interpreted as imposing one of the supervisory authorities the obligation to transmit information that would reveal a trade secret of the company or information the disclosure of which would be contrary to public order.
33.2 However, the secrecy rules which are subject to the supervisory authorities must not obstruct the cooperation of these authorities and mutual assistance provided for by this agreement.
33.3 the information exchanged may only be used by those authorities to accomplish their mission of control.

Section VI General provisions and final art. 34 special provisions and country companies third 34.1 Appendix No. 4 contains special provisions for certain Member States of the community.
34.2 Protocol No. 4 contains the provisions applicable to the agencies and branches of companies whose head office is located outside the territories to which this agreement applies according to article 43.

Art. 35 integral parts of the agreement, the annexes, protocols and exchanges of letters annexed to this agreement form part.

Art. 36 breaches to 36.1 obligations the parties refrain from any measure likely to jeopardize the achievement of the objectives of this agreement.
36.2 they take all General or specific specific to ensure performance of the obligations arising from this agreement.
If a Contracting Party considers that the other Contracting Party has breached a duty arising out of this agreement, the procedure referred to in paragraph 37.2 is applicable.

Art. 37 Joint Committee


37.1 shall be set up a Joint Committee, composed of representatives of the Switzerland and representatives of the community, which is responsible for the management of the agreement, its good performance and decisions in the cases provided for therein. The Committee shall act by mutual agreement.
37.2 for the purposes of the execution of the agreement, the contracting parties are to exchange information and, at the request of one of them, consult each other within the Joint Committee. The exercise of the control referred to in section V, is not its jurisdiction.
37.3 the Joint Committee shall establish its rules of procedure.
37.4 the Joint Committee Presidency is held in turn by each of the contracting parties in a manner to be provided in its rules of procedure. At the request of one of the contracting parties and under conditions to be provided in its rules of procedure, he meets when convened by its president whenever a particular need requires.
The Joint Committee may decide to set up any working group to assist it in the performance of its tasks.

Art. 38 38.1 If dispute settlement a dispute were to arise between the contracting parties about the functioning of this agreement and particularly its interpretation or its execution and that this dispute can be settled neither by the cooperation of the supervisory authorities, referred to in section V, or by the Joint Committee referred to in article 37 the contracting parties shall consult through diplomatic channels.
38.2 If the dispute could not be resolved by the procedures provided for in subsection 38(1), it will be submitted, at the request of one or other of the parties to an arbitral tribunal of three members. This Court may be seized at the earliest after a period of two years from the first referral to the Joint Committee referred to in article 37, unless the parties agree to a mutual agreement to submit, before the expiry of that period, their audit court dispute. Each Party shall appoint an arbitrator. The two appointed arbitrators will appoint an umpire who shall be a national of one of the Member States of the community or the Switzerland.
38.3 if one of the contracting parties has not designated its arbitrator and that she did not following the invitation made by the other party to proceed in two months to this designation, the arbitrator will be appointed at the request of that party, by the President of the International Court of justice.
38.4 If the two arbitrators are unable to agree, within two months following their appointment, on the choice of an umpire, at the request of one of the parties, it shall be appointed by the President of the International Court of justice.
38.5 If, in the cases provided for in paragraphs 38.3 and 38.4, the President of the International Court of justice is prevented or if he is a national of the Switzerland or one of the States members of the community, appointments will be made by the Vice-president. If this is prevented, or if he is a national of one of the Member States of the community or the Switzerland, appointments will be made by the oldest Member of the Court who is a national of one of the Member States of the community or the Switzerland.
38.6 unless the parties provide otherwise, the court sets itself the rules of its procedure. He makes decisions by a majority of votes.
38.7 the tribunal's decisions are binding on the contracting parties.

Art. 39 development of internal law 39.1 agreement does not prejudice the right of each Contracting Party to change, subject to respect for the principle of non-discrimination and the provisions of this article, its internal legislation of independently on a point regulated by this agreement.
39.2 as soon as a Contracting Party has begun the process of adopting a draft amendment to its legislation internal, concerning the conditions of access and exercise, through the establishment, of the business of direct insurance other than life insurance, it shall inform the other Contracting Party through the Joint Committee referred to in article 37. The Joint Committee to an exchange of views on the implications of such a change would lead to the effective functioning of the agreement.
39.3 upon adoption of the amended legislation, and at the latest 8 days after it, the Contracting Party concerned shall notify the other Contracting Party the text of these provisions.
39.4 in order to ensure legal certainty, a period of at least 12 months from the adoption of the amended legislation shall be provided by the Contracting Party concerned for the implementation of any change in legislation that deviates from the provisions of the agreement.
39.5 the Joint Committee of any changes in legislation which is the subject of the procedures referred to in paragraphs 39.2 and 39.3 and, in the view of one or the other of the contracting parties, deviates from the provisions of the agreement. The Joint Committee shall meet no later than 6 weeks after the notification provided for in paragraph 39.3.
39.6 the Joint Committee:- either adopt a decision revising the provisions of the agreement to include, as needed on a basis of reciprocity, the amendments in the legislation concerned;- either, provided that ensured an equivalent protection of the insured compared to that provided for by the agreement, shall adopt a decision to the effect that the changes of the legislation in question : are deemed in accordance with the agreement;- or decide any other measures to safeguard the good functioning of the agreement.

39.7 decisions of the Joint Committee are published in the official collection of federal law as well as in the Official Journal of the European communities. Each specific decision the date of its implementation in the two contracting parties and any other information likely to be of interest to economic operators. Decisions are submitted as needed for ratification or approval of the contracting parties according to specific procedures. The contracting parties shall notify to the fulfilment of this formality. If, at the end of the defined time period in subsection 39(4), such notification did not intervene, the decisions of the Joint Committee are applied provisionally until their ratification or approval by the contracting parties. If one or the other contracting party notifies the ratification or the failure to approve of a decision of the Joint Committee, 39.8 paragraph shall apply by analogy from this notification.
39.8 if the Joint Committee does not reach agreement on the decisions to be taken within a period of 6 months from the date of referral in accordance with paragraph 39.5, the agreement is deemed completed the day of enforcement, pursuant to subsection 39(4), the legislation concerned, to which the provisions of section 38 shall not apply. The provisions of paragraph 42.2 shall apply by analogy.

Art. 40 review of the agreement in 40.1 if a Contracting Party wishes to a revision of the agreement, she requested the other Contracting Party to open negotiations to that effect. This application is made through diplomatic channels.
40.2 the changes made to this agreement take effect according to the procedure laid down in article 44.
40.3 However, the changes made in the annexes, protocols and exchanges of letters annexed to this agreement, shall be adopted by the Joint Committee referred to in article 37, which fixed the date of their entry into force.

Art. 41 areas not covered by the agreement 41.1 where a Contracting Party considers that it would be useful, in the interest of both contracting parties to develop the relations established by the agreement by extending activities of private insurance not covered by it, she offers to another party to open negotiations to that end 41.2 agreements resulting from the negotiations referred to in paragraph 41.1 are subject to ratification or approval by the contracting parties under the procedures that are own.

Art. 42 denunciation 42.1 each Contracting Party may at any time denounce this agreement by notification to the other Contracting Party. The agreement ceases to be in force twelve months after the date of this notification.
42.2 in the event of termination, the contracting parties regulate, by mutual agreement, the situation of the companies that received approval in accordance with article 11.1. Failing agreement at the end of the twelve months referred to in subsection 42.1, these companies will be subject to the Statute applicable to those of third countries. However, the contracting parties are already committed to that approval obtained in accordance with paragraph 11.1 is not removed the economic needs of the market for a period of at least five years from the date on which this agreement ceases to be in force.

Art. 43 scope territorial this agreement applies, on the one hand, to the territory of the Swiss Confederation, and, on the other hand, to the territories where the Treaty establishing the European Economic Community's application and under the conditions laid down by that Treaty.

Art. 44 entry into force 44.1 this agreement, which was negotiated in the French language is written in duplicate in German, French, Italian, English, Danish, Spanish, Greek, Dutch and Portuguese languages, each of these texts being equally authentic.

44.2 the agreement will be ratified or approved by the contracting parties according to specific procedures.
44.3 the present agreement comes into force the first day of the calendar year following the exchange of instruments of ratification or approval, provided that this exchange takes place at the latest one month before that date.
However, the contracting parties may, during the exchange of the instruments of ratification or approval, determine by mutual agreement a different date of entry into force of the agreement, date which, in this case, will be immediately published.
In faith, the undersigned Plenipotentiaries have affixed their signatures below this agreement.
Done in Luxembourg, on 10 October one thousand nine hundred and eighty-nine.

Appendix n 1 Classification of the branches of insurance, subject to the scope of the agreement A. Risk Classification by branches 1.Accidents (including work accidents and occupational diseases) - flat-rate benefits, - indemnity benefits, - combinations -, passengers.
2.maladie - flat-rate benefits, - indemnity benefits, - combinations.
3. land vehicles (other than rail) damage suffered by: - self-propelled land vehicles, - non-automoteurs land vehicles.
4. vehicles rail damage suffered by rail vehicles.
5.Corps of vehicles air any damage suffered by the air vehicles.
6.Corps of sea, Lake and river vehicles damage suffered by:-vehicles River - Lake -, maritime vehicles.
7.marchandises transported (including merchandise, baggage, and all other goods) any damage suffered by the goods or luggage, regardless of the means of transport.
8.incendie and natural elements any damage suffered by the property (other than property included in 3, 4, 5, 6 and 7 branches) when it is caused by: - fire - explosion - storm, - natural elements other than the storm, - nuclear energy - subsidence and landslide.
9.autres damage to property damage suffered by the property (other than property included in 3, 4, 5, 6 and 7 branches) when this damage is caused by hail or frost, and any event such as theft, other than those included under 8.
Civil 10.responsabilite for motor land vehicles liability resulting from the use of self-propelled land vehicles (including the liability of the carrier).
Civil 11.responsabilite for vehicles air any liability arising out of the use of aerial vehicles (including the liability of the carrier).
Civil 12.responsabilite for vehicles marine, Lake and River all liability arising out of the use of river, Lake and sea vehicles (including the liability of the carrier).
General Civil 13.responsabilite any responsibility other than those mentioned under Nos 10, 11 and 12.
14.credit - General insolvency, - export credit -, instalment, - mortgage -, agricultural credit sale.
15.caution - direct deposit -, indirect deposit.
Various financial 16.Pertes - risks of job -, insufficiency of income (General), - weather, - loss of profits, - persistence of overhead -, spending unanticipated commercial, - loss of the market value, - loss of rent or revenue, - indirect trading losses other than those mentioned above, - non-commercial pecuniary loss, - other pecuniary loss.
Legal 17.Protection Legal Protection.
18.assistance ongoing support to people in difficulty during travel or absences from the home or place of residence.
The risks included in a branch cannot be classified in another branch except in the cases referred to in the letter C.

B. name of approval given simultaneously to several branches when approval is both: a) on the branches 1 and 2, it is given under the name "Accident and sickness"; b) on branches 1 fourth indent), 3, 7 and 10, it is given under the name of "Automobile insurance"; c) on the branches 1 fourth indent), 4, 6, 7 and 12, it is given under the name 'Marine insurance and transport'; d) on the branches 1 fourth indent) ((((, 5, 7 and 11, it is given under the name "Aviation insurance"; e) on the 8 and 9 branches, it is given under the name 'Fire and other damage to property'; f) on the branches 10, 11, 12 and 13, it is given under the name "Responsa-bility" civil; g) on the 14 and 15 branches, it is given under the name 'Credit and deposit'; h) on all branches It is given under the name (s) selected (s) by the Contracting Party concerned, which will be or will be communicated to the other Contracting Party.

C. ancillary risks the company obtaining approval for a principal risk belonging to a branch or group of branches can also guarantee risk in another branch without that approval is required for these risks, when they: - are linked to the main risk - concern the object which is covered against the principal risk, and - are guaranteed by the contract that covers the main risk.

However, the risks included in the branches, 14, 15 and 17 can be regarded as risks ancillary to other branches.
However, the risk included in the legal branch 17 (insurance-protection) can be considered as a risk ancillary branch 18 when the conditions set out in the first paragraph of the letter C of this annex are met and that the main risk relates only to assistance provided to people in difficulty during travel or absences from the home or the permanent place of residence.
Legal protection insurance may also be regarded as a risk ancillary to the conditions set out in the first paragraph of the letter C of this annex where it concerns disputes or risks resulting from the use of sea vessels that are related to this use.

D. Assistance 1. The assistance activity concerns the assistance provided to people in difficulty during travel or absences from the home or permanent place of residence. It is to take, on prior payment of a premium, the commitment to immediately aid available to the beneficiary of a support contract when the focus is in trouble as a result of a fortuitous event, in the cases and under the conditions provided for by the contract.
Assistance may be in cash or in-kind benefits. Benefits in kind can also be provided by the use of staff or equipment specific to the provider.
The assistance activity does not cover maintenance or maintenance, after-sales services and the mere indication or provision, as an intermediary, of assistance.
2. each Contracting Party may subject assistance activities to people in distress on its territory, in other circumstances than those specified under 1 in the scheme established by this agreement. If a Contracting Party makes use of this option, it equates, for the purposes of this application, these activities to those classified under branch 18 letter Appendix n 1 without prejudice to the letter C thereof.
This will not affect anything the possibilities of classification set out in annex n 1 for activities that are clearly other branches.
Approval sought for an agency or a branch by a company whose head office is located on the territory of the other Contracting Party may be refused on the sole ground of a difference in ranking of the activities covered by the present figure in the Contracting Party in the territory of which the company has its headquarters.

Update according to art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).

State on September 24, 2002 annex n 2 Definition of insurance, operations and companies not subject to the scope of the agreement A. Exclusion of insurance agreement does not: 1. life insurance, i.e. one that includes life insurance, insurance in case of death, the endowment insurance, insurance on the life with premiums, tontines, marriage assurance , birth insurance; 2. insurance annuity; 3. supplementary insurance carried out by life insurance companies, i.e. insurance with bodily, including the inability of professional work, the insurance-death accident, accident and sickness disability insurance, when these various insurances are underwritten addition to life insurance; 4. insurance included in a statutory security social; 5. insurance practised in Ireland and the United Kingdom, referred to as "perma-lead health insurance" (health insurance, long term, non-cancellable).

B. Exclusion of operations this agreement does not concern:


1. capital redemption operations, as defined by the law of each Contracting Party; 2. operations of the of foresight and relief agencies whose benefits vary according to the resources available and in which the contributions of the members is determined overall; 3. the operations carried out by an organization with no legal personality and which are intended the mutual guarantee of its members, without giving rise to the payment of premiums or stockpiling technical; 4. the operations of export credit insurance for the account or with the guarantee of the State, or where the State is the insurer; 5. the assistance activity in which the commitment is limited to the following operations, carried out on the occasion of an accident or a failure affecting a vehicle road and occurred normally on the territory under the jurisdiction of the authority of the party in which the provider of the guarantee is established:-Troubleshooting on site, for which the provider uses, in most circumstances , its staff and its own equipment, - the delivery of the vehicle to the location of the nearest or the most appropriate repairs where repairs may be carried out and the possible accompaniment, normally by the same means of relief, the driver and passengers to the nearest location from where they may continue their journey by other means, if the provisions in force in the territory under the jurisdiction of the authority which has granted the approval to the provider of the warranty so provide, the delivery of the vehicle, possibly accompanied by the driver and passengers, to their home, their point of departure or their original within this same territory destination, unless these operations are performed by a company subject to the agreement.
In the cases referred to in the first two indents, the condition that the accident or breakdown occurred in the territory under the jurisdiction of the supervisory authority of the Contracting Party in which the provider of the guarantee is established: a) does not apply where the latter is a body which the beneficiary is a member and troubleshooting or the delivery of the vehicle is made on presentation of membership card (without payment of additional premium by a similar body of the same or of another Contracting Party on the basis of a reciprocal agreement; b) does not prohibit the provision of such assistance in Ireland and the United Kingdom by the same body operating in these two States.

In the case referred to in the third indent, if the accident or breakdown occurred on the territory of the Ireland or, with regard to the United Kingdom, in the territory of the Ireland of the North, the vehicle, possibly accompanied by the driver and passengers, can be routed to the home, point of departure or to the original destination of these inside one or the other of these territories.
In addition, the agreement does not concern assistance operations carried out on the occasion of an accident or a failure affecting a road vehicle and consisting in the delivery of the vehicle or crashes outside the Grand Duchy of Luxembourg, possibly accompanied by the driver and passengers, to their home, when these operations are carried out by the Automobile Club of the Grand Duchy of Luxembourg.
Companies subject to the agreement may engage in the activity referred to in the present figure that if they received approval for the branch 18 of the letter A of schedule n 1, without prejudice to the letter C thereof. In this case, the agreement applies to these operations.

C. Exclusion of companies in specific situations this agreement does not concern: 1. companies that meet the following conditions: - the company has no subject to another agreement under branch 18 of the letter in annex n 1, - this activity is limited to a purely local level and consists only of benefits in kind, and - the annual amount of revenue to the title of the activity of assistance to persons in distress does not exceed EUR 200 000.

2. for companies headquartered in Switzerland: the companies which, at the time of the entry into force of this agreement, the summoned the premiums collected annually in respect of the activities covered by this does not exceed to 3 million Swiss francs and whose activity is limited to the territory of Switzerland, as long as they meet these conditions. Once subject to the regime of the agreement, a company can no longer rely on this exception even if she were to meet both conditions susmentionnees.3. for companies having their head office in the community: mutuals which both: - the Statute provides the possibility to proceed with reminders of contributions or reducing their benefits, - activity does not cover liability risks - unless these constitute a collateral warranty within the meaning of the letter C of annex n 1 - or credit and surety risks , - the annual amount of the membership fees collected in respect of the activities covered by this agreement exceeds not one million euros, and - at least half of the fees collected in respect of the activities covered by this agreement comes from the mutual affiliates.

Mutuals which concluded with a company the same nature a convention with the full reinsurance of the insurance contracts they subscribe or the substitution of the company transferee at the company supplying for the implementation of the commitments resulting from such contracts.
In this case, the transferee company is subject to this agreement.

D. Exclusion of specific companies this agreement does not, except amendment of their statutes about the competence, the companies mentioned under 1 and 2.
The territorial jurisdiction of the undertakings referred to under 1 and 2B) is not considered as modified in the case of a merger or Division of such firms having effect of maintaining for the benefit of the new or new companies the territorial jurisdiction of the split organization or organizations merged; Similarly, the jurisdiction as exercised branches is not considered as modified if one of these bodies resumes for the same territory one or several branches of one of the agencies involved.
1. in Suisseles cantonal public law bodies following, enjoying a monopoly: has) Aargau: Aargauisches Versicherungsamt, Aarau b) Appenzell except-Rhoden: Brand-und Elementarschadenversicherung Appenzell AR, Herisau c) Basel-Land: Basellandschaftliche Gebaudeversicherung, Liestal d) Basel-Stadt: Gebaudeversicherung of Basel - Stadt, Basel e) Bern/Berne school: Gebaudversicherung of the school Bern, Bern / property insurance of the canton of Berne, Berne f) Fribourg/Freiburg: cantonal institution of insurance of the bed-ments of the canton of Fribourg (((((, Fribourg / Kantonale Gebaudeversicherungsanstalt Freiburg, Freiburg g) Glarus: Kantonale Sachversicherung Glarus, Glarus h) Graubünden / Grigioni/Grischun: Gebaudeversicherungsanstalt of the school of Graubünden, Chur/Istituto of assicurazione fabbricati del cantone dei Grigioni, Coira / Institute dil cantun Grischun per assicuranzas da baghetgs, Cuera i) Jura: property insurance of the Republic and canton of Jura, Saignelégier j) Luzern: Luzern, Luzern k school Gebaudeversicherung) Neuchâtel: cantonal property insurance establishing the fire ((((((((, Neuchâtel l) Nidwalden: Nidwaldner Sachversicherung, Stans m) Schaffhausen: Gebaudeversicherung of the school Schaffhausen, Schaffhausen n) Solothurn: Solothurnische Gebaudeversicherung, o Solothurn) St. Gallen: Gebaudeversicherungsanstalt of the school of St. Gallen, St. Gallen p) Thurgau: Gebaudeversicherung of the Thurgau, Frauenfeld q school) Vaud: establishment of insurance against fire and natural elements of the canton of Vaud, Lausanne r) Zug: Zug, Zug s school Gebaudeversicherung) Zurich: Gebaudeversicherung Kanton Zürich Zürich 2. in the community a) to the DanemarkFalcks Redningskorps A/S, København b) in Germany - the following public bodies, enjoying a monopoly (Monopolanstalten): aa) Badische Gebaudeversicherungsanstalt, Karlsruhebb) Bayerische Landesbrandversicherungsanstalt, Munchencc) Bayerische Landestierversicherungsanstalt, Schlachtviehversicherung, Munchendd) Braunschweigi Landesbrandversicherungsanstalt, Braunschweigee) Hamburger Feuerkasse, Hamburgff) Hessische Brandversicherungsanstalt (Hessische Brandversicherungskammer), Darmstadtgg) Hessische Brandversicherungsanstalt, Kasselhh) Lippische Landesbrandversicherungsanstalt, Detmoldii) Nassaui Brandversicherungsanstalt, Wiesbadenjj) Oldenburgi Landesbrandkasse, Oldenburgkk) Ostfriesische Landschaftliche Brandkasse, Aurichll) Feuersozietat Berlin ((((((((, Berlinmm) Württembergische Gebaudebrandversicherungsanstalt, Stuttgart - the following semi-public organizations: nn) Postbeamtenkrankerikasseoo) Krankenversorgung der Bundesbahnbeamten c) in Spain the following public bodies: aa) station del Seguro Obligatorio de Viajeros; bb) Consorcio de compensation de Seguros; cc) Fondo Nacional de Garantia circulation d RCGM) in Franceles following organizations:


AA) departmental Fund fire of the Ardennesbb) road the fires of the Orcc side Fund) departmental Fund fire of the Marnedd) departmental Fund fire of the Meuseee) departmental Fund fire of the e sum) in IrlandeVoluntary Health Insurance Board f) in Italiela Cassa di Previdenza per assicurazione degli sport (Sportass) g) to the Kingdom - Unithe Crown Agents.

Update according to art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).

State on September 24, 2002 annex n 3 Enumeration of legal forms admitted the company whose headquarters is located in the territory of a Contracting Party must adopt one of the following legal forms.
Contracting parties may also create, if any, companies adopting any form of public law, as these organizations will have to object to insurance operations under conditions equivalent to those of private law firms.
A. Switzerland - Aktiengesellschaft and society anonymous/società per azioni - cooperative/co-op/cooperativa. B in the community 1. in Belgium - company anonymous/could be - partnership limited by shares/be bij wijze van geldschieting op stock - insurance association mutual/onderlinge verzekeringsmaatschappij - company cooperative/cooperatieve be 2. at the Denmark - aktieselskaber - gensidige selskaber 3. in Germany - Aktiengesellschaft - Versicherungsverein auf reference - public-period competition-Versicherungsunternehmen 4. in France - Corporation - insurance company mutual pension fund governed by the code of social security - pension fund governed by the rural code - mutual governed by the code of mutuality 5. in Spain - sociedad anónima - sociedad mutua - sociedad cooperativa 6. in Greece - AnwnumozEtairia - AllhlasjalisticozSunetairsmoz 7. in Ireland - incorporated companies limited by shares or by guarantee or unlimited 8. in Italy - società per azioni - società cooperativa - mutua di assicurazione 9. in the Luxembourg - limited company - company limited by shares - mutual insurance - 10 cooperative association. in the Netherlands - could be - onderlinge situated 11. at the Portugal - sociedade anonima - mutua seguros 12. in the United Kingdom - incorporated companies limited by shares or by guarantee or unlimited societies registered under the Industrial and Provident Societies Acts - societies registered under the Friendly Societies Act - the association of underwriters known as Lloyd's.

13. in Austria - Aktiengesellschaft - Versicherungsverein auf reference 14. in Finland - keskinainen vakuutusyhtio/omsesidigt försäkri vakuutusosakeyhtio/forsakringsaktiebolag - vakuutusyhdistys/forsakringsforening 15. in Sweden - forsakringsaktiebolag - omsesidiga försäkri - understodsforeningar update according to art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).

State on September 24, 2002 Annex No. 4 following special provisions for certain Member States of the community in derogation of the provisions of this agreement, the specific provisions are applicable in some Member States of the community: 1. to the Danemarkconcernant article 15: the Denmark can maintain legislation imposing restrictions on the free provision of asset values formed by insurance companies to cover the pension due in respect of the compulsory insurance against accidents at work;
2. in paragraph 8.2 Allemagneconcernant: the Germany can maintain the ban to combine health insurance on its territory with other branches;
Article 15: the Germany can maintain, with respect to health insurance within the meaning of paragraph 2.3 of Protocol No. 1, the restrictions imposed on the free disposal of assets, insofar as we do depend on the free disposal of assets which cover mathematical agreement of a "Treuhander" reserves
3. to the Luxembourgconcernant paragraphs 20.1 and 20.3: the Luxembourg can maintain its system of guarantees relating to technical reserves existing at the time of the entry into force of this agreement;
(4 for the Kingdom Uniconcernant paragraph 10.1, letter c): with regard to Lloyd's, the balance sheet and the profit and loss account communication replaces the obligation to present global accounts annual regarding insurance operations, accompanied by the attestation certificates of Auditors were provided for each insurer, proving that the responsibilities created by these operations are fully covered by the assets. These documents must allow control authorities to form a view of the State of solvency of the association;
on paragraph 10.1, letter d): in regard to Lloyd's, in case of possible disputes in the country arising from commitments entered into, must not result for policyholders of challenges than if the disputes involved conventional companies. For this purpose, skills of the general agent must, in particular, cover the power to be sued in this Court with power to engage the interested underwriters of Lloyd's.

State on September 24, 2002 annex n 5 methods of calculation of the reserve balance for the domestic credit insurance and conditions for exemption from the obligation to establish such a reserve A. methods B. Exemption Protocol n 1 Art. solvency margin 1 definition of solvency margin solvency margin is the heritage of the company, free of all foreseeable commitments, deduction of intangibles. It includes:-social capital paid or, in the case of mutual insurance companies, the effective initial Fund paid added the account of members who meet all of the following criteria: has) the articles have that payments may be made from these accounts in favor members if there is no effect to bring down the margin of solvency under its required level or ((, after the dissolution of the company, if all other debts of the company have been paid; b) statuses have, with respect to any payment made for any other purpose that the termination of individual membership, that the competent authorities are notified at least one month in advance and they may, during this period, prohibit the payment; c) the relevant provisions of the statutes cannot be modified after that authorities said did not object to the change without (prejudice to the criteria listed in points (a) and (b).

-half of the portion not paid share capital or initial Fund as soon as the paid part reaches 25 percent of this capital or fund; - reserves (legal and free) not corresponding to commitments; - forward of profits; - reminders of contributions that unions and corporations to mutual form, variable contributions, may require of their members in respect of the fiscal year to one-half of the difference between the maximum contributions and the contributions actually called; However, these possibilities of reminder may represent more than 50 percent margin;-on request and justification of the company and in case interested agreement of the supervisory authorities of the contracting parties in the territory of which the company operates, the capital gains resulting from under-estimation of assets, insofar as such gains have not a character exceptional. - cumulative preferential shares and subordinated loans may be included , but in this case only to a maximum of 50% of the margin, maximum 25 per cent including loans subordinated fixed or preferential actions cumulative fixed term for as long as they meet the following criteria:


(a) in the case of bankruptcy or liquidation of the insurance undertaking, there are binding agreements under the terms of which subordinated loans or preferential shares occupy a lower rank compared to the claims of all other creditors and will be reimbursed only after settlement of all other current debts at this time. (In addition, subordinated loans must meet the following: b conditions) it is taken into account that funds actually disbursed; c) for loans with a fixed maturity, the original maturity must be set at least at least five years. At the latest, a year before the due date, the insurance undertaking shall submit to the competent authorities for approval, a plan showing how the solvency margin will be maintained or brought to the required level at maturity, unless the amount which the loan may be included in the components of the solvency margin is not progressively reduced over the last five years at least before the deadline. The competent authorities may authorize the early repayment of these funds subject to the request made by the issuing insurance undertaking and its solvency margin does not drop below the required level; d) loans for which the term of the debt is not fixed are redeemable only by a five years notice, except if they have ceased to be considered as a component of the solvency margin or if the prior agreement of the competent authorities is formally required for their early repayment. In the latter case, the insurance company informs the competent authorities at least six months before the date of the proposed repayment, indicating the actual and required solvency margin before and after that repayment. (The competent authorities do allow refund if the solvency margin of the insurance undertaking is not likely to go down to below the requis.e level) the loan agreement must not include clause providing that, in circumstances determined other that the liquidation of the insurance undertaking, the debt will have to be repaid before maturity convenue.f) the loan agreement may be amended only after the competent authorities have declared not to oppose the amendment.

((- securities for an indefinite period and other instruments that fulfil the following conditions, including cumulative preferential shares other than those mentioned in the preceding indent, up to 50% of the margin for the total of such securities and the subordinated loans referred to in the previous indent: a) they may not be repaid on the initiative of the holder without the prior agreement of the competent authority; b) the contract of issue must enable the insurance undertaking to defer payment of interest loan; c) the claims of the lender on the insurance undertaking must be completely subordinated to those of all creditors no subordinates; d) the documents governing the issue of the securities must provide for the capacity of the debt and unpaid interest to absorb losses, while enabling the insurance undertaking to continue its business; e) he shall account that only amounts actually paid.



New content of the dash under art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).
New content from the end of the sentence according to art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).
Dash introduced by art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).
Dash introduced by art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).
Repealed by art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).

Art. 2 relationship between the solvency margin and the amount premiums or claims 2.1 load the solvency margin is determined by report, either on the annual amount of premiums or contributions, or the average load of claims for the past three years social. However, when companies practice essentially that one or more of the risks of credit, storm, hail, jelly, it takes account of the past seven years as the average load reference period social claims.
2.2 subject to article 3 of this Protocol, the amount of the solvency margin shall be equal to the greater of the following two results: first result (compared to the bonuses): - is it mass of premiums or assessments issued in the direct business in the last fiscal year, in respect of all the exercises, accessories included; - it is added the amount of premiums accepted reinsurance last year; - it is deduced from the amount the total of premiums or contributions cancelled during the last fiscal year, and the total amount of taxes and fees related to the premiums or contributions entering the mass.

After having divided the amount obtained in two tranches, the first extending up to EUR 10 million, the second comprising the excess, the fractions of 18 percent and 16 percent are calculated respectively on these slices and added.
The first result is obtained by multiplying the sum so calculated by the relationship, for the last financial year between the amount of claims remaining in charge of the company after assignment in reinsurance and the amount of gross claims; This report can in no case be less than 50 percent.
second result (compared to the claims):-mass, without deduction of losses at the charge of the transferees and retrocessionaires, amounts of claims paid to the direct business during the periods referred to in paragraph 2.1 of this Protocol is it; - it is added the amount of claims paid in respect of acceptances in reinsurance or retrocession during these same time periods; - it is added the amount of provisions for claims to be paid formed at the end of last year, both for direct business for acceptances in reinsurance; - it is deducted the amount remedies cashed during the periods referred to in paragraph 2.1 of this Protocol; - it is deducted the amount of provisions or reserves for claims to be paid, formed at the beginning of the second fiscal year preceding the last inventoried exercise both for direct business and for reinsurance acceptances.

After having distributed the third or the seventh following the reference period chosen according to section 2.1 of the present Protocol, the amount obtained in two tranches, the first extending up to EUR 7 million and the second comprising the excess, the fractions of 26 percent and 23 percent are calculated respectively on these slices and added.
The second result is obtained by multiplying the sum by the existing report, for the last financial year between the amount of claims remaining in charge of the company after assignment in reinsurance and the gross amount of claims; This report can in no case be less than 50 percent.
2.3 the fractions applicable to the tranches referred to in paragraph 2.2 of this Protocol are reduced to a third party with regard to Medicare managed according to a technique akin to that of the life insurance, if: - the premiums collected are calculated based on tables of morbidity according to the mathematical methods used in insurance; - it is constituted a reserve of aging; - it is perceived a premium surcharge to build a safety margin of an appropriate amount; - the insurer cannot denounce the contract before the end of the third year of insurance at the latest; - the contract provides for the possibility to increase premiums or cut benefits even for current contracts.

2.4 in the case of Lloyd's, where the calculation of the first result compared to premiums, referred to in paragraph 2.2 of the present Protocol, is made from net premiums, these are multiplied by a flat-rate percentage whose amount is fixed annually and determined by the controlling authority of the country of the seat. This flat-rate percentage must be calculated from statistics latest including commissions paid.
These elements, and the calculation, are communicated to the control of the Switzerland authorities if Lloyd's is established.
2.5 in the case of risks classified under branch 18 letter Appendix n 1, the amount of claims paid in the calculation of the second result is the cost for the company of the intervention for assistance has been made. This cost is calculated according to the provisions of the Contracting Party in the territory of which the company has its headquarters.

Art. 3. the guarantee fund 3.1 one-third of the solvency margin constitutes the guarantee fund.
3.2 However, the guarantee fund may be less to:

-1 400 000 euros, whether risk or part of the understood risks in the closed branch to the letter A in annex No. 1 under the number 14. This provision is applicable to any business which the annual amount of premiums or assessments issued in this branch for each of the past three years has exceeded 2 500 000 euros, or 4 percent of the total amount of premiums or contributions issued by this company;-400,000 euros, whether risk or some of the risks included in one of the branches listed in the letter A of Schedule No. 1 under the 10 numbers 11, 12, 13 and 15 and, as far as the first indent does not, under the number 14;-300,000 euros, if it risks or some of the risks included in one of the branches listed in the letter A of Schedule No. 1 under the numbers 1, 2, 3, 4, 5, 6, 7, 8, 16 and 18; - 200 000 euros If it risks or some of the risks included in one branches classified the letter Appendix n 1 under Nos 9 and 17.

3.3 If the activity of the company extends on several branches or several risks, only is taken into account the branch or the risk that requires the highest amount.
3.4 each Contracting Party may provide the reduction of a quarter of the minimum guarantee fund for mutuals and mutual companies.
3.5 when a company must, in accordance with the first indent of paragraph 3.2 of the present Protocol, wear the guarantee fund to 1 400 000 euros, the Contracting Party concerned leaves to this business:-3 years to bring the Fund up to 1 000 000 EUR, - a period of 5 years to bring the Fund to 1 200 000 euros - a period of 7 years to bring the Fund to 1 400 000 euros.

These time runs from the date from which the conditions referred to in the first indent of paragraph 3.2 of the present Protocol are met.

Art. 4 relationship between the euro and the Swiss franc, the relationship between the euro and the Swiss franc as well as procedures for its definition within the meaning of this Protocol are attached to Protocol No 3.

Protocol No. 2 program activity art. 1 contents of the program of activity of the agency or branch must contain information or justifications concerning: a) the nature of the risks that the company proposes to ensure b) terms & conditions special insurance policies that it proposes to use c) rates that the company plans to apply for each category of ope-ration; d) the reinsurance guidelines; e) the State of the solvency margin of the company (, referred to in Protocol n 1; f) forecasts of costs of administrative services and the network of production facilities, the financial resources intended to cope and, if the risks to be covered are classified under branch 18 of the letter A in annex n 1, means that the company has for providing the promised assistance; and, in addition, for the first three financial, g) forecasts to management fees; h) forecasts of premiums or contributions and to claims, due to activities news; i) the situation likely cash flow of the agency or branch.

Art. (2derogations the particulars referred to in b) and c) of art. 1 of this Protocol may be required if it comes to the following risks: a) risks classified under Nos 1, 3 to 7.9 at 18 in point A of annex I; b) risks classified under the number 8 from the point A of annex 1, other than those caused by natural elements.

New content according to art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11).

Memorandum n 3 relationship between the euro and the Swiss franc art. 1 Euro within the meaning of this agreement, the definition of the euro is one established by the competent bodies of the community.

Art. 2 relationship between national currencies and the euro 2.1 insofar as the amounts in euros referred to in this Agreement shall be converted into national currency in order to allow the authorities to control the direct application of the provisions of the agreement, the conversion is done according to the rules set out in paragraphs 2.2 and 2.3 of the present Protocol.
2.2 what is the conversion of the euro amounts in the national currency of the Member States of the community, the rules defined by the competent bodies of the Community shall apply.
2.3 What is the equivalent in Swiss francs of the amounts in euros, it is, for the purposes of this agreement, to the relationship: 1 euro = CHF 1.60.

Art. 3 change of the relationship between the euro and the Swiss franc 3.1 the relationship between the euro and the Swiss franc mentioned in paragraph 2.3 is reviewed each year based on the following: when the equivalent value of the euro Swiss franc, the Swiss National Bank for the last business day of the month of October deviates from more than 10 percent to the top or to the bottom of the relationship in force in respect of this agreement This relationship is adapted accordingly with effect on 1 January following.
3.2 the Joint Committee referred to in article 37 may take necessary any other adaptation measures.

Protocol No. 4 agencies and branches under the control of companies whose head office is located outside the territories to which this agreement is applicable art. 1 conditions of approval in respect of a company whose head office is located outside the territories to which this agreement applies according to article 43, each Contracting Party may grant approval for opening, on its territory, of an agency or a branch, if the company soliciting at least meets the following conditions: a) be authorized to offer the insurance operations, under the national legislation which it depends; b) create an agency or branch in the territory of the party concerned Contracting; c) commit to establish at the headquarters of the agency or branch accounts specific to the activity is exercised, so that to keep all documents related to the cases dealt with; d) designate a general representative who must be approved by the authority; e) have in the country operating of assets for an amount at least equal to half of the minimum required in paragraph 3.2 of Protocol No. 1 to the guarantee fund and drop a quarter of This minimum as security; f) commit to owning a solvency margin in accordance with article 3 of the Protocol; g) present a program of activity in line with the letter c) paragraph 10.1 of the agreement and Protocol No 2. Regarding the balance sheet and the profit and loss account that must accompany the program of activity, each Contracting Party may, if its provisions in force permit, require that a company that has less than three financial years provide them for closed fiscal years.

Art. 2 technical reserves in respect of this Protocol, each Contracting Party applicable to agencies or branches established in its territory, in respect of the technical reserves, a regime that may not be more favourable than those provided for in articles 19, 20 and 21. By exception to the second sentence of paragraph 20.1, it requires that the assets representing the technical reserves are located on its territory under the jurisdiction of the authority of the Contracting Party concerned.

Art. 3 solvency margin 3.1 in respect of this Protocol, every Contracting Party requires the agencies and branches established in its territory to have a made up of free assets from any predictable commitment solvency margin, net of intangibles. The margin is calculated in accordance with paragraphs 2.2 and 2.3 of Protocol No. 1. However, for the calculation of this margin, the premiums or contributions and claims resulting from the operations of the agency or branch office are only taken into account.
3.2 one third of the solvency margin constitutes the guarantee fund. This guarantee fund may be less than half of the minimum required under paragraph 3.2 of Protocol No. 1. The original bond filed pursuant to the letter e) of article 1 of this Protocol is applied.
3.3 the assets representing the solvency margin must be located in the territory under the jurisdiction of the authority of the Contracting Party concerned.
3.4. the community may allow relaxations companies maintaining agencies or branches in different Member States, in order to facilitate their monitoring.

Art. 4 control and restoring the financial situation paragraph 17.3 and article 18 are mutatis mutandis applicable to agencies and branches of undertakings referred to in this Protocol.

Art. 5 agreements with third States each Contracting Party may, in agreements with one or more third countries, agree to the application of provisions different from those provided for in this Protocol while ensuring, under condition of reciprocity, protection of its policyholders.

Exchange of letters n 1 non-discrimination principle exchange of letters n 2 scope of accreditation Delegation Bern, July 26, 1989 the Director General Geoffrey Fitchew, head of the Delegation of the Commission of the European communities Brussels Mr. the head of Delegation, I have the honour to acknowledge receipt of your letter of date, as follows:

"By referring to the agreement between the community and the Switzerland, signed this day, I have the honour to remind you of our agreement that section 8.1 shall not affect the provisions in force in each of the contracting parties of the possibility for an insurance company to cover risks outside the territory under the jurisdiction of the authority which granted the approval. "I can confirm the above and ask you to accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Swiss Delegation: Franz Blankarts Echange of letters n 3 agent general Delegation of the Commission of the communities European Brussels, June 25, 1982 Mr. Ambassador Franz Blankarts, head of the Swiss Berne Mr. the head of Delegation Delegation, I have the honour to acknowledge receipt of your letter of today, as follows: "by referring to the agreement between the Switzerland and the community. ((, signed this day, I have the honour to clarify that this is no obstacle to what general agent, referred to in the letter d) paragraph 10.1 and in paragraph 11.4 as well as the letter d) of article 1 of Protocol No. 4, be required to assume management of the agency or branch for the in - seems business that it intends to do in the territory under the jurisdiction of the supervisory authority ", to which approval has been sought."
I confirm the above and please accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Delegation of the Commission of the European Communities: Gérard Imbert Echange of letters n 4 allocation to the Fund of Swiss security buildings in direct ownership of the insurance companies for Delegation of the Commission of the communities European Brussels, June 25, 1982 Mr. Ambassador Franz Blankarts, head of the Swiss Delegation Bern Mr. the head of Delegation, I have the honour to acknowledge receipt of your letter of this date as follows: ' I have the honour to inform you that, referring to the agreement between the Switzerland and the community, signed this day, the Switzerland reserves the right, with regard to the assignment to the Security Fund of the buildings in direct ownership of businesses, to proceed to registration of such buildings in the registry of the Security Fund, held by the company, as well as an annotation y relative to the registry of a restriction of the right to alienate. which under Swiss law does not constitute a registration of mortgage."
I confirm to you that I share your view that such a procedure does not contradict paragraphs 11.2 and 20.3 of the agreement.
Please accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Delegation of the Commission of the European Communities: Gérard Imbert Echange of letters n 5 principles of investment Delegation of the Commission of the communities European Brussels, June 25, 1982 Mr. Ambassador Franz Blankarts, head of the Swiss Berne Mr. the head of Delegation Delegation, I have the honour to acknowledge receipt of your letter of today, as follows: "by referring to the agreement between the Switzerland and the community. ", signed this day, I have the honour to clarify about the assets referred to in article 15 that the agreement does not prevent to do the controlling authority to keep the possibility to intervene in specific cases when the choice that is made of assets is likely to seriously endanger the financial security of the company or reduce its degree of liquidity."
I confirm the above and please accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Delegation of the Commission of the European Communities: Gérard Imbert Echange of letters n 6 Swiss Catalogue of classes of insurance Delegation of the Commission of the communities European Brussels, June 25, 1982 Mr. Ambassador Franz Blankarts, head of the Swiss Delegation Bern Mr. the head of Delegation, I have the honour to acknowledge receipt of your letter of today, so designed : ' I have the honour to inform you that, referring to the agreement between the Switzerland and the community, signed this day, the Switzerland will continue to apply, with respect to Headquarters, agencies and branches established in its territory, its 'branches of insurance Catalogue' for the presentation of accounts and statistics. ". This is also valid for the report of the federal insurance Office on "Switzerland private insurance companies. On the other hand, "Classification of risks by branches", resumed at the letter A in annex n 1 of the agreement, shall apply for the specification of branches during the application for authorisation as well as for the assessment of the need for approval of General conditions and special of the insurance policies and of the rates.
This does not exclude that the Switzerland will consider, at a later date, the possibility of full implementation of the "Classification" above. Such a decision would be notified to the community through diplomatic channels.
It is understood that the "branches of insurance Catalogue" covers the same scope as the "Classification of risks by branches. The comparison between the two types of classification is as follows: catalog branches of insurance in Switzerland award of the branches of insurance according to the classification of annex 1 1 n. 2 accidents. Liability 3. Fire and natural elements 4. Transport 5. The body of vehicles 6. Hail 7. Animals 8. Flight 9. Glass 10. 11 water damage. Machines 12. Jewellery 13. Bond 14. Credit 15. Legal protection 16. Disease 17. Rain 18. Insurance special uuuuyuuuþ uyþ 1 A. 10, 11, 12, 13A-8. 4, 6, 7 A, 3, 5 A 9 A. 15A 14 A. 17A 2. 16, 18 I have taken note of this communication and I ask you to accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Delegation of the Commission of the European Communities: Gérard Imbert Echange of letters n 7 social Capital of insurance companies Delegation of the Commission of the communities European Brussels, June 25, 1982 Mr. Ambassador Franz Blankarts, head of the Swiss Delegation Bern Mr. the head of Delegation, I have the honour to acknowledge receipt of your letter of today, so designed : "Referring to the agreement between the Switzerland and the community, signed this day, I have the honour to remind you our agreement according to which the provisions on the minimum margin of solvency, calculated in accordance with paragraph 2.2 of Protocol No. 1, as well as of the minimum guarantee fund, referred to paragraph 3.2 of the same protocol, concern not the provisions or practice of the contracting parties as to the requirements for the capital of the company.»
I confirm the above and please accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Delegation of the Commission of the European Communities: Gérard Imbert Echange of letters n 8 transitional Regime for assistance Delegation of Switzerland Bern, July 26, 1989 Mr. the Director general Geoffrey Fitchew Chef of the Delegation of the Commission of the European communities Brussels Mr. the head of Delegation, I have the honour to acknowledge receipt of your letter of this date as follows: "by referring to the agreement between the community and the Switzerland, initialled today, I have the honour to remind you of our agreement according to which the Member States of the community, can leave companies that as of December 12, 1984, didn't practice on their territory as an assistance activity, within five years from this date to comply with the conditions set out in article 16 of the agreement.»
The Member States of the community may grant businesses referred to above that, at the expiration of the period of five years, were not entirely the margin of solvency, a further period not exceeding two years provided that, in accordance with article 18 of the agreement, they have submitted to the approval of the supervisory authority the measures they propose to take to achieve.
Any company referred to above who wishes to extend its business to other branches or, in the case referred to in paragraph 8.1 of the agreement, to another part of the territory, cannot do so if it immediately complies with this agreement.
«In addition, until December 12, 1992, the condition referred to in paragraph 5 of the letter B of Appendix n 2, that the accident or breakdown occurred on the territory of the party in which provider warranty is established, does not apply to the operations referred to in the third indent of the paragraph above when they are carried out by the ELPA (bile-automobile and Touring Club of Greece).»

I confirm the above and please accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Swiss Delegation: Franz Blankarts Echange of letters n 9 transitional Regime for large risks referred to in paragraph 2.1 of Protocol No. 2 Delegation of Switzerland Bern, July 26, 1989 the Director general Geoffrey Fitchew, head of the Delegation of the Commission of the European communities Brussels Mr. the head of Delegation.

I have the honour to acknowledge receipt of your letter of today, as follows: "by referring to the agreement between the community and the Switzerland, initialled today, I have the honour to remind you of our agreement that the Spain, the Greece, the Ireland and the Portugal benefit from the following transitional regime with regard to the risks referred to in paragraph 2.1 of Protocol No 2 ((((: a) up to 31 December 1992, these States may submit all risks to the regime applicable to risks other than those defined in paragraph 2.1 of Protocol No. 2.b) from January 1, 1993 and until December 31, 1994, the plan of the great risk applies to the risks defined mailbox a) and (b) of paragraph 2.1 of Protocol No. 2; for the risks defined in the letter c) of the same paragraph, these States set the thresholds at appliquer.c) Spain - from 1 January 1995 and until 31 December 1996, the thresholds of the first stage attached to the letter c) of paragraph 2.1 of the Protocol n 2 apply.

-From 1 January 1997, the thresholds of the second stage shall apply.

(d) Greece, Ireland and Portugal - from 1 January 1995 and until 31 December 1998, the thresholds of the first stage attached to the letter c) of paragraph 2.1 of the Protocol n 2 apply.

-From 1 January 1999, the thresholds of the second stage is app-result.

The derogation granted from January 1, 1995 applies to contracts covering risks classified under Nos 8, 9, 13 and 16 of the letter A of schedule n 1 and situated exclusively in one of the four Member States of the community benefiting from these provisions."
I confirm the above and please accept, Sir the head of Delegation, the assurances of my high consideration.

The head of the Swiss Delegation: Franz Blankarts Joint Declaration of the parties about the period between the signature and the entry into force of the agreement during the period between the signature and the entry into force of this agreement, referred to in its paragraph 44.3, each Contracting Party is ready to not introduce surveillance new provisions likely to be repealed under the agreement with regard to agencies and branches under the control of companies whose head office is located in the territory of the other Contracting Party and who wish to establish or which are established in its territory access to self-employment of direct insurance other than life insurance or to carry out this activity.
In addition, the contracting parties commit to begin promptly, the procedure to amend their domestic law under this agreement.

Final act of the Swiss Confederation and the European Community, meeting in Luxembourg on 10 October 1989, for the signature of the agreement between the European Economic Community and the Swiss Confederation concerning direct insurance other than life insurance representatives, at the time of signing this agreement, - noted exchanges of letters annexed to the above-mentioned agreement: Exchange of letters n 1 : Principle exchange of letters n 2: scope of the exchange of letters No. 3 approval: Attorney general exchange of letters n 4: allocation to the Fund of Swiss security buildings in direct ownership of insurance exchange of letters n 5: principles of investment exchange of letters n 6: Swiss Catalogue of classes of insurance exchange of letters n 7 : Social capital of insurance companies exchange of letters n 8: transitional Regime for the exchange of letters n 9 assistance: transitional Regime for large risks referred to in paragraph 2.1 of Protocol No 2 - adopted the following declaration annexed to the above-mentioned agreement: Joint Declaration by the contracting parties concerning the period flowing between the signature and the entry into force of the agreement.

Done in Luxembourg, on 10 October one thousand nine hundred and eighty-nine.

For the Government on behalf of the Council of the Swiss Confederation: of communities: Jean-Pascal Delamuraz Edith Cresson Franz Blankarts Leon Brittan RO 1992 1894; FF 1991 IV 1 RO 1992 1893 in the whole of the text of the annexes and protocols to the agreement, the word "ECU" is replaced by the word "EURO" (the equivalent of the euro being fixed at 1 euro = 1.60 Swiss franc), according to art. 1 d of the Joint Committee 1/2001 of 18 July 2001 (SR 0.961.11). This amendment has been made throughout the text.
New name according to ACF on Dec. 19. 1997 (unpublished).
Currently: the federal supervisory authority of financial markets.

State on September 24, 2002

Related Laws