Royal Decree of 22 February 1991 on the General Regulation regarding the Supervision of Insurance Undertakings

Title

1991011037

22 FEBRUARY 1991. - Royal Decree on the General Regulation regarding the Supervision of Insurance Undertakings. (NOTE 2: As regards the modifications made by the Royal Decree 2005-11-21/36, the provisions of Title I and Title II, Chapter I, apply to undertakings subject to the Royal Decree 2005-11-21/36 from the financial year beginning, for these undertakings, in 2005 (Art. 30.) (NOTE: Consultation of versions prior to 19-02-1993 and updated as of 26-09-2018)

Source: Economic Affairs

Publication: 11 April 1991

Number: 1991011037

page: 7483

File number: 1991-02-22/33

Entry into force: 11 April 1991

Erratum: Publication of 6 July 1991, number 1991011179, page 15125

This text modifies the following text:

1976031203

28 archived versions

28 implementing decrees

CHAPTER I. - Definitions and scope of application.
Art. 1, 1bis, 2
CHAPTER II. - General provisions.
Art. 3-11, 11bis, 12, 12bis, 13-15, 15bis, 15ter CHAPTER III. - Rules applicable to Belgian undertakings.
Art. 16-19, 19bis, 20-21
CHAPTER IV. - (Rules applicable to Community insurance undertakings other than Belgian ones). <RD 1994-11-22/34, art. 13; In force: 01-07-1994> Art. 22, 22bis CHAPTER IVbis. - (Rules applicable to EEA insurance undertakings other than Community undertakings.) <RD 1994-11-22/34, art. 14; In force: 01-07-1994> Art. 23-24 CHAPTER V. - Rules applicable to (third-country undertakings). <RD 1999-11-26/34, art. 13, 006; In force: 29-12-1999> Section I. <Inserted by RD 1999-11-26/34, art. 14; In force: 29-12-1999> - Rules applicable to Belgian establishments of third-country undertakings. Art. 25-29, 29bis, 30 Section II. <Inserted by RD 1999-11-26/34, art. 16; In force: 29-12-1999> - Rules applicable to third-country undertakings providing services freely in Belgium. Art. 30bis, 30ter, 30quater CHAPTER VI. - Rules applicable to Community co-insurance. <Previously chap. VII. Renumbered VI by RD 1994-11-22/34, art. 18, 004; In force: 01-07-1994> Art. 31-35 CHAPTER VII. - [1 Rules applicable to undertakings carrying out direct insurance and reinsurance operations]1 Art. 36-38 CHAPTER VIII. - (Transitional provisions.) <RD 1994-11-22/34, art. 25; In force: 01-07-1994> Art. 39, 39bis, 39ter CHAPTER IX. - Final provisions. Art. 40-47 Annex I. Art. N1 Annex II. Art. N2 Annex III. Art. N3 Annex IV. Art. N4 Annex V. Art. N5 Annex VI. Art. N6

Text

CHAPTER I. - Definitions and scope of application.

Article 1. <RD 1993-01-11/47, art. 1, 002; In force: 1992-11-20> For the purposes of this Decree and the regulations adopted in application thereof, the following terms shall mean:

the law: the Law of 9 July 1975 on the supervision of insurance undertakings;
(...) <RD 1994-11-22/34, art. 1, 1°, 004; In force: 01-07-1994> (2.) the Office: the Insurance Control Office established by the law; <RD 1994-11-22/34, art. 1, 2°, 004; In force: 01-07-1994> (3.) Belgian undertakings: undertakings whose registered office is located in Belgium; <RD 1994-11-22/34, art. 1, 2°, 004; In force: 01-07-1994> (4.) Community undertakings: undertakings whose registered office is located in a Member State of the Community; <RD 1994-11-22/34, art. 1, 2°, 004; In force: 01-07-1994> (5. EEA undertakings: undertakings whose registered office is located in a State party to the Agreement on the European Economic Area;) <RD 1994-11-22/34, art. 1, 3°, 004; In force: 01-07-1994>
third-country undertakings: undertakings whose registered office is located (outside the European Economic Area); <RD 1994-11-22/34, art. 1, 4°, 004; In force: 01-07-1994>
large risks:
1° risks falling under branches 4, 5, 6, 7, 11 and 12 of Annex I to this Decree; 2° risks falling under branches 14 and 15 of Annex I to this Decree when the policyholder carries out an industrial, commercial or liberal professional activity and the risk relates to that activity; 3° risks falling under branches 3, 8, 9, 10, 13 and 16 of Annex I to this Decree provided that the policyholder exceeds at least two of the following three criteria:

total balance sheet: (6.2 million euros or 250,107,380 francs); <RD 1999-11-26/34, art. 1, 006; In force: 29-12-1999>
net turnover amount: (12.8 million euros or 516,350,720 francs); <RD 1999-11-26/34, art. 1, 006; In force: 29-12-1999>
number of employees employed on average during the financial year: 250.
If the policyholder is part of a group of undertakings for which consolidated accounts are drawn up in accordance with Community Directive 83/349/EEC, the criteria mentioned above are applied on the basis of the consolidated accounts; 4° risks falling under the branches referred to in point 3° when they are insured by joint ventures and temporary associations, provided that one of the undertakings exceeds at least two of the three criteria set out in point 3°, or by professional associations of persons exercising a liberal profession provided that the risks insured are inherent in the exercise of that profession; (...) <RD 1994-11-22/34, art. 1, 5°, 004; In force: 01-07-1994> (8.) Community co-insurance: co-insurance as referred to in the Council Directive of the Community of 30 May 1978 (78/473/EEC) on the coordination of legislative, regulatory and administrative provisions relating to Community co-insurance; <RD 1994-11-22/34, art. 1, 6°, 004; In force: 01-07-1994>

(...) <RD 1999-11-26/34, art. 1, 006; In force: 29-12-1999>

Art. 1bis. (Repealed) <RD 1994-11-22/34, art. 2, 004; In force: 01-07-1994>

Art. 2. § 1. This Decree concerns the undertakings to which the law is applicable, excluding those referred to in Article 2, § 3, 6° of that law.
§ 2. The provisions of this Decree have the sole object of organizing the supervision of the activities of insurance undertakings.

CHAPTER II. - General provisions.

Art. 3. (Repealed) <RD 1994-11-22/34, art. 3, 004; In force: 01-07-1994>

Art. 4. (Repealed) <RD 1993-01-11/47, art. 2, 002; In force: 1992-11-20>

Art. 5. The application for authorization, accompanied by the annexes, is sent to the Office.
The application is signed by the body authorized or by one or more persons who have received a special mandate for this purpose.
The Office acknowledges receipt, within fifteen days, of the application and the accompanying documents.

Art. 6. Authorization is granted for the branches or groups of branches determined in Annexes I and II to this Decree.
Authorization obtained for a branch or group of branches allows covering risks included in another branch, provided that they are accessory risks relative to a main risk covered by the authorization.
An accessory risk is considered to be a risk meeting the following conditions simultaneously:
being covered by the same contract as a main risk or by a related contract that has no existence and effect except insofar as the main insurance contract itself has existence and effect; meeting a law of occurrence linked to that of the main risk or concerning a person, property or object insured by the main insurance. However, risks included in branches 14 (Credit), 15 (Suretyship) and 17 (Legal Protection) can in no case be considered as accessory risks of other branches. Nevertheless, the risk included in branch 17 can be considered as an accessory risk of branch 18 (Assistance) when the conditions set out in the third paragraph are met and the main risk concerns only assistance to persons in difficulty during travel or absences from the home or permanent residence. Legal protection insurance can also be considered as an accessory risk, under the conditions set out in the third paragraph, when it concerns disputes or risks resulting from the use of sea-going vessels or which are related to such use.

Art. 7. Undertakings wishing to extend their activity to one or more other insurance branches are required to meet the authorization conditions provided for in this Decree and to respect the related procedure.

Art. 8. § 1. The appeals provided for (in Articles 7 and 43) of the law must be lodged, under penalty of nullity, within fifteen days of the notification of the impugned decision. <RD 1994-11-22/34, art. 4, 004; In force: 01-07-1994> The Council of State is seized by an application signed by the persons statutorily authorized to represent the undertaking in court or by a lawyer registered on the roll of the Order. It is sent to the Council of State by registered mail, accompanied by four copies certified as true and a copy of the decision against which the appeal is made. An inventory of the supporting documents is attached to the application, accompanied by four copies certified as true. § 2. The clerk, by registered mail, transmits, within three days of receipt of the application, to the Minister and to the Office, a copy of any application lodged in accordance with § 1. Within three days of receipt of the copy, the Minister and the Office transmit their file to the registry of the Council of State. § 3. The member of the auditorate establishes his report within one month of his appointment. § 4. If, within two months of the application, the Chamber, on the basis of the report on the state of the case, considers that the case is ready, the President fixes the date on which it is called. If the Chamber considers that it is necessary to order new duties, it appoints a Councillor of State or a member of the auditorate to proceed thereto, who draws up, within twenty days of his appointment, a supplementary report. This report is dated, signed and transmitted to the Chamber. The order fixing the case or referring it to the instruction intervenes within eight days of the deposit of the report. The order fixing the case is notified with the reports to the applicant, the Minister and the Office. It contains fixing of the case within the fortnight. § 5. The decree must intervene within fifteen days of the closing of the debates. This period may be extended by order of the Chamber, after opinion of the Advocate General, without the total duration of the extensions exceeding one month. § 6. The decree is communicated to the applicant, the Minister and the Office. § 7. The following articles of the Decree of the Regent of 23 August 1948 determining the procedure before the administrative section of the Council of State are applicable to the procedure regulated by this article: 2, § 1st-1° and 2°, 5, 12, 16, 17, 25 to 27, 29, 33 to 35, 37, 40 to 51, 59, 61 to 65, 72, 77, 84, 86, paragraph 2, 87, 88 and 91.

Art. 9. <RD 1999-11-26/34, art. 2, 006; In force: 29-12-1999> Insurance undertakings are required to establish the following separate management accounts:
1° (direct non-life business: for direct insurance operations falling under branches 1 to 18 except for accident insurance at work covered by the Law of 10 April 1971 on accident at work;) <RD 2002-01-16/36, art. 1, 008; In force: 11-12-2001> (1°bis direct life accident at work "law 10 April 1971": the accident insurance at work covered by the Law of 10 April 1971 on accident at work;) <RD 2002-01-16/36, art. 1, 008; In force: 11-12-2001> 2° (direct life business: for direct insurance operations falling under branches 21, except for operations linked to a segregated fund, 22, 24, 26, except for operations linked to a segregated fund, and 29;) <RD 2006-10-19/38, art. 1, 015; In force: 16-11-2006> 3° (direct life business branches 21 and 28 segregated fund...: by segregated fund, for operations falling under branch(es) 21 and 28 and linked to this segregated fund;) <RD 2006-10-19/38, art. 1, 015; In force: 16-11-2006> 4° direct life business branch 23 investment fund...: by investment fund, for operations falling under branch 23 and linked to this investment fund; 5° direct life business branch 25 tontine association...: by tontine association, for operations falling under branch 25 and linked to this tontine association; 6° accepted non-life business: for accepted reinsurance operations relating to the non-life activity group; 7° accepted life business: for accepted reinsurance operations relating to the life activity group.

Art. 10.<AR 1994-08-12/67, art. 1, 003; En vigueur : 1994-10-12 sauf pour § 2, L2 et § 3, L1, point 13 : 1994-07-01> § 1. Without prejudice to the application of the provisions of Articles 20, §§ 2 and 29, the assets representing technical provisions and technical liabilities must comply with the provisions of this Article.

§ 2. The assets representing technical provisions and technical liabilities must take into account the type of operations carried out by the insurance undertaking to ensure the security, yield, and liquidity of the undertaking's investments; the insurance undertaking must ensure adequate diversification and dispersion of its investments.

Furthermore, the assets representing technical provisions must be located:
[ in the Community, for Belgian-law companies. Securities located outside the Community are also admitted provided that the National Bank or a credit institution, a stock exchange company, or a foreign investment company approved by the Banking and Financial Commission or by the competent authority of a Member State of the Community attests that it holds, through an establishment in the Community, on behalf of the insurance undertaking, these securities with a credit institution or investment company established outside the Community, approved by a public body whose role is analogous to that of the Banking and Financial Commission;] <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999> [ in Belgium, for Belgian branches of companies from third countries. Securities located outside Belgium are also admitted provided that the National Bank, a credit institution, a stock exchange company, or a foreign investment company, approved by the Banking and Financial Commission or by the competent authority of a Member State of the Community, attests that it holds, through an establishment in Belgium, on behalf of the insurance undertaking, these securities with a credit institution or investment company established outside Belgium, approved by a public body whose role is analogous to that of the Banking and Financial Commission.] <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999>

The term "localization of assets" refers to the presence of movable or immovable assets within the borders. Assets in the form of claims [which are not represented by securities] are considered to be located in the country where they are realizable. <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999>

The assets representing technical provisions must satisfy the congruence rules set out in Annex IV to this Decree. Congruence is understood as the representation of due obligations in a currency, by assets denominated or realizable in that same currency.

§ 3. The assets representing technical provisions must furthermore belong to the following categories of investments:
1° bonds [and treasury bills]; <AR 2007-01-21/34, art. 1, 1°, 016; En vigueur : 18-02-2007> 2° shares and other variable-income participations; 3° units in collective investment undertakings that invest in securities, cash, and immovable property; 4° other money and capital market instruments; [4°bis capitalization bonds;] <AR 2007-01-21/34, art. 1, 2°, 016; En vigueur : 18-02-2007> [5° call options (also called calls) or put options (also called puts) of securities, forward contracts (hereinafter called futures) as well as other derivative instruments such as forward exchange contracts, which are traded on a liquid market open to the public and operating regularly. Both call options, put options, futures, and other derivative instruments must contribute to limiting investment risk or allow for efficient portfolio management. For futures, the underlying commitment must be maintained in the form of liquid and secure short-term investments;] <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999> 6° loans that offer sufficient guarantees; 7° immovable property and real estate rights and real estate certificates; 8° [1 claims on reinsurers; a pledge or equivalent guarantee may be required under the conditions specified in a regulation of the [2 FSMA]2 for the consideration, as assets representing technical provisions, of claims on reinsurance companies not approved under Directive 2005/68/EC or on insurance companies not approved under Directives 73/239/EEC or 2002/83/EC;]1 9° reinsurers' share in technical provisions, [1 ; a pledge, equivalent guarantee, or organizational and solvency requirements may be required by a regulation of the [2 FSMA]2 for the consideration, as assets representing technical provisions, of reinsurance shares in technical provisions held by reinsurance companies not approved under Directive 2005/68/EC or by insurance companies not approved under Directives 73/239/EEC or 2002/83/EC]1; [1 9°bis amounts recoverable under operations concluded with securitization vehicles, which may be taken into account as assets representing technical provisions, upon request and justification by the undertaking and with the agreement of the [2 FSMA]2], under the following conditions:
1° the insurance undertaking may not, in any form, participate in the financing of the securitization vehicle; 2° the insurance undertaking must retain a share of the risks transferred to the securitization vehicle so that it retains an economic interest in the loss experience of the transferred risks; 3° the insurance undertaking may not, directly or indirectly, transfer more than 50% of its total risks to a single securitization vehicle; 4° the commitments of the securitization vehicle towards the insurance undertaking may not be unlimited; 5° the securitization vehicle must hold assets of an amount at least equivalent to that of the maximum of its commitments towards the insurance undertaking; when this condition is no longer met due to a decrease in the value of these assets, only the decreased value may be taken into account by the insurance undertaking to cover its technical provisions; 6° the persons who participate in the administration or management of the securitization vehicle must possess the professional integrity and expertise necessary, as well as adequate experience, to perform their functions; any potential conflict of interest between these persons and the managers of the other parties to the operation must be brought to the attention of the [2 FSMA]2; 7° the securitization vehicle must have a management structure, administrative and accounting organization, and internal control appropriate to the activities it performs. Furthermore, the insurance undertaking must at all times be able to demonstrate, upon request by the [2 FSMA]2, the effectiveness of the risk transfer to the securitization vehicle. The [2 FSMA]2 may adopt a regulation completing this provision on technical points.]1 10° claims on insurance policyholders and intermediaries, arising from direct insurance operations, with the exception of claims relating to premiums whose due date has expired for more than one month; 11° claims arising from subrogation or recourse and relating to operations of branch 14. However, these claims may only be allocated to the separate management to which this branch belongs; 12° uncontested tax claims; 13° current accounts or term accounts with the National Bank or a credit institution approved by the Banking and Financial Commission or by the competent authority of a Member State of the Community in which this credit institution has its registered office; 14° advances on insured benefits to the extent that they are authorized by the regulation relating to life insurance
activity. However, these advances may only be allocated to the separate "Life" management referred to in Article 9; 15° accrued and unpaid interest and rents on allocated assets. However, these interest and rents may only be allocated to the same separate management as the assets to which they relate. Furthermore, only accrued and unpaid interest that is not already included in the value of an asset of another category may be included under this category; 16° the Office may, in exceptional circumstances and for the duration thereof, accept other categories of investment that respect the principles of security, yield, liquidity, diversification, and dispersion referred to in § 2 as well as grant derogations from the localization rules.

§ 4. The assets representing technical provisions may not exceed the proportions expressed below as a percentage of the total of technical provisions and technical liabilities and concerning the total of assets in a category:
1° 10% for bonds and (treasury bills) other money and capital market instruments (and capitalization bonds), issued [3 by States not referred to in 6°, b), and regional or local authorities and companies belonging to these States]3 as well as by international organizations of which no Member State of the Community is a member; <AR 2007-01-21/34, art. 1, 3° and 4°, 016; En vigueur : 18-02-2007> 2° 10% for investments in shares or securities assimilated to shares and in bonds, which are not traded on a regulated market. (This limit is increased to 20% if the undertaking also makes investments in such values emanating from Community companies, which are subject to the supervision of the Office or a public body whose role is analogous to that of the Office;) <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999> 3° 10% for units in collective investment undertakings that are not subject to the legislation of a Member State of the Community in accordance with Council Directive (85/611/EEC) of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS); 4° 5% for real estate certificates of the same issue; (5° 5% for derivatives that are not allocated as hedges within the meaning of Articles 27ter and 36sexies of the Royal Decree of 17 November 1994 on the annual accounts of insurance companies;) <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999> (6° 5% for loans that are not secured by a real security, by a credit institution, or by an insurance company, and no more than 1% for such loans granted to the same borrower. [3 This limitation does not apply to such loans:
a) granted to credit institutions, insurance companies, or investment companies established in the European Economic Area; b) granted to or guaranteed by Member States, full members of the Organisation for Economic Co-operation and Development, or States signatories to the new borrowing agreements of the International Monetary Fund, as well as the local or regional authorities of the aforementioned States; c) granted to or guaranteed by international organizations of which at least one Member State of the European Economic Area is a member;]3 7° 10% for investments in one immovable property or in several immovable properties sufficiently close to be considered effectively as a single investment. [3 Furthermore, the undertaking may not invest more than 5% of the assets representing its technical provisions and technical liabilities in shares and securities assimilated to shares, in bonds, treasury bills, and other money and capital market instruments and capitalization bonds, of the same issuer, or in loans granted to the same borrower, considered together. The limit referred to in the second paragraph is increased to 10% per borrower or issuer when the financial instruments and loans referred to in the preceding paragraph are issued by and the loans granted to companies established in the European Economic Area that are subject to the supervision of the National Bank of Belgium or a public body whose role is analogous to that of the Bank, and on the condition that the undertaking does not invest more than 20% of its technical provisions and technical liabilities in financial instruments or loans corresponding to issuers and borrowers in which it invests more than 5% of its technical provisions and technical liabilities. The limit referred to in the second paragraph is increased to 10% per borrower or issuer when the loans are guaranteed by one or more of the authorities referred to in the first paragraph, 6°, b), or by an international organization of which one or more Member States of the European Economic Area are members, and on the condition that the undertaking does not invest more than 40% of its technical provisions and technical liabilities in financial instruments or loans corresponding to issuers and borrowers in which it invests more than 5% of its technical provisions and technical liabilities. The limits referred to in the three preceding paragraphs do not apply a) to loans granted to a state, regional, or local authority of Zone A or to an international organization of which one or more Member States of the European Economic Area are members; b) to bonds and other money and capital market instruments issued by the authorities or organizations referred to in 1° ); c) to units in collective investment undertakings.]3 Furthermore, [3 for the application of the four preceding paragraphs]3, the position in each option, future, and other derivative instrument is converted into a position in the underlying asset, taking into account its probability of effective exercise. The Office may, by duly reasoned decision, for exceptional circumstances and for the duration thereof, upon request of the insurance undertaking, derogate from the rules set out in this paragraph provided that the principles of security, yield, liquidity, diversification, and dispersion mentioned in § 2 of this Article are respected. (For the application of the provisions of this Article, the term "regulated market" means: any market referred to in Article 1, § 3, first and second paragraphs, of the Law of 6 April 1995 relating to secondary markets, the status of investment companies and their supervision, intermediaries, and investment advisors as well as any other organized market, recognized and operating regularly, provided that this market satisfies, according to the Supervisory Office, comparable requirements and that the financial instruments traded there have comparable quality.) <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999>

§ 5. The provisions of § 2, first and fourth paragraphs, and § 4 are not applicable to the assets representing technical provisions and technical liabilities of operations linked to investment funds, with the exception however of the assets representing technical provisions corresponding to the minimum reserves of group insurance as defined by the regulation relating to life insurance activity.

§ 6. For participations in subsidiary companies that, on behalf of the insurance undertaking, manage all or part of the investments of the latter, the underlying assets held by the subsidiary company are taken into account for the application of the rules and principles set out in §§ 3 and 4. The Office may apply the same treatment to the assets of other subsidiaries.

§ 7. Securities that are not traded on a regulated market are admitted as assets representing technical provisions only to the extent that they are realizable in the short term; (this condition is not applicable to participations) in credit institutions, insurance companies, and investment companies whose registered office is located in the Community. <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999>

§ 8. The Office may oppose investments or the maintenance thereof (if it has reasons to believe that these investments do not offer sufficient guarantees) to meet the requirements of security, yield, liquidity, diversification, and dispersion referred to in § 2. <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999>

§ 9. The allocation value of the assets representing technical provisions and technical liabilities is determined taking into account the following provisions:
1° the assets representing technical provisions are evaluated, deducting debts contracted for their acquisition; 2° the assets representing technical provisions must be evaluated with the necessary prudence taking into account the risk of non-realization; 3° claims on a third party, taken as assets representing technical provisions, are evaluated, deducting debts owed to that third party.

Furthermore, the assets representing technical provisions are retained for an allocation value which, by separate management, is fixed as follows:
1° for immovable property: the market value of the allocated immovable property. By market value is meant the price that, on the date of evaluation, could be obtained if the concerned immovable property were sold assuming that:

it is a voluntary sale;
the buyer can act totally independently of the seller;
normal publicity has been organized;
market conditions allow for a regular sale;
the time available for the negotiation of the property is normal given the nature of the property.
The market value is determined by a separate evaluation of each plot of land and each construction according to a method accepted by the Office.
When, since the last evaluation carried out, in accordance with the preceding paragraph, the market value of a plot of land or a construction has decreased, (the corresponding correction) to the allocation value is made. The lower allocation value is only increased if a new market value is determined in accordance with the preceding paragraph. <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999> When, on the date of evaluation, there is an intention to sell the immovable property in the short term, the market value is reduced by the estimated realization costs. When it is not possible to determine the market value of the immovable property, the value determined on the basis of the acquisition price or cost principle is deemed to be the market value; 2° for securities issued or guaranteed by a state, regional, or local authority and securities assimilated: (the value calculated in accordance with the provisions of Article 27bis, § 3, of the Royal Decree of 17 November 1994 on the annual accounts of insurance companies). In the case where these securities are allocated as assets representing technical provisions for operations linked to investment funds, the allocation value is the market value of these securities; the market value is determined as defined in points 3 and 4 below; <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999> 3° for securities listed on an official stock exchange, except those referred to in paragraph 2, of this paragraph: the market value. By market value is meant the stock value determined, either at the official prices on the date of evaluation or, when the evaluation date is not a stock exchange trading day, on the last trading day preceding this date, or at the indicative prices published at least monthly by an official stock exchange; the aforementioned indicative or official prices of these securities are those published by the official stock exchanges where these securities are the subject of numerous transactions. When, on the date of evaluation, there is an intention to sell these securities in the short term, the market value is reduced by the estimated realization costs; 4° for unlisted securities, except those referred to in paragraph 2, point 2, of this paragraph: the market value. When a market exists for these securities, by market value is meant the average price at which these securities have been transacted on the date of evaluation or, when the evaluation date is not a trading day, on the last trading day preceding this date, on the concerned market.

When there is no market for these securities, the market value is understood as the value obtained on the basis of a prudent estimate of the probable direct realization value.
When, at the valuation date, there is an intention to sell these securities in the short term, the market value is reduced by the estimated realization costs; 5° for mortgage loans: the sum of the remaining balances due. Each mortgage claim is taken into account only for a maximum of 100% of the value of the real estate, less, where applicable, prior privileges and mortgages; 6° for advances on insured benefits: the amount of the advances, less, where applicable, repayments; 7° for other assets: the value indicated for these assets on the balance sheet. (Additionally, the allocation value of securities is determined taking into account derivative products relating to these securities, provided that these derivative products are not themselves used as securities. Furthermore, these derivative products must be used to limit investment risk or to enable effective portfolio management and must be traded on a liquid market. For there to be a liquid market within the meaning of this paragraph, it is necessary:

that there is either an organized market or an over-the-counter market operating regularly with the intervention of third-party financial institutions acting as market makers ensuring permanent quotations of buyer and seller prices, the ranges of which correspond to market practices;
that, in volume, the securities or financial instruments concerned can, given the volumes regularly traded on their market, be considered realizable at any time without significant impact on prices.) <AR 1999-11-26/34, art. 3, 006; En vigueur : 29-12-1999>
On the basis of the valuation rules defined above, the Office may reject the value proposed for a representative asset.
§ 10. The provisions of § 2 except the first paragraph, and of §§ 3, 4, 5, 6, 7, 8 and 9 do not apply to the representative assets of technical provisions for business accepted in reinsurance.

(1)<AR 2009-09-27/17, art. 19, 017; En vigueur : 25-10-2009> (2)<AR 2011-03-03/01, art. 331, 018; En vigueur : 01-04-2011> (3)<AR 2014-04-10/37, art. 1, 019; En vigueur : 15-05-2014>

Art. 11. <AR 1994-08-12/67, art. 3, 003; En vigueur : 1994-10-12> § 1. Technical provisions must include:
A. for the activity group "non-life":
1° a provision for unearned premiums and risks in course:
a) The provision for unearned premiums corresponds to the fraction of gross reinsurance premiums that must be allocated to the following financial year or subsequent years, in order to cover the cost of claims, administrative costs, and investment management costs. b) The provision for risks in course consists of an additional amount to the provision for unearned premiums. It is established when it appears that the estimated total cost of claims and administrative costs, related to contracts in course and remaining to be assumed by the company, will be greater than the total of unearned premiums and premiums due relating to said contracts. 2° a provision for claims. This provision corresponds to the total estimated cost that will ultimately represent for the company the settlement of all claims occurred, declared or not, less the sums already paid for these claims. It includes indemnities and external and internal claims management costs. No deduction may be made to take into account the financial income from investments, except in the cases and under the conditions admitted by the Office. Unrealized recoveries, including deductible amounts to be recovered, may not be deducted from the claims provision. (With regard to work accidents, the insurance company takes into account the rules set out in points 1 and 2 of Annex VI to this Decree.) <AR 2002-01-16/36, art. 2, 008; En vigueur : 11-12-2001> 3° a provision for equalization and catastrophes. This provision is established with the aim either of compensating for non-recurring technical losses, or of equalizing fluctuations in the claim rate, or of covering special risks in future years. It must be established for the following risks: credit risk, risks due to natural elements (which fall under branches 8 and 9), risks in the field of nuclear energy, risks regarding civil liability due to pollution, risks regarding civil liability due to defective products, air and space risks, and terrorism and labor conflict risks (and other risks characterized by a significant dispersion of claim rates over time).<AR 1999-11-26/34, art. 4, 006; En vigueur : 29-12-1999> 4° a provision for aging. In the case of a claim occurrence law with increasing rates with age, this provision corresponds to the estimated present value of the insurance company's future commitments, less the estimated present value of future premiums. 5° a provision for profit participation, including premium refunds, distributed but not yet allocated. 6° (- with regard to work accidents, an indexation provision to the extent that the insured benefits are indexed. When establishing this provision, the insurance company takes into account the rules set out in point 3 of Annex VI to this Decree;

any other provision that may be imposed by the Office.) <AR 2002-01-16/36, art. 2, 008; En vigueur : 11-12-2001>
B. for the activity group "life":
1° a "life" insurance provision.
This provision is calculated in accordance with the regulations relating to the activity group "life".
2° a provision for claims.
This provision corresponds to benefits due but not settled and to external and internal management costs related thereto.
3° a provision for profit participation, including premium refunds, distributed but not yet allocated.
(Without prejudice to the application of the provisions of Articles 20, §§ 2 and 29, the amount of technical provisions to be established and technical debts to be recorded by insurance companies must enable them at all times to honor all their commitments resulting from insurance contracts.) <AR 1994-11-22/34, art. 6, 1°, 004; En vigueur : 01-07-1994> § 2. When, due to the nature of the branch or type of insurance, the information regarding premiums to be collected or claims to be paid for the underwriting year is insufficient to allow a precise estimate at the time of establishing provisions, the Office may, for the calculation of provisions for unearned premiums (...) and for claims, authorize or impose the application of one of the methods provided for by the valuation rules fixed for the establishment of annual accounts. <AR 1994-11-22/34, art. 6, 2°, 004; En vigueur : 01-07-1994> § 3. Without prejudice to the foregoing, the following rules apply:
1° with regard to business accepted in reinsurance, the technical provisions of the reinsurer must be at least equal to the reinsurer's share in the technical provisions of the cedant or retrocedant, calculated on the basis of the clauses provided for in the reinsurance treaty and the information that must be provided by the cedant or retrocedant; 2° in the case of co-insurance, the technical provisions of each insurer are calculated in proportion to their share in the co-insurance contract; 3° companies practicing co-insurance or accepting business in reinsurance are required to increase the valuations of technical provisions communicated to them, if this proves necessary based on statistical experience or if they find failures to comply with the technical provision valuation rules defined in §§ 1 and 2. If the data required for the valuation of technical provisions relating to the period in question are not provided to them in time, they must make an estimate based on statistics. § 4. Technical debts consist (of sums due to policyholders, insured persons, and beneficiaries of insurance contracts as well as to ceding companies in execution of reinsurance contracts and notably) of premiums paid before maturity, deposited deductibles, and premiums due corresponding to suspended risks. <AR 1999-11-26/34, art. 4, 006; En vigueur : 29-12-1999> § 5. The technical provisions of the activity group "non-life" are calculated on the basis of the valuation rules fixed for the establishment of annual accounts and according to methods (imposed or accepted) by the Office. <AR 1999-11-26/34, art. 4, 006; En vigueur : 29-12-1999> The company communicates to the Office the methods it uses and warns it in advance of any change of method.

Art. 11bis. <inséré par ar 1994-08-12/67, art. 4, En vigueur : 1994-10-12> Insurance companies are required to establish statistics in the form and content prescribed by the Office and to transmit them to him on the support and within the deadlines fixed by him.

Art. 12. The bases and methods used for the establishment of tariffs must be such that they cannot jeopardize the balance and security of operations and that they respect equity between the various categories of insured persons.
Off-tariff combinations and particular risks that are estimated case by case must be priced on rational bases and in relation to those used for priced combinations or risks.
(With regard to the activity group "non-life", when an insurance company increases or decreases a tariff, it applies this modification to the premiums and contributions of contracts in course that come to maturity from the first day of the fourth month following the modification, without prejudice to the policyholder's right to terminate the contract.) (The policyholder is notified of the tariff modification at least four months before the annual expiration of their insurance contract, unless upon a subsequent notification of the tariff modification, the right is still granted to them to terminate their contract within a period of at least three months from the day of said notification. The right of termination is formally mentioned in the notification.) <AR 1994-08-12/67, art. 5, 003; En vigueur : 1994-10-12> <AR 1999-11-26/34, art. 5, 006; En vigueur : 29-12-1999>

Art. 12bis.
<Abrogé par AR 2016-09-14/17, art. 12, 022; En vigueur : 10-11-2016>

Art. 13. For the exercise of control regulated by this Decree, the general and special conditions of contracts do not include the particular conditions intended to respond in a specific case to the specific circumstances of the risk to be covered.

Art. 14. The conditions of contracts must be drafted in clear and precise terms. They may not contain any clause likely to impair the equivalence between the commitments of the insurer and those of the policyholder.

Art. 15. <AR 1994-11-22/34, art. 7, 004; En vigueur : 01-04-1995> § 1. Before the conclusion of the insurance contract, the policyholder must receive from the insurance company the communication of the following information:
a) for the activity group "non-life":
1° the name (of the country) where the registered office is established and, where applicable, the branch with which the contract will be concluded. <AR 1999-11-26/34, art. 7, 006; En vigueur : 29-12-1999> If documents are provided to the policyholder, the information referred to in the first paragraph must appear therein. This information need not be provided if it concerns large risks as defined in Article 1, 7; 2° the law that will apply to the contract in the event that the parties do not have freedom of choice or, if the parties have the freedom to choose the applicable law, the law proposed by the insurer; 3° the indication that any complaint regarding the contract may be addressed to the (Insurance Ombudsman Service), with mention of its address, without prejudice to the possibility for the policyholder to bring legal action. <AR 2006-06-21/31, art. 1, 014; En vigueur : 03-07-2006> The information referred to in points 2° and 3° need only be provided when the policyholder is a natural person. b) for the activity group "life":
1° the name or corporate name and the legal form of the insurance company; 2° the name (of the country) where the registered office is established and, where applicable, the agency or branch with which the contract will be concluded; <AR 1999-11-26/34, art. 7, 006; En vigueur : 29-12-1999> 3° the address of the registered office and, where applicable, of the agency or branch with which the contract will be concluded; 4° the definition of each guarantee and option; 5° the duration of the contract; 6° the conditions for exercising the right to terminate the contract; 7° the conditions and duration of premium payments; 8° the conditions for exercising the right of renunciation; 9° information on premiums relating to each guarantee, whether main or supplementary, when such information proves appropriate; 10° the law that will apply to the contract in the event that the parties do not have freedom of choice or, if the parties have the freedom to choose the applicable law, the law proposed by the insurer; 11° the indication that any complaint regarding the contract may be addressed to the (Insurance Ombudsman Service), with mention of its address, without prejudice to the possibility for the policyholder to bring legal action; <AR 2006-06-21/31, art. 1, 014; En vigueur : 03-07-2006> 12° the conditions for calculating and distributing profit participation; 13° the indications of surrender and reduction values and the nature of the guarantees related thereto; 14° an enumeration of the reference values used (account units) in insurance linked to investment funds; 15° indications on the nature of assets representing insurance linked to investment funds; 16° general indications regarding the tax regime applicable to the contract. § 2. At the time of the conclusion of the contract and throughout its duration, the policyholder must receive from the insurance company the following information:
a) for the activity group "non-life":
1° the name and address of the registered office and, where applicable, the branch of the insurance company providing the coverage; 2° the name and address of the representative of the insurance company referred to in Article 68, § 1, 4°, second dash of the Law.
The information referred to in 1° and 2° must also appear on any other document than the contract providing the coverage. b) for the activity group "life":
In addition to the general and special conditions that must be communicated to the policyholder, the latter must receive the following information:

any change in the name or corporate name, legal form, or address of the registered office and, where applicable, of the agency or branch with which the contract was concluded;
all information relating to letters 4° to 7°, 9°, 12° (to 15°) of § 1, b) in the event of an amendment to the contract or modification of the applicable legislation; <AR 1999-11-26/34, art. 7, 006; En vigueur : 29-12-1999>
each year, information concerning the situation of profit participation.
§ 3. The information referred to in § 1, b) and § 2, b) must be formulated clearly and precisely, in writing, and provided at least in the language imposed by law or decree.
§ 4. Contracts relating to mandatory liability insurance for motor vehicles must show separately the following elements:
1° the elements that have been taken into account to determine the amount of surcharges and reductions that intervene in the calculation of the commercial premium; 2° (where applicable, the information referred to in Article 1bis of the Royal Decree of 14 December 1992 on the standard contract for mandatory liability insurance for motor vehicles;) <AR 2002-01-16/35, art. 4, 009; En vigueur : 01-02-2002> 3° the commercial premium and, where applicable, the index in force at the time of policy subscription. Receipts or maturity notices relating to the same contracts must show separately the following elements:
1° (where applicable, the modifications made since the previous maturity following the application of the post-underwriting personalization mechanism;) <AR 2002-01-16/35, art. 4, 009; En vigueur : 01-02-2002> 2° the commercial premium; 3° the cumulative amount of the commission, acquisition costs, and all other costs included in the commercial premium; 4° where applicable, the index applied on the annual premium maturity date; 5° the amount of the charge for installment payment of the premium; 6° taxes and contributions. The elements referred to in paragraphs 1 and 2 must appear separately for each risk covered by the contract. § 5. (§ 4, first paragraph, 3°, second paragraph, 2°, 4° and 6° and third paragraph) applies to "non-life" insurance contracts other than those referred to in § 4. <AR 1999-11-26/34, art. 7, 006; En vigueur : 29-12-1999> (§ 6. Any document of an advertising nature or made known to the public by an insurance company must mention the following information:
1° the name or corporate name of the insurance company; 2° the name of the country where the company's registered office is established.) <AR 1999-11-26/34, art. 7, 006; En vigueur : 29-12-1999>

Art. 15bis.[1 § 1st. The global contribution to the financing of the Insurance Ombudsman Service by insurance intermediaries, registered in the register of insurance and reinsurance intermediaries kept by the FSMA, is calculated as follows:
X = Y x NI/NT where:
X = the amount in the financing of the Insurance Ombudsman Service falling globally on intermediaries for the calendar year N; Y = the total amount of expenses of the Insurance Ombudsman Service for the calendar year N-1; NI = the number of cases introduced before the Insurance Ombudsman Service during the calendar year N-1, which concerned insurance intermediaries registered, at the time of introduction of the case, in the register of insurance and reinsurance intermediaries kept by the FSMA; NT = the total number of cases introduced before the Insurance Ombudsman Service for the calendar year N-1. § 2. The Insurance Ombudsman Service communicates annually, before March 31 of the current calendar year, to the FSMA the amount of the global contribution, calculated in accordance with paragraph 1st. With regard to the contribution for the calendar year 2015, the Insurance Ombudsman Service communicates it to the FSMA within the month following the publication of this Decree. This global contribution of insurance intermediaries for the calendar year 2015 is called the "reference global contribution". § 3. The global contribution for subsequent calendar years may not exceed 130 percent of the indexed reference global contribution. The indexed reference global contribution is obtained by multiplying the amount of the reference global contribution by the consumer price index figure for the month of December preceding the calendar year concerned and dividing it by the figure of the consumer price index for the month of December 2014. At the latest five years after the entry into force of this Decree, the cap system will be reviewed, particularly when the cap of 130 percent would be exceeded during this period. § 4. The FSMA distributes this global contribution among the insurance intermediaries who were registered on January 1 of the current calendar year in the register of insurance and reinsurance intermediaries according to the same distribution key that it uses to determine the individual contribution of these intermediaries to its own operating costs. The sum of the individual contributions to be paid by insurance intermediaries subject to collective registration, as provided for in Article 267, § 1st, first paragraph, 4°, of the Law of 4 April 2014 on insurance, is called upon the concerned central body. § 5. The contributions actually collected by the FSMA under paragraph 4 are refunded globally once a year, and at the latest before December 31 of the current calendar year, to the Insurance Ombudsman Service. The FSMA justifies the composition of the sum thus transferred. The amount of uncollected contributions is added to the global contribution of the following calendar year. § 6. The board of directors of the Insurance Ombudsman Service annually sets the financing contribution of insurance companies taking into account the provisions of the first paragraph. This financing contribution of insurance companies may be collected by the
professional association to which the insurance company is affiliated.]1 ---------- (1)<AR 2016-05-20/07, art. 1, 020; En vigueur : 08-06-2016>

Art. 15ter. [Inserted by Royal Decree 2006-06-21/31, art. 3; Effective: 03-07-2006] The Banking, Financial and Insurance Commission may request the Insurance Ombudsman Service for the information necessary to carry out its legal missions. The Banking, Financial and Insurance Commission determines the content of the desired information as well as the method and form according to which this information must be provided.

The Federal Public Service Economy, SMEs, Self-Employed and Energy may, on the basis of the annual report of the Ombudsman Service, obtain supplementary information from the Insurance Ombudsman Service, whenever the Federal Public Service deems it necessary to develop legislative or regulatory initiatives.

CHAPTER III. - Rules applicable to Belgian companies.

Art. 16. § 1. The following must be attached to the application for approval:
1° the information and documents referred to in Article 5, paragraph 2, 1°, 2° and 3° and in Article 6 of the Law; 2° the indication of the head office(s) abroad; 3° the activity program which must, (...), contain the following indications or justifications: <RD 1999-11-26/34, art. 8, 006; Effective: 29-12-1999> (a) the nature of the risks and the characteristics of the products that the company intends to guarantee, the general and special conditions of insurance made mandatory in Belgium; b) the technical bases, in particular the elements necessary for the calculation of premiums and technical reserves, broken down by nature, which the company intends to apply for each category of operations falling within the life insurance activity group;) <RD 1994-11-22/34, art. 8, 1°, 004; Effective: 01-07-1994> c) the indication of reinsurance methods and the identity of reinsurers; d) the estimated costs for setting up administrative services and the production network and the means intended to cover them; e) for the first three financial years, forecasts relating to:
i - management costs other than setup costs, in particular general overheads and commissions; ii - premiums or contributions and claims; iii - cash flow position; iv - financial means intended for the establishment of the solvency margin defined in Article 18; 4° proof that the company has a guarantee fund whose absolute minimum complies with the provision of Article 19; (4°bis for companies wishing to exercise work accident insurance as referred to in the Law of 10 April 1971 on work accidents, proof that [1 Fedris]1 has been informed of the intended activity and proof that a declaration has been sent [2 to Fedris]2 pursuant to which the insurance company will, upon the first request [3 of Fedris]3, establish a bank guarantee as referred to in Article 60 of the Law of 10 April 1971 on work accidents.) <RD 2002-01-16/36, art. 3, 008; Effective: 11-12-2001> 5° (a)) proof of affiliation to the Bureau and the Common Guarantee Fund referred to (in Articles 19bis-1, paragraph 1 and 19bis-2, paragraph 1, of the Law of 21 November 1989 on compulsory insurance for liability in respect of motor vehicles), insofar as the application concerns the exercise of compulsory civil liability insurance for motor vehicles; <RD 2003-01-23/35, art. 2, 010; Effective: 19-01-2003> (b) the name and address of the claims settlement representative appointed in each other Member State of the European Union when the risks to be covered are classified in branch 10 of Annex I to this Decree, excluding carrier liability. This claims settlement representative must meet the conditions referred to in Article 12, § 1, paragraph 2, final part and § 5, of the aforementioned Law of 21 November 1989;) <RD 2003-01-23/35, art. 2, 010; Effective: 19-01-2003> 6° for companies exercising an activity falling under branch 18 as defined in Annex I to this Decree, a description of the means at their disposal to meet their commitments relating to this activity; 7° (any other information prescribed by the Office.) <RD 1999-11-26/34, art. 8, 006; Effective: 29-12-1999> (...) <RD 1994-11-22/34, art. 8, 2°, 004; Effective: 01-07-1994> (§ 2.) The information and documents referred to in § 1 must be formulated in at least the language imposed by law or decree. <RD 1994-11-22/34, art. 8, 3°, 004; Effective: 01-07-1994> ---------- (1)RD 2018-09-06/13, art. 77, 023; Effective: 01-01-2017 (2)RD 2018-09-06/13, art. 78, 023; Effective: 01-01-2017 (3)RD
2018-09-06/13, art. 79, 023; Effective: 01-01-2017

Art. 17. § 1. (...) <RD 2004-05-26/35, art. 1, 011; Effective: 07-06-2004> § 2. The companies referred to in (Article 14, § 2, paragraphs 2 and 3 and § 2bis, paragraph 2) of the Law are required to respect the following rules regarding the way of allocating margin elements between the two activity groups, the method of allocating results to the margins thus obtained, as well as the conditions for transferring a margin to the other: <RD 1994-11-22/34, art. 9, 2°, 004; Effective: 01-07-1994> a) margin elements arising from capital increases or any other resources external to each of the activity groups are attributed to one or the other of the margins, at the choice of the company. However, if the solvency margin of a group is insufficient, the attribution is made in accordance with the recovery or financing plan required under Article 26 of the Law; b) the elements of allocations and withdrawals listed in the income statement of Chapter I, Section II of the Annex to (the Royal Decree of 17 November 1994 on the annual accounts of insurance companies) are attributed to each of the two margins:

according to their origin for specific elements;
according to an allocation key submitted by the companies for approval by the Office, for non-specific elements;
c) if the margin formed in each of the two activity groups is sufficient, the company may transfer excess elements other than those referred to in § 1 from one margin to the other, after having notified the Office. The Office may oppose transfers if it considers that they are likely to prejudice the respective interests of persons deriving their rights from "life" or "non-life" contracts, or if they have the effect of systematically transferring results from one activity group to the other. The Office must notify the company of its opposition or consent within one month from the notification, failing which the transfers may be carried out. If the solvency margin of a group is insufficient, the Office may authorize a transfer to the failing group within the framework of the recovery or financing plan required under Article 26 of the Law.

Art. 18. The amount of the solvency margin to be established by Belgian companies is the sum of the amounts determined below according to the activities exercised both in Belgium and abroad.
A. (Insurance branches classified under numbers 1 to 18 of Annex I to this Decree:
§ 1. The solvency margin requirement is determined both with regard to the annual amount of premiums or contributions, and with regard to the average claim burden for the last three financial years.
When companies essentially only practice one or more of the risks credit, storm, hail or frost, the reference period for the average claim burden corresponds to the last seven financial years.
Without prejudice to Article 19 of this Decree, the solvency margin requirement is equal to the higher of the following two results, calculated for all branches.
First result (with regard to premiums).
The premium or contribution base is calculated from gross written premiums or gross acquired premiums or contributions as calculated below, the highest figure being retained.
Premiums or contributions for operations of branches 11, 12 and 13, as referred to in Annex I to this Decree, are increased by 50%.
Premiums or contributions written in the framework of direct business during the last exercise, including accessories, are aggregated.
The total premiums accepted in reinsurance during the last exercise are added to this amount.
The total amount of premiums or contributions cancelled during the last exercise is deducted from this amount, as well as the total amount of taxes, duties and other supplements collected on behalf of third parties, relating to the premiums or contributions composing the aggregate. The amount thus obtained is divided into two bands, the first of 50 million EUR, the second corresponding to the surplus; the fractions corresponding respectively to 18% and 16% of these bands are then added together. The result thus obtained is multiplied by the ratio, over the last three exercises, between the amount of claims remaining for the company's account after deduction of amounts recoverable under reinsurance and the amount of gross claims; this ratio can in no case be less than 50%. [1 Amounts recoverable under operations concluded with securitization vehicles approved by a Member State in accordance with Article 46 of Directive 2005/68/EC may be deducted on the same basis as reinsurance, upon request and justification by the company and with the agreement of the [2 FSMA]2.]1 Second result (with regard to claims). For branches 11, 12 and 13, claims, provisions and recoveries are increased by 50%. Then, the amount of average claims paid for direct business without deduction of claims borne by reinsurers during the last three exercises is aggregated. To this sum is added the amount of claims paid for acceptances in reinsurance or retrocession during these same periods as well as the amount of claims provisions to be paid established at the end of the last exercise, both for direct business and for acceptances in reinsurance. The amount of recoveries collected during the periods referred to in paragraphs 1 and 2 of this paragraph is then deducted. Finally, the amount obtained is reduced by the amount of claims provisions to be paid established at the beginning of the second financial year preceding the last inventoryed exercise, both for direct business and for acceptances in reinsurance. If the reference period referred to in paragraph 2 of this paragraph is seven years, the amount to be deducted is that of the claims provisions to be paid established at the beginning of the sixth financial year preceding the last inventoryed exercise. According to the reference period provided for in paragraphs 1 and 2 of this paragraph, one third or one seventh of the amount obtained is then divided into two bands, the first of 35 million EUR, the second corresponding to the surplus; the fractions corresponding respectively to 26% and 23% of these bands are then added together. The result thus obtained is multiplied by the ratio, over the last three exercises, between the amount of claims remaining for the company's
account after deduction of amounts recoverable under reinsurance and the amount of gross claims; this ratio can in no case be less than 50%. [1 Amounts recoverable under operations concluded with securitization vehicles approved by a Member State in accordance with Article 46 of Directive 2005/68/EC may be deducted on the same basis as reinsurance, upon request and justification by the company and with the agreement of the [2 FSMA]2.]1 § 2. In the case of risks falling under branch 18, as referred to in Annex I to this Decree, the amount of claims paid entering into the calculation of the claim base is the cost borne by the company in the framework of the assistance intervention carried out. § 3. The fractions applicable in accordance with point A, § 1, paragraphs 10 and 19 of this Article, are each reduced to one third with regard to health insurance managed using a technique similar to that of life insurance, if:
a) premiums are calculated on the basis of morbidity tables using mathematical methods applied in non-life insurance; b) a provision for aging is established; c) a premium supplement is charged to establish a safety margin of an appropriate amount; d) the insurer may terminate the contract before the end of the third year of insurance at the latest; e) the contract provides for the possibility of increasing premiums or reducing benefits, even for existing contracts. § 4. If the solvency margin requirement is lower than the margin requirement of the previous exercise, the solvency margin requirement is at least equal to that of the previous exercise, multiplied by the ratio between the claims provisions to be paid at the end of the last exercise and the amount of claims provisions to be paid at the beginning of the last exercise. In these calculations, technical provisions are calculated net of reinsurance, the ratio however never being able to be greater than one.) <RD 2004-05-26/35, art. 2, 011; Effective: 07-06-2004> B. (Insurance branches classified under numbers 21 to 29 of Annex I to this Decree. a) For the activities of branches 21, 22, 28, 29 and 23 other than supplementary insurance, when the company assumes the investment risk, the solvency margin requirement is equal to the sum of the following two results:
First result:
A fraction equal to 4% of life insurance provisions on the balance sheet relating to direct operations and acceptances in reinsurance, without deduction of reinsurance, multiplied by the ratio existing, for the last exercise, between the amount of life insurance provisions, net of reinsurance cessions, and the gross amount of these provisions; this ratio can in no case be less than 85%. [1 Amounts recoverable under operations concluded with securitization vehicles approved by a Member State in accordance with Article 46 of Directive 2005/68/EC may be deducted on the same basis as reinsurance, upon request and justification by the company and with the agreement of the [2 FSMA]2.]1 Second result:
A fraction equal to 0.3% of non-negative capitals at risk taken on by the company multiplied by the ratio existing, for the last exercise, between the amount of capitals at risk remaining for the company's account, after cession and retrocession in reinsurance, and the amount of capitals at risk without deduction of reinsurance; this ratio can in no case be less than 50%. However, for non-renewable temporary life insurance policies, with a maximum duration of three years, the fraction mentioned above is reduced to 0.1%; for those with a duration greater than three years and not exceeding five years, this fraction is reduced to 0.15%. [1 Amounts recoverable under operations concluded with securitization vehicles approved by a Member State in accordance with Article 46 of Directive 2005/68/EC may be deducted on the same basis as reinsurance, upon request and justification by the company and with the agreement of the [2 FSMA]2.]1 b) For supplementary insurance of branches 21, 22 and 23, the amount of the margin to be established is equal to the result of the calculation as determined in point A, § 1 of this Article, under the heading "first result" of the non-life activity group. c) For activities of branch 23, insofar as the company does not assume an investment risk and where the amount intended to cover management costs is fixed for a period greater than five years, the solvency margin requirement is equal to 1% of technical provisions. When the amount intended to cover management costs is not fixed for a period greater than five years, the solvency margin requirement is equal to 25% of net management expenses relating to these operations for the last exercise. To the extent that the company also covers a mortality risk, the solvency margin requirement is increased by a fraction corresponding to 0.3% of the capital at risk, calculated in accordance with point a), second result of this division. d) For activities of branch 27, the solvency margin requirement is determined in the same way as for branch 23, replacing "technical provisions" with "managed funds". e) For activities of branch 24, the solvency margin requirement is equal to the sum of the following two elements:
a) a fraction corresponding to 4% of technical provisions, calculated in accordance with point B, a) first result, of this Article; b) the solvency margin requirement imposed on companies exercising the non-life activity group by § 3 of point A of this Article, with the exception of the provisions relating to the minimum guarantee fund as set out in Article 19 of this Decree. f) For activities of branch 25, the solvency margin requirement is equal to 1% of the assets of associations. g) For activities of branch 26, the solvency margin requirement is equal to 4% of mathematical provisions as referred to in point B, a), first result, of this Article and relating to these activities.) <RD 2004-05-26/35, art. 2, 011; Effective: 07-06-2004>
C. Other activities.
For operations covered by the Law of 10 April 1971 on work accidents and for extra-legal operations relating thereto, excluding the annuity service (and for operations covered by the Law of 3 July 1967 on the repair of damages resulting from work accidents, accidents on the way to work and occupational diseases in the public sector), the margin to be established is equal to the result of the calculation as determined in point A above. <RD 1999-11-26/34, art. 10, 006; Effective: 29-12-1999> For the "Work Accidents" annuity service and for operations relating to the granting of extra-legal benefits to salaried workers covered by the regulation on retirement and survivor pensions, the margin is determined in accordance with the calculation method set out in point B, a. For operations covered by the laws relating to the retirement and survivor scheme for employees, the margin is equal to 1% of balance sheet mathematical reserves. [For operations on derivative products, the margin to be established is equal to the theoretical amount of the maximum risk incurred by the company as a result of the use of derivative products, taking into account the cover taken.] <RD 1999-11-26/34, art. 10, 006; Effective: 29-12-1999> ---------- (1)RD 2009-09-27/17, art. 20, 017; Effective: 25-10-2009 (2)RD 2011-03-03/01, art. 331, 018; Effective: 01-04-2011

Art. 19. <AR 2004-05-26/35, art. 3, 011; En vigueur : 07-06-2004> § 1. The absolute minimum of the guarantee fund is fixed at:
1° 2,000,000 EUR for branches 1 to 9 and 16 to 18 2° 3,000,000 EUR for branches 10 to 15 and 21 to 29.
If the insurance activity, both in Belgium and abroad, extends over several branches of the "non-life" activity group, only the branch requiring the highest absolute minimum of the guarantee fund is taken into consideration for the calculation of the margin of this group. For mutual insurance associations that operate only with variable contributions, the absolute minimum of the guarantee fund is reduced by 1/4.

§ 2. The solvency margin must be constituted to the extent of the guarantee fund, with a minimum as determined in § 1 of this article, by elements other than those referred to in Article 15bis, § 1, points 8, 9, 10, 11 and 12 of the Law.

§ 3. The amounts provided for in point A, § 1, first and second results of Article 18 and in § 1 of this article, are revised annually, the first revision taking place on 20 September 2003, based on the evolution of the European consumer price index published by Eurostat for all Member States. The adjustments are automatic and proceed according to the following procedure: the base amount in euros is increased by the percentage variation of said index over the period from the entry into force of Directives 2002/12 and 2002/13 to the date of revision, and rounded up to the next multiple of 100,000 EUR. If the variation since the last adjustment is less than 5%, the amount is not adjusted.

Art. 19bis. <Inserted by AR 2001-03-14/40, art. 1; En vigueur : 30-04-2001> Belgian insurance companies, which are in the case referred to in Article 91ter, § 1, 1°, of the Law, calculate an adjusted solvency margin according to the rules set out in Annex V, I, of this Decree. Belgian insurance companies, which are in the case referred to in Article 91ter, § 1, 2°, of the Law, are subject to the supplementary supervision method according to the rules set out in Annex V, II, of this Decree.

Art. 20. § 1. (...) <AR 1994-11-22/34, art. 11, 004; En vigueur : 01-07-1994>

§ 1bis. (...) <AR 1994-11-22/34, art. 11, 004; En vigueur : 01-07-1994>

§ 2. (With regard to the underwriting of contracts relating to risks located in a third country, the amount of the reserves or technical provisions, the representation thereof, and the location of the representative assets are determined according to the rules of the country of the risk if that country imposes its own rules, without however the amount of these reserves being able to be lower than the amount obtained by the application of Belgian rules.) <AR 1993-01-11/47, art. 4, § 4, 002; En vigueur : 1992-11-20>

Art. 21. <AR 1994-11-22/34, art. 12, 004; En vigueur : 01-07-1994> § 1. Belgian insurance companies must communicate to the Office separately for operations carried out via a branch and via free provision of services, the amount of premiums, claims, and commissions, without deduction of reinsurance, by Member State. For "non-life" contracts, this information is provided by group of branches. The groups of branches are defined as follows:

accidents and sickness (1 and 2);
motor insurance (3, 7 and 10; figures relating to branch 10, excluding carrier liability, will be specified and will also include the frequency and average cost of claims);
fire and other property damage (8 and 9);
aviation, maritime and transport insurance (4, 5, 6, 7, 11 and 12);
general civil liability (13);
credit and suretyship (14 and 15);
other branches (16, 17 and 18).
For "life" contracts, this information is provided by branch.

§ 2. The information referred to in § 1 must be provided in the form of technical operating accounts according to the model in Annex III to this Decree.

CHAPTER IV. - (Rules applicable to Community insurance undertakings other than Belgian). <AR 1994-11-22/34, art. 13; En vigueur : 01-07-1994>

Art. 22.<AR 1994-11-22/34, art. 13, 004; En vigueur : 01-07-1994> The provisions of Chapter II of this Decree are not applicable to Community undertakings other than Belgian, [1] with the exception of Articles 13 to 15bis.1 ---------- (1)<AR 2016-05-20/07, art. 2, 020; En vigueur : 08-06-2016>

Art. 22bis. <Inserted by AR 1999-11-26/34, art. 12; En vigueur : 29-12-1999> The provisions of Article 30quater apply by analogy.

CHAPTER IVbis. - (Rules applicable to insurance undertakings of the European Economic Area other than Community undertakings.) <AR 1994-11-22/34, art. 14; En vigueur : 01-07-1994>

Art. 23. <AR 1994-11-22/34, art. 14, 004; En vigueur : 01-07-1994> The provisions of this Chapter are applicable to insurance undertakings of the European Economic Area, other than Community undertakings.

Art. 24. <AR 1994-11-22/34, art. 14, 004; En vigueur : 01-07-1994> For the application of the Law and its implementing decrees and regulations, the undertakings referred to in Article 23 are considered as Community undertakings, other than Belgian.

CHAPTER V. - Rules applicable to (third-country undertakings). <AR 1999-11-26/34, art. 13, 006; En vigueur : 29-12-1999>

Section I. <Inserted by AR 1999-11-26/34, art. 14; En vigueur : 29-12-1999> - Rules applicable to Belgian establishments of third-country undertakings.

Art. 25.§ 1. The following must be attached to the application for approval:
1° the information and documents referred to in Article 5, paragraph 2, 1° and 2° and in Article 6 of the Law; 2° the indication of the Belgian place of business where they elect domicile, the places of operation in Belgium, and the list of countries where they carry out insurance operations; 3° the document designating the general agent and endowing him with the powers required in accordance with Article 12, § 3 of the Law; 4° proof that they are authorized under their national legislation to carry out the insurance activities that are the subject of the application; 5° proof that they have assets in Belgium equal to the absolute minimum of the guarantee fund in accordance with the provision of Article 27, § 1, and have deposited the guarantee there, unless they are exempted under the provisions of § 2 of that Article; 6° a program relating to the projected activities in Belgium and in accordance with that described in Article 16, § 1, 3°; 7° justifications regarding the existence of the financial guarantees referred to in Article 26; (7°bis for undertakings wishing to exercise insurance against work accidents referred to in the Law of 10 April 1971 on work accidents, proof that [1] Fedris[1] has been informed of the envisaged activity and proof that a declaration has been sent [2] to Fedris[2] in terms of which the insurance undertaking will, at the first request [3] of Fedris[3], constitute a bank guarantee as referred to in Article 60 of the Law of 10 April 1971 on work accidents.) <AR 2002-01-16/36, art. 4, 008; En vigueur : 11-12-2001> 8° (proof of association and the information referred to in Article 16, § 1, 5°, a) and b);) <AR 2003-01-23/35, art. 3, 010; En vigueur : 19-01-2003> 9° for undertakings exercising an activity falling under branch 18 defined in Annex I of this Decree, a description of the means at their disposal to meet their commitments relating to this activity; 10° (...) <AR 1994-11-22/34, art. 15, 1°, 004; En vigueur : 01-07-1994> (...) <AR 1994-11-22/34, art. 15, 1°, 004; En vigueur : 01-07-1994> (§ 2.) The indications and documents referred to in § 1 must be formulated in at least the language imposed by the Law or the Decree, with the exception of point 4°. <AR 1994-11-22/34, art. 15, 2°, 004; En vigueur : 01-07-1994> ---------- (1)<AR 2018-09-06/13, art. 80, 023; En vigueur : 01-01-2017> (2)<AR 2018-09-06/13, art. 81, 023; En vigueur : 01-01-2017> (3)<AR
2018-09-06/13, art. 82, 023; En vigueur : 01-01-2017>

Art. 26. The Belgian establishments of third-country undertakings must have free assets whose equivalence to the solvency margin required of Belgian undertakings is assessed by the Office, based on the documents and justifications to be provided by these undertakings.

Art. 27. § 1. The Belgian establishments of third-country undertakings must:
1° locate in Belgium one third of the assets corresponding to the solvency margin provided for by Articles 17 and 18 with a minimum of half of the absolute minimum of the guarantee fund determined in Article 19, the rest being located within the Community; 2° deposit, as a guarantee, one quarter of the absolute minimum of the guarantee fund fixed in Article 19. However, the margin and the absolute minimum of the guarantee fund are determined based on the activities of the Belgian establishment.

§ 2. At the request of an undertaking whose registered office is located outside the Community, the Office may conclude an agreement with one or more supervisory authorities of other Member States of the Community, concerning:

the global calculation of the solvency margin based on all the activities that the undertaking exercises within the Community;
the payment of the guarantee in one of the Member States of the Community;
the location of the assets forming the counterparty of the guarantee fund in one of the Member States of the Community where the undertaking exercises its activities.
This request is filed with the competent authorities of all Member States from which the undertaking concerned has requested or obtained approval. In this request, it is necessary to indicate the authority responsible for verifying in the future the solvency of the agencies or branches established within the Community for all their operations. The choice of authority made by the undertaking must be motivated. The guarantee is deposited with the corresponding Member State. The benefits that may be the subject of an agreement referred to in paragraph 2 can only be granted jointly and with the agreement of the supervisory authorities of all Member States; if necessary, they are removed simultaneously at the request of one or more supervisory authorities of the Member States concerned of the Community. When, under such an agreement, an undertaking is not required to locate in Belgium the part of the solvency margin referred to in 1° of the previous paragraph, the provisions of Article 26, § 2 of the Law are not applicable to it and are replaced by the provisions of the following paragraph. If the solvency margin no longer reaches the level of the guarantee fund referred to in Article 19 of this Decree, the Office may restrict or prohibit the free disposal of the undertaking's assets; it may also take any measure appropriate to safeguard the interests of insured persons and beneficiaries of insurance.

Art. 28. When a guarantee is required, it must be composed of assets belonging to the following categories:
1° assets issued or guaranteed by the Belgian State or assimilated; 2° assets issued or guaranteed by foreign States, subject to the prior authorization of the Office. The percentage admitted cannot exceed 10%.
These securities are accepted for their inventory value without exceeding the market value.
The guarantee is deposited with an agent of the State cashier, for the account of the Caisse des Dépôts et Consignations.
It is returned only by decision of the Office.

Art. 29. With regard to the underwriting of contracts relating to risks located in another country, the amount of the reserves or technical provisions, the representation thereof, and the location of the representative assets are determined according to the rules of the country of the risk if that country imposes its own rules (without however the amount of these reserves being able to be lower than the amount obtained by the application of Belgian rules.) <AR 1993-01-11/47, art. 6, 002; En vigueur : 1992-11-20>

Art. 29bis. <Inserted by AR 1999-11-26/34, art. 15; En vigueur : 29-12-1999> The provisions of Article 21 apply by analogy.

Art. 30. <AR 1994-11-22/34, art. 16, 004; En vigueur : 01-07-1994> § 1. The provisions of Articles 25, § 1, 5° and 7° and of Articles 26 to 28 are not applicable to insurance undertakings whose registered office is located in the Swiss Confederation with regard to their "non-life" insurance activities.

§ 2. These undertakings must have a solvency margin constituted in accordance with Articles 17, 18 and 19.
They are exempt from all the provisions of Article 15quater of the Law. Furthermore, the provisions of Article 26, § 2 of the Law are not applicable to them and are replaced by the provisions of the following paragraph.
If the solvency margin no longer reaches the level of the guarantee fund referred to in Article 19 of this Decree, the Office may restrict or prohibit the free disposal of the undertaking's assets; it may also take any measure appropriate to safeguard the interests of insured persons and beneficiaries of insurance.

§ 3. The undertakings must attach to the application for approval a certificate issued by the competent authorities of the Swiss Confederation, listing the branches that the undertakings concerned are authorized to practice and attesting that they have the financial guarantees referred to in § 2. This certificate will indicate the risks they actually cover as well as the financial means referred to in the activity program referred to in Article 25, 6°. It may, with the agreement of the Office, be replaced by any justification deemed equivalent.

Section II. <Inserted by AR 1999-11-26/34, art. 16; En vigueur : 29-12-1999> - Rules applicable to third-country undertakings that provide free provision of services in Belgium.

Art. 30bis. <Inserted by AR 1999-11-26/34, art. 16; En vigueur : 29-12-1999> Third-country undertakings may only exercise an insurance activity via free provision of services in Belgium for the risks referred to in Articles 30ter and 30quater and under the conditions listed in those Articles.

Art. 30ter. <Inserted by AR 1999-11-26/34, art. 16; En vigueur : 29-12-1999> § 1. Third-country undertakings that have acceded to the General Agreement on Trade in Services, annexed to the Agreement establishing the World Trade Organization of 15 April 1994, may cover via free provision of services risks located in Belgium relating to:
1° maritime transport, commercial air transport, launch of space vehicles and transport effected by these vehicles (including satellites), this insurance covering all or part of the elements according to: goods transported, vehicles transporting the goods and any liability arising therefrom; 2° goods in international transit.

§ 2. To be able to exercise the activity referred to in § 1, the undertaking must previously notify its intention to the Office for the Control of Insurance. This notification is accompanied by a file comprising the following elements:
1° the address of the registered office and, if applicable, the branch, from which the activity will be exercised; 2° a certificate issued by the competent authorities of the country of the undertaking's registered office declaring:

that the undertaking has sufficient solvency to carry out these operations;
that it is authorized under its national legislation to carry out the insurance operations that are the subject of the application;
that there is no objection to the exercise in Belgium of the projected operations;
3° the designation of the nature of the risks and the characteristics of the products that the undertaking intends to cover and, if applicable, the general and special conditions of insurance made mandatory in Belgium.

§ 3. Any modification that the undertaking intends to make to the elements referred to in § 2 must be notified to the Office for the Control of Insurance.

§ 4. The undertaking may begin its activity as soon as the Office for the Control of Insurance has notified it that its file is in order.
When the Office has not communicated its decision within two months following the receipt of the complete file, it is considered not to oppose the undertaking's intention.

§ 5. Article 3, § 1, Articles 4 to 8 inclusive, Articles 11 to 18 inclusive, Article 19, with regard to tariffs, Article 20, § 1, Article 21, with the exception of § 2, Article 21octies, § 2, Articles 22 to 24 inclusive, Articles 26 and 27, Articles 38 to 40bis inclusive, Articles 42 to 48 inclusive, Article 71, § 1, paragraph 2, § 2, paragraph 2 and § 4 and Article 90 of the Law are not applicable to the undertakings referred to in this Article.

Art. 30quater. <Inserted by AR 1999-11-26/34, art. 16; En vigueur : 29-12-1999> § 1. Third-country undertakings, which have subscribed to the OECD Code on Liberalisation of Invisible Current Transactions, may accept to cover via free provision of services risks located in Belgium relating to branches 4, 5, 6, 7, 11 and 12 when the policyholder has taken the initiative of the underwriting of the contract. The policyholder is not considered to have taken the initiative of the underwriting if he has been contacted by the insurance undertaking or by a person mandated by it for the purpose of underwriting an insurance contract.

§ 2. The undertakings exercising the activity referred to in § 1 are exempt from all the provisions of the Law.

CHAPTER VI. - Rules applicable to community co-insurance. <Previously chap. VII. Renumbered VI by AR 1994-11-22/34, art. 18, 004; En vigueur : 01-07-1994>

Art. 31. <AR 1994-11-22/34, art. 19, 004; En vigueur : 01-07-1994> <former article 46> The provisions of this Chapter are applicable to operations that meet the following conditions:
1° the risk is covered by several Community insurance undertakings, hereinafter referred to as "co-insurers", of which one is the lead insurer, without there being any joint liability between them, by means of a single contract, for a global premium and for the same duration; 2° (the risk is located on the territory of Belgium or several Member States of which one is Belgium, and constitutes a large risk within the meaning of Article 1;) <AR 1994-11-22/34, art. 19, 004; En vigueur : 01-07-1994> 3° at least one of the co-insurers participates in the contract through an establishment located in a Community country other than that of the lead insurer; 4° the lead insurer fully assumes the role assigned to it in the practice of co-insurance and, in particular, determines the insurance and pricing conditions.

Art. 32. <AR 1994-11-22/34, art. 21, 004; En vigueur : 01-07-1994> <former article 48> Co-insurers not established in Belgium who participate in an operation referred to in Article 31 are exempt from the application of Chapter Vter of the Law. This exemption does not concern the lead insurer not established in Belgium.

Art. 33. <AR 1994-11-22/34, art. 22, 004; En vigueur : 01-07-1994> <former article 49> With regard to the amount of the reserves or technical provisions, the lead insurer and the co-insurers established in Belgium are required to respect the rules fixed by this Decree. However, the reserve for claims payable is at least equal to that determined by the lead insurer according to the rules or practices of the country where it is established.

Art. 34. <AR 1994-11-22/34, art. 23, 004; En vigueur : 01-07-1994> <former article 50> By derogation from Article 10, co-insurers established in Belgium may locate the representative assets, at their choice, in Belgium or in the country where the lead insurer is established.

Art. 35. <AR 1994-11-22/34, art. 23, 004; En vigueur : 01-07-1994> <former article 51> Co-insurers established in Belgium provide the Office, by 30 June of each year at the latest and by country concerned, the amount of premiums issued relating to their participation in community co-insurance operations.

CHAPTER VII. - [1] Rules applicable to undertakings that carry out direct insurance operations and reinsurance operations[1] ---------- (1)<AR 2009-09-27/17, art. 21, 017; En vigueur : 25-10-2009>

Art. 36.[1] Third-country undertakings, referred to in this Chapter, and which provide services in Belgium without being established there are subject, for their reinsurance acceptance activities, to the provisions of Articles 68 to 72 of the Law of 16 February 2009 on reinsurance.[1] ---------- (1)<AR 2009-09-27/17, art. 22, 017; En vigueur : 25-10-2009>

[Art. 37] [38]. <AR 1994-11-22/34, art. 24, 004; En vigueur : 01-07-1994> Community enterprises other than Belgian ones [1 , referred to in this chapter,]1 are exempt from all provisions of the law concerning their reinsurance activities. ---------- (1)<AR 2009-09-27/17, art. 23, 017; En vigueur : 25-10-2009>

[Art. 38] [39].[1 § 1. Belgian enterprises and enterprises from third countries established in Belgium, referred to in this chapter, are exempt from the authorization requirement concerning their reinsurance activities. § 2. The enterprises referred to in § 1 who practice, in direct insurance, operations falling under the non-life activity group, must, by derogation from the obligations provided by the law or by this decree, constitute, for all their operations, a minimum guarantee fund in accordance with Article 23 of the Law of 16 February 2009 on reinsurance, when:
a) the collection of reinsurance premiums represents more than 10% of their total premium collection, b) the collection of reinsurance premiums exceeds 50,000,000 EUR, or c) the technical provisions resulting from their reinsurance acceptances represent more than 10% of the total amount of their technical provisions. The enterprises referred to in § 1 who practice, in direct insurance, operations falling under the life activity group, must, by derogation from the obligations provided by the law or by this decree, comply, for their reinsurance acceptances, with the obligations provided by or pursuant to Article 22 of the Law of 16 February 2009 on reinsurance, when:
a) the collection of reinsurance premiums represents more than 10% of their total premium collection, b) the collection of reinsurance premiums exceeds 50,000,000 EUR, or c) the technical provisions resulting from their reinsurance acceptances represent more than 10% of the total amount of their technical provisions. § 3. The enterprises referred to in § 1 are subject, by derogation from the obligations provided by the law or by this decree, for their reinsurance acceptance activities, to the provisions of Article 21 of the Law of 16 February 2009 on reinsurance.]1 ---------- (1)<AR 2009-09-27/17, art. 24, 017; En vigueur : 25-10-2009>

[CHAPTER VIII.] (Transitional provisions.) <AR 1994-11-22/34, art. 25; En vigueur : 01-07-1994>

[Art. 39] [40]. <AR 1994-11-22/34, art. 25, 004; En vigueur : 01-07-1994> Belgian enterprises that underwrite in Spain, Greece, and Portugal contracts relating to risks falling under the "life" activity group and to risks falling under the "non-life" activity group, other than large risks as defined in the legislation of these Member States, are subject to the following provision. The amount of technical provisions relating to these contracts, the representation thereof, and the location of the representative values are determined according to the rules of the Member State where the risk is located, without however the amount of provisions being less than the amount obtained by applying the Belgian rules. The provisions of this article are applicable concerning Spain, until 31 December 1995 for "life" contracts and until 31 December 1996 for "non-life" contracts, concerning Greece, until 31 December 1998 for "life" and "non-life" contracts and concerning Portugal, until 31 December 1995 for "life" contracts and until 31 December 1998 for "non-life" contracts.

[Art. 40] [41]. <Inserted by AR 1999-11-26/34, art. 17; En vigueur : 29-12-1999> Without prejudice to the application of the provisions of Article 19, § 1, paragraph 2, Belgian enterprises and enterprises from third countries, whose minimum solvency margin does not reach the absolute minimum of the guarantee fund, as fixed respectively in Article 19, § 1 and Article 27, § 1, have a period of five years from 31 December 1999 to satisfy this obligation. They must increase their margin each year by at least 20% of the missing amount on the date fixed in the first paragraph.

[Art. 41] [42]. <Inserted by AR 2004-05-26/35, art. 4; En vigueur : 07-06-2004> § 1. This decree enters into force on the day of its publication in the Belgian Monitor.
§ 2. For enterprises holding the authorization referred to in Article 4 of the law on that date, the provisions of this decree are applicable for the first time to financial years beginning on 1 January 2005 or beginning during that civil year.
Until that date, the provisions remain applicable as they were in force.
§ 3. For enterprises holding on the date of entry into force of this decree the authorization referred to in Article 4 of the law and not satisfying the provisions of this decree by 31 December 2005, the C.B.F.A. may grant an additional period of up to 2 years to comply, provided that a plan is submitted to its approval demonstrating that the imposed conditions can be met within the allotted time. During this period, enterprises must continue to satisfy the provisions applicable before the day of entry into force of this decree. § 4. Regarding the application of the requirements set out in Article 18, point A., § 1, first result, 2nd paragraph and second result, 1st paragraph, a transitional period of five years is provided. From 31 December 2005, an annual increase of 10% must however be taken into consideration.

[CHAPTER IX.] Final provisions.

[Art. 42] [47]. <AR 1994-11-22/34, art. 26, 004; En vigueur : 01-07-1994> <former article 55> <Repealing provision of the Royal Decree of 12 March 1976/30, except for art. 1>

[Art. 43] [48]. <AR 1994-11-22/34, art. 26, 004; En vigueur : 01-07-1994> <former article 56> This decree enters into force on the day of its publication in the Belgian Monitor.

[Art. 44] [49]. <AR 1994-11-22/34, art. 26, 004; En vigueur : 01-07-1994> <former article 57> Our Minister of Economic Affairs and the Plan is charged with the execution of this decree.

[Art. 45] [50]. (Repealed) <AR 1994-11-22/34, art. 20, 004; En vigueur : 01-07-1994>

[Annex I.]

[Art. 46] [N1]. Classification of risks by activity group and by branch.
Non-Life Activity Group.

Accidents.

fixed benefits;
indemnity benefits;
combinations;
transported persons.

Illness.

fixed benefits;
indemnity benefits;
combinations.

Land vehicle bodies, other than railway.
Any damage suffered by:

self-propelled land vehicles;
non-self-propelled land vehicles.

Railway vehicle bodies.
Any damage suffered by these vehicles.
Air vehicle bodies.
Any damage suffered by these vehicles.
Maritime, lake, and river vehicle bodies.
Any damage suffered by:

river vehicles;
lake vehicles;
maritime vehicles.

Transported goods, including goods, luggage, and all other property.
Any damage suffered by transported goods or luggage, regardless of the means of transport.
Fire and natural elements.
Any damage suffered by property (other than property included in branches 3, 4, 5, 6, and 7) when caused by:

fire;
explosion;
storm;
natural elements other than hail and frost;
nuclear energy;
ground subsidence.

Other property damage.
Any damage suffered by property (other than property included in branches 3, 4, 5, 6, and 7) when this damage is caused by hail or frost, as well as by any event, such as theft, other than those included under 8.
Liability for self-propelled land vehicles.
Any liability resulting from the use of self-propelled land vehicles (including the liability of the carrier).
Liability for air vehicles.
Any liability resulting from the use of air vehicles (including the liability of the carrier).
Liability for maritime, lake, and river vehicles.
Any liability resulting from the use of river, lake, and maritime vehicles (including the liability of the carrier).
General Liability.
Any liability other than those mentioned under nos. 10, 11, and 12.
Credit.

general insolvency;
export credit;
installment sales;
mortgage credit;
agricultural credit.

Guarantee.

direct guarantee;
indirect guarantee.

Various pecuniary losses.

employment risks;
revenue shortfall (general);
bad weather;
loss of profits;
persistence of overhead costs;
unexpected commercial expenses;
loss of market value;
loss of rents or income;
indirect commercial losses other than those mentioned above;
non-commercial pecuniary losses;
other pecuniary losses.

Legal protection.
Assistance.

assistance to persons in difficulty during travel or absence from home or permanent residence;
assistance in other circumstances.
Life Activity Group.

Life insurance not linked to investment funds, excluding marriage and birth insurance.
Marriage and birth insurance not linked to investment funds.
Life insurance, marriage insurance, and birth insurance linked to investment funds.
(24. Insurance practiced in Ireland and the United Kingdom, called "permanent health insurance" (long-term, non-rescindable illness insurance).
Tontine operations.) <AR 1994-11-22/34, art. 27, 004; En vigueur : 01-07-1994>
Capitalization operations.
Management of collective retirement funds.
(28. Operations as referred to by the French Insurance Code in Book IV, point 4, Chapter I.
Operations depending on the duration of human life, defined or provided by social insurance legislation, when practiced or managed in conformity with the legislation of a Member State by insurance enterprises and at their own risk.) <AR 1994-11-22/34, art. 27, 004; En vigueur : 01-07-1994>

[Annex II.]

[Art. 47] [N2]. Classification by groups of branches.
A. "Accidents and illness", comprising the branches "Accidents" and "Illness"; B. "Motor insurance", comprising the branches "Land vehicle bodies", "Liability for self-propelled land vehicles", as well as "Transported persons" and "Transported goods" insurance relating thereto;
C. "Maritime and transport insurance", comprising the branches "Railway vehicle bodies", "Maritime, lake, and river vehicle bodies", "Liability for maritime, lake, and river vehicles", as well as "Transported persons" and "Transported goods" insurance relating thereto;
D. "Aviation insurance", comprising the branches "Air vehicle bodies", "Liability for air vehicles", as well as "Transported persons" and "Transported goods" insurance relating thereto; E. "Fire and other property damage", comprising the branches "Fire and natural elements" and "Other property damage"; F. "Liability", comprising the branches "Liability for self-propelled land vehicles", "Liability for air vehicles", "Liability for maritime, lake, and river vehicles", and "General Liability"; G. "Credit and guarantee", comprising the branches "Credit" and "Guarantee"; H. "All non-life branches", comprising all branches of insurance listed in Annex I under numbers 1 to 18; K. "All life branches", comprising all branches of insurance listed in Annex I (under numbers 21 to 29); <AR 1994-11-22/34, art. 28, 004; En vigueur : 01-07-1994>

[Annex III.]

[Art. 48] [N3]. <AR 1994-11-22/34, art. 29, 004; En vigueur : 01-07-1994> TECHNICAL OPERATING ACCOUNT. (Annex not included for technical reasons. See MB 21/12/1994, p. 31536)

[Annex IV.]

[Art. 49] [N4]. Congruence rules.
The currency in which the insurer's obligations are payable is determined according to the following rules:

When the guarantees of a contract are expressed in a specific currency, the insurer's obligations are considered payable in that currency.
When the guarantees of a contract are not expressed in a currency, the insurer's obligations are considered payable in the currency of the country where the risk is located. However, the insurer may choose the currency in which the premium is expressed if there are cases justifying such a choice.
This may be the case when, upon underwriting the contract, it seems likely that a claim will be paid not in the currency of the country where the risk is located but in the currency of the premium.
The insurer may consider that the currency in which it will fulfill its guarantee will be either the one it uses based on acquired experience or, failing such experience, the currency of the country where it is established:

for contracts guaranteeing risks classified under branches 4, 5, 6, 7, 11, 12, and 13 (only civil liability of producers) and
for contracts guaranteeing risks classified under other branches when, according to the nature of the risks, the guarantees are to be fulfilled in a currency other than that resulting from the application of the previous modes.

When a claim has been declared to the insurer and the benefits are payable in a specific currency other than that resulting from the application of the previous modes, the insurer's obligations are considered payable in that currency, particularly the currency in which the indemnity to be paid by the insurer was fixed by a court decision or by agreement between the insurer and the insured.
When a claim is assessed in a currency known in advance by the insurer but different from that resulting from the application of the previous modes, insurers may consider their obligations payable in that currency.
Enterprises may not represent their technical provisions by congruent assets if it results from the application of the previous modes that the enterprise - headquarters or branch - should, to satisfy the principle of congruence, hold assets in a currency amounting to no more than 7% of the existing assets in other currencies.
However:
a) regarding congruence in Greek drachmas, Irish pounds, and Portuguese escudos, this amount may not exceed:

1 million (euros) during a transitional period ending on 31 December 1992; <AR 1999-11-26/34, art. 18, 006; En vigueur : 29-12-1999>
2 million (euros) for the period between 1 January 1993 and 31 December 1998; <AR 1999-11-26/34, art. 18, 006; En vigueur : 29-12-1999>
b) regarding congruence in Belgian francs, Luxembourg francs, and Spanish pesetas, this amount may not exceed 2 million (euros) during a period ending on 31 December 1996. <AR 1999-11-26/34, art. 18, 006; En vigueur : 29-12-1999> From the end of the transitional periods defined in points a) and b), the general regime applies to these currencies.

Enterprises - headquarters or branch - may not apply the principle of congruence when obligations are payable in a currency other than that of one of the Community States, if investments in this currency are regulated, if this currency is subject to transfer restrictions or is, for analogous reasons, unsuitable for representing technical provisions.
(insurance enterprises may cover by non-congruent assets an amount not exceeding 20% of their obligations denominated in a specific currency.) <AR 1994-08-12/67, art. 2, a), 003; En vigueur : 1994-10-12>
However, the total assets, all currencies combined, must be at least equal to the total obligations, all currencies combined.
(9. When, pursuant to the above modes, obligations must be represented by assets denominated in the currency of a Member State of the European Community, this mode is deemed respected even when these assets are denominated in (euros).) <AR 1994-08-12/67, art. 2, b), 003; En vigueur : 1994-10-12> <AR 1999-11-26/34, art. 18, 006; En vigueur : 29-12-1999> (10. For assets representing separate management "Life", the provisions of points 2, 3, 4, 5, 6a, and 6b of this annex are not applicable.) <AR 1994-08-12/67, art. 2, c), 003; En vigueur : 1994-10-12>

[Annex V.]

Art. N5.[1 Annex V. - Supplementary supervision of insurance undertakings forming part of an insurance or reinsurance group

I. Supplementary supervision of Belgian participating insurance undertakings

Calculation method and general principles

1.1 General provisions

The calculation of the adjusted solvency margin of Belgian participating insurance undertakings referred to in Article 91nonies, § 1, of the Act is carried out using the method based on consolidated accounts as described in point I.2 of this Annex. However, the [2 FSMA]2 may at any time authorize or impose the application of the deduction and aggregation method as described in point I.3, or the method based on the deduction of requirements as described in point I.4, when these methods are more appropriate.

When the Belgian participating insurance undertaking has more than one related insurance or reinsurance undertaking, the adjusted solvency margin is calculated by integrating each of these related insurance or reinsurance undertakings.

When a related insurance or reinsurance undertaking of the Belgian participating insurance undertaking for which the adjusted solvency margin is calculated has its registered office in a Member State other than Belgium, the calculation takes into account, with regard to that related undertaking, the solvency situation as assessed by the competent authorities of that other Member State.

Regardless of the method used, when the related undertaking is a subsidiary and has a solvency deficit, the total solvency deficit of the subsidiary must be taken into account. If there are no capital links between undertakings forming part of an insurance or reinsurance group, the [2 FSMA]2 determines the portion of the solvency deficit to be taken into account.

However, where, in the opinion of the [2 FSMA]2 the liability of the Belgian participating insurance undertaking holding a share of capital is limited, strictly and unambiguously, to that share of capital, the [2 FSMA]2 may allow the solvency deficit of the subsidiary to be taken into account on a proportional basis.

When there is no capital link between some of the undertakings belonging to the insurance or reinsurance group, the [2 FSMA]2 determines what proportional share is to be taken into consideration.

1.2 Elimination of double counting of elements constituting the solvency margin

a) General treatment of elements constituting the solvency margin

Regardless of the method used to calculate the adjusted solvency margin of a Belgian participating insurance undertaking, double counting of elements constituting the solvency margin among the various insurance and reinsurance undertakings taken into account in this calculation must be eliminated. To this end, the values of the elements referred to in Article 15bis, § 4, of the Act must be eliminated for the calculation of the adjusted solvency margin. The method of elimination depends on the method applied (method based on consolidated accounts, deduction and aggregation method, or method based on the deduction of requirements).

b) Treatment of certain elements constituting the adjusted solvency margin

Without prejudice to the provisions of point I.1.2 a) of this Annex:

the profit reserves and future profits of a related life insurance or reinsurance undertaking of the Belgian participating insurance undertaking for which the adjusted solvency margin is calculated, and
the subscribed but unpaid fractions of the capital of a related insurance or reinsurance undertaking of the Belgian participating insurance undertaking for which the adjusted solvency margin is calculated,
cannot be taken into consideration as elements constituting the adjusted solvency margin except to the extent that they can be taken into consideration for the formation of the solvency margin of that related undertaking. However, the fraction of the capital of that related undertaking subscribed by the Belgian participating insurance undertaking for which the adjusted solvency margin is calculated, which has not been paid, cannot be taken into consideration for the formation of the adjusted solvency margin.

The fractions of the capital of the Belgian participating insurance undertaking subscribed by a related undertaking of that Belgian participating insurance undertaking for which the adjusted solvency margin is calculated, which have not been paid, cannot be taken into consideration for the formation of the adjusted solvency margin.

The fractions of the capital of a related undertaking of the Belgian participating insurance undertaking subscribed by another related undertaking of that Belgian participating insurance undertaking for which the adjusted solvency margin is calculated, which have not been paid, cannot be taken into consideration for the formation of the adjusted solvency margin.

c) Transferability

If the [2 FSMA]2 considers that certain elements constituting the solvency margin of a related insurance or reinsurance undertaking, other than those referred to in point I.1.2 of this Annex, cannot effectively be made available to cover the solvency margin requirement of the Belgian participating insurance undertaking for which the adjusted solvency margin is calculated, it opposes the taking into consideration of these elements in the calculation of the adjusted solvency margin beyond the amount for which they can be taken into consideration for the formation of the solvency margin of the related undertaking.

d) The sum of the elements referred to in points I.1.2 b) and c) of this Annex cannot exceed the solvency requirement of the related insurance or reinsurance undertaking.

1.3 Elimination of intragroup capital creation

When calculating the adjusted solvency margin, no element constituting the solvency margin arising from reciprocal financing between the Belgian participating insurance undertaking and:

a related undertaking;
a participating undertaking;
another related undertaking of any of its participating undertakings,
is taken into account.

Furthermore, no element constituting the solvency margin of a related insurance or reinsurance undertaking of the Belgian participating insurance undertaking for which the adjusted solvency margin is calculated is taken into account when the element in question arises from reciprocal financing with another related undertaking of that Belgian participating insurance undertaking.

In particular, there is reciprocal financing when a Belgian participating insurance undertaking or any of its related undertakings holds shares in another undertaking or grants loans to another undertaking which, directly or indirectly, holds an element constituting the solvency margin of the first undertaking.

1.4 Application of calculation methods

a) Common funds, fixed premium private companies, public institutions linked specialized in the operations covered by the Act of 10 April 1971 on work accidents and by the Act of 3 July 1967 on the repair of damages resulting from work accidents, accidents on the way to work and occupational diseases in the public sector

When calculating the adjusted solvency margin of a participating insurance undertaking of a common fund, a fixed premium private company, or a linked public institution specialized in work accident insurance, this common fund, fixed premium private company, or linked public institution specialized in work accident insurance is treated, for the sole purposes of the calculation, in a manner analogous to a related insurance undertaking by applying the general principles and methods described in this Annex. To this end, a notional solvency requirement is calculated for each common fund, fixed premium private company, or linked public institution specialized in work accident insurance on the basis of the same rules as those provided for in Article 18 A. of this Royal Decree. The same elements as those provided for in Article 15bis of the Act are taken into consideration as elements constituting the notional solvency margin. The assets and liabilities are valued in accordance with the provisions of the Royal Decree of 17 November 1994 on the annual accounts of insurance undertakings.

b) Intermediate insurance holding companies

When calculating the adjusted solvency margin of a Belgian participating insurance undertaking that holds a participation in an insurance or reinsurance undertaking or in an insurance or reinsurance undertaking of a third country, through an intermediate insurance holding company, the situation of the intermediate insurance holding company is taken into account. For the sole purposes of calculating the adjusted solvency margin, carried out in accordance with the general principles and methods described in this Annex, this related intermediate insurance holding company is treated as if it were a Belgian insurance undertaking subject to a solvency requirement equal to zero. The same elements as those provided for in Article 15bis of the Act are recognized as elements constituting the notional solvency margin. The assets and liabilities are valued in accordance with the provisions of the Royal Decree of 17 November 1994 on the annual accounts of insurance undertakings.

c) Related insurance and reinsurance undertakings having their registered office in a third country

When calculating the adjusted solvency margin of a Belgian participating insurance undertaking of an insurance or reinsurance undertaking of a third country, this insurance or reinsurance undertaking of a third country is treated, for the sole purposes of the calculation, in a manner analogous to a related insurance or reinsurance undertaking, by applying the general principles and methods described respectively in this Annex and in Annex I to the Royal Decree of [...] implementing the Act of 16 February 2009 on reinsurance.

To this end, a solvency requirement is calculated for each related insurance or reinsurance undertaking of a third country, on the basis of the same rules as those provided respectively in Article 18 of this Royal Decree and in Articles 12 and 13 of the Royal Decree of [...] implementing the Act of 16 February 2009 on reinsurance.

However, when the third country in which that related undertaking has its registered office subjects it to authorization and imposes a solvency requirement at least comparable to that provided for by Directives 73/239/EEC, 2002/83/EC or 2005/68/EC, taking into account the coverage elements of that requirement, the calculation of the adjusted solvency margin takes into account, with regard to that latter undertaking, the solvency requirement and the eligible elements to satisfy that requirement as provided by the third country in question.

d) Unavailability of necessary information

When the [2 FSMA]2 does not have, for whatever reason, the information necessary to calculate the adjusted solvency margin of an insurance or reinsurance undertaking and relating to a related undertaking having its registered office in a Member State or in a third country, the book value of that undertaking in the Belgian participating insurance undertaking is deducted from the elements constituting the adjusted solvency margin. In this case, no latent capital gain associated with this participation is admitted as an element constituting the adjusted solvency margin.

Calculation of the adjusted solvency margin by application of the method based on consolidated accounts

Without prejudice to the provisions of Article 91decies of the Act, the calculation of the adjusted solvency margin of the Belgian participating insurance undertaking is carried out from the consolidated accounts drawn up in accordance with the provisions of the Companies Code and the Royal Decree of 30 January 2001 implementing the Companies Code, which govern the establishment of consolidated accounts.

The adjusted solvency margin of the Belgian participating insurance undertaking is the difference between:
the elements constituting the solvency margin calculated from consolidated data and a) either the sum of the solvency requirement of the Belgian participating insurance undertaking and the proportional share of the solvency requirements of the related insurance or reinsurance undertakings corresponding to the rates adopted for the establishment of consolidated accounts; b) or the solvency requirement calculated from consolidated data.

Without prejudice to the provisions of point I.1 of this Annex, the provisions of Articles 15 and 15bis of the Act and 17 and 18 of this Royal Decree apply for the taking into consideration of elements constituting the solvency margin and the solvency requirement from consolidated data.

For the calculation of the adjusted solvency margin, account is taken of the percentage of the elements constituting the solvency margin and the percentage of the solvency margin requirement of the related undertaking corresponding to the fraction of subscribed capital held by the Belgian participating insurance undertaking in the related undertaking.

When a subsidiary is consolidated by full integration, the total amount of the elements constituting the solvency margin of the subsidiary and the total amount of its solvency margin requirement are taken into account, regardless of the participation rate.

Calculation of the adjusted solvency margin by application of the deduction and aggregation method

When significant practical obstacles oppose the application of the method based on consolidated accounts, the [2 FSMA]2 may authorize or even require the application of the deduction and aggregation method which is determined as follows:

The adjusted solvency margin of the Belgian participating insurance undertaking is the difference between:
i) the sum:
a) of the elements constituting the solvency margin of the Belgian participating insurance undertaking, and b) of the proportional share of the Belgian participating insurance undertaking in the elements constituting the solvency margin of the related insurance or reinsurance undertaking and ii) the sum:
a) of the book value of the related insurance or reinsurance undertaking in the Belgian participating insurance undertaking, and b) of the solvency requirement of the Belgian participating insurance undertaking, and c) of the proportional share of the solvency requirement of the related insurance or reinsurance undertaking.

When the participation in the related insurance or reinsurance undertaking consists, in whole or in part, in indirect ownership, the value of the indirectly held elements is integrated into point ii) under a), taking into account the relevant successive interests, and points i) under b) and ii) under c) include the corresponding proportional shares of the elements that can enter into the composition of the solvency margin of the related insurance or reinsurance undertaking.

Calculation of the adjusted solvency margin by application of the method based on the deduction of requirements

The [2 FSMA]2 may, under the same conditions as those prevailing for the use of the method referred to in point I.3, authorize the application of the method based on the deduction of requirements.

The adjusted solvency margin is, in this case, the difference between:
i) the sum of the elements that can be taken into consideration as elements constituting the solvency margin of the participating insurance undertaking, and ii) the sum

of the solvency requirement of the participating insurance undertaking, and
of the proportional share of the solvency requirement of the related insurance or reinsurance undertaking.

II. Supplementary supervision for insurance undertakings that are subsidiaries of an insurance holding company or of an insurance or reinsurance undertaking of a third country

The exercise of supplementary supervision consists of carrying out at the level of the insurance holding company or the insurance or reinsurance undertaking of a third country, which are parent undertakings of one or more subsidiaries located in Belgium, referred to in Article 91ter decies, § 1, of the Act, calculations analogous to those described respectively in point I of this Annex and in point I of Annex I to the Royal Decree of [...] implementing the Act of 16 February 2009 on reinsurance.

This analogy consists of applying the general principles described respectively in point I of this Annex and in point I of Annex I to the Royal Decree of [...] implementing the Act of 16 February 2009 on reinsurance.

The calculations are carried out using the method based on consolidated accounts as described respectively in point I.2 of this Annex and in point I.2 of Annex I to the Royal Decree of [...] implementing the Act of 16 February 2009 on reinsurance.

The consolidated accounts of Belgian insurance holding companies and Belgian reinsurance undertakings must be drawn up in accordance with the provisions of the Companies Code and the Royal Decree of 30 January 2001 implementing the Companies Code, which govern the establishment of consolidated accounts.

The consolidated accounts of reinsurance undertakings and insurance holding companies located in the European Economic Area must be drawn up in accordance with the provisions of Directive 91/674 concerning the annual accounts and consolidated accounts of insurance undertakings.

The consolidated accounts of reinsurance undertakings, holding companies, and insurance undertakings located outside the European Economic Area will be taken into consideration by the [2 FSMA]2 for the exercise of supplementary supervision, provided that they are presented in a form comparable to that resulting from Directive 91/674 concerning the annual accounts and consolidated accounts of insurance undertakings.

If this is not the case, the deduction and aggregation method as described in point I.3, or the method based on the deduction of requirements as described in point I.4, will, as the case may be, be applied.

Likewise, when it proves that the application of the method based on consolidated accounts poses significant practical problems, the [2 FSMA]2 may authorize or prescribe the application, either of the deduction and aggregation method as described in point I.3, or of the method based on the deduction of requirements as described in point I.4.

When a Belgian law insurance undertaking is the subsidiary of another insurance undertaking, a reinsurance undertaking, or an insurance holding company having its registered office in a third country, the [2 FSMA]2 may, by derogation from the preceding provisions, agree, by way of cooperation agreement, either with the competent authority of the country in which the parent undertaking has established its seat or with another appropriate foreign competent authority, that the latter will exercise supplementary supervision, provided that this supervision is equivalent to that provided for by Directive 98/78/EC. In this case, compliance with the obligations must be confirmed to the [2 FSMA]2 at least once a year, within a period of four months from the closing of the financial year of the parent undertaking, by the foreign competent authority. The declaration of compliance must be accompanied by the consolidated accounts of the parent undertaking. The provisions of Article 77 of the Act of 2 August 2002 apply to the agreements referred to.

For the sole purposes of the calculation, the parent undertaking is treated as if it were an insurance or reinsurance undertaking subject to:

to a solvency requirement equal to zero when it is an insurance holding company;
to a solvency requirement determined according to the principles of point I.1.4.c) of this Annex, when it is an insurance or reinsurance undertaking from a third country,
and is subject, without prejudice to the provisions of point I of this Annex, to the same conditions as those defined in Articles 15 and 15bis of the Law regarding the elements constituting the solvency margin.]1 ---------- (1)<AR 2009-09-27/17, art. 25, 017; En vigueur : 25-10-2009> (2)<AR 2011-03-03/01, art. 331, 018; En vigueur : 01-04-2011>

Annex VI.

Art. N6.
<Abrogé par AR 2016-06-01/05, art. 5, 021; En vigueur : 01-01-2016>

Preamble

Having regard to the Law of 9 July 1975 on the control of insurance companies, particularly Articles 2, §§ 4 and 5 and 65; Having regard to the First Council Directive of 24 July 1973 on the coordination of laws, regulations and administrative provisions concerning the taking up and pursuit of the business of direct insurance other than life assurance (73/239/EEC), as amended by the Directives of 29 June 1976 (76/580/EEC), 10 December 1984 (84/641/EEC), 22 June 1987 (87/343/EEC and 87/344/EEC); Having regard to the Council Directive of 30 May 1978 on the coordination of laws, regulations and administrative provisions concerning co-insurance (78/473/EEC); Having regard to the First Council Directive of 5 March 1979 on the coordination of laws, regulations and administrative provisions concerning the taking up and pursuit of the business of direct life assurance (79/267/EEC); Having regard to the Second Council Directive of 22 June 1988 on the coordination of laws, regulations and administrative provisions concerning the taking up and pursuit of the business of direct insurance other than life assurance, laying down provisions other than those relating to life assurance to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC (88/357/EEC); Having regard to the consultation of the Insurance Commission; Having regard to the opinion of the Insurance Control Office; Having regard to the opinion of the Council of State; On the proposal of Our Minister of Economic Affairs and the Plan,
.....