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1. By way of derogation from Articles 32 and 33, Member States may provide that an appropriate insurance guarantee scheme is assigned with the duties and rights of a bridge undertaking. While ensuring the interests of policy holders, continuity of insurance relationships and settlement of claims, and ensuring that the objectives of this Directive are still adequately met, Member States may provide for a transfer, to such insurance guarantee scheme, of:

(a) shares or other instruments of ownership issued by one or more undertakings under resolution; or (b) all or any assets, rights or liabilities of one or more undertakings under resolution. Resolution authorities shall ensure that the total value of liabilities transferred to the insurance guarantee scheme does not exceed the total value of the rights and assets transferred from the undertaking under resolution.

2. Member States shall ensure that an insurance guarantee scheme assigned with the duties and rights of a bridge undertaking respects the following requirements:

(a) the resolution authority has approved the constitutional documents of the bridge undertaking;

(b) the resolution authority approves the remuneration of the members of the administrative, management or supervisory body and determines their responsibilities;

(c) the bridge undertaking shall not conclude new insurance contracts, or change existing insurance contracts in a way that could increase the insurance claims against the bridge undertaking;

(d) the insurance guarantee scheme is subject to general rules and objectives of insurance supervision to ensure an adequate level of policy holder protection. Point (b) of the first subparagraph shall not apply to an insurance guarantee scheme assigned with the duties and rights of a bridge undertaking if any transferred assets, rights, liabilities or rights of ownership are segregated from the other assets, rights and liabilities of the insurance guarantee scheme and remuneration is not paid from the transferred assets.

3. Member States shall ensure that the funding of an insurance guarantee scheme assigned with the duties and rights of a bridge undertaking is adequate to continue insurance relationships and guarantee the settlement of insurance claims.