Declaration / settlement and payment in to the Consorcio de Compensación de Seguros

The insurance companies are obliged to prepare and present the declaration of the concepts included in the models as the resultant settlement of the application of the surcharges and tributes collected for the account of The Consorcio de Compensación de Seguros (hereinafter the Consorcio). Settlements should be made with the predetermined frequency even when no premiums or surcharges have been collected during the corresponding period, in which case the form should be marked "with no surcharges subject to settlement".

Non-compliance with the obligation to pay in to the Consorcio the surcharges collected by the insurance company within the period and in the way established by law will entail, not withstanding administrative liability and where applicable penal liability that may have been incurred, the obligation to pay the legal rate of interest during the delay period and in addition the insurance company will lose the commission derived from collection management, in the case of the surcharge for extraordinary risks, in both direct damage and loss of profits.

In accordance with the provisions of article 40.3 of the law governing the order and supervision of the private insurance sector (collated text approved by Royal Legislative Decree 6/2004 of 29th October) undue retention of the surcharges collected in favour of the Consorcio and not paying them in to the body within the period laid down will be considered a very serious breach and in accordance with the provisions of article 40.4 of said law the failure to collect the surcharges in the way and period laid down, improperly collecting or insufficiently collecting and in general non-compliance with the obligations of compulsory collection of the surcharges legally subject to demand in favour of the Consorcio will be considered as a serious breach.

Presentation through electronic means

The presentation of settlements of surcharges and premiums in favour of the Consorcio must be carried out through electronic means.

The following models will be presented through self-settlement:

Models for declarations / settlements of the compulsory surcharges to be collected jointly with the premiums according to Consorcio Resolution dated October 9, 2009 The Consorcio de Compensación de Seguros' Resolution dated 9th October 2009 is as follows:

Model 10: Extraordinary risks. Direct damage affecting property and the person (life and accidents).

Model 11: Extraordinary risks, loss of profits.

Model 20: Compulsory motor insurance.

Model 50: Surcharge for financing the activity of liquidating insurance entities (non-life).

The following declaration / settlement procedure is established:

1. The representative must use the collaborating entity through which it is wished that the settlements be made.

2. The representative must identify himself through entering the access codes to the system given by the Consorcio.

3. The model of settlement that is to be completed will be selected.

The system will help in the task through detecting any possible errors while the form is being completed. Automatic calculation features are established for assisting with the process and in some cases these can be modified later by the user.

4. Once the settlement model has been totally completed it must be signed through electronic confirmation of the data submitted.

5. The representative can choose to present the form through the web or personally at the selected bank's office. In this second case the form must be printed in duplicate and presented at the bank branch. Presentations at the counter will be possible only if the entity had direct insurance business figures that did not exceed 1 million Euros in the previous financial year, expressed as premiums declared in Form 50 (Resolution of the Consorcio's Presidency dated October 9, 2009).

6. In the case of payment by means of data transmission through the Internet the data of the desired bank debit will be incorporated, either through an account of the collaborating entity or through any other bank located in Spanish territory. It is important to point out that the choice of the collaborating entity does not restrict in any way whatsoever the bank where the account to be debited is located.

7. Depending on whether or not the account from which the payment is to be made is in the same bank in which the user is carrying out the transaction, the system might or might not ask for the identification of the authorisation to make payments into the account.

8. Once payment has been made the presentation will be deemed to have been completed, and the date of the payment will feature for all effects and purposes as the "date of presentation".

9.In the event of models being presented with the text "without surcharges subject to settlement" it will only be necessary to carry out steps 1 to 4, with the system taking care of their remission to the Consorcio.

The conditions of accessibility to the presentation system will be the following:

The access codes will be sent by the Consorcio to the Insurance Companies' representatives. To be able to receive the codes it is an essential requirement that the representative forms part of the register of representatives existing in the Consorcio, Sub-directorate of Collections, Accounting and Budgets.

To request the condition of representative from the Consorcio the representation of the insurance company granting the authority and the typology of representation must be reliably justified.

The same person can represent various insurance companies and will have a different code for each one of them.

The Consorcio will give out the codes for each insurance company and representative:

• Insurance company code
• User code
• Password

The application for registration and for the system access codes must be made at least fifteen days before the end of the settlement period that is to be settled. The procedure lays down that the declaration/settlement must be made within one month after the closing date of the period in question.