(1) The separate management referred to in Article 6(4) (a) (ii) shall be organised in such a way that the activities covered by these Regulations are distinct from the activities covered by the Non-Life Insurance Framework Regulations in order that -

(a) the respective interests of life policyholders and non-life policyholders are not prejudiced and, in particular, that profits from life insurance benefit life policyholders as if the undertaking only carried on the business of life assurance, and

(b) the minimum financial obligations, in particular solvency margins, in respect of each of the 2 activities, namely the activity under these Regulations and the activity under the Non-Life Insurance Framework Regulations, are not borne by the other activity.

(2) Notwithstanding sub-article (1), as long as the relevant minimum financial obligations are fulfilled in accordance with that sub-article, and provided the Bank is informed, the undertaking may use those explicit items of the solvency margin which are still available in respect of the activity covered by these Regulations and the activity covered by the Non-Life Insurance Framework Regulations, and to which Article 19 of the Directive relates.

(3) The Bank shall analyse the results of both activities referred to in sub-article (2) of an insurance undertaking to ensure that this Article is complied with.