(1) This Part applies to a contract of long-term insurance if -
(a) where the policyholder is an individual, he resides in an EEA State;
(b) otherwise, the establishment of the policyholder to which the contract relates is situated in an EEA State.
(2) The applicable law is the law of the EEA State of the commitment unless, if such a choice is permitted under the law of that EEA State, the parties choose the law of another country.
(3) If the policyholder is an individual and resides in one EEA State but is a national or citizen of another, the parties to the contract may choose the law of the EEA State of which he is a national or citizen as the applicable law.