1. Each Member State shall apply to insurance undertakings whose head office is situated within its territory, the provisions of Articles 35 to 39 of Directive 2005/68/EC in respect of their reinsurance acceptance activities, where one of the following conditions is met:
(a) the reinsurance premiums collected exceed 10 % of their total premium;
(b) the reinsurance premiums collected exceed EUR 50 000 000;
(c) the technical provisions resulting from their reinsurance acceptances exceed 10 % of their total technical provisions.
2. Each Member State may choose to apply to assurance undertakings referred to in paragraph 1 of this Article and whose head office is situated within its territory the provisions of Article 34 of Directive 2005/68/EC in respect of their reinsurance acceptance activities, where one of the conditions laid down in the said paragraph 1 is met.
In that case, the respective Member State shall require that all assets employed by the assurance undertaking to cover t