(1) Subject to sub-article (2) of this Article, Annex II and Article 36 (2) shall apply to an insurance undertaking to which this Article applies.
(2) In calculating a solvency margin for the purposes of this Article, account shall be taken only of the premiums or contributions and claims pertaining to the business effected by the insurance undertaking in the State or in another Member State, as appropriate.
(3) The assets representing the solvency margin shall be retained in the State up to the amount of the guarantee fund required by Article 68 and any excess shall be retained either in the State or in another Member State.