Article 14 of the Principal Regulations is hereby amended by the insertion of the following subarticle after subarticle (7):
(a) Any undertaking which is underwriting risks included in class 14 in Section A of the Annex (referred to subsequently in these Regulations as 'credit insurance') shall, subject to paragraph (d) of this subarticle set up an equalisation reserve for the purpose of offsetting any technical deficit or above-average claims ratio arising in that class for a financial year.
(b) The equalization reserve shall be calculated in accordance with whichever of the four methods set out in Section D of the Annex is chosen by the undertaking concerned, with the approval of the Minister.
(c) The equalization reserve shall be disregarded for the purpose of calculating the solvency margin, up to the amount calculated in accordance with the method chosen as aforesaid.
(d) Paragraph (a) does not apply to undertakings for which the premiums or contributions receivable in respec
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