(1) The law applicable to a contract of insurance which covers risks situated within the State or within other Member States shall be determined in accordance with the following provisions:
(a) Where the habitual residence or central administration of a policyholder is within the territory of the Member State where the risk is situated, the law applicable to the insurance contract shall be the law of that Member State; however where the law of that Member State so allows, the parties may choose the law of another country.
(b) Where the habitual residence or central administration of a policyholder is not in the Member State where the risk is situated, the parties to the insurance contract may choose to apply either the law of the Member State in which the risk is situated or the law of the country of the policyholder's habitual residence or central administration.
(c) Where a policyholder pursues a commercial, industrial or professional activity and where the contract covers two or mor
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