Article 189 Scope

1.

(a)

SCR_def,1 denotes the capital requirement for counterparty default risk on type 1 exposures as set out in paragraph 2;

(b)

SCR_def,2 denotes the capital requirement for counterparty default risk on type 2 exposures as set out in paragraph 3.

2.

(a)

Risk-mitigation contracts including reinsurance arrangements, special purpose vehicles and insurance securitisations;

(b)

Cash at bank as defined in Article 6 item F of Council Directive 91/674/EEC (1);

(c)

Deposits with ceding undertakings, where the number of single name exposures does not exceed 15;

(d)

Commitments received by an insurance or reinsurance undertaking which have been called up but are unpaid, where the number of single name exposures does not exceed 15, including called up but unpaid ordinary share capital and preference shares, called up but unpaid legally binding commitments to subscribe and pay for subordinated liabilities, called up but unpaid initial funds, members' contributions or the equivalent basic own-fund item for mutual and mutual-type undertakings, called up but unpaid guarantees, called up but unpaid letters of credit, called up but unpaid claims which mutual or mutual-type associations may have against their members by way of a call for supplementary contributions;

(e)

Legally binding commitments which the undertaking has provided or arranged and which may create payment obligations depending on the credit standing or default on a counterparty including guarantees, letters of credit, letters of comfort which the undertaking has provided;

(f)

derivatives other than credit derivatives covered in the spread risk sub-module.

3.

(a)

Receivables from intermediaries;

(b)

Policyholder debtors;

(c)

mortgage loans which meet the requirements in Article 191(2) to (13);

(d)

Deposits with ceding undertakings, where the number of single name exposures exceeds 15;

(e)

Commitments received by an insurance or reinsurance undertaking which have been called up but are unpaid as referred to in paragraph 2(d), where the number of single name exposures exceeds 15.

4.

5.

6.

(a)

the credit risk transferred by a credit derivative;

(b)

the credit risk on debt issuance by special purpose vehicles, whether as defined in Article 13(26) of Directive 2009/138/EC or not;

(c)

the underwriting risk of credit and suretyship insurance or reinsurance as referred to in lines of business 9, 21 and 28 of Annex I of this Regulation;

(d)

the credit risk on mortgage loans which do not meet the requirements in Article 191(2) to (9);

(e)

the credit risk on assets posted as collateral to a CCP or a clearing member that are bankruptcy remote.

7.