E. National Treatment

1.

In addition to the right to compete for all lines of insurance in a host country,

US insurance suppliers, who are licensed or established in the host country,

shall have the same opportunities to compete for domestic insurance business

as indigenous insurance services suppliers with respect to insurance for state 

owned or state affiliated enterprises, or any enterprise where the state holds

an equity share.

2.

US insurance suppliers will be treated no less favourably than domestic

services suppliers with respect to capital, solvency, reserve, tax and other

financial requirements. Where less favourable treatment is imposed, the

countries will explain the basis for the different treatment accorded and, in

particular, why such treatment is necessary for the protection of

policyholders.

3.

In the case of insurance intermediation, the counties will limit any conditions

or limitations with respect to monetary transfers by insurance intermediaries

to what is necessary to assume their legal responsibilities in the country

where the service is delivered.

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