6Article 7 of that regulation, entitled ‘Insurance contracts’, provides as follows:1. This Article shall apply to contracts referred to in paragraph 2, whether or not the risk covered is situated in a Member State, and to all other insurance contracts covering risks situated inside the territory of the Member States. It shall not apply to reinsurance contracts.2. An insurance contract covering a large risk as defined in Article 5(d) of the First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance [(OJ 1973 L 228, p. 3), as amended by Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005 (OJ 2005 L 323, p. 11)], shall be governed by the law chosen by the parties in accordance with Article 3 of this Regulation.To the extent that the applicable law has not been chosen by the parties, the insurance contract shall be governed by the law of the country where the insurer has his habitual residence. Where it is clear from all the circumstances of the case that the contract is manifestly more closely connected with another country, the law of that other country shall apply.…6. For the purposes of this Article, the country in which the risk is situated shall be determined in accordance with Article 2(d) of the Second Council Directive 88/357/EEC of 22 June 1988 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services [(OJ 1988 L 172, p. 1), as amended by Directive 2005/14 of the European Parliament and of the Council of 11 May 2005 (OJ 2005 L 149, p. 14)], and, in the case of life assurance, the country in which the risk is situated shall be the country of the commitment within the meaning of Article 1(1)(g) of Directive 2002/83/EC.’
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