Policyholders Protection Act 1997
Jurisdiction | UK Non-devolved |
Citation | 1997 c. 18 |
Year | 1997 |
(1) For section 3 of the 1975 Act there shall be substituted—“ those who are qualifying persons in relation to a company in financial difficulties ” , andfor “such policyholders” there shall be substituted “ such persons ” .(3) In subsection (3) (power to secure or facilitate transfer of business of company in financial difficulties on terms including reducing liabilities or benefits under any policies) , for the words from “the liabilities” to “policies) ” there shall be substituted “ any of the things to which any of those who are qualifying persons in relation to the company in financial difficulties are entitled in their capacity as such) ” .(4) In subsection (5) (power to assist company in financial difficulties conditionally on reduction of liabilities or benefits under any of its policies) , for the words from “any liabilities” to “the company” there shall be substituted “ of the things to which any of those who are qualifying persons in relation to the company are entitled in their capacity as such ” .for “any policyholders of” there shall be substituted “ any of those who are qualifying persons in relation to ” , andfor “the policyholders” there shall be substituted “ the persons ” .(6) After subsection (8B) there shall be inserted—
- “(1) The functions of the Board under this Act shall be exercisable in relation to policyholders and others who have been or may be prejudiced in consequence of the inability of insurance companies to meet their liabilities under policies issued or securities given by them only in cases where the insurance companies in question are insurance companies to which this Act applies.
- (2) An insurance company is one to which this Act applies if it is—
- (a) authorised under section 3 or 4 of the Insurance Companies Act 1982 to carry on insurance business of any class in the United Kingdom,
- “(1) A policyholder is eligible for the assistance or protection of the Board in accordance with any provision of sections 6 to 16 below only in respect of the insurance under a qualifying policy of a protected risk or commitment.
- (2) The following are qualifying policies for the purposes of this Act—
- (a) a policy of insurance issued by an insurance company authorised under section 3 or 4 of the Insurance Companies Act 1982 through an establishment in—
- (i) the United Kingdom,
- (ii) another EEA State, or
- (iii) the Channel Islands or the Isle of Man, and
- “(8C) For the purposes of this section, a person is a qualifying person in relation to a company in financial difficulties if—
- (a) he is a policyholder of the company who is eligible for protection under this section,
- (b) he is a security holder in respect of a security given by the company who is eligible for protection under this section, or
- (c) he is a person to whom the company is liable to pay any sum in respect of his entitlement to the benefit of a judgment under the provisions mentioned in paragraphs (a) and (b) of section 7 above.
- “(9A) A security holder in respect of a security given by a company in financial difficulties is eligible for protection under this section if—
- (a) it is a security to which section 6 above applies, and
- (b) it would have been a United Kingdom policy at the relevant time if it had been an insurance policy and the contract governing the security had been a contract of insurance.
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