55 Winding up of insurance companies with long term business.U.K.
(1)No insurance company to which this Part of this Act applies which is an unincorporated body and carries on long term business shall be made the subject of bankruptcy proceedings or, in Scotland, sequestration proceedings.
(2)No insurance company to which this Part of this Act applies which carries on long term business shall be wound up voluntarily.
(3)Section 29(1) above shall not have effect in relation to the winding up of a company to which section 28(1) above applies but, subject to subsection (4) below and to rules made by virtue of section 59(2) below, in any such winding up—
(a)the assets representing the fund or funds maintained by the company in respect of its long term business shall be available only for meeting the liabilities of the company attributable to that business;
(b)the other assets of the company shall be available only for meeting the liabilities of the company attributable to its other business.
(4)Where the value of the assets mentioned in either paragraph of subsection (3) above exceeds the amount of the liabilities mentioned in that paragraph the restriction imposed by that subsection shall not apply to so much of those assets as represents the excess.
(5)In relation to the assets falling within either paragraph of subsection (3) above the creditors mentioned in [F1section 168(2) of the Insolvency Act 1986] or, as the case may be, [F2paragraphs (1) to (3) of Article 500 of the Companies (Northern Ireland) Order 1986][F2Article 143(2) of the Insolvency (Northern Ireland) Order 1989] shall be only those who are creditors in respect of liabilities falling within that paragraph; and any general meetings of creditors summoned for the purposes of that section shall accordingly be separate general meetings of the creditors in respect of the liabilities falling within each paragraph.
(6)Where under section [F3212 of the Insolvency Act 1986] or [F4Article 584 of the Companies (Northern Ireland) Order 1986][F4Article 176 of the Insolvency (Northern Ireland) Order 1989] (defalcations of directors etc. disclosed in course of winding up) a court orders any money or property to be repaid or restored to a company or any sum to be contributed to its assets then, if and so far as the wrongful act which is the reason for the making of the order related to assets representing a fund or funds maintained by the company in respect of its long term business, the court shall include in the order a direction that the money, property or contribution shall be treated for the purposes of this Act as assets of that fund or those funds and this Act shall have effect accordingly.
Textual Amendments
F1Words substituted by Insolvency Act 1986 (c. 45, SIF 66), s. 439(2), Sch. 14
F2Words “Article" to “1989" substituted (prosp.) for words “paragraphs" to “1986" by S.I. 1989/2405 (N.I. 19), arts. 1(2), 381(2), Sch. 9 para. 35(a) (which latter words were substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II)
F3Words substituted by Insolvency Act 1986 (c. 45, SIF 66), s. 439(2), Sch. 14
F4Words “Article" to “1989" substituted (prosp.) for words “Article" to “1986" by S.I. 1989/2405 (N.I. 19), arts. 1(2), 381(2), Sch. 9 para. 35(b) (which latter words were substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II