Section 2.
1The 1975 Act shall be amended as follows.
2(1)Section 6 shall be amended as follows.
(2)In subsection (6), for “subsection (8)” there shall be substituted “subsections (8) and (8A)”.
(3)In subsection (8)—
(a)in paragraph (a), for “was a United Kingdom policy at the beginning of the liquidation” there shall be substituted “is a qualifying policy”, and
(b)in paragraph (b), for “United Kingdom policy at the beginning of the liquidation” there shall be substituted “qualifying policy”.
(4)After that subsection there shall be inserted—
“(8A)The duty of the Board under subsection (6) above shall not apply unless the liability is in respect of a protected risk.”
(5)In subsection (9)—
(a)for “were United Kingdom policies at any time” there shall be substituted “are qualifying policies”, and
(b)in paragraph (a), for “United Kingdom policies at the time in question” there shall be substituted “qualifying policies”.
3(1)Section 8 shall be amended as follows.
(2)In subsection (2)—
(a)after “14” there shall be inserted “and subsection (2A)”, and
(b)for the words “was a United Kingdom policy at the beginning of the liquidation” there shall be substituted “is a qualifying policy”.
(3)After that subsection there shall be inserted—
“(2A)The duty of the Board under subsection (2) above shall not apply unless the liability is in respect of a protected risk.”
4(1)Section 9 shall be amended as follows.
(2)In subsection (1), for “was a United Kingdom policy at the beginning of the liquidation” there shall be substituted “is a qualifying policy”.
(3)In subsection (2), for “was a United Kingdom policy at the beginning of the first-mentioned company’s liquidation” there shall be substituted “is a qualifying policy”.
5(1)Section 10 shall be amended as follows.
(2)In subsection (2)—
(a)after “14” there shall be inserted “and subsection (2A)”, and
(b)for “was a United Kingdom policy at the beginning of the liquidation” there shall be substituted “is a qualifying policy”.
(3)After that subsection there shall be inserted—
“(2A)The duty of the Board under subsection (2) above shall not apply unless the liability is in respect of a protected commitment.”
6(1)Section 11 shall be amended as follows.
(2)In subsection (3)—
(a)after “14” there shall be inserted “and subsection (3A)”, and
(b)for “was a United Kingdom policy at the beginning of the liquidation” there shall be substituted “is a qualifying policy”.
(3)After that subsection there shall be inserted—
“(3A)The duty of the Board under subsection (3) above shall not apply in relation to a commitment which is not a protected commitment.”
7(1)Section 12 shall be amended as follows.
(2)In subsection (1)—
(a)at the beginning there shall be inserted “Subject to subsection (1A) below,”, and
(b)for “was a United Kingdom policy at the beginning of the liquidation” there shall be substituted “is a qualifying policy”.
(3)After that subsection there shall be inserted—
“(1A)The duty of the Board under subsection (1) above shall not apply if the policy does not relate to a protected commitment.”
8(1)Section 15 shall be amended as follows.
(2)In subsection (2), for paragraphs (a) and (b) there shall be substituted “if he is a policyholder in respect of a general policy or a long term policy of a company in liquidation or provisional liquidation which—
(a)is a qualifying policy, and
(b)relates to the insurance of a protected risk or commitment.”
(3)In subsection (3), after “may” there shall be inserted “, in relation to the insurance of a protected risk or commitment”.
9(1)Section 16 shall be amended as follows.
(2)In subsection (2), after “arising” there shall be inserted “in relation to matters by virtue of which they are such persons”.
(3)In subsection (9), for “was a United Kingdom policy at the relevant time” there shall be substituted “is a qualifying policy and insures a protected risk or commitment”.
(4)In subsection (9A), for “United Kingdom policy at the relevant time” there shall be substituted “qualifying policy”.
10(1)Section 17 shall be amended as follows.
(2)In subsection (4)—
(a)at the beginning there shall be inserted “Subject to subsection (4A) below,”, and
(b)for “was a United Kingdom policy at the relevant time as defined by section 16(6) above” there shall be substituted “is a qualifying policy”.
(3)After that subsection there shall be inserted—
“(4A)The duty of the Board under subsection (4) above shall not apply if the policy does not relate to a protected commitment.”
11In section 32(1), after the definition of the expression “long term policy” there shall be inserted—
““protected commitment” and “protected risk” have the meanings given by section 4(3) above;
“qualifying policy” has the meaning given by section 4(2) above;”.