Powers of the Board to assist policyholders of companies in liquidation, etc.
15Interim payments to policyholders of companies in liquidation, etc.
1
An authorised insurance company, not being a company in liquidation, is a company in provisional liquidation for the purposes of this section if a provisional liquidator has been appointed in respect of the company under section 238 of the [1948 c. 38.] Companies Act 1948 or section 222 of the [1960 c. 22 (N.I.).] Companies Act (Northern Ireland) 1960, provided that the petition for the winding up of the company which led to his appointment was presented after 29th October 1974.
2
A policyholder is eligible for assistance under this section—
a
if he is a policyholder in respect of a general policy or a long term policy of a company in liquidation which was a United Kingdom policy at the beginning of the liquidation ; or
b
if he is a policyholder in respect of a general policy or a long term policy of a company in provisional liquidation which was a United Kingdom policy at the time when the provisional liquidator was appointed.
3
In any case where it appears to the Board to be desirable to do so, the Board may—
a
make payments to or on behalf of policyholders who are eligible for assistance under this section, on such terms (including any terms requiring repayment, in whole or in part) and on such conditions as the Board think fit; or
b
secure that payments are made to or on behalf of any such policyholders by the liquidator or the provisional liquidator by giving him an indemnity covering any such payments or any class or description of such payments.