Duties of the Board in case of companies [F1and friendly societies] in liquidationU.K.

Textual Amendments

F1Words in cross heading preceding s. 5 inserted (prosp.) by Friendly Societies Act 1992 (c. 40), ss. 97, 126(2), Sch. 17 para. 4 (with ss. 7(5), 93(4))

10 Long term policies.U.K.

(1)In this Act “long term policy” means any policy evidencing a contract the effecting of which constituted the carrying on of long term business. . . F2, not being a contract of reinsurance.

(2)Subject to sections 13 and 14 below, it shall be the duty of the Board to secure that a sum equal to ninety per cent. of the amount of any liability of a company in liquidation towards any policyholder under the terms of a long term policy which was a United Kingdom policy at the beginning of the liquidation is paid to the policyholder as soon as reasonably practicable after the beginning of the liquidation.

Textual Amendments

Modifications etc. (not altering text)

C1S. 10 modified (24.9.1996) by 1996 c. 48, ss. 4(1)-(3), 8(3)

Textual Amendments

F1Words in cross heading preceding s. 5 inserted (prosp.) by Friendly Societies Act 1992 (c. 40), ss. 97, 126(2), Sch. 17 para. 4 (with ss. 7(5), 93(4))

Duties of the Board in case of companies in liquidationU.K.

10 Long term policies.U.K.

(1)In this Act “long term policy” means any policy evidencing a contract the effecting of which constituted the carrying on of long term business. . . F2, not being a contract of reinsurance.

(2)Subject to sections 13 and 14 below, it shall be the duty of the Board to secure that a sum equal to ninety per cent. of the amount of any liability of a company in liquidation towards any policyholder under the terms of a long term policy which was a United Kingdom policy at the beginning of the liquidation is paid to the policyholder as soon as reasonably practicable after the beginning of the liquidation.

Textual Amendments

Modifications etc. (not altering text)

C1S. 10 modified (24.9.1996) by 1996 c. 48, ss. 4(1)-(3), 8(3)