Policyholders Protection Act 1975 (repealed) (c. 75)

Duties of the Board in case of companies [F1 and friendly societies] in liquidation U.K.

Textual Amendments

F1 Words 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))

8 General policies other than compulsory insurance policies. U.K.

(1) This section applies to any general policy other than a policy to which section 6 above applies.

(2) Subject to sections 9, 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 a private policyholder under the terms of any policy to which this section applies 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.

(3) In subsection (2) above “private policyholder” has the same meaning as in section 6(6) above.

(4) In this Act “general policy” means any policy evidencing a contract the effecting of which constituted the carrying on of general business of any class, [F2 other than class 5, 6, 7, 11 or 12, not being a contract of reinsurance].

Textual Amendments

F2 Words substituted by Insurance Companies Act 1981 (c. 31, SIF 67), s. 36, Sch. 4 Pt. II para. 25(3)

Textual Amendments

F1 Words 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 liquidation U.K.

8 General policies other than compulsory insurance policies. U.K.

(1) This section applies to any general policy other than a policy to which section 6 above applies.

(2) Subject to sections 9, 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 a private policyholder under the terms of any policy to which this section applies 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.

(3) In subsection (2) above “private policyholder” has the same meaning as in section 6(6) above.

(4) In this Act “general policy” means any policy evidencing a contract the effecting of which constituted the carrying on of general business of any class, [F2 other than class 5, 6, 7, 11 or 12, not being a contract of reinsurance].

Textual Amendments

F2 Words substituted by Insurance Companies Act 1981 (c. 31, SIF 67), s. 36, Sch. 4 Pt. II para. 25(3)