Duties of the Board in case of companies F3and friendly societies in liquidation
8 General policies other than compulsory insurance policies.
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, F2other than class 5, 6, 7, 11 or 12, not being a contract of reinsurance.
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))