Policyholders Protection Act 1997 (repealed)

Prospective

13 Right to reimbursement by the Board. U.K.

After section 23 of the 1975 Act there shall be inserted—

“23A Reimbursement by Board of payments by intermediaries.

(1) If—

(a) a payment is treated because of section 14(1) above as reducing a sum payable in accordance with section 6 or 8 above,

(b) the payment is made with the consent of the holder of the policy or security under which the liability to which the payment is referable arises, and

(c) at the time of the payment, that policy or security is one in relation to which the person by whom the payment is made (“the payer”) is the holder’s intermediary,

it shall be the duty of the Board to secure that a sum equal to the full amount of the reduction is paid to the payer as soon as reasonably practicable after the beginning of the liquidation to which the Board’s liability under that section was attributable.

(2) The Board may secure the payment of any sum payable under subsection (1) above by either or both of the following methods, that is to say—

(a) by themselves making payments in respect of the sum in question; or

(b) by securing by any measures appearing to them to be appropriate that such payments are made by any other person.

(3) Section 13(3) above shall apply in relation to subsection (1) above as it applies in relation to any provision of sections 6 to 11 above.

(4) For the purposes of this section, a person is another’s intermediary in relation to a policy or security at any time when he is engaged by the other to assist in its administration and performance.”