Further provision about declarations and orders
14Insurance against claims: insurers paying capital sums
1
Before paying a capital sum to a person as a result of a declaration under this Act, an insurer may require the person to take out an insurance policy in respect of any claim which the insurer may make in the event of a variation order being made.
2
The policy must be taken out—
a
in the person’s own name, and
b
for the benefit of the insurer.
3
Subsection (1) does not apply where the sum is paid in respect of an annuity or other periodical payment.
4
In this section “insurer” means any person who provides for the payment of a benefit on a person’s death.