PART IVPRIORITY OF PAYMENT OF INSURANCE CLAIMS IN WINDING UP ETC.

Application of this Part: F1certain assets excluded from insolvent estate of UK insurer19.

(1)

For the purposes of this Part, the insolvent estate of a UK insurer shall not include any assets which at the commencement date are subject to F2a relevant compromise or arrangement.

(2)

In this regulation—

(a)

“assets” has the same meaning as “property” in section 436 of the 1986 Act or Article 2(2) of the 1989 Order;

(b)

“commencement date” has the meaning given in F3regulation 18(5);

(c)

“insolvent estate”—

(i)

in England, Wales and Northern Ireland has the meaning given by F4rule 1.2 of the Insolvency Rules or Rule 0.2 of the Insolvency Rules (Northern Ireland), and

(ii)

in Scotland means the company’s assets;

F5(d)

“relevant compromise or arrangement” means—

(i)

a compromise or arrangement sanctioned by the court in relation to a UK insurer before 20th April 2003 under—

(aa)

section 425 of the Companies Act 1985 (excluding a compromise or arrangement falling within section 427 or 427A of that Act), or

(bb)

Article 418 of the Companies (Northern Ireland) Order 1986 (excluding a compromise or arrangement falling within Article 420 or 420A of that Order); or

(ii)

any subsequent compromise or arrangement sanctioned by the court to amend or replace a compromise or arrangement of a kind mentioned in paragraph (i) which is—

(aa)

itself of a kind mentioned in sub-paragraph (aa) or (bb) of paragraph (i) (whether sanctioned before, on or after 20th April 2003), or

(bb)

a section 899 compromise or arrangement.