Duties of the Board in case of companies in liquidation

8General 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, not being—

a

a contract the effecting of which constituted the carrying on of marine, aviation and transport insurance business, or

b

a contract of reinsurance.