Policyholders Protection Act 1997

General scope of the Board’s functions

1Insurance companies to which the 1975 Act applies

2Eligibility of policyholders for protection

Companies in financial difficulties

3Persons qualifying for protection

4Deferment of payment

5Operation of the “cost test”

6Schemes of arrangement, etc.: power of Secretary of State to intervene

Levies on insurance companies

7Extension of levies

8Restriction of leviable income

9Calculation of payment under general business levies

10Exemption from payment

11Payment by instalments

12Payment of levies by instalments

13Right to reimbursement by the Board

Miscellaneous other amendments of the 1975 Act

14Increase in the Board’s borrowing limit

15Transfer of insurance business to authorised friendly society

Interpretation of the 1975 Act

16Extension of definition of “policy holder”

17Situation of risks and commitments

18Miscellaneous

Friendly societies

19Application of levy provisions

20Consequential amendments

21Interpretation

23Short title, commencement and extent

SCHEDULE 1Section 1: consequential amendments

1The 1975 Act shall be amended as follows.

2In section 5(1) and (4), for “authorised insurance company” there...

3In section 6(2), for “authorised insurance company” there shall be...

4In section 9(1), for “authorised insurance company” there shall be...

5In section 11(5), for “authorised insurance company”, in both places,...

6In section 15(1), for “authorised insurance company” there shall be...

7(1) Section 16 shall be amended as follows.

8In section 23(1), for “authorised insurance company” there shall be...

9In section 26(1), for “authorised insurance company” there shall be...

10In section 32, after subsection (1) there shall be inserted—...

11(1) In Schedule 1, paragraph 1 shall be amended as...

SCHEDULE 2Section 2: consequential amendments

1The 1975 Act shall be amended as follows.

2(1) Section 6 shall be amended as follows.

3(1) Section 8 shall be amended as follows.

4(1) Section 9 shall be amended as follows.

5(1) Section 10 shall be amended as follows.

6(1) Section 11 shall be amended as follows.

7(1) Section 12 shall be amended as follows.

8(1) Section 15 shall be amended as follows.

9(1) Section 16 shall be amended as follows.

10(1) Section 17 shall be amended as follows.

11In section 32(1), after the definition of the expression “long...

SCHEDULE 3Section 6: consequential amendments

1The 1975 Act shall be amended as follows.

2In section 1(2), after paragraph (a) there shall be inserted—...

3In section 18(3)(a), for “or 16” there shall be substituted...

4(1) Section 28 shall be amended as follows.

SCHEDULE 4Friendly societies: consequential amendments

Part IAmendments of Schedule 17 to the Friendly Societies Act 1992

1In paragraph 1(1), in the inserted section 1(2)(aa), for sub-paragraph...

2For paragraph 3 there shall be substituted— (1) Section 4 (protection confined to insurance under qualifying policies...

3(1) Paragraph 6 shall be amended as follows.

4(1) In paragraph 7, the inserted section 8A shall be...

5In paragraph 9— (a) for “subsection (3)” there shall be...

6In paragraph 11, in the subsection inserted in section 16...

7For paragraph 16 there shall be substituted— In section 25 (application of surplus funds by the Board),...

8(1) Paragraph 18 shall be amended as follows.

Part IIApplication of the 1975 Act to existing contracts

9For section 4 there shall be substituted— Protection confined to...

10In section 8A— (a) in subsection (1)—

11In section 10— (a) in subsection (2)—

12In section 11— (a) in subsection (3)—

13In section 12— (a) in subsection (1)—

14In section 15— (a) in subsection (2), for the words...

15In section 16— (a) in subsection (6), after “In this...

16In section 17— (a) in subsection (4)—

17In section 21, subsection (9A) shall be omitted.

18In section 32(1), at the end there shall be inserted...

SCHEDULE 5Repeals

Policyholders Protection Act 1997

1997 Chapter 18

An Act to amend the Policyholders Protection Act 1975; and for connected purposes.

[19th March 1997]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—