C1C2C3C4 Part XV The Financial Services Compensation Scheme

Annotations:
Modifications etc. (not altering text)
C2

Pt. 15 modified (29.9.2008 at 8.00 a.m.) by The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 29 (with art. 30(6))

C3

Pt. 15 modified (7.10.2008 at 9.30 a.m.) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 14 (with art. 15(8)

C4

Pt. 15 modified (8.10.2008 at 12.15 p.m.) by The Kaupthing Singer & Friedlander Limited Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2674), art. 15 (with art. 16(8))

Provisions of the scheme

216 Continuity of long-term insurance policies.

1

The compensation scheme may, in particular, include provision requiring the scheme manager to make arrangements for securing continuity of insurance for policyholders, or policyholders of a specified class, of relevant long-term insurers.

2

“Relevant long-term insurers” means relevant persons who—

a

have permission to effect or carry out contracts of long-term insurance; and

b

are unable, or likely to be unable, to satisfy claims made against them.

3

The scheme may provide for the scheme manager to take such measures as appear to him to be appropriate—

a

for securing or facilitating the transfer of a relevant long-term insurer’s business so far as it consists of the carrying out of contracts of long-term insurance, or of any part of that business, to another authorised person;

b

for securing the issue by another authorised person to the policyholders concerned of policies in substitution for their existing policies.

4

The scheme may also provide for the scheme manager to make payments to the policyholders concerned—

a

during any period while he is seeking to make arrangements mentioned in subsection (1);

b

if it appears to him that it is not reasonably practicable to make such arrangements.

5

A provision of the scheme made by virtue of section 213(3)(b) may include power to impose levies for the purpose of meeting expenses of the scheme manager incurred in—

a

taking measures as a result of any provision of the scheme made by virtue of subsection (3);

b

making payments as a result of any such provision made by virtue of subsection (4).