PART 1

The dormant assets scheme

Long-term insurance assets

Transfer of eligible insurance proceeds to reclaim fund
2
1
This section applies where—
a
an insurance institution transfers to an authorised reclaim fund dormant eligible insurance proceeds owing to a person, and
b
the reclaim fund consents to the transfer.
2
On the transfer of the eligible insurance proceeds—
a
a person to whom the proceeds are payable immediately before the transfer ceases to have any right against any insurance institution to payment of the proceeds, but
b
that person acquires against the reclaim fund whatever right to payment of the proceeds the person would have had against the institution if the transfer had not happened.
3
In this Act “insurance institution”, in relation to any eligible insurance proceeds, means (subject to subsection (4)) a person who—
a
under Part 4A of FSMA 2000 has permission to perform a regulated activity for the purposes of FSMA 2000 by virtue of article 10(2) of the RAO 2001 (carrying out a contract of insurance as principal),
b
owes the proceeds in the course of, or in connection with, that regulated activity, and
c
has its head office or an establishment in the United Kingdom.
4
“Insurance institution” does not include—
a
a mutual insurer, or
b
a person who is specified, or is within a class of persons specified, by an order under section 38 of FSMA 2000 (exemption orders).
S. 2 not in force at Royal Assent, see s. 34(3)
S. 2 applied (6.6.2022) by 1992 c. 12, s. 26A(2)(a) (as substituted by Finance Act 2022 (c. 3), Sch. 6 paras. 1, 6; S.I. 2022/569, reg. 2)
S. 2 applied (6.6.2022) by 2008 c. 9, s. 39(2)(a) (as substituted by Finance Act 2022 (c. 3), Sch. 6 paras. 2, 6; S.I. 2022/569, reg. 2)
S. 2 in force at 6.6.2022 by S.I. 2022/582, reg. 2