PART 1The dormant assets scheme

Long-term insurance assets

I1I23“Eligible insurance proceeds”

1

In this Act “eligible insurance proceeds” are (subject to subsections (2) and (3)) the cash proceeds of a contract of long-term insurance, after the appropriate adjustments have been made for such things as interest due and fees and charges payable.

2

A contract is excluded from subsection (1) if it is—

a

a with-profits policy,

b

an industrial assurance policy, or

c

a policy that is the subject of a trust.

3

Proceeds of a contract of long-term insurance held in a Lifetime ISA are excluded from subsection (1) if their transfer to an authorised reclaim fund would result in liability to pay a withdrawal charge to HMRC.

4

In relation to a time after a transfer has been made as mentioned in section 2(1)(a), the adjustments referred to in subsection (1) above include those that would fall to be made but for the transfer.

5

In this section—

  • “contract of long-term insurance” has the meaning given by article 3(1) of the RAO 2001;

  • “industrial assurance policy” has the same meaning as it has in the FCA Handbook as in force when this Act is passed;

  • “with-profits policy” means a contract of insurance which provides benefits through eligibility to participate in discretionary distributions based on profits arising from the insurer’s business or a particular part of its business.