Explanatory Note

(This note is not part of the Order)

This Order applies, in relation to insurers, Part II of the Insolvency Act 1986 with various modifications set out in the Schedule. Article 2 provides that the definition of “insurer” for these purposes is to be that contained in article 2 of the Financial Services and Markets Act 2000 (Insolvency) (Definition of “Insurer”) Order 2001 (S.I. 2001/2634). Article 3 enables administration orders to be made in relation to such insurers. Article 5 provides that insolvency rules relating to mutual credit and set-off do not apply to sums due from an insurer to another party where, at the time the sums became due, an application for an administration order had been made in relation to the insurer.