The Insurers (Reorganisation and Winding Up) (Lloyd's) Regulations 2005

Treatment of members

13.—(1) Paragraph (2) applies where, after the making of a Lloyd’s market reorganisation order, any of the following occurs pursuant to the 1986 Act, the 1989 Order or the Bankruptcy (Scotland) Act—

(a) a person seeks to exercise an entitlement to appoint an administrator,

(b) an application is made to the court for the appointment of an administrator,

(c) a petition for the winding up of a corporate member is presented to the court,

(d) a petition for a bankruptcy order or sequestration is presented to the court,

in respect of a member.

(2) These Regulations, the principal Regulations and the Administration for Insurers Order shall apply to the member and—

(a) for the purposes of the principal Regulations (notwithstanding regulation 3 of those Regulations), the member shall be treated as if it, he or she were a UK insurer; and

(b) for the purposes of the Administration for Insurers Order, a member that is a company shall be treated as if it were an insurance company.

(3) Paragraph (2) does not apply where the court so orders, on the application of the administrator, liquidator, provisional liquidator, receiver or trustee in bankruptcy, the Accountant in Bankruptcy or trustee under a trust deed for creditors or the person referred to in paragraph (1)(b) or (c) seeking the appointment or presenting the petition.

(4) A person who exercises an entitlement, makes an application or submits a petition to which paragraph (1) applies shall—

(a) if he intends to make an application under paragraph (3) make the application before doing any of those things; and

(b) include in any statement to be made under Schedule B1, or in any application or petition, a statement as to whether an order under paragraph (3) has been made in respect of the member concerned.

(5) An application under paragraph (3) must be notified to the reorganisation controller.

(6) The court must take account of any representation made by the reorganisation controller in relation to the application.

(7) The court may not make an order under paragraph (3) unless the court considers it likely that the insurance market debts of the member will be satisfied.

(8) In this regulation and regulation 14, references to a member include references to a former member.