Regulatory Alerts1991-01-01
Life Assurance (Compensation of Policyholders) Regulations 1991
The Treasury issued these regulations under the Financial Supervision Act 1988 to establish the Policyholders Compensation Scheme for protecting policyholders of insolvent long-term insurers. The Insurance Authority acts as Scheme Manager to administer the Compensation Fund, which is financed by levies on participant insurers and used to pay 90% of eligible claims. The regulations define insolvency triggers, levy calculation methods, claim submission deadlines, and the Scheme Manager's subrogation rights against insolvent insurers.
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