Enhanced protection for structured settlement annuitants

(1)In relation to an annuity purchased for a person pursuant to a structured settlement from an authorised insurance company within the meaning of the [1975 c. 75] Policyholders Protection Act 1975 (and in respect of which that person as annuitant is accordingly the policyholder for the purposes of that Act) sections 10 and 11 of that Act (protection in the event of liquidation of the insurer) shall have effect as if any reference to ninety per cent. of the amount of the liability, of any future benefit or of the value attributed to the policy were a reference to the full amount of the liability, benefit or value.

(2)Those sections shall also have effect as mentioned in subsection (1) above in relation to an annuity purchased from an authorised insurance company within the meaning of the 1975 Act pursuant to any order incorporating terms corresponding to those of a structured settlement which a court makes when awarding damages for personal injury.

(3)Those sections shall also have effect as mentioned in subsection (1) above in relation to an annuity purchased from or otherwise provided by an authorised insurance company within the meaning of the 1975 Act pursuant to terms corresponding to those of a structured settlement contained in an agreement made by—

(a)the Motor Insurers' Bureau; or

(b)a Domestic Regulations Insurer, in respect of damages for personal injury which the Bureau or Insurer undertakes to pay in satisfaction of a claim or action against an uninsured driver.

(4)In subsection (3) above “the Motor Insurers' Bureau” means the company of that name incorporated on 14th June 1946 under the [1929 c. 23] Companies Act 1929 and “a Domestic Regulations Insurer” has the meaning given in the Bureau’s Domestic Regulations.

(5)This section applies if the liquidation of the authorised insurance company begins (within the meaning of the 1975 Act) after the coming into force of this section irrespective of when the annuity was purchased or provided.

Date: 2015-01-02; view: 809