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Amendment of section 3 of Act of 1964.
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9.—Section 3 of the Act of 1964 is hereby amended by—
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(a) the insertion in subsection (1) after “the 1st day of January, 1963,” of “and before the passing of the Insurance (No. 2) Act, 1983,”,
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(b) the insertion of the following subsection after subsection (1):
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“(1A) Subject to the provisions of this section, there may, with the approval of the High Court, be paid out of the Fund to the liquidator of an insolvent insurer (including an insurer whose authorisation has been revoked by the Minister) the winding up of which has been commenced by the High Court after the passing of the Insurance (No. 2) Act, 1983—
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(a) such amounts as may be necessary to pay any sum which is due to a person under a policy issued by the insurer in the State, together with the costs or expenses (if any) necessarily and reasonably incurred by the person in endeavouring to secure payment of the sum, and
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(b) such amounts as may be necessary to pay any sum in respect of the refund of a premium,
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and, upon receipt of the amounts by the liquidator, he shall pay to every such person the sum due to him as aforesaid together with the costs and expenses aforesaid (if any) incurred by him.”,
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(c) the insertion of the following subsections after subsection (2):
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“(2A) Where an amount is paid out of the Fund to the liquidator of an insurer under subsection (1A) of this section in respect of a sum due under a policy issued by the insurer and the costs and expenses (if any) incurred in relation to the sum, or in respect of a refund of a premium, the amount paid shall be admitted in the proceedings for the winding up of the insurer by the High Court as a proved debt of the insurer having the same priority as the sum due under the policy or in respect of the refund of the premium, as the case may be, and the Accountant shall, as respects the amount paid out of the Fund, be a creditor of the insurer.
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(2B) Subject to the provisions of this section, there may, with the approval of the High Court, be paid out of the Fund to the administrator of an insurer such amounts as are, in the opinion of the High Court, required to enable the administrator to carry on the business of the insurer and to perform his other functions under this Act in relation to the insurer.
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(2C) Where any sum has been paid out of the Fund to an administrator of an insurer pursuant to subsection (2B) of this section—
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(a) the amount thereof shall be an unsecured debt of the insurer, and
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(b) with a view to facilitating the placing of the business of the insurer on a sound commercial and financial footing, the Minister may at any time waive all or part of the said debt on behalf of the Fund; in exercising this power, the Minister shall have due regard to any amounts which may be realisable on a winding up of the insurer and to any representations made to him by the administrator or by any other insurer.
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(2D) While an administrator stands appointed to an insurer, no dividends or other distributions to shareholders of the insurer shall be payable by the insurer if any debt due to the Fund by the insurer (not including any debt waived by the Minister under this section) has not been paid.”, and
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(d) the deletion, as respects any insurer the winding up of which by the High Court is commenced after the passing of this Act, of subsection (5).
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