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Insurance Policies

Volume 894: debated on Tuesday 24 June 1975

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asked the Secretary of State for Trade if he will seek powers to impose a requirement on insurance companies that, in the case of takeover by another company, each individual policyholder be required to acquiesce to the continuation of his policy or be given the option of redeeming it without any financial loss.

No. My right hon. Friend has powers under the Insurance Companies Act 1974 which may be invoked to protect policyholders where there is a change in the control of an insurance company. These will be strengthened by the Insurance Companies (Changes of Director, Controller or Manager) Regulations 1975 (SI 959/1975) which come into operation on 16th September 1975. After that date my tight hon. Friend's prior approval will be required for any proposed change of control.