Paragraph 35

(1)

Subject to sub-paragraph (2), any payment received under an insurance policy taken out to insure against the risk of being unable to maintain repayments—

(a)

on a loan which is secured on the dwelling which the applicant occupies as the applicant’s home; or

(b)

under a regulated agreement as defined for the purposes of the Consumer Credit Act 1974^f1 or under a hire purchase agreement or a conditional sale agreement as defined for the purposes of Part 3 of the Hire-Purchase Act 1964^f2.

(2)

A payment referred to in sub-paragraph (1) is only to be disregarded to the extent that the payment received under that policy does not exceed the amounts, calculated on a weekly basis, which are used to—

(a)

maintain the repayments referred to in sub-paragraph (1)(a) or, as the case may be, (1)(b); and

(b)

meet any amount due by way of premiums on—

(i)

that policy; or

(ii)

in a case to which sub-paragraph (1)(a) applies, an insurance policy taken out to insure against loss or damage to any building or part of a building which is occupied by the applicant as the applicant’s home and which is required as a condition of the loan referred to in sub-paragraph (1)(a).

Annotations

Footnotes

f1: 1974 c.39.
f2: 1964 c.53.