# The Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013, 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 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.
(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).

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Source: https://www.legislation.gov.uk/wsi/2013/3035/schedule/7/paragraph/35 (the official version)
Page: https://openlegislation.uk/council-tax-reduction-schemes-default-scheme-wales-regulations-2013/schedule-7/paragraph-35
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.