Paragraph 7
Subsection (3) of section 56 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951, as it applies to an industrial assurance contract or a collecting society contract of which the sum assured or guaranteed has been increased under regulations 5 or 6 and which is a contract for the whole term of life, shall have effect as if it provided that the terms of the contract shall be varied in accordance with the following provisions—
The relevant arrears shall be extinguished by a reduction of the sum assured or guaranteed under the policy, the amount of the reduction to be such an amount as shall be determined by an actuary.
The industrial assurance company or collecting society shall at the time for writing off give written notice to the owner of the policy of the amount of the reduction so determined.
The owner of the policy may, within six months of receiving such notice, appeal to the Industrial Assurance Commissioner on the ground that such reduction is not fair in relation to the amount of the extinguished relevant arrears.
If on such appeal, and after giving the owner of the policy and the company or society an opportunity of being heard, the Industrial Assurance Commissioner is satisfied that the reduction is not fair, he may direct the company or society to make such increase as he may consider appropriate in the sum assured or guaranteed to which the appeal relates.