Article 5 Separation of long-term and other business in winding up

This rule applies in the case of a company carrying on long-term business.

The assets of the company which, in accordance with regulation 3 of the Financial Services and Markets Act 2000 (Treatment of Assets of Insurers on Winding Up) Regulations 2001^f1, are available for meeting the liabilities of the company attributable to its long-term business shall be applied in discharge of those liabilities as though those assets and those liabilities were the assets and liabilities of a separate company.

The assets of the company which, in accordance with the aforementioned Regulations, are available for meeting the liabilities of the company attributable to its other business shall be applied in discharge of those liabilities as though those assets and those liabilities were the assets and liabilities of a separate company.