Schedule 13: Insurers in financial difficulties: enforcement of contracts Part 1 – New Schedule 19C TO FSMA 2000 New Schedule 19C Part 2 of new Schedule 19C: policyholder surrender rights
Paragraph 3 prevents policyholders exercising "surrender rights", or the ability to cancel a life insurance contract in exchange for its cash value, beyond a defined limit (‘the surrender limit’) while an insurer is in "financial difficulties" as defined in Paragraph 2.
	Paragraph 4 provides that restrictions on policyholder surrender rights extend to a policyholder’s right to switch between funds in accordance with the terms of a relevant contract of insurance ("switching rights").
	Paragraph 5 provides for consent to be given, by the court and certain other parties, to the surrender of an amount beyond the surrender limit. These parties may give consent if they are satisfied that not providing consent would cause hardship to the policyholder.