Part 4: Consumer rights and disputes Chapter 3: Consumer Savings Schemes Section 286: Insurance arrangements
This section requires that a trader who intends to comply with the insolvency protection requirement in section 285 by way of an insurance policy (or policies) must ensure that the said policy (or policies) is an "appropriate policy".
	Subsection (2) sets out the meaning of an "appropriate policy" and requires a trader to ensure that consumers are insured persons under the policy required under subsection (1), in respect of the costs of refunding payments in the consumer’s account which have not been redeemed at the time of the insolvency.
	The meaning of funds which have not been redeemed shall be interpreted such that "redeemed" has the same meaning as in section 283, subsections (4) and (5). The purpose of section 286, subsection (2) is to ensure protected payments are returned directly to the consumer, in the event of the trader’s insolvency.
	Subsection (3) requires a trader to pay the costs of arranging and paying for an appropriate policy and any related charges or taxes without recourse to the consumer payments which are to be protected under that policy.