Sections 2-4: Long-term insurance assets Section 3: "Eligible insurance proceeds"
This section provides that dormant proceeds of a long-term insurance contract are in scope of the Scheme provided that it is not a with-profits policy, an industrial branch policy, or a policy that is the subject of a trust. Insurance proceeds held in a Lifetime ISA are excluded when their transfer to the reclaim fund would result in liability to pay a withdrawal charge to HMRC.
	This section provides that:
a non-cash asset must be converted to cash in line with its relevant terms and conditions before it is eligible for transfer into the Scheme. For long-term insurance contracts, this could be, for example, when it reaches its contractual end date or when the owner is deceased; and
the amount that can be reclaimed is adjusted as appropriate (e.g., for any relevant interest or fees) so that the owner has the same right to repayment from the reclaim fund as they would have had against the participant if the transfer had not taken place.