Summary of Reforms Scope
11.The Act updates the law to reflect changes in insolvency law since the 1930s. This includes providing for rights to be transferred to a third party where an insured is facing financial difficulties and enters into certain alternatives to insolvency such as voluntary procedures between the insured and the insured’s creditors.
12.The Act applies to voluntarily-incurred liabilities such as liabilities covered by legal expenses insurance, health insurance and car repair insurance. There was some doubt as to whether the 1930 Acts applied to such liabilities. The Act also addresses the issue of its application in cases with a cross-border element.