Sch 19C para 10 Disapplication of this Schedule by the court
(1) The court may order that this Schedule, or a specified provision of this Schedule— (a) does not apply (insofar as it would otherwise) in relation to one or more contracts to which the insurer is a party, or (b) applies with specified modifications in relation to one or more such contracts. (2) An order under this paragraph— (a) must specify the contracts to which it applies; (b) may specify all of the contracts to which the insurer is a party (and to which one or more provisions of this Schedule would otherwise apply). (3) For the purposes of an order under this paragraph— “ contract ” includes a contract of insurance; “ specified ” means specified or described in the order. (4) The court may make an order under this paragraph only if satisfied that one or more of the following grounds is made out— (a) not making the order would be likely to cause hardship to any person (other than the insurer); (b) where the insurer is in financial difficulties by virtue of paragraph 2(1)(a) (write-down order), making the order is reasonably likely to lead to a better outcome for the insurer’s policyholders and other creditors (taken as a whole) than not making the order; (c) where the insurer is in financial difficulties by virtue of paragraph 2(1)(b) (administration), making the order is reasonably likely to promote the purpose of administration. (5) The “ purpose of administration ” means— (a) where the insurer is in, or is awaiting, administration under Part 2 of the 1986 Act (as modified, in relation to insurers, by the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2010 ( S.I. 2010/3023 )), an objective specified in paragraph 3 or 3A of Schedule B1 to the 1986 Act; (b) where the insurer is in, or is awaiting, administration under Part 3 of the 1989 Order (as modified, in relation to insurers, by the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Northern Ireland) Order 2007 ( S.I. 2007/846 )), an objective specified in paragraph 4 of Schedule B1 to the 1989 Order.