Sch 19C para 2 “Financial difficulties”
(1) An insurer is in “ financial difficulties ” for the purposes of this Schedule if— (a) Part 1 of Schedule 19B (write-down orders: restrictions on enforcement) has effect in relation to the insurer (see paragraph 1(1) and (2) of that Schedule); (b) the insurer is in administration, within the meaning of Schedule B1 to the 1986 Act or Schedule B1 to the 1989 Order, or awaiting administration; (c) a petition for the winding up of the insurer has been presented and has not been withdrawn or determined. (2) For the purposes of sub-paragraph (1)(b) , an insurer is awaiting administration while an application for an administration order in respect of the insurer has been made to the court and— (a) the application has not yet been granted or dismissed, or (b) the application has been granted but the administration order has not yet taken effect. (3) For the purposes of this Schedule, an insurer “enters into financial difficulties”— (a) in a case to which sub-paragraph (1)(a) applies, on the date on which Part 1 of Schedule 19B first has effect in relation to the insurer; (b) in a case to which sub-paragraph (1)(b) applies, on the date on which the application for the administration order is made to the court; (c) in a case to which sub-paragraph (1)(c) applies, on the date on which the winding-up petition is presented.