The contents of this website are not a substitute for the contents of the Scheme document (which includes the Scheme and the Explanatory Statement). Scheme Creditors (as defined in the Scheme) should read and consider carefully the full text of the Scheme document.

Frequently Asked Questions - Claims Submission

1 What is the current timetable of key events?

The timetable for the key Scheme steps is as follows:

2 What happens next?

The Pool Scheme has been sanctioned by the Court and has become effective. Creditors have 6 months in which to submit their claims. Please refer to the Scheme Timetable to review key dates.

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3 How will reinsurance obligations be affected under the Scheme?

Scheme Claims valued under the Scheme will be used to establish outward reinsurance claims values for set-off with Scheme Creditors who also reinsure the EAUA Pools.

The reinsurance claims will be discounted to reflect the time value of money. Undiscounted Agreed Claims will be processed through the reinsurance programme and discounting, at the rates set out in the Estimation Methodology, will be applied to the resulting value where appropriate. Scheme Creditors which are reinsurers will also be given the opportunity to review and, if necessary, dispute the calculation of the reinsurance claims against them. However, this review and dispute does not extend to challenging the valuation of the inwards claims values that have become binding or such values being applied to contracts by which the Scheme Company is reinsured in respect of such agreed claims for the purposes of set-off.

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4 If I have submitted a Claim Form with additional values, what documentation do I need to supply?

The Scheme Document states that where values have been added to the Claim Forms then these additions must be substantiated with appropriate supporting documentation:

Examples of appropriate supporting documentation are as follows:

5 How long do I have to supply supporting documentation?

It is recommended that supporting documentation is supplied at the time your Claim Form is submitted. In any event all documentation must be supplied to the Scheme Manager by the Bar Date or up to 7 days after the Bar Date, or the Scheme Manager will be entitled to disregard it.

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6 What can I do if I wish to make amendments to my Claim Form?

The fact that a Scheme Creditor uses the Claim Form Election Procedure does not prejudice either the Scheme Creditor's right under the Scheme to revise its Claim Form (on or before the earlier of the Bar Date or the date upon which the Scheme Creditor is notified that its Scheme Claim has become an Agreed Claim) or the Scheme Company's right under the Scheme to request the Scheme Creditor to provide clarification to substantiate its Scheme Claims.

There is no provision in the Scheme Document for Scheme Creditors to alter the value on their Claim Form after the Bar Date. The Scheme Manager is therefore unable to accept amendments to a Claim Form.

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7 Can I be sure that my Scheme Claim will be valued fairly?

The Scheme Companies have sought to propose as fair and transparent a scheme as possible. To that end they have taken advice from professional advisers with significant experience of schemes and taken soundings from many creditors including those in the UK and the US. The Scheme Companies have also discussed the Scheme with the Financial Services Authority ("FSA") which is the UK regulator and informed other relevant regulators. Copies of the Scheme and Explanatory Statement have been provided to the FSA and it has confirmed it has no objection to the Scheme being proposed.

The Scheme requires Scheme Creditors to submit their claims with all supporting evidence (including future and contingent claims) by the Bar Date, 180 days after the Scheme becomes effective. As long as Claim Forms have been received by the Bar Date which marks the end of the period for claims submission, the Scheme Manager will review them and, depending on how close a claim is to the anticipated value, either accept it or try to reach a mutually agreed value with the Scheme Creditor. Up to a further 270 days from the Bar Date is set aside for this agreement process (and in some cases further extension periods can be agreed between the Scheme Manager and Scheme Creditor), allowing the Scheme Manager to ask for further clarification to support claims and to engage in discussions with Scheme Creditors. If agreement cannot be reached, then the Scheme Manager will pass the elements that are not agreed to the Scheme Adjudicator. The Adjudication process is intended to resolve disputes about law or facts. If the disagreement is about estimated values, the Scheme Adjudicator, with assistance from the Scheme Actuary, as appropriate, will apply the Estimation Guidelines to them. In reaching his decision, the Scheme Adjudicator has the discretion to apportion his costs and those of his advisers between the Scheme Company and the Scheme Creditor in such proportions as he sees fit.

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8 When will payment be made?

Payment will be made by the solvent Scheme Companies within 42 days of the date when the Valuation Statement becomes binding.

As soon as reasonably practicable but, in any event, within 90 days of the date when the Valuation Statement becomes binding EAIC will pay to the Scheme Creditor the amount of the Payment Percentage of the Net Ascertained Claim less the aggregate of any payments previously made.

As soon as reasonably practicable after the later of an ICS Payment Percentage being set and a Valuation Statement becoming binding, the Scheme Manager shall pay to that Scheme Creditor the ICS Payment Percentage of the Scheme Creditor's Net Ascertained Claim less any amounts deemed to have been received by the Scheme Creditor.

A Scheme Creditor's entitlement to rank for payment of a distribution from Home under the Home Liquidation in respect of its Net Ascertained Claim shall be governed by the provisions of New Hampshire insolvency law. When it believes that the provisions of the Scheme have been complied with by Home, the Scheme Manager shall give notice to the Home Liquidator to that effect. The Home Liquidator, if he concurs, shall determine the date on which the Scheme is to be declared complete and send written notice to all Scheme Creditors which were entitled to receive a Valuation Statement or informing them of the proposed Completion Date at least 56 days before that date.

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Please also refer to the Background FAQs . These FAQs provide important information to Creditors in relation to the background to the EAUA schemes.

In addition section 10 of the Explanatory Statement includes a number of questions and answers: this document is held on the Important Documents / Information page of the website.

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