Section 64: Settlement

64. Settlement (1) Where— (a) a person who is insured under a policy issued under this Part has become bankrupt; or (b) a winding up order has been made or a resolution for a voluntary winding up has been passed with respect to a company which is insured under a policy issued under this Part, no agreement made between the insurer and the insured after liability has been incurred to a third party and after the commencement of the bankruptcy or winding up, as the case may be, nor any waiver, assignment or other disposition made by, or payment made to, the insured after the commencement of the bankruptcy or winding up, shall be effective to defeat or affect the rights transferred to the third party under this Act. (2) The rights under subsection (1) shall be the same as if no agreement, waiver, assignment, disposition or payment had been made.