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Insurance.
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25.—(1) The package provider shall have insurance under one or more appropriate policies with an insurer authorised in respect of such business in a Member State under which the insurer agrees to indemnify consumers (who shall be insured persons under the policy), against—
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(a) the loss of all money paid over by them under or in contemplation of contracts for relevant packages, and
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(b) where applicable to the package concerned, the cost of repatriation of consumers based on administrative arrangements established by the insurer to enable repatriation of such consumers,
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in the event of insolvency of the package provider.
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(2) The package provider shall ensure that it is a term of every contract with a consumer that the consumer acquires the benefit of a policy of a kind mentioned in subsection (1) in the event of the insolvency of the package provider.
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(3) In this section “appropriate policy” means one which does not contain a condition which provides (in whatever terms) that no liability shall arise under the policy, or that any liability so arising shall cease—
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(a) in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy,
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(b) in the event of the failure of the policy holder to make payments to the insurer in connection with that policy or with other policies, or
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(c) unless the policy holder keeps specified records or provides the insurer with information therefrom.
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