(1) A policy of an insurer shall cease to remain in force with effect from the date of its winding up order.
(2) Where a policy ceases to be in force under subsection (1), the policy owner shall only be eligible to claim as a debt due to him-
(a) a refund of his premium in proportion to the unexpired period of his general policy; or
(b) the actuarial valuation reserve in respect of his life policy.
(3) The liquidator shall notify each policy owner and, in the case of a group policy, the group policy owner, about the cessation of insurance by ordinary mail at his last known address and by advertisement in such newspapers as the Bank may specify.