(1) This section applies to a friendly society which -
(a) carries on long term business and falls within subsection (2) of section 37 above;
(b) carries on general business and falls within subsection (3) of that section; or
(c) not being a society to which either of those subsections applies, carries on insurance business in the United Kingdom and is of any such description as may be prescribed by regulations.
(2) A society to which this section applies shall maintain a margin of solvency in respect of its insurance business of such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section.
(3) If such a society fails to comply with a requirement to maintain a margin of solvency, the society -
(a) shall at the request of the Commission submit to it a plan for the restoration of a sound financial position;
(b) shall propose modifications to the plan (or the plan as previously modified) if the Commission considers it inadequa