(1) For the purposes of this section, a policy of life assurance held by an individual, whether married or not, shall not be a special investment policy at any particular time on or before 31 December 2002, if -
(i) a declaration of the kind specified in section 723(4) has not been made, or
(ii) any of the conditions referred to in section 723(3) is not satisfied at that time,
or
(b) as respects the individual, he or she has at that time a beneficial interest prohibited by section 839 in classes of investment mentioned in paragraphs (a) to (d) of subsection (1) of that section.
(2) Where an assurance company becomes aware at any time on or before 31 December 2002, that a policy of life assurance which it has treated as a special investment policy is not such a policy -
(a) the assurance company shall ensure that in accordance with section 723(2)(c) its special investment fund does not after that time represent its liability in respect of the policy, and
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