(1) Where a trader relies on arrangements under this section for the purpose of satisfying section 285, the trader must maintain insurance under one or more appropriate policies with an insurer authorised in respect of such business in the United Kingdom, the Channel Islands or the Isle of Man.

(2) In this section "appropriate policy" means a policy -

(a) under which the insurer agrees to indemnify consumers in the event of the insolvency of the trader;

(b) under which consumers are insured persons in respect of the costs referred to in paragraph (d);

(c) which does not contain a condition which provides (in whatever terms) that no liability arises, or that any liability arising ceases -

(i) 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;

(ii) in the event of the policy holder not making payments under or in connection with other policies; or

(iii) unless the policy holder keeps specified records or makes available to, or provides the insurer with, information from those records; and