71. Application of surplus of assets fund in liquidation

there shall be added to the liabilities of the insurer in respect of the long term insurance business, an amount which bears to the prima facie surplus the same proportion, as the aggregate amount of surplus so allocated to policy holders with profit policies during the aforesaid ten years bears, to the total surplus arising from the long term insurance business in those ten years ; and

the assets of the insurer shall be deemed to exceed its liabilities only in so far as they are in excess after such addition is made :

if in any case there has been no such allocation or if it appears to the District Court that by reason of special circumstances, it would be inequitable that the amount to be added to the liabilities of the insurer in respect of the long term insurance business should be an amount equal to such proportion as aforesaid, the amount to be so added shall be such amount as the District Court may direct ; and

for the purpose of the application of this subsection to any case, where before the commencement of the winding up a proportion of such surplus as aforesaid of a category only of the long term insurance business in question has been allocated to long term insurance policy holders, the value of the assets and liabilities of the insurer in respect of that category shall be separately ascertained in like manner as the value of the assets and liabilities of such insurer in respect of the long term insurance business was ascertained, and any surplus so found of assets over liabilities shall, for the purpose of ascertaining the amount to be added to the liabilities of the insurer in respect of the long term insurance business, be deemed to be prima facie surplus.