12.—(1) An insured person shall cease to be insured under the Scheme if —
(a)
he has received payment of the insured sum on account of his incapacity;
(b)
he opts out of the Scheme; or
(c)
subject to regulation 4(3), the moneys standing to the credit of the insured person in the Fund is insufficient to pay the annual premium for the minimum insured sum referred to in regulation 3(3)(b) at the time when payment of the premium is due.
(2) Where an insured person ceases to be insured under the Scheme by virtue of paragraph (1)(b) or (c), he may subsequently apply to his preferred appointed insurer to be insured under the Scheme and the preferred appointed insurer may grant the application subject to such terms and conditions as the preferred appointed insurer may impose.