117Policies of insurance against liabilities to third parties

117  Policies of insurance against liabilities to third parties  (a) a bankrupt is or was insured under a contract of insurance against liabilities to third parties; and  (b) a liability against which he or she is or was so insured has been incurred (whether before or after he or she became a bankrupt); the right of the bankrupt to indemnity under the policy vests in the trustee and any amount received by the trustee from the insurer under the policy in respect of the liability shall, if the liability has not already been satisfied, be paid in full forthwith to the third party to whom it has been incurred.  (2) Subsection (1) does not limit the rights of the third party in respect of any balance due to him or her after the payment referred to in that subsection has been made.  (3) This section applies notwithstanding any agreement to the contrary, whether entered into before or after the commencement of this Act.