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Rule 16 Constitution of Additional Premium Areas

16.1

At any time or times, whether before or during the currency of any policy year, the board may, determine:

16.1.1

That any ports, places, countries, zones or areas (whether of land or sea) shall be additional premium areas;

16.1.2

That any special terms, conditions, exceptions or limitations of or to the club’s cover shall apply while an entered ship shall be or remain in any one or more of such additional premium areas.

16.2

The managers shall notify the insured owners of all decisions made by the board pursuant to rule 16.1. On the expiry of a period of seven days from the date of the notice given by the managers, unless an insured owner shall have exercised the option referred to in rule 16.3, each insured owner’s terms of entry shall be deemed to contain and shall contain a term that until further notice the area or areas so mentioned shall constitute an additional premium area or areas in respect of the risks insured by the club with the consequences set out in rule 26.

16.3

If the managers shall give any such notice to the insured owners as is mentioned in rule 16.2, an insured owner, at any time within the next ensuing period of seven days, but not at any time thereafter, shall have the option by giving notice in writing to the managers to cancel any one or more of his entries with the club. In the event of such option being exercised, the entry or entries so specified shall terminate at the expiry of the said period of seven days and that insured owner shall only be liable to pay contributions to the club pro rata for the proportion of the relevant policy year during which he was insured by the club.

16.4

Whenever an application is made by an owner or other person for the entry of any ship for insurance or reinsurance in the club, and whenever negotiations take place as to the terms on which the insurance of an entered ship is to continue for the next following policy year, such application or negotiations shall proceed on the basis that, if the application be accepted or if the insurance continues for the next following policy year, the terms of entry shall be deemed to contain a provision that the club’s current additional premium areas and all current special terms, conditions, exceptions or limitations applicable thereto, whether or not they shall have been notified to the owner, shall apply to the insurance of the entered ship.

16.5

If at any time during the currency of any policy year the managers shall notify the insured owners that any additional premium area or areas or one or more parts thereof shall cease to be additional premium areas or that any special terms, conditions, exceptions or limitations shall cease to apply, then such area or areas or part thereof or such special terms, conditions, exceptions or limitations (as the case may be) shall thereupon cease to form part of the terms of entry of the insured owners.

19.6

Whenever an application is made by an Owner or other person for the entry of any ship for insurance or reinsurance in the Association, and whenever negotiations take place as to the terms on which the insurance of an Entered Ship is to continue for the next following Policy Year, such application or negotiations shall proceed on the basis that, if the application be accepted or if the insurance continue for the next following Policy Year, the terms of entry shall be deemed to contain a provision that the Association’s current Additional Premium Areas and all current special terms, conditions, exceptions or limitations applicable thereto, whether or not they shall have been notified to the Owner, shall apply to the insurance of the Entered Ship.

19.7

If at any time during the currency of any Policy Year the Managers shall notify the Insured Owners that any Additional Premium Area or Areas or one or more parts thereof shall cease to be Additional Premium Areas or that any special terms, conditions, exceptions or limitations shall cease to apply, then such Area or Areas or part thereof or such special terms, conditions, exceptions or limitations (as the case may be) shall thereupon cease to form part of the terms of entry of the Insured Owners.

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