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19.1

If it shall appear to the Secretary of State that British ships or other ships accepted by him for reinsurance are, or may be, exposed to Queen’s Enemy Risks in a particular area or areas, he may, under the terms of the Reinsurance Agreement, serve on the Association a notice (hereinafter called a “Special Premium Notice”) defining the area or areas to which it applies.

19.2

If a Special Premium Notice shall have been served as aforesaid, the Managers as soon as practicable thereafter shall notify the Insured Owners of the receipt of such notice and the area or areas to which it applies. 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 19.5, 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 specified shall constitute an Additional Premium Area or Areas in respect of the Queen’s Enemy Risks with the consequences set out in Rule 29.

19.3

At any time or times, whether before or during the currency of any Policy Year, the Directors may, in respect of the risks other than the Queen’s Enemy Risks, determine:

19.3.1

That any ports, places, countries, zones or areas (whether of land or sea) shall be Additional Premium Areas;

19.3.2

That any special terms, conditions, exceptions or limitations of or to the Association’s cover shall apply while an Entered Ship shall be or remain in any one or more of such Additional Premium Areas.

19.4

The Managers shall notify the Insured Owners of all decisions made by the Directors pursuant to Rule 19.3. 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 19.5, 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 Association, other than the Queen’s Enemy Risks, with the consequences set out in Rule 29.

19.5

If the Managers shall give any such notice to the Insured Owners as is mentioned in Rules 19.2 or 19.4, 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 Association. 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 Association pro rata for the proportion of the relevant Policy Year during which he was insured by the Association.

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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