A.     Subject to the Articles, and save insofar as expressly prohibited by these Terms & Conditions, the Managers may enter into contracts of reinsurance on behalf of the Club whereby the Club agrees to reinsure the risks arising in connection with any one or more ships insured by another insurer or else agrees to reinsure the whole or any part or proportion of the insurance business of any insurer. The consideration payable to the Club and the terms and conditions on which the reinsurance is accepted by the Club shall be such as are agreed between the Managers and insurer. Save where otherwise agreed in writing the other insurer shall be in every respect subject to and bound by the provisions of these Terms & Conditions and its contract with the Club shall for all purposes take effect as though it were the Assured of any ship or ships in connection with which the relevant risks may arise and had the Assured entered the ship or ships in the Club for insurance.

B.     The Managers shall have the right in their discretion to effect on behalf of the Club the reinsurance or ceding of any risks insured by the Club (including any risk which may fall on the Club by reason of a reinsurance referred to in paragraph (A) of this Clause) with reinsurers and on such terms as the Managers shall consider appropriate. Where such reinsurance is arranged the Assured shall be entitled to recover only the net amount actually recovered from reinsurer(s), together with that portion (if any) of the risk or risks retained by the Club.

C.     Notwithstanding paragraph (B) of this Clause and subject always to Clause 5, paragraphs (B) and (T) the Assured shall not be entitled to recover from the Club in respect of risks set out in Clause 2 (except Clause 2, Section 1) any amount exceeding US$ 100 million (or equivalent in another currency) in respect of those risks unless and to the extent such amount is recovered by the Club from reinsurer(s).