Variation of Contract
A. The Directors may decide during the course of any policy year that for the next ensuing policy year the premium ratings of the ships entered in the Association shall generally be increased by a single fixed percentage. If before the 20th December in any year the Managers shall have given notice to an Owner of such a decision, then the period of insurance shall continue for the next policy year upon the terms that the premium rating of the entered ship has been varied by the percentage fixed by the Directors, and the terms of entry of the entered ship shall be deemed for all purposes to have been varied accordingly, unless:
i. a further notice of variation is given pursuant to paragraph (C) of this Rule; or
ii. a notice of termination is given pursuant to Rule 18; or
iii. the period of insurance has previously terminated for some other reason.
A notice of the Directors’ decision shall constitute an Endorsement Slip for the purposes of Rule 12.
B. If before the end of any policy year these Rules shall have been altered in any respect which affects the terms and conditions of the contract of insurance between the Owner and the Association, then such alteration shall be binding upon the Owner and for all purposes take effect as from the commencement of the next ensuing policy year. Notwithstanding the provisions of sub-paragraph (i) above, where, in the opinion of the Directors, there occurs or may occur a material change in the risks to the Association or the cover provided by it, either as a result of the implementation of new legislation or for any other reason whatsoever, the Association may alter the Rules in accordance with Article 38 A of the Articles and decide that such alteration shall take effect during the policy year on no less than 30 days’ notice.
C. If the Managers shall give a notice not later than noon GMT on the 20th January in any policy year that for the next ensuing policy year they require the premium rating of an entered ship to be altered (otherwise than in accordance with paragraph (A) of this Rule) or that they require some other change to be made in the terms or conditions of entry, then the insurance for the entered ship for the next ensuing policy year shall continue upon such premium rating, terms or conditions as may be agreed between the Owner and the Managers before noon GMT on the 20th February immediately following such notice and if by then no such agreement shall have been made the period of insurance shall thereupon terminate.