Rule 26 Termination
The period of insurance may be terminated by a written notice of termination from the Member to the Association or from the Association to the Member not later than 1200 hours UTC (Universal Time, Co-ordinated) on the 20 January. Where such notice of termination has been given the period of insurance shall terminate at noon on the next 20 February.
It shall be a condition precedent of the Members’ right to recover from the Association in respect of any liabilities, costs or expenses that all premiums and other amounts due by the Member to the Association shall have been paid in full. Where the premium is not paid timeously, the Association shall not be liable and shall have the right to terminate the period of insurance on three days’ written notice. Where the premium is paid before such termination, the Association shall be liable from the date of payment only.
Where the premium for an ensuing period, an additional premium or an overspill call is not paid without delay, the Association shall have a right either to serve a written reminder regarding the date of payment, whereupon the Association shall be relieved from liability after seven days, or to terminate the period of insurance on three days’ written notice.
Where the period of insurance and/or the entry of a ship is terminated or has become terminated due to the non payment of premiums at a time when premiums or any other sums due to the Association are outstanding, it is agreed that the Association is entitled to a lien over the previously entered ship.
The Association may further terminate the period of insurance
(a) with immediate effect upon notification, at an event referred to in Rule 11 Section 1,
(b) on three days’ notice, where the Member has failed to pay, when due and demanded, any sums other than premiums,
(c) on seven days’ notice, where the Member has failed to comply with regulations issued by the Association,
(d) on fourteen days’ notice, where the Member becomes bankrupt or otherwise insolvent,
(e) on thirty days’ notice, without giving any reason,
(f) on such notice as the Association may decide, where, in the opinion of the Association, the Member has exposed or may expose the Association to the risk of being or becoming subject to a sanction, prohibition or other adverse action under United Nations Resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom, United States of America or other significant state power.