Rule 27 Cesser

The Member shall cease to be insured by the Association

(a) where the entered ship is posted at Lloyd’s as missing or is missing for thirty days since last heard of, whichever is the earlier,

(b) where the entered ship becomes a total loss or is accepted by the Hull insurance as being a constructive, compromised or arranged total loss, in which case the insurance shall cease at the time when the Member is entitled to total loss compensation from the Hull insurance,

(c) where the entered ship is transferred to a new owner by sale or otherwise, in which case the insurance shall cease at the time of such transfer. Should the operation of the entered ship be transferred to another company or manager, the Association is entitled to decide that the insurance shall cease,

(d) where the entered ship is requisitioned, in which case the insurance shall cease at the time of such requisition,

(e) where the entered ship, with the knowledge of the Member, is being used to carry contraband or employed in blockade running or in an unlawful trade,

(f) where the Member is in breach of Rule 10, Section 1 (a).

Commentary: Rule 27 Cesser