Commentary: Rule 28 Effect of termination and cesser

28.1 General

The difference between termination and cesser is explained under 26.1.2. The effect of termination and cesser is described in this Rule.

28.2 Effect for Member

The Member remains liable for payment of premiums and additional calls which are due for all open policy years up to the date of termination or cessation. That obligation remains unaffected even after the termination or cesser has come into effect. As regards the Club’s right to charge release calls, see the comments under 23.9.

The Member has an obligation to pay his share of overspill calls as stated in Rule 24, even after the cover has terminated or ceased.

28.3 Effect for Club

As stated in these Rules, the Club remains liable to cover liabilities, costs or expenses which arise out of events which occurred prior to the date of termination or cessation. A condition for cover is that not only premiums have been paid for the period of insurance when the event occurred but also that the slate has been wiped clean with respect to all premiums due (such as additional calls for policy years still open).

For comments as to when an event has occurred see under 2.8.