SANCTIONS
The Association shall in no circumstances cover any liability, loss, damage, cost or expense:
- where the provision of cover or any payment in respect thereof exposes or may expose the Association or the Managers to the risk of being or becoming subject to any sanction, prohibition or adverse action in any form whatsoever by any state, international organization or other competent authority which the Directors in their sole discretion determine may materially affect the Association in any way whatsoever.
- which is not recoverable by the Association in full or in part from reinsurers or parties under any reinsurance contract by reason of any sanction, prohibition or adverse action against them by any state or international organization or the risk thereof if payment were to be made by such reinsurers or parties.
