GENERAL EFFECTS OF TERMINATION, CESSER AND CANCELLATION OF INSURANCE OTHER THAN UNDER GENERAL RULE 34
Where a Member’s insurance in respect of any or all entered ships terminates, ceases or is cancelled otherwise than in accordance with General Rule 34, then:
- if the cesser of insurance be occasioned by the death of an individual Member, the Association shall remain liable for claims, subject always to the Rules and to the terms and conditions of entry of the ship in the Association, in respect of all of such ships arising by virtue of an event which had occurred prior to the happening of the event giving rise to such cesser of insurance,
- if the cesser of insurance be occasioned by circumstances as defined in General Rule 32.3 above, the Association shall, subject always to the Rules and to the terms and conditions of the entry of the ship in the Association, remain liable in respect of liabilities flowing directly from the casualty which has given rise to the actual or constructive or commercial loss of the ship,
- such person, his estate, heirs, executors, receiver, administrator, personal and representatives, trustees in bankruptcy or liquidator as the case may be shall and remain liable for all contributions, premiums and any other sums whatsoever payable in respect of the policy period in which the insurance terminates, ceases or is cancelled and previous policy years, unless and except to the extent that General Rule 31 is brought into operation and/or the Members liability may have otherwise been limited under General Rule 10 and satisfied by payment thereof,
- to the extent that any claim or potential claim against the Association has been or may be paid by the Association or may be pursued against the Association by the former Member all the obligations to the Member to the Association shall continue to apply to the former member as though he remained a Member.