Rule 21  VARIATION OF CONTRACT

A. The Managers may decide during the course of any policy year that for the next ensuing policy year the Call ratings of the ships entered in the Association shall generally be increased by a single fixed percentage based on the financial situation of the Association.

If before the 20th December in any year in respect of the cover under Rule 3 or Rule 4, or before the 1st November in any year in respect of the cover under Rule 5, the Managers shall have given notice to a Member of such a decision, then the period of insurance shall continue for the next policy year upon the terms that the Call rating of the entered ship has been varied by the percentage fixed by the Managers, and the terms of entry of the entered ship shall be deemed for all purposes to have been varied accordingly, unless:

i. a further notice of variation is given pursuant to paragraph [C] of this Rule; or

ii. a notice of termination is given pursuant to Rule 22; or

iii. the period of insurance has previously terminated for some other reason. A notice of the Managers’ decision shall constitute an Endorsement Slip for the purposes of Rule 12.

B. If at any time these Rules shall have been altered in any respect which affects the terms and conditions of the contract of insurance between the Member and the Association, then such alteration shall be binding upon the Member and for all purposes take effect as from the date and time specified in the decision made by the Association.

C. If the Managers shall give a notice not later than, 12 hours G.M.T. on the 20th January in any policy year in respect of the cover under Rule 3 or Rule 4, or zero hour Beijing time on the 20th December in any policy year in respect of the cover under Rule 5, that for the next ensuing policy year they require the Call rating of an entered ship to be altered (otherwise than in accordance with paragraph [A] of this Rule) or that they require some other change to be made in the terms or conditions of entry, then the insurance for the entered ship for the next ensuing policy year shall continue upon such Call rating, terms or conditions as may be agreed between the Member and the Managers before 12 hours G.M.T. on the 20th February immediately following such notice in  respect of the cover under Rule 3 or Rule 4 or before 24 hours Beijing time on the 31st December in respect of the cover under Rule 5 immediately following such notice and if by then no such agreement shall have been made the period of insurance shall thereupon terminate.