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Rule 16 Termination by the Association

1 The Association may terminate the entry with effect from the end of the Policy Year in respect of one or more Vessels by giving written notice thereof prior to 20th January.

2 The Association may also terminate the insurance of any or all of the Vessels entered by a Member:

a) without notice, where a casualty or other event has been brought about by wilful misconduct on the part of the Member, as defined in Rule 53;

b) on three days' notice, where the Member has failed to pay when due and demanded any premium or other amount due from him to the Association;

c) on 14 days' notice, where the Member has neglected a duty of disclosure under Rule 6 or Rule 7 or where there has been an alteration of the risk after conclusion of the contract of insurance;

d) on 45 days' notice, without giving any reason.

3 Notwithstanding and without prejudice to Rules 16.1 and 16.2 and Rule 17.4, the Association may, on such notice in writing as the Association may decide, terminate the entry in respect of any and all Vessel(s) in circumstances where the Member has exposed or may, in the opinion of the Association, expose the Member or the Association to the risk of being or becoming subject to any sanction, prohibition or adverse action in any form whatsoever by the State of the Vessel(s) flag, by any State where the Association has its registered office or permanent place of business or by any State being a Major Power or by the United Nations or the European Union. For the purpose of this Rule 16.3 "Major Power" means any of the following States: United Kingdom, United States of America, France, the Russian Federation and the People's Republic of China.