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Rule 42 Terms of contract the Association shall not cover

1 The Association shall not cover liabilities, losses, costs or expenses:

a) which would not have arisen but for the terms of a contract entered into by the Member that result in a greater liability than follow from terms of contract which are customary in the area where the Vessel operates;

b) which result from, or would not have arisen but for, the Member having used terms of contract which the Association has prohibited; or omitted to use terms which the Association has prescribed.

2 The Association shall not cover liabilities, losses, costs or expenses incurred pursuant to a contract entered into by the Member for the provision of services by the Vessel (other than a U.S. owned, operated or managed Vessel) which would not have been incurred had that contract contained a division of liability as between the parties which either

a) is in accordance with the premium conditions set out in Appendix I B or with the terms of entry; or

b) has been approved by the Association after the date of entry, and for which a variation in the Premium Rating has been agreed.