At its meeting on 1st December 1998 the Board of Directors decided on its policy with regard to premium and deductibles for the policy year 20th February 1999 to 20th February 2000.

Premiums
All premiums are in US Dollars (USD) and are debited as advance and supplementary calls. The plan is that this Policy year will be closed in 2002. To facilitate Members’ cash flow, 50% of the advance call will be debited on 20th February and 50% on 20th August. There is a minimum premium of three months.

Supplementary call
The supplementary call for this year will be decided upon in 2000. The present estimated supplementary call for 1999/2000 is 0%.

Release Call
The release call for 1999/2000 is 25%.

Payment of premium
Payment of premium Premiums are to be paid in accordance with the enclosed “Procedures for Payment of Premium”.

Renewals
The premium for 1999/2000 will be based on the Member’s record for the five year period 1993-1997, including current year if adverse.

Deductibles/Excess
There is no deductible for the FD&D cover. The Association however, does not cover disputes involving amounts of USD 5,000 or less, although advice is available on a case- by-case basis.

Lay-up returns
Lay-up returns are not granted for FD&D.

Limit of Liability
The Association offers unlimited liability for Owners’ entries.

Old years
The current position on the old years is as follows:

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Year

Status

Estimated Additional Call

Release Call

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1995/96 and earlier	Closed	–	–
1996/97	Open	0 %	25 %
1997/98	Open	0 %	25 %
1998/99	Open	0 %	25 %

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Charterers’ FD&D Cover

Premiums
The premium for Charterers’ FD&D is fixed and thus not subject to any supplementary calls.

There is a minimum premium of six months.

Payment of premium
Premiums are to be paid in accordance with the enclosed “Procedures for Payment of Premium”.

Renewals
The premium for 1999/2000 will be based on the records for the five year period 1993-1997, including current year if adverse.

Deductibles/Excess
There is no deductible for the FD&D cover. The Association however, does not cover disputes involving amounts of USD 5,000 or less, although advice is available on a case-by-case basis.

Limit of Liability
The Association’s maximum liability is limited to USD 400,000.

Yours sincerely,The Swedish ClubFrans Malmros