No. 11 - Class 2 – Rule Changes for 2004

Notice to All Class 2 Members

NOTICE is hereby given that an Extraordinary General Meeting of the Members of Class 2 of the Association will be held on Wednesday, 4 February 2004 at 1030 hours or as soon thereafter as the business of the Extraordinary General Meeting of the Members of Class 1 of the Association has been completed, in the Dolder Grand Hotel, Kurhausstrasse 65, CH-8032 Zurich, Switzerland for the purpose of considering and, if thought fit, passing the following SPECIAL Resolution:

SPECIAL RESOLUTION

By order of the Board
P A Aspden
Secretary
33 Boulevard Prince Henri
1724 Luxembourg
7 January 2004

A Member entitled to attend and vote is entitled to appoint a proxy (who need not be a Member of the Association) to attend and on a poll vote instead of him. The instrument appointing a proxy shall be left with the Secretary not less than 48 hours before the holding of the Meeting.

CLASS 2 – RULE CHANGES FOR 2004

COMMENTARY

INTRODUCTION

There are both major and minor changes proposed to the Rules for 2004. Major changes or re-drafting of a whole Rule are covered by a full commentary. Where there is a minor change comment is brief.

Legal advice on major changes has, where appropriate, been taken.

FORMAT

Those parts of the 2003 Rules where it is proposed that changes are made are attached with the changes marked. A proposed deletion from the 2003 Rules is identified by striking through the text to be deleted. Proposed additions are marked in underlined type, except where changes are proposed to Rule headings, where the change is identified with ordinary text. All proposed changes are accompanied by a vertical mark in the margin for ease of identification. There is an exception in the case of Form B.3 where the text of the previous Form is not shown and the new text is not underlined. Page headers and number of the Rules and pages will be adjusted once changes are adopted and prior to printing for the 2004 policy year.

CHANGES TO SPECIFIC RULES:

1. Rule 43 : Releases
   
   The proposed amendment specifies a date or dates on which a Release is payable rather than making the Release payable “immediately”.
   
   
2. Rule 51 : Bail
   
   The proposed changes allow counter security to be deemed to be on the standard B3 form in those cases where the only uninsured element of bail given by the Association is the deductible. This will replace the current position where, if the Association wishes to have a deductible counter secured, it must enter into a special agreement with the member aside from the deeming provision in the Rule 51.
   
   
3. The First Schedule
   
   The proposed amendment replaces the B3 form of counter security in the Schedule with the revised B3 terms set out in the Notice to Members of February 2003 No.1 2003/2004 which gave effect to the bye law approved by the Board in February.