Common use of References to the Committee Clause in Contracts

References to the Committee. 6.1 A Committee is hereby established for the purpose of determining and deciding certain matters as specified herein. The composition, powers and procedure of the Committee are set out in Schedule 2 (and in the alternative in case a Club elects for an adjudication then the composition, powers and procedure are set out in Schedule 2A). 6.2 In determining whether a rate is unreasonably high or unreasonably low (as the case may be) the Committee shall take into account all relevant matters including (without prejudice to the generality of the foregoing words): (a) whether the rate includes fair and reasonable provision for each of the following: (i) the cost of claims within the insuring Club’s retention, including external costs (for example, of independent agents, correspondents, lawyers, surveyors and other third parties) which are incurred, or expected to be incurred, by that Club in dealing with the claims of the Operator. In assessing such costs, the Committee shall take into account, inter alia: (1) the Operator's own record and historical claims pattern, including actuarially assessed provisions for incurred but not reported claims; and (2) the type of vessel, including but not limited to, its trading pattern, crewing arrangements and flag and the cost of claims that might reasonably be attributable to that type of vessel based on statistical or other appropriate information, reflecting the coverage terms; (ii) the cost of contributions to Pool claims; and (iii) the cost of the General Excess Loss Contract; (b) where a New Club’s rate is under consideration, the information supplied to it by the Holding Club; and (c) where a Holding Club’s Rate is under consideration, the information available to the Holding Club at the date when that rate was communicated by it to the New Club. 6.3 In addition to references with respect to rates either a New Club or a Holding Club may refer to the Committee any question or dispute between Clubs as to: (a) whether one premium is lower than another or a financial inducement has been offered or proposed; or (b) whether either of them has duly complied with its obligations under Clauses 2 to 4 or 7. A reference under paragraph (a) must be made no later than the end of the period of insurance in respect of which the premium is charged or the expiration of six months from the commencement of that period, whichever is later. A reference under paragraph (b) must be made no later than the end of the period for which insurance is granted without (or allegedly without) complying as aforesaid or the expiration of six months from the commencement of that period, whichever is later. 6.4 In addition to references with respect to the foregoing matters, when an Operator transfers any vessel from a Holding Club the Operator may request the Committee to determine: (a) within 10 working days after the attachment date with the New Club, whether the Holding Club's Rate is unreasonably high under Clause 3.7; and (b) where a release call is required, in relation to that release call, the matters set out in Clause 8.2(b). 6.5 Any determination or decision of the Committee on any matter referred to it by or under the provisions of this Agreement shall be final and binding.

References to the Committee. 6.1 A Committee is hereby established for the purpose of determining and deciding certain matters as specified herein. The composition, powers and procedure of the Committee are set out in Schedule 2 (and in the alternative in case a Club elects for an adjudication then the composition, powers and procedure are set out in Schedule 2A)2. 6.2 In determining whether a rate is unreasonably high or unreasonably low (as the case may be) the Committee shall take into account all relevant matters including (without prejudice to the generality of the foregoing words): (a) whether the rate includes fair and reasonable provision for each of the following: (i) the cost of claims within the insuring Club’s 's retention, including external costs (for example, of independent agents, correspondents, lawyers, surveyors and other third parties) which are incurred, or expected to be incurred, by that Club in dealing with the claims of the Operator. In assessing such costs, the Committee shall take into account, inter alia: (1) the Operator's own record and historical claims pattern, including actuarially assessed provisions for incurred but not reported claims; and (2) the type of vessel, including but not limited to, its trading pattern, crewing arrangements and flag and the cost of claims that might reasonably be attributable to that type of vessel based on statistical or other appropriate information, reflecting the coverage terms; (ii) the cost of contributions to Pool claims; and (iii) the cost of the General Excess Loss Contract; (b) where a New Club’s 's rate is under consideration, the information supplied to it by the Holding Club; and (c) where a Holding Club’s 's Rate is under consideration, the information available to the Holding Club at the date when that rate was communicated by it to the New Club. 6.3 In addition to references with respect to rates either a New Club or a Holding Club may refer to the Committee any question or dispute between Clubs as to: (a) whether one premium is lower than another or a financial inducement has been offered or proposed; or (b) whether either of them has duly complied with its obligations under Clauses 2 to 4 or 7. A reference under paragraph (a) must be made no later than the end of the period of insurance in respect of which the premium is charged or the expiration of six months from the commencement of that period, whichever is later. A reference under paragraph (b) must be made no later than the end of the period for which insurance is granted without (or allegedly without) complying as aforesaid or the expiration of six months from the commencement of that period, whichever is later. 6.4 In addition to references with respect to the foregoing matters, when an Operator transfers any vessel from a Holding Club the Operator may request the Committee to determine: (a) within 10 working days after the attachment date with the New Club, whether the Holding Club's Rate is unreasonably high under Clause 3.7; and (b) where a release call is required, in relation to that release call, the matters set out in Clause 8.2(b). 6.5 Any determination or decision of the Committee on any matter referred to it by or under the provisions of this Agreement shall be final and binding.