At its meeting on December 6th 2005 the Board of Directors decided and confirmed its policy with regard to terms, premium and deductibles for the policy year of February 20th 2006 to February 20th 2007.

In short:
	A 10% general increase Limit on cover of USD 5 million. An estimated supplementary call of 0%. Release call of 25% for 2006/2007.

Premiums
All premiums are quoted in US Dollars (USD) (unless otherwise agreed) and are debited as advance and supplementary calls. It is anticipated that this policy year will be closed in the year 2009. Unless otherwise agreed, the premium shall be debited in four instalments: at inception February 20th, May 20th, August 20th and November 20th. There is a minimum premium period of three months.

Supplementary call
The supplementary call for this year will initially be decided upon in 2007. The current estimated supplementary call for 2006/2007 is 0%.

Release call
The release call for 2006/2007 is 25%.

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

Renewals
The premium for 2006/2007 will be based on the Member’s record for the five year period 2000-2004, including current year if adverse. Records and claims summaries are now available through the Swedish Club extranet, SCOL. The information is updated overnight.

Deductibles/Excess
There is no deductible for the FD&D cover. The Association, however, does not cover disputes involving amounts of USD 7,500 or less unless otherwise agreed, although advice is available on a case-by-case basis.

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

Limit of Cover
The cover is limited to USD 5 million for any one dispute. (see also Rules 5 and 6 in respect of Discretion of the Association)

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

Year	Status	Estimated Supplementary Call	Release Call
2002/2003 and earlier	Closed	–	–
2003/2004	Open	0%	25%
2004/2005	Open	0%	25%
2005/2006	Open	0%	25%
2006/2007	Open	0%	25%

Special Cover – Building, Purchase, Sale, Conversion or Repair
Rule 3.b.(vi) is amended to the effect that the Association may cover building, purchase, sale, conversion or repairs at special limited conditions if agreed in advance.

Yours sincerely,The Swedish ClubFrans Malmros