<p><br />
1. In consideration of the premium by this policy being provisional in that it is calculated on 70% of the sum insured hereby and is subject to adjustment on expiry of each period of insurance.</p>

<p>&nbsp; &nbsp;The Insured agrees to declare to the Company in writing the value of his stocks (other than retail) less any amount insured by policies other than declaration policies on the following basis, namely the average value risk on the end of each month which relates and to make such declaration within seven days of this day, such declaration to be signed by the Insured or by a responsible person authorized to sign on his behalf.</p>

<p>&nbsp; &nbsp;If other policies on a declaration basis cover the stocks hereby insured the declaration shall be made so as to apportion to each policy a share of the value of the stocks insured under such declaration policies pro-rata to the respective amounts named in the policies.</p>

<p>&nbsp; &nbsp;In the event of a declaration not being made within the seven days mentioned above then the Insured shall be deemed to have declared the sum Insured hereby as the value at risk. &nbsp;On the expiry of each period of insurance the premium shall be calculated at the rate of 100% on the average sum insured, namely, the total of the values declared or deemed to have been declared divided by the number of declaration due to have been made. &nbsp;If the resultant premium be greater than the provisional premium the Insured shall pay the difference; &nbsp;if it be less the Company shall retain provisional premium.</p>

<p>2. If after the occurrence of a loss it is found that the amount of the last declaration previous to the loss is less than the amount that ought to have been declared, then the amount which would have been recoverable by &nbsp;the Insured shall be reduced in such proportion as the amount of the said last declaration bears to the amount that ought to have been declared.</p>

<p>3. Notwithstanding the occurrence of a loss it is understood that the sum insured will be maintained at all times during the currency of the policy and the Insured therefore undertakes to pay extra premium on the amount of loss pro-rata from the date of such loss to the expiry of the period of insurance, the premium being calculated at the rate applicable to the stocks destroyed and such extra premium shall not be taken into account &nbsp;in and shall be distinct from the final adjustment of premium.</p>

<p>4. In the event of this policy being cancelled by the Insured during its currency (whether stocks exist or not) the premium to be retained by the Company shall be the appropriate short period premium calculated on the average amount insured up to the date of the cancellation, but if the policy is cancelled by the Insured after a loss has occurred the premium to be retained by the Company shall be the pro-rata proportion of the premium calculated on the average amount insured up to the date of cancellation plus the pro-rata proportion of the premium from the date of loss to the expiry of the period of insurance on the amount of the loss paid or &nbsp;the provisional premium whichever is the greater.</p>

<p>5. The maximum liability of the Company shall not exceed the sum insured hereby and premium shall not be receivable on values in excess thereof. &nbsp;The sum insured may, however, be increased by prior agreement with the Company, in which event the new sum insured and the date from which it is effective will be recorded on the policy by endorsement.</p>

<p>6. It is warranted that every policy covering the insured&#39;s stocks on a declaration basis shall be identical in wording.</p>

<p>7. This insurance is subject in all respects to the printed conditions of the policy except in so far as they may be varied by these Special Conditions.&nbsp;</p>
