Adopted by the Stockholm Chamber of Commerce and in force as of 1 April 1999

FOREWORD

The Insurance Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce (the Insurance Rules) aim at rendering the settlement of insurance and reinsurance disputes more effective.

The applicability of the Insurance Rules presupposes an agreement to that effect between the parties. Such agreement to arbitrate could either be included in a contract or insurance policy in the form of an arbitration clause, or laid down in a separate agreement, concluded once the dispute has arisen. If the parties so agree, the Insurance Rules may also apply in arbitrations in areas other than insurance.

The Insurance Rules offers flexibility by incorporating both the Rules of the Arbitration Institute of the Stockholm Chamber of Commerce (the Rules) and the Rules for Expedited Arbitrations (the Expedited Rules).

If the parties have not agreed otherwise, the latter will apply unless the SCC Institute, taking into account the complexity of the case, the amount in dispute and other circumstances, determines that the SCC Rules shall apply.

In addition to offering its accumulated experience in administering international arbitrations, the Board of the SCC Institute when dealing with cases under the Insurance Rules will include members appointed particularly for their experience and expertise in the insurance field.

INSURANCE ARBITRATION RULES

Article 1

Introductory Rules

The Rules of the Arbitration Institute of the Stockholm Chamber of Commerce ("the SCC Rules"), Appendix 1, and the Rules for Expedited Arbitrations, ("the Expedited Rules"), Appendix 2, shall apply with the amendments and modifications set forth in Articles 2 and 3 below.

Article 2

The Composition of the Board, etc

When handling cases under the Insurance Rules, the Board of the SCC Institute shall be composed of eight members who shall be appointed for a period of three years by the Board of Directors of the Stockholm Chamber of Commerce. The Board of Directors of the Stockholm Chamber of Commerce shall appoint a Chairman and Vice Chairman among the members of the Board of the SCC Institute. The Chairman and Vice Chairman shall be lawyers. Three of the members shall represent the insurance industry and three shall represent the policyholders.

The Chairman or Vice Chairman and two other members shall form a quorum. When a vote is to be taken an equal number of members representing the insurance industry and the policyholders, respectively, shall take part. If no majority is attained, the chairman shall cast the deciding vote.

Article 3

Applicable Rules

Unless the parties have agreed otherwise the arbitration proceedings shall be conducted in the following manner. The Expedited Rules shall apply unless the SCC Institute, taking into account the complexity of the case, the amount in dispute and other circumstances, determines that the Rules shall apply. In the latter case, the SCC Institute shall also decide whether the arbitral tribunal shall be composed of one or three arbitrators.