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B. However, the agreement can be immediately terminated for cause. The term <br />"for cause" shall mean that the Contractor fails to meet the terms, conditions, <br />and/or responsibilities of the agreement. -In this instance, the agreement <br />termination shall be effective as of the date indicated on the State's notification <br />to the Contractor. <br />C. This agreement may be suspended or cancelled without notice, at the option of <br />the Contractor, if the Contractor or State's premises or equipment are destroyed <br />by fire or other catastrophe, or so substantially damaged that it is impractical to <br />continue service, or in the event the Contractor is unable to render service as a <br />result of any action by any governmental authority. <br />4. Basic Insurance Requirements <br />A. General Provisions Applying to All Policies <br />1) Coverage Term — Coverage needs be in force for the complete term of the <br />Agreement. If insurance expires during the term of the Agreement, a new <br />certificate must be received by the State at least ten (10) days prior to the <br />expiration of the insurance. Any new insurance must still comply with the <br />terms of the Agreement. <br />2) Policy Cancellation of Termination & Notice of Non -Renewal — <br />Contractor shall provide to the State within five (5) business days following <br />receipt by contractor a copy of any cancellation or non -renewal of insurance <br />required by this agreement. In the event contractor fails to keep in effect at <br />all times the specified insurance coverage, the State may, in addition to any <br />other remedies it may have, terminate this agreement upon the occurrence <br />of such event, subject to the provisions of this Agreement. <br />3) Deductible — Contractor is responsible for any deductible or self -insured <br />retention contained within their insurance program. <br />4) Primary Clause — Any required insurance contained in this Agreement shall <br />be primary, and not excess or contributory, to any other insurance carried by <br />the State. <br />5) Insurance Carrier Required Rating — All insurance companies must carry a <br />rating acceptable to the Department of General Services, Office of Risk and <br />Insurance Management. If the Contractor is self insured for a portion or all of <br />its insurance, review of financial information including a letter of credit may <br />be required. <br />6) Endorsements — Any required endorsements must be physically attached to <br />all requested certificates of insurance and not substituted by referring to such <br />coverage on the certificate of insurance. <br />Exhibit D 2 <br />