Laserfiche WebLink
C. The following is added and supersedes any provi- <br />sions to the contrary: <br />NONRENEWAL <br />Subject to the provisions of Paragraphs C.2. <br />and C.3. below, if we elect not to renew this <br />policy, we will mail or deliver written notice stat- <br />ing the reason for nonrenewal to the first <br />Named Insured shown in the Declarations and <br />to the producer of record, at least 60 days, but <br />not more than 120 days, before the expiration <br />or anniversary date. <br />We will mail or deliver our notice to the first <br />Named Insured, and to the producer of record, <br />at the mailing address shown in the policy. <br />2. Residential Property <br />This provision applies to coverage on real <br />property used predominantly for residential <br />purposes and consisting of not more than four <br />dwelling units, and to coverage on tenants' <br />household property contained in a residential <br />unit, if such coverage is written under one of <br />the following: <br />Capital Assets Program (Output Policy) Cover- <br />age Part <br />Commercial Property Coverage Part <br />Farm Coverage Part — Farm Property — Farm <br />Dwellings, Appurtenant Structures And House- <br />hold Personal Property Coverage Form <br />a. We may elect not to renew such coverage <br />for any reason, except as provided in b., c. <br />and d, below: <br />b. We will not refuse to renew such coverage <br />solely because the first Named Insured has <br />accepted an offer of earthquake coverage. <br />However, the following applies only to in- <br />surers who are associate participating in- <br />surers as established by Cal. Ins. Code <br />Section 10089.16. We may elect not to re- <br />new such coverage after the first Named <br />Insured has accepted an offer of earth- <br />quake coverage, if one or more of the fol- <br />lowing reasons applies: <br />(1) The nonrenewal is based on sound <br />underwriting principles that relate to the <br />coverages provided by this policy and <br />that are consistent with the approved <br />rating plan and related documents filed <br />with the Department of Insurance as re- <br />quired by existing law; <br />(2) The Commissioner of Insurance finds <br />that the exposure to potential losses will <br />threaten our solvency or place us in a <br />hazardous condition. A hazardous con- <br />dition includes, but is not limited to, a <br />condition in which we make claims <br />payments for losses resulting from an <br />earthquake that occurred within the pre- <br />ceding two years and that required a re- <br />duction in policyholder surplus of at <br />least 25% for payment of those claims; <br />or <br />(3) We have: <br />(a) Lost or experienced a substantial <br />reduction in the availability or scope <br />of reinsurance coverage; or <br />(b) Experienced a substantial increase <br />in the premium charged for reinsur- <br />ance coverage of our residential <br />property insurance policies; and <br />the Commissioner has approved a plan <br />for the nonrenewals that is fair and <br />equitable, and that is responsive to the <br />changes in our reinsurance position. <br />c. We will not refuse to renew such coverage <br />solely because the first Named Insured has <br />cancelled or did not renew a policy, issued <br />by the California Earthquake Authority that <br />included an earthquake policy premium <br />surcharge. <br />d. We will not refuse to renew such coverage <br />solely because corrosive soil conditions ex- <br />ist on the premises. This Restriction (d.) <br />applies only if coverage is subject to one of <br />the following, which exclude loss or dam- <br />age caused by or resulting from corrosive <br />soil conditions: <br />(1) Capital Assets Program Coverage Form <br />(Output Policy); <br />(2) Commercial Property Coverage Part — <br />Causes Of Loss — Special Form; or <br />(3) Farm Coverage Part — Causes Of Loss <br />Form — Farm Property, Paragraph D. <br />Covered Causes Of Loss — Special. <br />3. We are not required to send notice of nonre- <br />newal in the following situations: <br />a. If the transfer or renewal of a policy, without <br />any changes in terms, conditions, or rates, <br />is between us and a member of our insur- <br />ance group. <br />Risk MnwganadDhidon <br />REVIENED & APPROVED BY: <br />IL 02 70 09 08 0ISO Properties, Inc.,07 ies, I2I+3„o H` ' f � vj&nu <br />p ®' Ruk Management Malyst <br />