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CNA CNA PARAMOUNT Cancellation / Nonrenewal — California d. A change by the Named Insured or Insured(s) in the activities or property of the commercial or industrial enterprise which results in a materially added risk, a materially Increased risk, or a materially changed risk, unless the added, increased, or changed risk is included in the policy. 2. A written notice will be mailed or delivered to the Named Insured, at the last mailing address known to the Insurer, and the producer of record at least sixty (60) days prior to the effective date of any increase, reduction or change. 3. The notice will state the effective date of, and the reasons for, the increase, reduction or change 4. If notice is mailed, proof of mailing will be sufficient proof of notice. E. ADDITIONAL PROVISIONS 1. Solely with respect to coverage for real property used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household property contained in a residential unit: a. The Insurer shall not cancel or refuse to renew such coverage existing on the date the Insurer elected to become an associate participating insurer after an offer of earthquake coverage is accepted solely because the insured has accepted that offer of earthquake coverage; and b. The Insurer shall not cancel such coverage unless the policy is properly canceled pursuant to Paragraph A above; and c. The Insurer may not cancel or non -renew this policy solely because the first Named Insured has: (1) Accepted an offer of earthquake coverage; or (2) Cancelled or did not renew a policy issued by the California Earthquake Authority (CEA) that included an earthquake policy premium surcharge. However, the Insurer shall cancel this policy if the first Named Insured has accepted a new or renewal policy Issued by the CEA that includes an earthquake policy premium surcharge but fails to pay the earthquake policy premium surcharge authorized by the CEA. d. If the Insurer elects not to renew this policy, the Insurer will mail or deliver written notice, stating the reason for nonrenewal, to the first Named Insured, and to the producer of record, at the mailing address shown in the policy, at least 75 days, but not more than 120 days, before the expiration or anniversary date. The Insurer may elect not to renew such coverage for any reason, except as provided In a., f. and g. below. If the Insurer fails to give the first Named Insured notice of nonrenewal at least 75 days prior to the policy expiration, as required In the paragraph above, this policy, with no change In its terms and conditions, shall remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed to the Named Insured. A notice to this effect shall be provided by us to the first Named Insured with the notice of nonrenewal. e. The following applies only to insurers who are associate participating insurers as established by Cal. Ins. Code Section 10089,16. The Insurer may elect not to renew such coverage after the first Named Insured has accepted an offer of earthquake coverage, if one or more of the following reasons apply: 1. The policy is terminated by the Named Insured; ii. The policy is refused renewal on the basis of sound underwriting principles that relate to the coverages provided by the policy and that are consistent with the approved rating plan and related documents filed with the Department of Insurance as required by existing law; III. The Commissioner of Insurance finds that the exposure to potential losses will threaten the solvency 0 of the Insurer or place the Insurer in a hazardous condition. A hazardous condition includes, but is B not limited to, a condition In which the Insurer makes claims payments for losses resulting from an earthquake that occurred within the preceding two years and that required a reduction in policyholder surplus of at least twenty-five percent (26%) for payment of those claims; or iv. The Insurer has lost or experienced a substantial reduction in the availability or scope of reinsurance coverage or a substantial Increase in the premium charged for reinsurance coverage for its residential property insurance policies, and the Commissioner of Insurance has approved a plan for CNA62814CA (7-20) Policy No: 7092433885 Page 3 of 4 Endorsement No: 23 Nat'l Fire Ins Co of Hartford Effective Date: 06/24/2024 Insured Name: HOUSTON & HARRIS PCs INC. Copyright CNA All Rlghls Reserved.