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IL 02 70 0912 <br />(4) Discovery of willful or grossly negligent <br />acts or omissions, or of any violations of <br />state laws or regulations establishing <br />safety standards, by you or your <br />representative, which materially <br />increase any of the risks insured <br />against. <br />(5) Failure by you or your representative to <br />implement reasonable loss control <br />requirements, agreed to by you as a <br />condition of policy issuance, or which <br />were conditions precedent to our use of <br />a particular rate or rating plan, if that <br />failure materially increases any of the <br />risks insured against. <br />(6) A determination by the Commissioner of <br />Insurance that the: <br />(a) Loss of, or changes in, our <br />reinsurance covering all or part of <br />the risk would threaten our financial <br />integrity or solvency; or <br />(b) Continuation of the policy coverage <br />would: <br />(i) Place us in violation of California <br />law or the laws of the state where <br />we are domiciled; or <br />(ii) Threaten our solvency. <br />(7) A change by you or your representative <br />in the activities or property of the <br />commercial or industrial enterprise, <br />which results in a materially added, <br />increased or changed risk, unless the <br />added, increased or changed risk is <br />included in the policy. <br />b. We will mail or deliver advance written <br />notice of cancellation, stating the reason for <br />cancellation, to the first Named Insured, at <br />the mailing address shown in the policy, <br />and to the producer of record, at least: <br />(1) 10 days before the effective date of <br />cancellation if we cancel for <br />nonpayment of premium or discovery of <br />fraud; or <br />(2) 30 days before the effective date of <br />cancellation if we cancel for any other <br />reason listed in Paragraph 3.a. <br />B. The following provision is added to the <br />Cancellation Common Policy Condition: <br />7. Residential Property <br />This provision applies to coverage on real <br />property which is used predominantly for <br />residential purposes and consisting of not more <br />than four dwelling units, and to coverage on <br />tenants' household personal property in a <br />residential unit, if such coverage is written <br />under one of the following: <br />Commercial Property Coverage Part <br />Farm Coverage Part - Farm Property - Farm <br />Dwellings, Appurtenant Structures And <br />Household Personal Property Coverage Form <br />a. If such coverage has been in effect for 60 <br />days or less, and is not a renewal of <br />coverage we previously issued, we may <br />cancel this coverage for any reason, except <br />as provided in b. and c. below. <br />b. We may not cancel this policy solely <br />because the first Named Insured has: <br />(1) Accepted an offer of earthquake <br />coverage; or <br />(2) Cancelled or did not renew a policy <br />issued by the California Earthquake <br />Authority (CEA) that included an <br />earthquake policy premium surcharge. <br />However, we shall cancel this policy if the <br />first Named Insured has accepted a new or <br />renewal policy issued by the CEA that <br />includes an earthquake policy premium <br />surcharge but fails to pay the earthquake <br />policy premium surcharge authorized by the <br />CEA. <br />c. We may not cancel such coverage solely <br />because corrosive soil conditions exist on <br />the premises. This restriction (c.) applies <br />only if coverage is subject to one of the <br />following, which exclude loss or damage <br />caused by or resulting from corrosive soil <br />conditions: <br />(1) Commercial Property Coverage Part - <br />Causes Of Loss- Special Form; or <br />(2) Farm Coverage Part - Causes Of Loss <br />Form - Farm Property, Paragraph D. <br />Covered Causes Of Loss- Special. <br />REVIEWED & APPROVED <br />Page 2 of 4 © Insurance Services Offi* (diSkMA®AGEMENT DIVISION IL 02 70 09 12 <br />