**(2) And if the notice is provided on or after the expiration date of this policy, coverage will remain in effect at the same terms and conditions of this policy for another policy period, at the lower of the current rates or the prior period's rates, unless the first Named Insured, during this additional policy period, has replaced the coverage or elects to cancel.**

**e. If you elect to renew on the basis of a late conditional renewal notice, the terms, conditions and rates set forth in such notice shall apply:**

**(1) Upon expiration of the 60-day period, unless Subparagraph (2) below applies; or**

**(2) Notwithstanding the provisions in Paragraphs d.(1) and d.(2), as of the renewal date of the policy if the conditional renewal notice was sent at least 30 days prior to the expiration or anniversary date of the policy.**

**f. We will not send you notice of nonrenewal or conditional renewal if you, your authorized agent or broker or another insurer of yours mails or delivers notice that the policy has been replaced or is no longer desired.**

**D. The following provisions apply when the Commercial Property Coverage Part, the Farm Coverage Part or the Capital Assets Program (Output Policy) Coverage Part is made a part of this policy:**

**1. Items D.2. and D.3. apply if this policy meets the following conditions:**

**a. The policy is issued or issued for delivery in New York State covering property located in this state; and**

**b. The policy insures:**

**(1) For loss of or damage to structures, other than hotels or motels, used predominantly for residential purposes and consisting of no more than four dwelling units; or**

**(2) For loss of or damage to personal property other than farm personal property or business property; or**

**(3) Against damages arising from liability for loss of, damage to or injury to persons or property, except liability arising from business or farming; and**

**c. The portion of the annual premium attributable to the property and contingencies described in 1.b. exceeds the portion applicable to other property and contingencies.**

**2. Paragraph 2. of the Cancellation Common Policy Condition is replaced by the following:**

**2. Procedure And Reasons For Cancellation**

**a. We may cancel this entire policy by mailing or delivering to the first Named Insured written notice of cancellation at least:**

**(1) 15 days before the effective date of cancellation if we cancel for nonpayment of premium, provided however, that a notice of cancellation on this ground shall inform the first Named Insured of the amount due; or**

**(2) 30 days before the effective date of cancellation if we cancel for any other reason.**

**b. But if this policy:**

**(1) Has been in effect for more than 60 days; or**

**(2) Is a renewal of a policy we issued; we may cancel this policy only for one or more of the following reasons:**

**(1) Nonpayment of premium, provided however, that a notice of cancellation on this ground shall inform the first Named Insured of the amount due;**

**(2) Conviction of a crime arising out of acts increasing the risk of loss;**

**(3) Discovery of fraud or material misrepresentation in obtaining the policy or in making a claim;**

**(4) Discovery of willful or reckless acts or omissions increasing the risk of loss;**

**(5) Physical changes in the covered property that make that property uninsurable in accordance with our objective and uniformly applied underwriting standards in effect when we:**

**(a) Issued the policy; or**

**(b) Last voluntarily renewed the policy;**