3. The following Conditions are added:

a. Nonrenewal

If we decide not to renew this policy, we will send notice as provided in Paragraph 3.c. below.

b. Conditional Renewal

If we conditionally renew this policy subject to:

(1) A change of limits;

(2) A change in type of coverage;

(3) A reduction of coverage;

(4) An increased deductible;

(5) An addition of exclusion; or

(6) Increased premiums in excess of 10%, exclusive of any premium increase due to and commensurate with insured value added or increased exposure units; or as a result of experience rating, loss rating, retrospective rating or audit;

we will send notice as provided in Paragraph 3.c. below.

We may conditionally renew this policy subject to the requirements stipulated by the Maintenance Of Underlying Insurance condition of Section VI - Conditions. In the event of failure to comply with the aforementioned condition as of the expiration date of the policy, or 60 days after mailing or delivering the notice of conditional renewal, the conditional renewal shall be deemed to be an effective notice of nonrenewal

c. Notices Of Nonrenewal And Conditional Renewal

(1) If we decide not to renew this policy or to conditionally renew this policy as provided in Paragraphs 3.a. and 3.b. above, we will mail or deliver written notice to the first Named Insured shown in the Declarations at least 30 but not more than 120 days before:

(a) The expiration date; or

(b) The anniversary date if this is a continuous policy.

(2) Notice will be mailed or delivered to the first Named Insured at the address shown in the policy and to the authorized agent or broker. If notice is mailed, proof of mailing will be sufficient proof of notice.

(3) Notice will include the specific reason(s) for nonrenewal or conditional renewal, including the amount of any premium increase for conditional renewal and description of any other changes.

(4) If we violate any of the provisions of Paragraph 3.c.(1), (2) or (3) above by sending the first Named Insured an incomplete or late conditional renewal notice or a late nonrenewal notice.