C. The following applies to the:

- Capital Assets Program (Output Policy) Coverage Part
- Commercial Inland Marine Coverage Part
- Commercial Property Coverage Part
- Crime And Fidelity Coverage Part
- Equipment Breakdown Coverage Part
- Farm Coverage Part

1. We may rescind this policy because of the following:
   a. Misrepresentation made by you or on your behalf in the negotiation for or procurement of this Coverage Part, if the person knew or should have known that the representation was false;
   b. Breach of an affirmative warranty made by you or on your behalf in the negotiation for or procurement of this Coverage Part;
   c. Failure of a condition before a loss if such failure exists at the time of loss; or
   d. Breach of a promissory warranty if such breach exists at the time of loss.

2. We may not rescind this policy:
   a. For the reasons in Paragraphs C.1.a. and C.1.b., unless:
      (1) We rely on the misrepresentation or affirmative warranty and the misrepresentation or affirmative warranty is either material or made with intent to deceive; or
      (2) The facts misrepresented or falsely warranted contribute to the loss.
   b. For the reasons in Paragraphs C.1.c. and C.1.d., unless such failure or breach:
      (1) Increases the risk at the time of loss; or
      (2) Contributes to the loss.

3. If we elect to rescind this policy, we will notify the first Named Insured of our intention within 60 days after acquiring knowledge of sufficient facts to constitute grounds for rescission.

D. The following are added and supersede any other provisions to the contrary:

1. Nonrenewal
   a. If we elect not to renew this policy we will mail or deliver written notice of nonrenewal to the first Named Insured's last mailing address known to us. We may elect not to renew for any reason; the notice will state the reason for nonrenewal. We will mail or deliver the notice at least 60 days before the expiration date of this policy.

We need not mail or deliver the notice if:
(1) You have insured elsewhere;
(2) You have accepted replacement coverage;
(3) You have requested or agreed to nonrenewal of this policy; or
(4) This policy is expressly designated as nonrenewable.

b. We may refuse to renew this policy because of the termination of an insurance marketing intermediary's contract with us only if the notice of nonrenewal contains an offer to renew the policy with us if we receive a written request from the first Named Insured prior to the renewal date.

c. If you fail to pay the renewal or continuation premium by the premium due date, this policy will terminate on the policy expiration or anniversary date, if we have:
(1) Given you written notice of the renewal or continuation premium not more than 75 days nor less than 10 days prior to the due date of the premium; and
(2) Stated clearly in the notice the effect of nonpayment of premium by the due date.

2. Anniversary Alteration
If this policy is written for a term of more than one year or has no fixed expiration date, we may alter the terms or premiums of this policy by mailing or delivering written notice of less favorable terms or premiums to the first Named Insured's last mailing address known to us. We will mail, by first class mail, or deliver this notice at least 60 days prior to the anniversary date.

If we notify the first Named Insured within 60 days prior to the anniversary date, the new terms or premiums will not take effect until 60 days after the notice was mailed or delivered. The notice will include a statement of the first Named Insured's right to cancel. The first Named Insured may elect to cancel the policy at any time during the 60-day period, in accordance with Paragraph 1. of the Cancellation Common Policy Condition. If the first Named Insured elects to cancel the policy during the 60-day period, return premiums or additional premium charges will be calculated proportionately on the basis of the old premiums.