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

**b. In the notice of cancellation which is sent to the first Named Insured, we will state the reason for cancellation.**

**C. The following is added to the Cancellation Common Policy Condition:**

**7. Cancellation Of Policies In Effect For 60 Days Or More**

**a. If this policy has been in effect for 60 days or more, or 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;**

**(2) Existence of a moral hazard, as defined in N.J.A.C. 11:1-20.2(f);**

**(3) Material misrepresentation or nondisclosure to us of a material fact at the time of acceptance of the risk;**

**(4) Increased hazard or material change in the risk assumed which we could not have reasonably contemplated at the time of assumption of the risk;**

**(5) Substantial breaches of contractual duties, conditions or warranties that materially affect the nature and/or insurability of the risk;**

**(6) Lack of cooperation from the insured on loss control matters materially affecting insurability of the risk;**

**(7) Fraudulent acts against us by the insured or its representative that materially affect the nature of the risk insured;**

**(8) Loss of or reduction in available insurance capacity;**

**(9) Material increase in exposure arising out of changes in statutory or case law subsequent to the issuance of the insurance contract or any subsequent renewal;**

**(10) Loss of or substantial changes in applicable reinsurance;**

**(11) Failure by the insured to comply with any Federal, State or local fire, health, safety or building or construction regulation, law or ordinance with respect to an insured risk which substantially increases any hazard insured against within 60 days of written notification of a violation of any such law, regulation or ordinance;**

**(12) Failure by the insured to provide reasonable and necessary underwriting information to us upon written request therefore and a reasonable opportunity to respond.**

**(13) Agency termination, provided:**

**(a) We document that replacement coverage at comparable rates and terms has been provided to the first Named Insured, and we have informed the first Named Insured, in writing, of the right to continue coverage with us; or**

**(b) We have informed the first Named Insured, in writing, of the right to continue coverage with us and the first Named Insured has agreed, in writing, to the cancellation or nonrenewal based on the termination of the first Named Insured's appointed agent.**

**(14) Any other reasons in accordance with our underwriting guidelines for cancellation of commercial lines coverage.**

**b. If we cancel this policy based on Paragraph 7.a.(1) or (2) above, we will mail or deliver a written notice, to the first Named Insured and any person entitled to notice under this policy, at least 10 days before the effective date of cancellation. If we cancel this policy for any other reason listed above, we will mail or deliver a written notice to the first Named Insured and any person entitled to notice under this policy, not more than 120 days nor less than 30 days before the effective date of such cancellation.**

**c. In the notice of cancellation which is sent to the first Named Insured, we will state the reason for cancellation. For cancellation due to the nonpayment of premium, the notice will state the effect of nonpayment by the due date. Cancellation for nonpayment of premium will not be effective if payment of the amount due is made before the effective date set forth in the notice.**

**d. Notice will be sent to the last mailing addresses known to us, by:**

**(1) Certified mail; or**

**(2) First class mail, if we have obtained from the post office a date stamped proof of mailing showing names and addresses.**