(2) After the policy has been in effect for sixty (60) days, we may not cancel mid-term except for one or more of the following reasons, subject to fifteen (15) days advance notice:

**non-payment of premium, unless secured within the fifteen (15) days notice or grace period;**

**the Insured or someone acting on its behalf is convicted of a crime arising out of acts that increase the hazards insured against;**

**fraud or material misrepresentation on the part of the Insured is discovered in obtaining the policy or in presenting a claim;**

**an act, omission or violation of a policy condition on the part of the Insured, taking place after policy issuance or renewal, is discovered that substantially and materially increases the hazards insured against;**

**material physical changes in the property or material changes in the nature and extent of the risk, within the Insured's control, take place after policy issuance or renewal and result in uninsurability;**

**the Superintendent of Insurance determines that continuation of the present premium volume would jeopardize our solvency or injure the interests of policyholders or the public, or that continuing the policy itself would violate the Insurance Law;**

**there is reasonable basis to believe that the Insured intends to destroy the insured property in order to collect the insurance proceeds, provided that the Insured is notified of the right to seek a ruling on this basis from the superintendent.**

c. We will mail or deliver our notice to the Insured's last mailing address known to us.

d. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date.

e. If this policy is cancelled, we will send the Insured any premium refund due. If we cancel, the refund will be pro rata. If the Insured cancels, the refund will be based upon the customary short rate table. The cancellation will be effective even if we have not made or offered a refund.

f. If notice is mailed, proof of mailing will be sufficient proof of notice.

EL-S3 (7-90)

Page 3 of 4

The company located these documents in its business records. At this time, the company does not certify that these documents constitute a complete and accurate copy of the policy.