we issued, we may cancel this policy only for any of the reasons listed in Paragraph a.(2) above provided:

(1) we mail the first Named Insured written notice at least 15 days before the effective date of cancellation; and

(2) if we cancel for nonpayment of premium, our notice of cancellation informs the first Named Insured of the amount due.

3. We will mail or deliver our notice, including the reason for cancellation, to the first Named Insured at the address shown in the policy and to the authorized agent or broker.

5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata.

However, when the premium is advanced under a premium finance agreement, the cancellation refund will be pro rata. Under such financed policies, we will be entitled to retain a minimum earned premium of 10% of the total policy premium or $60, whichever is greater. The cancellation will be effective even if we have not made or offered a refund.

The following CONDITIONS are added and supersede any provisions to the contrary.

If one of the reasons for cancellation in Paragraph 2.a.(2) exists, we may cancel this entire policy, even if the reason for cancellation pertains only to a new coverage or endorsement initially effective subsequent to the original issuance of this policy.

**Nonrenewal**

If we decide not to renew this policy, we will send notice as provided in the Notices Of Nonrenewal And Conditional Renewal section below.

**Conditional Renewal**

If we conditionally renew this policy subject to a

1. change of limits;
2. change in type of coverage;
3. reduction of coverage;
4. increased deductible;
5. 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 as a result of experience rating, loss rating, retrospective rating or audit.

we will send notice as provided in the paragraph below.

**Notices Of Nonrenewal And Conditional Renewal**

1. If we decide not to renew this policy or to conditionally renew this policy as provided in the Notices Of Nonrenewal And Conditional Renewal paragraphs above, we will mail or deliver written notice to the first Named Insured shown in the Declarations at least 60 but not more than 120 days before:
   - a. the expiration date; or
   - b. the anniversary date if this is a continuing 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. A 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 NOTICES OF NONRENEWAL AND CONDITIONAL RENEWAL paragraphs above by sending the first Named Insured an incomplete or late conditional renewal notice or a late nonrenewal notice:
   - a. Coverage will remain in effect at the same terms and conditions of this policy at the lower of the current

GAI 6205 (Ed 07/05) XS
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