L. The following is added to the policy CONDITIONS, CANCELLATION, subsection 2:

If this policy has been in effect for sixty (60) days or more, or if this policy is a renewal or continuation of a policy we issued, we may cancel this policy only for the following reasons:

a. Nonpayment of premium;

b. Conviction of a crime arising out of acts increasing the hazard insured against;

c. Discovery of fraud or material misrepresentation in the obtaining of this policy or in the presentation of a claim thereunder;

d. After issuance of this policy or after the last renewal date, discovery of an act or omission, or a violation of any policy condition, that substantially and materially increases the hazard insured against, and which occurred subsequent to inception of the current policy period;

e. Material change in the nature or extent of the risk, occurring after issuance or last annual renewal anniversary date of this policy, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time this policy was issued or last renewed;

f. Required pursuant to a determination by the Superintendent that continuation of our present premium volume would jeopardize our solvency or be hazardous to the interest of our policyholders, our creditors or the public; or

g. A determination by the Superintendent that the continuation of this policy would violate, or would place us in violation of, any provision of the Insurance Code.

M. The following is added to the policy CONDITIONS:

NONRENEWAL OR CONDITIONAL RENEWAL

If this is other than a "hyper limits excess liability" policy:

1. If we elect:

a. Not to renew this policy; or

b. To condition renewal of this policy subject to:

(1) Change of limits;

(2) Change in type of coverage;

(3) Reduction of coverage;

(4) Increased deductible;

(5) Addition of exclusion; or

(6) Requirements relating to Underlying Insurance; or

(7) 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, retrospective rating or audit;

we will mail by first class or certified mail to the First Named Insured and to the agent or broker of record, at their last addresses known to us, written notice stating the reason for nonrenewal or conditional renewal, at least thirty (30) days