**(6) The insured's violation or breach of any policy terms or conditions; or**

**(7) Any other reasons that are approved by the Commissioner of Insurance.**

We will mail or deliver written notice of cancellation under Paragraph A.2.b., to the first Named Insured at least:

*(a) 10 days before the effective date of cancellation if we cancel for non-payment of premium, or*

*(b) 30 days before the effective date of cancellation if we cancel for a reason described in Paragraphs A.2.b.(2) through (7) above.*

**B. Paragraph 2. of the Cancellation Common Policy Condition is replaced by the following, which applies with respect to premium payments due on new and renewal policies, including installment payments:**

**2. Notice Of Cancellation**

*a. If your premium payment check or other negotiable instrument is returned to us or our agent or a premium finance company because it is uncollectible for any reason, we may cancel the policy subject to Paragraphs B.2.b. and B.2.c.*

*b. We may cancel the policy effective from the date the premium payment was due, by sending you written notice by certified mail, or by delivering such notice to you within 10 days of the date that we receive notice of the returned check or negotiable instrument.*

*c. The cancellation notice will also advise you that the policy will be reinstated effective from the date the premium payment was due, if you present to us a cashier's check or money order for the full amount of the returned check or other negotiable instrument within 10 days of the date that the cancellation notice was mailed.*

**C. Paragraph 5. of the Cancellation Common Policy Condition is replaced by the following:**

**5. Premium Refund**

*If this policy is cancelled, we will return any premium refund due, subject to Paragraphs C.5.a., C.5.b., C.5.c., C.5.d., C.5.e. and C.5.f. The cancellation will be effective even if we have not made or offered a refund.*

*a. If we cancel, the refund will be pro rata.*

*b. If the first Named Insured cancels, the refund may be less than pro rata, and will be returned within 30 days after the effective date of cancellation.*

**c. We will send the refund to the first Named Insured unless Paragraph C.5.d. or C.5.e. applies.*

*d. If we cancel based on Paragraph B.2. of this endorsement, we will return the premium due, if any, within 10 days after the expiration of the 10-day period referred to in B.2.c. If the policy was financed by a premium finance company, or if payment was advanced by the insurance agent, we will send the return premium directly to such payor.*

*e. With respect to any cancellation of the Commercial Auto Coverage Part, we will send the return premium, if any, to the premium finance company if the premium was financed by such company.*

*f. When return premium payment is sent to the premium finance company or the agent of the insured, we will provide notice to you, at the time of cancellation, that a return of unearned premium may be generated by the cancellation.*

**D. The Premiums Common Policy Condition is replaced by the following:**

**PREMIUMS**

*1. The first Named Insured shown in the Declarations is responsible for the payment of all premiums.*

*2. We will pay return premiums, if any, to the first Named Insured, unless another person or entity is entitled to be the payee in accordance with Paragraph C. of this endorsement.*

**E. Paragraph f. of the Mortgageholders Condition in the Commercial Property Coverage Part, Standard Property Policy, and the Capital Assets Program (Output Policy) Coverage Part and Paragraph 4.f. of the Mortgageholders Condition in the Farm Coverage Part are replaced by the following:**

*If we cancel a policy that has been in effect for fewer than 60 days and is not a renewal of a policy we issued, we will give written notice to the mortgageholder, pledgee or other known person shown in the policy to have an insurable interest in any loss, at least:*

*(1) 10 days before the effective date of cancellation, if we cancel for non-payment of premium; or*

*(2) 60 days before the effective date of cancellation, if we cancel for any other reason.*