# Maryland Changes

This endorsement modifies insurance provided under the following:

- COMMERCIAL GENERAL LIABILITY COVERAGE PART
- ELECTRONIC DATA LIABILITY COVERAGE PART
- LIQUOR LIABILITY COVERAGE PART
- POLLUTION LIABILITY COVERAGE PART
- PRODUCT WITHDRAWAL COVERAGE PART
- PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

## A. Paragraphs 2. and 3. of the Cancellation Common Policy Condition are replaced by the following:

### 2. When this Policy has been in effect for 45 days or less and is not a renewal policy, we may cancel this Coverage Part by mailing to the first Named Insured, at the last mailing address known to us, written notice of cancellation, stating the reason for cancellation, at least:
- a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium.
- b. 15 days before the effective date of cancellation if we cancel because the risk does not meet our underwriting standards.

### 3. When this Policy has been in effect for more than 45 days or is a renewal policy, we may cancel this Policy by mailing to the first Named Insured, at the last mailing address known to us, written notice of cancellation at least:
- a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium.
- b. 45 days before the effective date of cancellation if we cancel for a permissible reason other than nonpayment of premium, stating the reason for cancellation. Under this Paragraph b., we may cancel only for one or more of the following reasons:
    - (1) When there exists material misrepresentation or fraud in connection with the application, policy, or presentation of a claim.
    - (2) A change in the condition of the risk that results in an increase in the hazard insured against.

## B. Paragraph 5. of the Cancellation Common Policy Condition is replaced by the following:

### 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 will be calculated as follows:
- a. Policies Written For One Year Or Less
    We will refund 90% of the pro rata unearned premium.
- b. Policies Written For More Than One Year
    - (1) If the Policy is cancelled in the first year, we will refund 90% of the pro rata unearned premium for the first year, plus the full annual premium for subsequent years.
    - (2) If the Policy is cancelled after the first year, we will refund the pro rata unearned premium.
- c. Continuous And Annual Premium Payment Policies
    We will refund 90% of the pro rata unearned premium for the year in which the Policy is cancelled.
    We will retain the minimum premium, except if the Policy is cancelled as of the inception date.

## Additional Information:
- A matter or issue related to the risk that constitutes a threat to public safety.
- If we cancel pursuant to Paragraph 3.b., you may request additional information on the reason for cancellation within 30 days from the date of our notice.