**(6) A material violation of a material provision of the policy.**

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

* **5.a. If this policy is cancelled, we will send the first Named Insured any premium refund due.**
    * **b. We will refund the pro rata unearned premium if the policy is:**
        * (1) Cancelled by us or at our request;
        * (2) Cancelled but rewritten with us or in our company group;
        * (3) Cancelled because you no longer have an insurable interest in the property or business operation that is the subject of this insurance; or
        * (4) Cancelled after the first year of a prepaid policy that was written for a term of more than one year.
    * **c. If the policy is cancelled at the request of the first Named Insured, other than a cancellation described in b.(2), (3) or (4) above, we will refund 90% of the pro rata unearned premium. However, the refund will be less than 90% of the pro rata unearned premium if the refund of such amount would reduce the premium retained by us to an amount less than the minimum premium for this policy.**
    * **d. The cancellation will be effective even if we have not made or offered a refund.**
    * **e. If the first Named Insured cancels the policy, we will retain no less than $100 of the premium, subject to the following:**
        * (1) We will retain no less than $250 of the premium for the Equipment Breakdown Coverage Part.
        * (2) We will retain the premium developed for any annual policy period for the General Liability Classifications, if any, shown in the Declarations.
        * (3) If the Commercial Auto Coverage Part covers only snowmobiles or golfmobiles, we will retain $100 or the premium shown in the Declarations, whichever is greater.

**(4) If the Commercial Auto Coverage Part covers an "auto" with a mounted amusement device, we will retain the premium shown in the Declarations for the amusement device and not less than $100 for the auto to which it is attached.**

**C. Paragraph g. of the Mortgageholders Condition, if any, is replaced by the following:**

* **g. If we elect not to renew this policy, we will give written notice to the mortgageholder:**
    * **(1) As soon as practicable if nonrenewal is due to the first Named Insured's failure to pay any premium required for renewal; or**
    * **(2) At least 60 days before the expiration date of this policy if we nonrenew for any other reason.**

**D. The following condition is added and supersedes any other provision to the contrary:**

**Nonrenewal**

* **1. If we decide not to renew this policy, we will mail to the first Named Insured shown in the Declarations, and to any lienholder or loss payee named in the policy, written notice of nonrenewal at least 60 days before:**
    * **a. Its expiration date; or**
    * **b. Its anniversary date, if it is a policy written for a term of more than one year and with no fixed expiration date.**
* **However, we are not required to send this notice if nonrenewal is due to the first Named Insured's failure to pay any premium required for renewal. The provisions of this Paragraph 1. do not apply to any mortgageholder.**
* **2. We will mail our notice to the first Named Insured's mailing address last known to us. If notice is mailed, proof of mailing will be sufficient proof of notice.**