(5) After issuance of the 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 the policy, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time the 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 the policy would violate, or would place us in violation of, any provision of the Insurance Code.

C. Cancellation of policies in effect for more than 60 days.

If this policy has been in effect for more than 60 days, or if this policy is a renewal or continuation of a policy we issued, we may cancel this policy only for any of the reasons listed in paragraph B.(2) above provided we mail the first named insured a notice of cancellation at least 15 days before the effective date of cancellation.

D. We will mail or deliver our notice including the reason to the first named insured at the address shown in the policy and the authorized agent or broker.

E. If this policy is cancelled, we will send the first named insured at the address shown in the Declarations any premium refund due. If the named insured initiates cancellation of this policy, the earned premium shall be computed in accordance with the customary short rate table and procedure. If we cancel this policy, the earned premiums shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable thereafter. Payment of unearned premium is not a condition of cancellation.

F. The mailing of notice as aforesaid shall be sufficient proof of notice, and the effective date of cancellation stated in the notice shall become the end of our policy period.

6. The following paragraph is added to CONDITION 5., NOTICE OF OCCURRENCE - INSURED'S DUTY:

Notice given by or on behalf of the Insured, or written notice by or on behalf of the injured person or any other claimant, to any agent of ours in New York State, with particulars sufficient to identify the Insured, shall be considered notice to us.

7. CONDITION 6., PAYMENT OF LOSS, is replaced by the following:

6. PAYMENT OF LOSS. It is a condition of this policy that the insurance afforded under this policy shall apply only after all Underlying Insurance has been exhausted by payment of their limits of insurance. Upon final determination by settlement, award or verdict of the liability of the Insured, we will promptly pay the amount of any losses falling within the terms or limits of this insurance. All losses covered under this policy shall be due and payable by us within thirty (30) days after they are respectively claimed and proof of loss filed with us in conformity with this policy. Any person or organization may sue us to recover on a final judgment against an Insured obtained after an actual trial and falling within the terms and limits of this insurance. Bankruptcy or insolvency of the Insured shall not relieve us of any of our obligations hereunder.