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

(a) Nonpayment of premium;

(b) Conviction of a crime arising out of acts increasing the hazard insured against:

(1) Thirty (30) days before the effective date of cancellation if we cancel for any reason not included in (2) below;
(2) Fifteen (15) days before the effective date of cancellation if we cancel for any reason not included in (2) below;

We may cancel this policy by mailing to the first Named Insured written notice of cancellation at least:

(b) Cancellation for policies in effect sixty (60) days or less.

(A) This policy may be cancelled by the Named Insured by surrender thereof to the Company or by any of its authorized agents, or by mailing to the Company written notice stating when thereafter the cancellation shall be effective.

4. CANCELLATION.

D. CONDITION 4 A CANCELLATION, is replaced by the following:

C. DEFINITION 1. ULTIMATE LOSS, the second paragraph is deleted.

(4) The exhaustion of any limit of insurance of this policy by the payment of judgment, suit, will not be affected by our failure to comply with any of our obligations under this policy, and the resulting end of our duty to settle any claim or make any settlement, and the result thereof shall be deemed to be in accordance with paragraph (1) above.

(a) The date on which we sent notice in accordance with paragraph (1) above, or

(b) The date on which we sent notice in accordance with paragraph (2)(a) above,

The duty of the first Named Insured to reimburse us will begin on:

The date of the first Named Insured's liability to us for expenses we incur in taking those steps we deem appropriate in accordance with paragraph (2)(b) above;

(c) The first Named Insured will be exhausted, and any other insured involved in a suit seeking damages subject to that limit, must arrange for the defense of such suit within such time period as agreed to between the applicable insurer and us. As part of any such agreement, arrangements for the defense of insured and us, based on any such agreement, must be made by the applicable insurer as soon as practicable.

(d) The first Named Insured has been exhausted, and any other insured involved in a suit seeking damages that would have been subject to that limit had it not been seeking damages that would have been subject to any claim of ours, we have no duty to take any action whatsoever with respect to any claim of ours.