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the following: <br />Commercial Property Coverage Part <br />Farm Coverage Part — Farm Property — Farm <br />Dwellings, Appurtenant Structures And <br />Household Personal Property Coverage Form <br />a. We may elect not to renew such coverage <br />for any reason, except as provided in b., <br />c. and d. below. <br />b. We will not refuse to renew such coverage <br />solely because the first Named Insured <br />has accepted an offer of earthquake <br />coverage. <br />However, the following applies only to <br />insurers who are associate participating <br />insurers as established by Cal. Ins. Code <br />Section 10089.16. We may elect not to <br />renew such coverage after the first Named <br />Insured has accepted an offer of <br />earthquake coverage, if one or more of the <br />following reasons applies: <br />(1) The nonrenewal is based on sound <br />underwriting principles that relate to the <br />coverages provided by this policy and <br />that are consistent with the approved <br />rating plan and related documents filed <br />with the Department of Insurance as <br />required by existing law; <br />(2) The Commissioner of Insurance finds <br />that the exposure to potential losses will <br />threaten our solvency or place us in a <br />hazardous condition. A hazardous <br />condition includes, but is not limited to, a <br />condition in which we make claims <br />payments for losses resulting from an <br />earthquake that occurred within the <br />preceding two years and that required a <br />reduction in policyholder surplus of at <br />least 25% for payment of those claims; <br />or <br />(3) We have: <br />(a) Lost or experienced a substantial <br />reduction in the availability or scope <br />of reinsurance coverage; or <br />(b) Experienced a substantial increase <br />in the premium charged for <br />reinsurance coverage of our <br />residential property insurance <br />policies; and <br />the Commissioner has approved a plan <br />for the nonrenewals that is fair and <br />IL 02 70 09 12 <br />equitable, and that is responsive to the <br />changes in our reinsurance position. <br />c. We will not refuse to renew such coverage <br />solely because the first Named Insured <br />has cancelled or did not renew a policy, <br />issued by the California Earthquake <br />Authority, that included an earthquake <br />policy premium surcharge. <br />d. We will not refuse to renew such coverage <br />solely because corrosive soil conditions <br />exist on the premises. This restriction (d.) <br />applies only if coverage is subject to one <br />of the following, which exclude loss or <br />damage caused by or resulting from <br />corrosive soil conditions: <br />(1) Commercial Property Coverage Part — <br />Causes Of Loss — Special Form; or <br />(2) Farm Coverage Part — Causes Of Loss <br />Form — Farm Property, Paragraph D. <br />Covered Causes Of Loss — Special. <br />3. We are not required to send notice of <br />nonrenewal in the following situations: <br />a. If the transfer or renewal of a policy, <br />without any changes in terms, conditions <br />or rates, is between us and a member of <br />our insurance group. <br />b. If the policy has been extended for 90 <br />days or less, provided that notice has <br />been given in accordance with Paragraph <br />C.1. <br />c. If you have obtained replacement <br />coverage, or if the first Named Insured has <br />agreed, in writing, within 60 days of the <br />termination of the policy, to obtain that <br />coverage. <br />d. If the policy is for a period of no more than <br />60 days and you are notified at the time of <br />issuance that it will not be renewed. <br />e. If the first Named Insured requests a <br />change in the terms or conditions or risks <br />covered by the policy within 60 days of the <br />end of the policy period. <br />f. If we have made a written offer to the first <br />Named Insured, in accordance with the <br />timeframes shown in Paragraph C.1., to <br />renew the policy under changed terms or <br />conditions or at an increased premium <br />rate, when the increase exceeds 25%. <br />Page 3 of 3 <br />