CENTRE FOR ORGANIZATION EFFECTIVENESS, THE

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(2) The Commissioner of Insurance finds However, we may nonrenew: that the exposure to potential losses (1) If willful or grossly negligent acts or will threaten our solvency or place us omissions by the Named Insured, or in a hazardous condition. A hazardous his or her representatives, are condition includes, but is not limited to, discovered that materially increase a condition in which we make claims any of the risks insured against; payments for losses resulting from an earthquake that occurred within the (2) If losses unrelated to the postdisaster preceding two years and that required loss condition of the property have occurred that would collectively a reduction in policyholder surplus of at least 25% for payment of those render the risk ineligible for renewal; claims; or or (3) We have: (3) If there are physical changes in the property insured against, beyond the (a) Lost or experienced a substantial catastrophe-damaged condition of the reduction in the availability or structures and surface landscape, scope of reinsurance coverage; or which result in the property becoming (b) Experienced a substantial increase uninsurable. in the premium charged for 3. We are not required to send notice of reinsurance coverage of our nonrenewal in the following situations: residential property insurance policies; and a. If the transfer or renewal of a policy, without any changes in terms, conditions the Commissioner has approved a or rates, is between us and a member of plan for the nonrenewals that is fair our insurance group. and equitable, and that is responsive to the changes in our reinsurance b. If the policy has been extended for 90 position. days or less, provided that notice has been given in accordance with Paragraph d. We will not refuse to renew such C.I. coverage solely because the first Named Insured has cancelled or did not renew a c. If you have obtained replacement policy, issued by the California coverage, or if the first Named Insured Earthquake Authority, that included an has agreed, in writing, within 60 days of earthquake policy premium surcharge. the termination of the policy, to obtain that coverage. e. We will not refuse to renew such coverage solely because corrosive soil d. If the policy is for a period of no more conditions exist on the premises. This than 60 days and you are notified at the restriction (e.) applies only if coverage is time of issuance that it will not be subject to one of the following, which renewed. exclude loss or damage caused by or e. If the first Named Insured requests a resulting from corrosive soil conditions: change in the terms or conditions or risks (1) Commercial Property Coverage Part - covered by the policy within 60 days of Causes Of Loss - Special Form; or the end of the policy period. (2) Farm Coverage Part- Causes Of Loss f. If we have made a written offer to the first Form - Farm Property, Paragraph D. Named Insured, in accordance with the Covered Causes Of Loss - Special. timeframes shown in Paragraph C.1., to renew the policy under changed terms or f. If a state of emergency under conditions or at an increased premium California Law is declared and the rate, when the increase exceeds 25%. residential property is located in any ZIP Code within or adjacent to the fire perimeter, as determined by California Law, we may not nonrenew this policy for one year, beginning from the date the state of emergency is declared, solely because the dwelling or other structure is located in an area in which a wildfire has occurred. Page 4 of 4 Copyright, Insurance Services Office, Inc., 2020 IL 02 70 07 20