ND - North Star Mutual Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.NORTH DAKOTA CHANGES - CANCELLATIONAND NONRENEWALThis endorsement modifies insurance provided under the following:CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PARTCOMMERCIAL AUTOMOBILE COVERAGE PARTCOMMERCIAL GENERAL LIABILITY COVERAGE PARTCOMMERCIAL PROPERTY COVERAGE PARTCRIME AND FIDELITY COVERAGE PARTEMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PARTEQUIPMENT BREAKDOWN COVBRAGE PARTFARM COVERAGE PARTLIQUOR LIABILITY COVERAGE PARTMEDICAL PROFESSIONAL LIABILITY COVERAGE PARTPOLLUTION LIABILITY COVERAGE PARTPRODUCTSICOMPLETED OPERATIONS LIABILITY COVERAGE PARTA. Paragraphs 2. and 3. of the Cancellation CommonPolicy Condition are replaced by Paragraphs2. and 3. below, except to the extent that Item B.of this endorsement applies.2. Policies In Effect:a. For Less Than 90 DaysIf this policy has been in effect for less than90 days, we may cancel the policy for anyreason by mailing to the first Named Insured,and agent, if any, written notice ofcancellation at least:(1) 10 days before the effective date of cancellation;or(2) Five days before the effective date ofcancellation for any condition stated inParagraph B. of this endorsement.b. For 90 Days Or More Or Policies WithTerms Longer Than One Year OrContinuous PoliciesIf this policy has been in effect for 90 daysor more, is a renewal of a policy we issued,is a policy issued for a term longer than oneyear or is a continuous policy, we may cancelthe policy only for one or more of the followingreasons:(1) Nonpayment of premiums;(2) Misrepresentation or fraud made by the"insured" or with the "inbured's" knowledgein obtaining the policy or in pursuinga claim under the policy;(3) The "insured's" actions that have substantiallyincreased or substantiallychanged the risk insured;(4) The "insured's" refusal to eliminateknown conditions that increase the potentialfor loss, after our notification thatthe condition must be removed;(5) Substantial change in the risk assumed,except to the extent that we should reasonablyhave foreseen the change orcontemplated the risk in writing the contract;(6) Loss of reinsurance which provided uswith coverage for a significant amount ofthe underlying risk insured;(7) A determination by the insurance commissionerthat the continuation of thepolicy could place us in violation ofNorth Dakota insurance laws;(8) Nonpayment of dues to an associationor organization, other than an insuranceassociation or organization, where paymentof dues is a prerequisite to obtainingor continuing such insurance. Cancellationfor this reason does not applyto persons who are retired at 62 years ofage or older or to any person who isdisabled according to social securitystandards;O IS0 Properties, Inc., 2007 Page 1 of 2

(9) A violation of any local fire, health,safety, building or construction regulationor ordinance with respect to CoveredProperty or the occupancy thereofwhich substantially increases any hazardinsured against; or(10) Certain conditions exist, as stated inParagraph 6. of this endor~~ement.We will mail written notice of cancellation to thefirst Named Insured, and agent, if any, at least:(a) Five days before the effective date ofcancellation for any condition stated inParagraph B. of this endorsement;(b) 10 days before the effective date of cancellationfor nonpayment of premium; or(c) 30 days before the effective date of cancellationfor any reason stated in Paragraphs2.b.(2) through (9) above.However, for policies with terms longer thanone year or continuous policies, notice of cancellationwill be mailed at least 30 days prior toany anniversary date for any reason stated inParagraphs 2.b.(l) through (9) above.If we cancel for a reason listed in Paragraphs2.b.(l) through (9) above, the notice of cancellationwill state our reasons for cancellation.3. We will mail our notice, by first-class mail, tothe first Named lnsured and agent, if any, atthe last mailing address known to us.6. We may also cancel the policy if one or more ofthe following conditions exist:1. Buildings with at least 65% of the rental units inthe building unoccupied.2. Buildings that have been damaged by a coveredcause of loss and the "insured" has statedor such time has elapsed as clearly indicatesthat the damage will not be repaired.3. Buildings to which, following a fire, permanentrepairs have not commenced within 60 daysfollowing satisfactory adjustment of loss.4. Buildings that have been unoccupied 60 ormore consecutive days, except buildings thathave a seasonal occupancy, and buildings actuallyin the course of construction or repairand reconstruction which are properly securedagainst unauthorized entry.5. Buildings that are in danger of collapse becauseof serious structural conditions or thosebuildings subject to extremely hazardous conditionsnot contemplated in filed rating planssuch as those buildings that are in a state ofdisrepair as to be dilapidated.6. Buildings on which, because of their physicalcondition, there is an outstanding order to vacateor an outstanding demolition order, orwhich have been declared unsafe in accordancewith applicable law.7. Buildings from which fixed and salvageableitems have been or are being removed and the"insured" can give no reasonable explanationfor the remcval.8. Buildings on which there is reasonable knowledgeand belief that the property is endangeredand is not reasonably protected frompossible arson for the purpose of defrauding aninsurer.9. Buildings with any of the following conditions:a. Failure to furnish heat, water, sewer service,or public lighting for 30 consecutivedays or more.b. Failure to correct conditions dangerous tolife, health, or safety.c. Failure to maintain the building in accordancewith applicable law.d. Failure to pay property taxes for more thanone year.10. Buildings that have characteristics of ownershipcondition, occupancy, or maintenance,which are violative of law or public policy.C. The following is added and supersedes any provisionto the contrary:NONRENEWAL1. If we elect not to renew this policy, we will mailto the last known address of the first Namedlnsured shown in the Declarations, and agent,if any, a notice of intention not to renew atleast:a. 60 days prior to the expiration date of thepolicy, except as provided in Paragraph b.;orb. 90 days prior to the expiration date of thepolicy when the policy provides professionalliability coverage for legal and medical services.The notice of nonrenewal will state our reasonfor nonrenewal.2. We will mail our notice, by first-class mail, tothe first Named lnsured and agent, if any, atthe last mailing address known to us.3. We need not mail or deliver this notice if youhave:a. lnsured elsewhere;b. Accepted replacement coverage; orc. Requested or agreed to nonrenewal.Page 2 of 2 O IS0 Properties, Inc., 2007