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R. TERMINATION
1. Cancellation

You are not permitted to cancel this Policy unless specifically allowed by law in the state you are domiciled.
We are not permitted to cancel this Policy, except:
a. For nonpayment of premium;
b. Upon a Change in the Composition of the Insured, as provided in Subsection IV.C.;

c. Upon the submission of False or Fraudulent Statements, Report or Claims Concealment, as provided in
Subsection IV.H.; or
d. Upon a material violation in the application of your Prequalification Procedures; provided, however, that
in the event of such material violation:

(1) we will send you a notification of our intent to cancel this Policy by certified mail; and
(2) the notification will delineate the violation(s) of the Prequalification Procedures for which we are
canceling the Policy.
If we cancel this Policy due to a. through c. above, we must deliver written notice of cancellation via certified
mail to the Sole Agent no less than ten (10) days before the effective date of the cancellation.
2. Nonrenewal
If we decide not to renew this insurance, we must mail or deliver to the Sole Agent as set forth in the
Declarations written notice of the nonrenewal not less than thirty (30) days before the expiration date of the
Policy. If notice is mailed, proof of mailing will be sufficient proof of notice.
3. Termination of this Policy shall not affect coverage under this Policy for Loss arising out of a Default under
any Contract executed during the Policy Period prior to the date of termination.
4. In the event that this Policy is terminated, you will have sixty (60) days from the effective date of termination to
report to us a list of all Contracts executed during the Policy Period in connection with all Project(s). If you
fail to provide such a list or a Contract is not shown on the list you provide within this time period, we will not
cover unreported Contracts under this Policy.

5. If the Policy is terminated, a return of premium, if applicable, shall be made to you. The amount of return
premium shall be calculated as the Policy premium paid less the premium attributable to the Contracts
subject to this Policy and executed during the Policy Period prior to the effective date of cancellation, subject
to any applicable Minimum Premium as set forth in the Declarations.
The effective date of termination stated in the notice shall become the end of the Policy Period.
S. TERRITORY
This insurance only applies to projects performed in and to claims made or brought in the continental United
States, Alaska and Hawaii.
T. WARRANTY AND COVENANTS
You warrant and agree:
1. that you have no knowledge at Policy inception of any circumstances that may reasonably result in a Loss,
except for circumstances you specifically disclosed in the Application.
2. to cease awarding contracts to any Subcontractor that you are aware is Insolvent or is in Default and for so
long as you are aware the Subcontractor is Insolvent or in Default.

3. that in the event you become aware that any Subcontractor is Insolvent or is in Default, you shall
immediately take all reasonable and timely actions necessary to preserve any rights of recovery against and
establish the debt owed by the Subcontractor to you as a valid obligation of the Contract in accordance with
any applicable statutes and procedures.
4. to use all reasonable measures to prevent and to mitigate the Loss at all times.

U-SGD-100-B CW (04/16)
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