Midterm cancellation for material failure to comply with policy terms, conditions or contractual duties.

An insurer may cancel in midterm a policy of insurance covering commercial property and casualty risks for material failure to comply with policy terms, conditions or contractual duties which require the insured to comply with safety standards and loss control recommendations, if the following apply:

(1) The policy specifically provides that material failure to comply with safety standards and loss control recommendations may constitute a basis for cancellation.

(2) The insurer has provided the named insured with written notice of the failure to comply with safety standards and loss control recommendations.

(3) The insurer has provided the named insured with a reasonable opportunity to cure deficiencies with respect to safety standards and loss control recommendations.

(4) The deficiencies with respect to safety standards and loss control recommendations have not been cured.