After sixty days from the effective date of policy issuance a notice of cancellation may not be issued unless it is based upon at least one of the following reasons:

1. (1) Nonpayment of premium;
2. (2) Discovery of fraud or material misrepresentation made by or with the knowledge of the named insured in obtaining the policy, continuing the policy, or in presenting a claim under the policy;
3. (3) Discovery of acts or omissions on the part of the named insured which increase any hazard insured against;
4. (4) The occurrence of a change in the risk which substantially increases any hazard insured against after insurance coverage has been issued;
5. (5) A violation of any local fire, health, safety, building, or construction regulation or ordinance with respect to any insured property or the occupancy thereof which substantially increases any hazard insured against;
6. (6) A determination by the director of the Division of Insurance that the continuation of the policy would jeopardize a company's solvency or would place the insurer in violation of the insurance laws of this state;
7. (7) Violation or breach by the insured of any policy terms or conditions; or
8. (8) Such other reasons as are approved by the director of the Division of Insurance.

Source: SL 1985, ch 392 , § 3; SL 1986, ch 421 , § 1.