Under what clause does an insurer give notice of termination due to a material change in risk?

The cancellation clause is the component of an insurance contract that allows an insurer to terminate the policy, particularly when there has been a material change in the risk. Material changes could include significant alterations in the nature of the insured property, changes in usage, or shifts in operational practices that substantially affect the risk profile. Thus, if the insurer identifies such changes, they can invoke the cancellation clause to notify the insured about the termination of coverage.

The other clauses mentioned do not serve the same purpose. The operative clause defines the coverage terms, such as what risks are insured and under what conditions. The premium clause relates to the payment of premiums and conditions under which they may change, and the recital clause typically includes introductory information about the parties and the context of the agreement rather than addressing termination due to changes in risk.