Book I: Contracts

Any omission or misrepresentation by the insured which materially diminishes the insurer’s opinion of the risk, whether or not it has affected the damage or loss of the insured object, shall cancel the insurance at the insurer’s request. However, if the insured proves his good faith, the insurer is, unless otherwise stipulated, liable for the risk in proportion to the premium collected compared to the premium he should have collected,…

Any change during the term of the contract, either to what was agreed when the contract was taken out, or to the insured object, which results in a significant increase in the risk, shall result in cancellation of the insurance if it has not been notified to the insurer within three days of the insured becoming aware of it, excluding public holidays, unless the insured provides proof of good faith,…

Any insurance taken out after the loss or damage has occurred or after the arrival of the insured objects or of the carrier vessel is null and void, if the news of it was known, before the conclusion of the contract, at the place where it was signed or where the insured or the insurer was located.

Insurance on good or bad news is void if it is established that, before the conclusion of the contract, the insured had personal knowledge of the loss or the insurer of the arrival of the insured objects.

If the insurer establishes that there has been fraud on the part of the insured or his agent, the insurance taken out for a sum greater than the real value of the insured item is void, and the premium is forfeited. The same applies if the insured value is an agreed value.

In the absence of fraud, the contract is valid up to the actual value of the insured items and, if approved, for the entire sum insured.

Cumulative insurance policies for a total sum greater than the value of the insured item are void if taken out with intent to defraud.