Reduction and Extinction of Risk

In the event that the insured risk has substantially diminished, the policyholder shall be entitled to request a proportionate reduction in the premium.

If the insurer refuses to make the reduction, or fails to answer the relevant request for a period in excess of one month following its submission, the policyholder shall be entitled to terminate the agreement for the remaining period of the policy. In the case of life and health insurance policy, any change in the health of the insured shall not give rise to the right to reduce the premium.

If the insurer, upon concluding the contract, was aware that the occurrence of the insured risk was impossible, the policyholder shall not be obliged to pay the premium.

Should the policyholder, or the insured, or the beneficiary of the insurance indemnity, be aware, upon concluding the insurance contract, that the insured risk has already occurred, the insurer shall not be obliged to give any compensation and shall also be entitled, provided that the insurer itself was not aware of the occurrence of the risk, to collect the premium until the end of the period of cover.

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