French Insurance Code
In forceIn the event of a worsening of the risk during the term of the contract, such that, if the new circumstances had been declared when the contract was taken out or renewed, the insurer would not have taken out the contract or would have done so only at a higher premium, the insurer may either cancel the contract or propose a new premium.
In the first case, the cancellation cannot take effect until ten days after notification, and the insurer must then reimburse the insured for the portion of the premium or contribution relating to the period during which the risk did not arise. In the second case, if the policyholder does not respond to the insurer's proposal or expressly refuses the new amount within thirty days of the proposal, the insurer may terminate the contract at the end of this period, provided that it has informed the policyholder of this option, stating it clearly in the proposal letter.
However, the insurer may no longer invoke the aggravation of risk if, after having been informed of it in any way whatsoever, he has given his consent to the continuation of the insurance, in particular by continuing to receive the premiums or by paying an indemnity following a claim.
In the event of a reduction in risk during the term of the contract, the insured is entitled to a reduction in the premium. If the insurer does not agree, the insured may cancel the contract. Cancellation takes effect thirty days after the cancellation. The insurer must then reimburse the insured for the portion of the premium or contribution relating to the period during which the risk was not incurred.
The insurer must remind the insured of the provisions of this article when the insured informs the insurer of an increase or decrease in risk.
The provisions of this article do not apply to life insurance or health insurance where the insured's state of health changes.
