Liberty accident insurance ( Castellano )
12. Powers of the insurer when there is an increase in risk ( Contents )
- Should an increase in risk be communicated to the insurer during the term of the policy a modification of the contract's conditions may be proposed within a period of two months from the day that the increase was reported. In this case, the policyholder shall have fifteen days upon receipt of this proposal to accept or reject it.
- In case of rejection or no response by the policyholder, the insurer may, once said period has elapsed, rescind the contract, after providing notice again to the policyholder, giving him or her a new term of fifteen days to respond, after which, and within the following eight days, it will notify the policyholder of the definitive rescission.
- The insurer may also rescind the policy via written notification to the insured within one month from the day on which it was informed of the increase in risk.
13. Consequences of not reporting an increase in risk