Liberty Life (insurance) Español
6. Increase and decrease of risk
1. Notification in the event of an increase in risk
The policyholder or the insured must inform the insurer of any circumstances aside from the state of health which increase risk, and are of such a nature that, had they been known to the insurer when the agreement was drawn up, it would not have been executed or would have been executed under more burdensome conditions.
The insurer may, within a period of two months as of the day on which the increase is declared, propose an amendment to the contract. In such case, the policyholder shall have fifteen days, upon receipt of the proposal, to accept or reject it.
In case of rejection, or should the policyholder fail to respond, the insurer may, upon conclusion of this period, terminate the contract pending notification of the policyholder, giving him a new period of fifteen days to respond, after which, and within the following eight days, the definitive termination shall be communicated to him / her.
The insurer may likewise terminate the policy by communicating its decision in writing to the insured within one month of the day on which it receives notice of the increase in the risk.
Should an accident occur before the declaration of an increase in risk has been made, the insurer shall be released of its obligation to provide benefits if the policyholder of the insurance or the insured has acted in bad faith. To the contrary, the benefits provided by the insurer will be reduced proportionally to the difference between the accorded premium and that which would have applied had the true magnitude of the risk been known.
2. Notification in the event of a decrease in risk