The modalities for modifying the insurance contract are regulated by law.
MODIFICATIONS UNRELATED TO A CHANGE IN RISK
Proposal for modification made by the insurer
The insurer who wants to modify the insurance contract must in all cases obtain the agreement of the insured. This agreement is materialized by an amendment. The insured may, however, refuse the proposed changes. The insurer must then maintain the initial guarantee conditions. On the other hand, he retains the right to terminate the contract at the following annual expiry date.
D alls modification made by the insured
The modification request must be made by registered letter.
The Insurance Code provides for specific rules concerning the acceptance of the insurer. Insofar as his request does not relate to a life insurance contract, the insured may consider it accepted if the insurer does not refuse it within ten days. In other words, the insurer’s silence signifies its acceptance.
CHANGES LINKED TO CHANGES IN RISK
Changes related to increased risk
The Insurance Code requires the insured to declare, during the contract, new circumstances which have the consequence of either aggravating the risks or creating new ones. These circumstances make the answers given to the insurer in the risk declaration form at the time of the conclusion of the contract inaccurate or invalid and which were the basis of the pricing.
The insured must declare these new circumstances to the insurer within fifteen days from the moment he becomes aware of them. The insurer must indicate, within ten days, whether it intends to terminate or maintain the guarantee with an increase in the contribution.
In the event of termination, it then takes place ten days after notification.
In the event of a proposal with an increase in the contribution, the alternative is as follows:
- the insured does not follow up on the insurer’s proposal, or expressly refuses the new amount within thirty days of the proposal, the insurer can then terminate the contract at the end of this period,
- the insured accepts the new conditions, an amendment or a new contract is established. These provisions do not prevent the insurer from offering other solutions. Thus, when the change in risk appears minor with regard to the pricing criteria used for underwriting, the insurer can register the new situation by way of amendment without increasing the contribution.
Changes related to reduced risk
Even when the new situation does not constitute an aggravation of risk, the insured retains the possibility of declaring it to his insurer. In the event that, for the calculation of the contribution, the insurer has taken into account certain circumstances mentioned in the contract and these disappear, the amount of the contribution must be reduced.
A refusal by the insurer to reduce the amount of the contribution authorizes the insured to terminate the contract. The termination takes effect thirty days after the termination made by the insured. Note that these provisions are not applicable to life insurance and health insurance when the state of health of the insured is changed.
Changes required by law
New guarantees are sometimes imposed by law. In this case, the insured cannot refuse them (for example, natural disasters cover, material damage cover resulting from acts of terrorism and attacks).