17. In case of an increase in risk
If the insurer is informed of an increase in risk during the policy's period of cover, it may propose a modification of the conditions of the contract within a period of two months from the day on which it receives notice of the aggravating circumstance. In this case, the policyholder or the insured shall have 15 days, upon receipt of the proposal, to accept or reject it. In case of rejection of the proposal or silence on the part of the policyholder or the insured, the insurer may, upon conclusion of this period, terminate the contract, providing prior notice to the policyholder, giving him / her a new period of 15 days to respond, following which, and within the next 8 days, it will inform the policyholder or the insured of the contract's definitive termination.
The insurer may likewise terminate the contract notifying the policyholder or the insured of its decision in writing within one month of receiving notice of the increase in risk.
When the contract is terminated as a result of an increase in risk occurring during the period of cover, if the increase is attributable to the insured, the insurer will be entitled to the full amount of paid premium. If the aggravating circumstance is due to causes beyond the control of the insured, s/he will be entitled to reimbursement of the portion of the paid premium corresponding to the period of insurance that has not yet elapsed.
18. Consequences of not reporting an increase in risk