Insurance agreements which are based on inaccurate information can have serious consequences according to art. 6 of the legal regulations for insurance contracts.
Art. 6 regulates the duty of disclosure as of 2006 as follows. The insurer is not bound to the agreement, if, at the time of conclusion of an insurance agreement, the person making the disclosure omits to declare or inaccurately declares an important risk issue, of which he was aware or could have been expected to be aware, if this risk issue has an effect on the future claim. In addition, the insurance company may terminate the contract in case of a breach of compulsory disclosure. In doing so, the insurance company must refund the remaining proportion of the annual premium.
