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EFFECTIVE DATE, RENEWAL AND EXPIRY OF INSURANCE CONTRACT

  1. EFFECTIVE DATE AND EXPIRY OF INSURANCE CONTRACTThe insurance contract takes effect and expires at the time and dates indicated in Item 2, “Declarations” or, where applicable, in the endorsements.
  2. RENEWAL OF INSURANCE CONTRACTUpon its date of expiry, the insurance contract will be renewed automatically, unless notice to the contrary is given by the named insured or the insurer.

    The insurance contract will be renewed for the same insurance premium and the same period, unless notice to the contrary is given by the named insured or the insurer.

    The notice sent by the insurer may be a notice of non-renewal or a notice to change the insurance premium. The notice must be sent to the named insured no later than 30 days before the date of expiry of the insurance contract, at the last known address of the named insured.

    If the named insured uses an insurance broker, the insurer’s notice must be sent to the insurance broker who must then deliver it to the named insured.

  3. CANCELLATION OF INSURANCE CONTRACT ( ENDING OF INSURANCE CONTRACT)
    1. Cancellation by named insured
      1. Conditions to be metThe named insured may cancel the insurance contract at any time by written notice to the insurer.

        The named insureds may mandate one or more of them to send a notice on behalf of them all.

        Cancellation takes effect upon receipt by the insurer of the notice of each of the named insureds or their representative.

      2. Refund of insurance premiumIf the insurance contract is cancelled by the named insured, the insurer must refund any overpayment of insurance premiums, as calculated according to the “Cancellation table.” The “Cancellation table” is part of the insurance contract.

        However, if the insurance premium was paid to the insurer by the insurance broker, the named insured may be refunded solely for what has actually been paid or refunded to the insurance broker.

    2. Cancellation by insurer
      1. Conditions to be met
        • Cancellation within 60 daysThe insurer may cancel the insurance contract within 60 days after its effective date.

          The insurer must send a written notice to each of the named insureds or their representative.
          Cancellation takes effect 15 days after

          receipt of the notice by each of the named insureds or by their representative, at their last known address.

        • Cancellation after 60 daysMore than 60 days after the effective date of the insurance contract, the insurer may cancel the insurance contract only if
          • there has been an aggravation of risk which is likely to substantially influence a reasonable insurer in the decision to maintain the insurance contract; or
          • the insurance premium has not been paid.

          The insurer must send a written notice to each of the named insureds or their representative.
          Cancellation is effective either:

          • 30 days after receipt of the notice by each of the named insureds or by their representative, at their last known address; or
          • 15 days after receipt of the notice by each of the named insureds or by their representative, at their last known address, if the described vehicle is a vehicle under Title VIII.1, Highway Safety Code, and is not a school bus.
      2. Refund of insurance premiumIf the insurer cancels the insurance contract, the insurer will be entitled only to the portion of the insurance premium corresponding to the number of days for which the named insured was actually covered under the insurance contract.

        If the named insured paid the insurance premium in advance, the insurer must refund the overpayment. However, if the insurance premium was paid to the insurer by the insurance broker, the named insured may be refunded solely for what has actually been paid or refunded to the insurance broker.