10. Powers of the insurer when there is an increase is risk
- Should, during the term of the policy, an increase in risk be communicated to the insurer, the insurer may propose a modification of the conditions of the contract within a period of two months to begin the day on which it receives notice of the aggravating circumstance. In this case, the insurance policyholder shall have fifteen days, upon receipt of this proposal, to accept or reject it.
- In case of rejection or silence on the part of the insurance policyholder, the insurer may, once said period has elapsed, terminate the contract, providing prior notice to the insurance policyholder and giving him a new period of fifteen days to respond, after which, and within the following eight days, it shall communicated the definitive termination to the insurance policyholder.
- The insurer may likewise terminate the policy notifying the insured of this decision in writing within one month as of the day on which it received notice of the increase in risk.