7. Information when arranging the insurance, withholding or misrepresentation
- This policy has been arranged on the declarations made by the insurance policyholder, according to the proposal form and questionnaire that he submitted to the insurer and which were used for the latter's acceptance of the risk, the undertaking of the contracted obligations for the insurer and the establishment of the premium.
- In case of withholding or misrepresentation of information on the part of the insurance policyholder, the insurer may rescind the policy through a statement addressed to the insurance policyholder or the insured within a period of one month as of the time it learns of said withholding or misrepresentation. As soon as the insurer makes this statement, the premiums corresponding to the period underway shall remain in its property, unless there is wilful misconduct or serious fault on its part.
- Should the loss occur before the insurer has made the declaration explained in the previous paragraph, the benefits it provides will be reduced in the same proportion existing between the premium listed in the policy and that which actually corresponds in accordance with the true nature of the risk. When the withholding or misrepresentation is due to wilful misconduct or serious fault on the part of the insurance policyholder, the insurer shall be released from its obligation to pay the benefits.