Simple Life Insurance Act Article 15

When entering into an insurance contract or applying for reinstatement of an insurance contract in accordance with the foregoing article hereof, the applicant and the insured are required to answer truthfully the insurer’s questions in writing.In the event that the applicant or the insured fails to disclose facts, whether intentionally or unintentionally, or makes misrepresentations that may cause to alter or lower the insurer’s estimation of the risk it will take on, the insurer may cancel the insurance contract. When a contingency requiring payment of insurance benefits has already transpired, the insurer may likewise refuse to pay when the misrepresentations were germane to the contingency requiring payment. However, when the applicant or the insured is able to prove that the undisclosed facts or misrepresentations had nothing to do with the contingency requiring payment, the insurer shall still be required to pay.