The memorable moment of entry into force of the insurance contract, more specifically, it begins to bring legal consequences for both parties from 24:00 on the day when his first premium or installment has been paid, ending on the 24th day of the last day of the term of the contract (Article 1124, paragraph 1 of the Civil Code).
I mentioned the time of entry into force of the insurance contract, as one of its features, for two reasons:
First: Only in this contract is a particular interest the exact time of entry into force, because the commencement of the implementation of this contract is related to the insurance event’s occurrence, which does not depend on the parties’ will at all. And it can happen at any time;
Second: Only in this contract is of particular importance the exact time of termination of the deal, the time which is determined at the moment when the contract is concluded, not only with the same date but also with hours, minutes and seconds and the precise determination of the contract start and end date, as in any other contract, is a condition of its validity or not.
Voluntary or compulsory insurance contract.
According to our legislation, property and life insurance contracts can be in 2 forms: Voluntary, when the insured by his own free will decides to secure his property or life.
Obligatory, when provided by specific legal provisions that must be compulsorily concluded with the contract of property insurance, e.g., for vehicles, state-owned buildings rented out, insurance in sea transport, etc.
Compulsory insurance conditions are set by the government, the finance and economy ministry, the INSIG Insurance Institute, or any other central administration body.
Cases of Termination of Insurance Contract
The insurance contract may expire for various reasons. The termination of this contract is, in most cases, sanctioned by legal provisions, and there are also termination cases that result from the general rules of contract law.
Given many of these cases, I will try to analyze them as follows:
• According to the rules of contract law and the rules of this contract, the contract may be terminated by agreement between the insurer and the insured. This is because the contract relates to the parties’ will, and cancellation can also be made to their mutual choice.
Because this contract is formal, even the termination of its contract must
Is done formally.
• The contract will be valid if it is concluded in compliance with the legal provisions.
• In cases when the insurance contract is concluded for a fixed term, it will expire at the end of this term. This is valid for both voluntary and compulsory insurance, but especially for optional life or property insurance. If the contract is concluded for an indefinite period, then this contract is terminated when the interested party submits the request.
Cases of termination of the insurance contract
The insurance contract can be terminated in some cases:
When the insured provides inaccurate and incomplete insurance data, then the insurer is entitled:
1. to seek the contract’s termination if there were such circumstances that he would not have concluded the deal if he had known. In this case, the insurance premiums until the contract’s termination are required. In any case, the insurance premium to be paid in the first year of the contract shall not be refunded to the insured (Article 1118, second paragraph of the Civil Code).
2. change the amount of insurance premium, amount of insurance, or term of protection (Article 1118, the first paragraph of the Civil Code)
3. the insurance contract is terminated in cases when the insurance risk ceases to exist after the termination of the agreement, but the insurer has the right to pay the premiums,
1. until the completion of the insurance risk has been notified or otherwise disclosed (Article 1122 of the Civil Code)
2. The insured person must notify all changes of circumstances that he is aware of and influences the increase of risk. Suppose the insured does not inform the changes. In that case, the insurer has the right to change the insurance measure, insurance amount, term of the insurance, or terminate the contract from the moment of increased risk (Article 1123 of the Civil Code).
3. the contractor is obliged to pay the insurer the insurance premium within the contract’s terms. If the first premium or installment is not paid on time, the insurance is suspended until 24 hours of the day. The contractor pays the amount due. When the contractor fails to pay the following premiums, according to the set deadlines, the insurance is suspended from 24:00 on the fifteenth day after the expiration of the term, and the insurer has the right to request termination of the contract (Article 1125 of the Civil Code)