Article 1850. Declaration and effects of termination

(1) The insurer terminates the insurance by notice to the policy holder even if another person has the capacity of insured or beneficiary of the insurance.
(2) In the case of termination of the insurance, the insurer is entitled only to the premium which is attributed to the insurance period which actually ran before the date of the termination. However, in the case of termination of the insurance, the insurer shall retain the premium for the entire insurance period if an insured event has occurred and the insurer owes insurance money or, as the case may be, insurance indemnity.
(3) If the termination has occurred due to the unexcused non-performance of the obligation of one of the parties, the right of the other party to damages shall remain unaffected. In particular, in this case, the insurer may request reimbursement or, as the case may be, may withhold management expenses even if the insurance period has not expired or has been suspended, and in addition, under the requirements set out in Article 942, may claim interest for late payment or a penalty on the amounts to which it is entitled after the termination.
(4) The termination of the insurance does not end the insurer’s obligation in respect of an insured event occurred within the insurance period which actually ran before the date of the termination.