Article 1901. Adjustment of Premium and Benefits Payable

(1) In a life insurance contract covering risks for which the insurer is certain to be liable, the insurer shall only be entitled to an adjustment in accordance with paras. (2) and (3).
(2) An increase of premium shall be permissible where there has been an unforeseeable and permanent change in respect of the biometric risks used as the basis for calculating the premium, where an increase is necessary to guarantee the insurer’s continued ability to pay out insurance benefits and where the increase has been agreed by an independent trustee or the supervisory authority. The policyholder shall be entitled to offset the increase in premium with an appropriate reduction of the insurance benefits.
(3) In the case of a paid-up policy, the insurer shall be entitled to reduce the insurance benefits under the conditions set out in para. (2).
(4) An adjustment in accordance with para. (2) or (3) shall not be permitted:
a) in so far as an error has been committed in the calculation of the premium and/or benefits of which a competent and diligent actuary ought to have been aware,
b) where the underlying calculation is not applied to all contracts including those concluded after the adjustment.
(5) An increase of premium or a reduction of benefits shall become effective 3 months after the insurer has provided the policyholder with written notice about the increase of premium or reduction of benefits, the reasons for this and about the policyholder’s own right to demand a reduction of benefits.
(6) In a life insurance contract covering risks for which the insurer is certain to be liable, the policyholder shall be entitled to a decrease of premium where, due to an unforeseeable and permanent change in respect of the biometric risks used as the basis for calculating the premium, the original amount of premium is not appropriate and necessary in order to guarantee the insurer’s continued ability to pay insurance benefit. The decrease has to be agreed by an independent trustee or the supervisory authority.
(7) The rights set forth in this Article may be exercised not earlier than 5 years after the conclusion of the contract.