Paragraph First: Obligations of the Insurer and His Right of Action

Article 966

Art. 966 - Losses and damages caused by cases of force majeure or fortuitous events or caused by the fault of the insured are at the charge of the insurer. However, the insurer is not liable, notwithstanding any contrary agreement, for losses and damages resulting from intentional misconduct of the insured.

Article 967

Art. 967 - The insurer is guarantor of the losses and damages caused even by persons for whom the insured is civilly liable, regardless of the nature and severity of the faults of these persons.

Article 968

Art. 968 - Wastes, diminutions, and losses suffered by the insured thing and which arise from its own inherent vice are not chargeable to the insurer.

Article 969

Art. 969 - The insurer is not liable, except by agreement to the contrary, for losses and damages occasioned either by foreign war or by civil war or by riots or by popular movements. The burden of proof that the losses and damages stem from one of these causes rests with the insurer. Any clause obliging the insured to prove that the losses and damages do not stem from one of these causes is null.

Article 970

Art. 970 - The insurer shall not be liable beyond the insured amount. However, within the limits of this amount, the insurer is obliged to reimburse the insured for the expenses incurred to mitigate the damage in the event of the realization of the risks. This obligation exists for the insurer, regardless of the outcome obtained. The courts may waive or reduce it if they deem that the expenses were incurred without sufficient reason or are excessive.

Article 971

Art. 971 - In the event of total loss of the insured item, the insurance shall automatically terminate and the insured shall not be entitled to claim any refund of the premium for the current year.

Article 972

Art. 972 - The insurer who has paid the insurance indemnity is subrogated by operation of law in all the rights and actions of the insured against third parties who, by their acts, have caused the damage which gave rise to the liability of the insurer. The insurer may be relieved, in whole or in part, of his liability towards the insured when subrogation can no longer, by the fault of the insured, be exercised in favor of the insurer. By way of derogation from the preceding provisions, the insurer has no recourse against the children, descendants, ascendants, relatives in the direct line, employees, workers, servants and generally any person habitually living with the insured, except in case of fraud committed by one of these persons.