Paragraph Second: Obligations of the Insured

Article 973

Art. 973 - The insured may not abandon the insured objects.

Article 974

Art. 974 - The insured is obligated: 1) to pay the premium at the agreed-upon times; 2) to accurately declare to the insurer, upon conclusion of the contract, all circumstances that are of a nature to enable the insurer to assess the risks it undertakes; 3) to declare to the insurer, in accordance with Article 977, any new circumstances that have the consequence of increasing the risks; 4) to notify the insurer, within three days of becoming aware of it, of any loss likely to trigger the insurer's liability. The provisions of paragraphs 3 and 4 above do not apply to life insurance.

Article 975

Art. 975 - With the exception of the first premium, premiums are payable at the domicile of the insured. Whether the premium is due or payable, in the event of non-payment at the due date of one of the premiums, the effect of the insurance is suspended ten days after notice is given to the insured. This notice results from the sending of a registered letter addressed to the insured or to the person responsible for payment of premiums, at their last known domicile by the insurer. This letter must expressly indicate that it is sent as notice, recall the due date of the premium and reproduce the text of this article. The insurer has the right, twenty days from the expiration of the period set by the preceding paragraph, to cancel the policy or to pursue its execution in court, cancellation may be done by a registered letter addressed to the insured. While in contracts which stipulate non-cancellation for delay by an insured in the payment of a due premium, the insurer is relieved of the obligation to send notice; the due premium will immediately be taken from the reserve and the insurer will be notified by registered letter. The insurance not cancelled resumes for the future its effects at noon on the day following the day when the overdue premium and, if applicable, the fees, have been paid to the insurer. The periods set by this article do not include the day of sending of the registered letter. When the last day of one of these periods is a public holiday, the period is extended until the next day. These periods are not increased by reason of distances; however, when the notice must be sent to a place located outside the territory of Lebanon, the period of ten days set by the second paragraph of this article runs only from the day of presentation of the registered letter recorded in the registers of the Postal Administration. Any clause reducing the periods set by the preceding provisions or relieving the insurer of the obligation to give notice is null.

Article 976

Art. 976 - The insurer has, for the claim of the premium, a privilege on the insured thing. This privilege must, if it bears on a real estate property, be registered in the form of a forced mortgage. It ranks immediately after the privilege of court costs. It only exists for an amount corresponding to the premiums of the last two years, and only if the insurance has not been terminated.

Article 977

Article 977 - When, by his act, the insured aggravates the risks in such a way that, if the new state of affairs had existed at the time of the contract, the insurer would not have contracted or would only have done so at a higher premium, the insured must previously declare this to the insurer by registered letter. When the risks are aggravated without the act of the insured, the latter must declare it within a maximum period of eight days from the moment he became aware of the fact of aggravation. In either case, the insurer has the right to terminate the contract, unless, on his proposal, the insured consents to an increase in premium. However, the insurer can no longer avail himself of the aggravation of the risks, when, after having become aware of it in whatever manner, he has manifested his consent to the maintenance of the insurance, especially by continuing to receive the premiums or by paying, after a loss, an indemnity.

Article 978

Art. 978 - If, for the determination of the premium, special circumstances mentioned in the policy of a nature to aggravate the risks were taken into account and if these circumstances cease to exist during the insurance period, the insured has the right, notwithstanding any contrary agreement, to terminate the contract, if the insurer does not consent to the corresponding reduction in premium.

Article 979

Article 979 - In the event of the death of the insured or transfer of the insured object, the insurance continues by right for the benefit of his heir or acquirer, subject to the latter performing all obligations to which the insured was bound towards the insurer under the contract. It shall nevertheless be permissible, in the aforesaid case, either for the insurer, or for the heir or acquirer of the insured, to terminate the contract made by their predecessor by informing the other party of his intention in this regard. Any clause is void by which would be stipulated for the benefit of the insurer, as damages, a sum exceeding the amount of the annual premium in the case of transfer of the insured object or death of the insured, if the acquirer or heir opted for the termination of the contract as stated in paragraph 2 of this article. In the event of transfer of the insured object, the transferor remains liable to the insurer for the payment of premiums due, but is released from all obligations, even as guarantor, concerning premiums to accrue, from the moment he has informed the insurer of the transfer by registered letter. When there are several heirs or several acquirers, if the insurance continues, they are jointly and severally liable for the payment of premiums.

Article 980

Art. 980 - In the event of the assured's bankruptcy or judicial liquidation before the expiration of the insurance, after a formal notice remaining unheeded made to the assured's domicile to provide a solvent guarantee within eight days, the insurer may terminate the insurance. The formal notice and termination may take place by registered letter. In the event of the insurer's bankruptcy or judicial liquidation before the end of the risks, the assured has the same rights.

Article 981

Article 981 - The insurance is void if, at the time of the contract, the insured object has already perished or can no longer be exposed to the risks. In this case, the insured whose bad faith is proven owes the insurer a sum double the annual premium. In case of proof of bad faith of the insurer, the latter pays a sum equal to the insured.

Article 982

Article 982 - Apart from the ordinary causes of nullity, the contract is void in case of concealment or false declaration intentionally made by the insured, when this concealment or false declaration changes the object of the risk or diminishes its assessment for the insurer. This special nullity subsists even in the case where, if there has been a loss, the risk omitted or misrepresented by the insured had no influence on it. The premiums paid then remain acquired by the insurer and he is entitled to payment of all premiums due, as damages and interest. The omission, or inaccurate declaration, on the part of the insured whose bad faith is not established, does not entail the nullity of the insurance. If it is found before any loss the insurer has the right to terminate the contract ten days after notification sent to the insured by registered letter, unless the insurer consents to maintain the contract by means of an increase in premium accepted by the insured. In the case where the finding is made only after a loss, the indemnity is reduced in proportion to the extent that the rate of premiums paid was lower than the rate of premiums that would have been due, if the risks had been completely and accurately declared.

Article 983

Art. 983 - The following are null and void: 1) all general clauses that penalize the insured with forfeiture in the event of a violation of laws or regulations, unless such violation constitutes a gross and inexcusable fault; 2) all clauses that penalize the insured with forfeiture due to mere delay on their part in reporting the incident to the authorities or in producing documents, without prejudice to the insurer's right to claim compensation proportionate to the damage caused by such delay. The provision of the first paragraph of this article does not preclude the stipulation of forfeiture due to the violation of provisions of laws or regulations whose text is fully reproduced in the policy.

Article 984

Art. 984 - Every insurer is required to issue a receipt to the insured, or to any person who can prove that they have been mandated, for the request made to them, whether for a new insurance policy or for an amending endorsement to an existing insurance contract. The insurer must notify the insured of their affirmative or negative response to the aforementioned requests within a maximum period of fifteen days. Failure by the insurer to comply with the provisions of this article may result in them being liable for damages in favor of the insured if the latter can prove that they have suffered harm.