Section Third: Obligations of Insurer and Insured, Nullity and Rescission

Article 985

Article 985 - All actions arising from an insurance contract are prescribed by two years from the event which gives rise to them. However, this period does not run: 1) in case of concealment, omission, false or inaccurate declaration of the risk incurred, except from the day the insurer became aware of it; 2) in case of loss, except from the day the interested parties became aware of it, if they prove that they were ignorant of it until then. When the action of the insured against the insurer is based on the recourse of a third party, the period of prescription runs only from the day on which that third party has taken legal action against the insured or has been indemnified by the latter.

Article 986

Art. 986 - The period of prescription cannot be shortened by a clause in the policy.

Article 987

Art. 987 - The two-year prescription period runs against minors, interdicts, and all other incapacitated persons. It may be interrupted by ordinary grounds for interruption of prescription. The interruption of the prescription of the action for payment of the premium may, in addition, result from the sending of a registered letter addressed by the insurer to the insured.