(1) In derogation from section 19 (2), the insurer’s withdrawal is ruled out in the event of a breach of the duty of disclosure; the insurer may terminate the contract and refuse performance within one month from the time when he or she learns that the circumstance was not disclosed, or was not disclosed correctly. The insurer remains liable insofar as the circumstance which was not disclosed, or was not disclosed correctly, was not the cause of the occurrence of the insured event or of the extent of the liability.
(2) If the insurer refuses performance, the policyholder may terminate the contract. The right to terminate the contract lapses if it is not exercised within one month after the time when the policyholder receives the insurer’s decision to refuse performance.