(1) The policyholder discloses to the insurer before making his or her contractual acceptance the risk factors known to him or her which are relevant to the insurer’s decision to conclude the contract with the agreed content, and which the insurer has requested in writing. If, after receiving the policyholder’s contractual acceptance, and before accepting the contract, the insurer asks such questions as are referred to in sentence 1, the policyholder is also under the duty of disclosure as regards these questions.
(2) If the policyholder breaches his or her duty of disclosure under subsection (1), the insurer may withdraw from the contract.
(3) The insurer’s right to withdraw from the contract is ruled out if the policyholder breached his or her duty of disclosure neither intentionally nor by acting with gross negligence. In such cases, the insurer has the right to terminate the contract subject to a notice period of one month.
(4) The insurer’s right to withdraw from the contract on account of grossly negligent breach of the duty of disclosure, and his or her right to terminate the contract in accordance with subsection (3) sentence 2, is ruled out if he or she would also have concluded the contract in the knowledge of the facts which were not disclosed, albeit with other conditions. The other conditions become an integral part of the contract with retroactive effect on the request of the insurer; in the case of a breach of duty for which the policyholder does not bear responsibility, they become an integral part of the contract as of the current period of insurance.
(5) The insurer is only entitled to the rights under subsections (2) to (4) if he or she has instructed the policyholder in writing, in separate correspondence, of the consequences of any breach of the duty of disclosure. These rights do not exist if the insurer was aware of the disclosed risk factors, or of the incorrectness of the disclosure.
(6) In the event of subsection (4) sentence 2 leading to an increase in the insurance premium of more than 10 percent on account of an amendment to the contract, or if the insurer refuses to cover the risk for the undisclosed circumstance, the policyholder may terminate the contract without prior notice within one month of receipt of the insurer’s communication. The insurer notifies the policyholder of this right in the communication.