(1) In derogation from section 19 (2), the insurer is not permitted to rescind in the event of a breach of the duty of disclosure; the insurer may terminate the contract within one month after learning of the non-disclosure, or incorrect disclosure, of the circumstance, and may refuse performance. The insurer remains obliged to effect payment if the non-disclosure, or incorrect disclosure, of the circumstance was not the cause of the occurrence of the insured event or of the extent of the obligation to effect payment.
(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 of the time when the policyholder receives the insurer’s decision to refuse performance.