An insurer may cancel a marine insurance policy if a policyholder or an insured intentionally or by gross negligence fails to inform it of the facts of material particulars relevant to risk or misinforms it of such particulars. In this case, the provisions of Article 28, paragraph (2) (limited to the part concerning item (i)) and paragraph (4), and Article 31, paragraph (2) (limited to the part concerning item (i)) of the Insurance Act apply mutatis mutandis.
marine insurance policy
「海上保険契約」
A non-life insurance contract (損害保険契約) under which an insurer that underwrites insurance as a business promises to cover loss that may arise from an accident in connection with a voyage.
Defined inArticle 815, paragraph (1)· applies only in this chapter
risk
「危険」
In the chapter on marine insurance, the possibility that loss a marine insurance policy (海上保険契約) is to cover will occur — the matter on which the policyholder or insured must disclose important facts when the contract is made.
Short name set inArticle 820, paragraph (1)· applies only in this chapter
cancellation
解除
Ending a contract by one party's notice to the other, where the contract or the law gives that party a right to cancel (Civil Code, Article 540, paragraph (1)). The Civil Code lets a party cancel for the other's failure to perform: after a demand to perform within a reasonable time that is not met, unless what is still missing is minor (Article 541), or at once where performance has become wholly impossible, or the other party has clearly refused to perform, among other cases where performance clearly will not come (Article 542, paragraph (1)). On cancellation each party must put the other back in the position before the contract, and damages can still be claimed (Article 545, paragraphs (1) and (4)); a lease, though, ends only from then on (Article 620). Cancellation differs from rescission (取消し), after which the act is treated as void from the start (Article 121).
Written by AI using Civil Code, Arts. 121, 540, 541, 542, 545, 620 as a reference.