Article 2654

If the risks covered by the policy increase materially the insured shall notify the insurer not later than fifteen days after the occurrence increasing the risks, if the occurrence is caused by the insured, or not later than fifteen days after the insured learned about the occurrence. The policy may not shorten these periods.

Not later than fifteen days after being notified of the increase of risks, the insurer shall decide whether to terminate the policy or to maintain it with an increased premium. If the insurer does not decide within this period, the insurer shall be deemed to have decided to maintain the policy.

If the insured fails to notify the insurer, conceals facts or makes false statements, the provisions of Article 2650 and 2651 shall apply.

The risks shall be deemed to have increased materially if the insurer, had he known the facts at the time when he signed the policy, would not have entered into the contract of insurance or would have insisted on terms less favorable to the insured.

The provisions of this Article shall not apply to life insurance.