A Study On The Obligation To Notify Of Increased Risk In Insurance Law

The underwritten risk in an insurance contract corresponds to the premium.When this kind of consideration relationship in the contract loses its balance,China's Insurance Law hopes to bring the legal relationship between the insured parties back to equilibrium with the setting of rules on the duty to notify of increased perils.Taking a typical case as a starting point,this article points out that the main problems with the duty to notify of an increase in danger are the different recognition of the nature of the duty to notify,the controversy over the identification of an increase in danger and the overly general legal consequences of the duty to notify.The duty to notify of an increase in danger is a legal obligation as well as an untrue obligation.In order to cope with the complex and changing reality,the increase in risk should be limited by materiality,continuity,timeliness and unpredictability,and further analyses the benchmark persons for determining the increase in risk.In terms of the legal consequences of the duty to notify,the exercise of the insurer's rights should be limited if the obligor gives timely notice.If the obligor fails to give timely notice,a distinction needs to be made between two situations: firstly,where no insurance benefits are payable in the event of an insurance accident,and secondly,where the absence of an insurance accident does not affect the allocation of liability.