ITALY Law and Practice Contributed by: Giovanna Aucone and Debora Gobbo, FIVERS Studio Legale e Tributario
6.2 Failure to Comply With Obligations of an Insurance Contract If the policyholder fails – with malicious intent or gross negligence – to comply with his/her obligation to provide accurate and complete information in a way that the insurer would not have given its con- sent to the conclusion of the insurance contract or would not have given it under the same conditions had the insurer known the true state of affairs, such are grounds for the annulment of the insurance con- tract. The insurer loses its right to contest the insur- ance contract, if it does not inform the policyholder within three months from the day on which the insurer became aware of the inaccuracy of the declaration or the omission about its intention to void the insurance contract. The insurer is entitled to the premiums relat- ing to the period for which the insurance contract has been in force and, in any case, to the premium agreed for the first year. If a claim occurs prior to the expiry of the three-month contestation period, the insurer is not required to pay the insurance benefit. If the policyholder has acted without malicious intent or gross negligence, inaccurate statements or omis- sions, the insurance contract may not be annulled, but the insurer has the right to withdraw from the contract within three months from the day on which the insurer became aware of the inaccuracy of the statement or the omission. If the insured event occurs before the insurer is aware of the inaccuracy of the statement or the omission, or before the insurer has declared its withdrawal from the insurance contract, the insured sum due shall be reduced in proportion to the difference between the agreed premium and the premium that would have been applied if the true state of affairs had been known to the insurer. 6.3 Intermediary Involvement in an Insurance Contract Whether the intermediary acts on behalf of the insured or the insurer depends on the type of intermediary involved. The broker, registered in Section B of the RUI (for further details, refer to 5.1 Distribution of Insur- ance and Reinsurance Products ), acts on behalf of the customer and has no power of representation for insurance companies.
The obligations of the intermediaries towards their potential clients are regulated in the Code of Private Insurance and in IVASS Regulation No 40/2018 and differ based on the type of insurance contract and type of intermediation (direct or through means of remote communication). The distributor has to observe the general rules of correct conduct established by the Code of Private Insurance and the IVASS regulations, in particular but not limited to IVASS Regulation No 40/2018. The dis- tributor is held to act with honesty, professionalism, transparency and fairness, always in the best inter- ests of the customer. The distributors must comply with current regulations and the instructions given by the insurance companies with which they collaborate. They are held to obtain all information necessary to adequately assess their insurance and social security needs from the potential client. They must provide clear and complete information on the insurance prod- ucts they intermediate and must periodically update their professional knowledge through mandatory training programmes. 6.4 Legal Requirements and Distinguishing Features of an Insurance Contract The requirements and features of insurance contracts are governed by the Civil Code, the Code of Private Insurance, the Consumer Code, IVASS Regulation No 41/2018 and the Guidelines issued by ANIA, the National Association of Insurance Undertakings. According to Article 1882 of the Civil Code, an insur- ance contract is an agreement whereby the insurer, upon payment of a premium, undertakes to com- pensate the insured or to pay a sum upon the occur- rence of a future and uncertain event. It is an aleatory contract, since the insurer’s performance depends on an uncertain event, and a reciprocal performance contract, because there is an exchange between the premium and the risk coverage. The insurance contract must be in writing (Article 1888 of the Civil Code). According to the Code of Private Insurance, the wording of the insurance contract must be clear and comprehensive. Clauses indicating forfeiture, nullity
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