(1) If, during the period of coverage, a policyholder or the insured becomes aware of the fact that the possibility of the occurrence of a peril insured against has been substantially changed or increased, he/she shall give a notice thereof to the insurer without delay. If the policyholder or the insured has neglected to do so, the insurer may terminate a contract within one month after it becomes aware of such fact.
(2) When the insurer is informed of an alteration or increase of the risks insured under paragraph (1), it may demand an increase in the premiums or rescind a contract within one month of being informed thereof. <Newly Inserted by Act No. 4470, Dec. 31, 1991>