Article 7. Termination and Expiry of Insurance Contract

1. The policyholder shall have the right to terminate a standard insurance contract by giving the insurer a written notice at least 15 days prior to the desired termination date. In this case, the policyholder shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract, after deduction of the administrative expenses relating to conclusion and execution of the insurance contract. When the request to terminate an insurance contract is made on the basis of failure by the insurer to execute or properly execute the insurance contract, where such failure is a material breach of the standard insurance contract as determined in accordance with Article 6.217 of the Civil Code, the insurance contract shall terminate as from the date indicated in the policyholder’s request. In this case, the policyholder shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract.

2. A standard insurance contract may be terminated at the insurer’s initiative on the basis of failure by the policyholder to execute or properly execute the insurance contract where such failure is a material breach of the insurance contract. When terminating the insurance contract in this case, the policyholder shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract, after deduction of the administrative expenses relating to conclusion and execution of the insurance contract and the sums paid under this insurance contract.

3. A frontier insurance contract may be terminated at the initiative of any party on the basis of failure by the other party to execute or properly execute the insurance contract where such failure is a material breach of the frontier insurance contract. Where the insurance contract is terminated at the policyholder’s request, the policyholder shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract. Where the insurance contract is terminated at the insurer’s request, the policyholder shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract, after deduction of the administrative expenses relating to conclusion and execution of the insurance contract and the sums paid under this insurance contract.

4. A standard insurance contract shall expire if the motor vehicle, which was insured under a standard insurance contract, is registered in another state and a state number plate of another state is issued for the motor vehicle. Insurance contracts shall also expiry on the basis established by the Civil Code and the Law on Insurance.