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08 September 2009
The Law on the Development and Internationalization of Companies and the Energy Sector was approved by the Senate on May 14 2009. Article 21(3) of the law amends Article 1899 of the Civil Code, which relates to the duration of insurance cover. Previously, it stated that:
"Insurance comes into effect from midnight on the day on which the contract is entered into [and lasts] until midnight on the last day of the duration established in the same contract. In the case of a contract of several years' duration, the insured party has the right to withdraw from the contract on an annual basis, at no cost, subject to a prior notice period of 60 days. The contract may be tacitly extended on one or more occasions, but each tacit extension may not last for more than two years."
The law amends the end of the first paragraph of the article, which was introduced by Legislative Decree 7/2007 and came into force under Law 40/2007. The amended text is as follows:
"As an alternative to annual coverage, the insuring party may propose coverage lasting several years in exchange for a reduction in the premium in comparison with that foreseen for the same coverage in the annual contract. In such cases, if the contract exceeds five years, the insured has the right to withdraw from the contract after five years with a prior notice period of 60 days and with effect from the end of the year during which the right to withdraw is exercised. The dispositions of Paragraph 3 apply to contracts stipulated subsequent to the entry into force of this law."
For further information on this topic please contact David Maria Marino or Bruno Giuffrè at Giuffrè Scorcelli Rosa & Partners - Studio Legale by telephone (+39 02 76 39 07 44), fax (+39 02 76 39 06 81) or email (email@example.com or firstname.lastname@example.org).
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