Volume 1, Draft Civil Code - Digital exhibitions & collections - McGill ...

OBLIGATIONS 505
1045 Where a policy effected by a broker acknowledges
receipt of the premium, the acknowledgement in the absence
of fraud makes full proof, as between the insurer and the
assured, but not as between the insurer and the broker.
// - Disclosures and representations
1046 The formation of the contract requires the utmost good
faith.
If it is not observed by one party, the other may apply to
have the contract annulled.
1047 The assured must disclose, before the contract is formed,
all circumstances known to him and which are likely to
materially influence a reasonable insurer in the setting of the
premium, the appreciation of the risk or the decision to cover
it.
Every representation likely so to influence a reasonable
insurer and made by the assured during the negotiations for
the contract must be true.
1048 Except in answer to questions, the assured is not bound
to disclose circumstances which diminish the risk or which it is
superfluous to disclose by reason of any express or implied
warranty.
Likewise, he is not bound to disclose matters of common
notoriety or knowledge nor circumstances which are known to
the insurer or as to which information is waived by him.
1049 A representation as to a matter of fact is deemed true if
the difference between reality and what is represented would
not materially influence the judgment of a reasonable insurer.
A representation as to a matter of expectation or belief is
deemed true if it is made in good faith.