Insurance law: consequences of false declarations

Under the Italian Civil Code, providing false information or withholding important details when applying for insurance can lead to the cancellation or annulment of a policy. Insurance premiums are calculated based on the risk profile described by the client; if this description is altered, the insurer may have the right to terminate the agreement or seek judicial annulment.

Legal protections for insurance companies are particularly strong in cases of bad faith, which includes both intentional deception (dolo) and gross negligence (colpa grave). Intentional deception occurs when a client lies to obtain a policy they otherwise would not have received or to pay a lower premium. Gross negligence involves unforgivable omissions of macroscopic facts that significantly influence the assessment of the insured risk.