Colombian Commercial Code - Decree 410 of 1971 - Book IV - Of Contracts and Corporate Obligations - Part V - Contract Security - Chapter III - Personal Insurance - Section II - Life Insurance - From: Section 1151 By: Art . 1162

COLOMBIAN COMMERCIAL CODE

Section II

Life insurance

Section 1151 .- When the insured fails to pay the first premium or first installment thereof, may not be the

insurer legally require payment, but shall be entitled to be reimbursed for expenses incurred for the holding of the contract.

Section 1152 .- Except as provided in the following article, nonpayment of premiums within the month following the date of each maturity, cause the termination of the contract the insurer has no right to demand.

Section 1153 .- Life insurance need not be terminated once the premiums have been covered for the first two years of his life, but when the value of the overdue premiums and loans made with interest, exceed the value of assignment or Rescue referred to the article below.

Section 1154 .- Without prejudice to the compensation that may be applicable, credit the beneficiary against the insurer, life insurance in order of preference will be assigned to first-class credit, then of the Treasury, and the values ​​of transfer or rescue will be excluded from the mass.

Section 1155 .- Except as provided in Article 1147, the sale or redemption value will be applied at the option of the insured, after two years of the insurance:

1. Upon payment in cash;

2. Upon payment of insurance stocks, and

3. A the extension of the original insurance.

Section 1156 .- If within one month of grace referred to in Article 1152, the insured is home to one of the options listed, the insurer may, at its discretion, apply the transfer or redemption value of the extension of the original insurance or payment premiums and interest due.

Section 1157 .- Co-insurance shall be valid, under which two or more persons by the same contract, they make another one or more benefit of another or others.Section 1158 .- Although the insurer dispense medical examination, the insured can not be considered exempt from the obligations under Article 1058, or penalties for their violation would result.Section 1159 .- The insurer may not, under any circumstances, unilaterally revoked the contract of life insurance. The revocation request made to the insured will result in the return of the balance of the sale or redemption value.Section 1160 .- After two years of life of the insured from the date of execution of the contract, the value of life insurance may not be reduced because of error in the declaration of insurability.Section 1161 .- If over the age of the insured is found inaccuracies in the statement of insurability, the following rules apply:

1.If the true age is beyond the limits authorized by the insurer's fee, the contract is subject to the penalty provided for in section 1058;

2. If greater than stated, insurance is reduced by the amount necessary to value mathematics relates to the annual premium collected by the insurer, and

3. If smaller, the value of insurance shall be increased by the same proportion established in the second ordinal.

Section 1162 .- Outside of the rules, by its nature or its text, are unchangeable by the convention in this Title, shall have the same character of articles of 1058 (items 1., 2. And 4.), 1065, 1075, 1079, 1089 , 1091, 1092, 1131, 1142, 1143, 1144, 1145, 1146, 1150, 1154 and 1159. And may only be amended in a manner favorable to the policyholder, insured or beneficiary for the items recorded in 1058 (paragraph 3)., 1064, 1067, 1068, 1069, 1070, 1071, 1078 (paragraph 1)., 1080, 1093, 1106, 1107, 1110, 1151, 1153, 1155, 1160 and 1161.