Also referred to as early termination for special reasons. Valid grounds for extraordinary termination by the insurance company are:

• → Increase in risk
• Breach of duty by the → policyholder
• Bankruptcy of the → policyholder’s
• Failure to pay the subsequent premium

Within one month of becoming aware of the points mentioned above, the → Insurer is entitled to give notice of termination for cause.

As part of → Property insurance can the → Insurer as well as the → policyholder exercise the right to terminate the contract for cause, provided that the following conditions are met:

• Sale of the insured item
• Occurrence of a → In the event of a claim
• Premium increase in accordance with → Contribution adjustment clause

Source reference: See the VDT publication “VDT Article Series, Part 5 | Glossary“ and the source cited there.