Insured's application

before conclusion of an insurance agreement, i.e. before an insurer is at risk, an insured is obliged to make a statement to insurer about all material factors or circumstances that are known to insured or should be known thereto by nature of its business, and that may affect insurer’s decision to accept insurance or reject a risk, to establish adequate premium rates etc. If an insured fails to do so, an insurer has the right to cancel a concluded agreement. However, if an insurer does not require it, an insured should not make statements regarding the facts that can be assumed to be known to insurer by virtue of their general knowledge, or it should be aware of them by nature of its business.