Insurer's Right to Terminate for Non-Disclosure of Pre-existing Condition

The claimant sued to reverse the termination of a supplementary health insurance contract for daily sickness benefits and sought payment of outstanding benefits. The insurance company terminated the policy after the claimant submitted an application for disability benefits from the social security system, asserting that the claimant had breached the obligation to disclose the prior existence of a pre-existing condition when applying for the insurance. The court found that the insurer was entitled to terminate the contract because the claimant had failed to disclose relevant information concerning a pre-existing medical condition that was linked to the subsequent claim for benefits, constituting a material breach of the duty of utmost good faith in the insurance application process.