Article 2650

The policy shall be of no effect if the insurer proves that the applicant or insured person knowingly concealed facts or made false statements and such concealment or false statements caused the insurer wrongly to appreciate the risks to be insured so that, had he known the truth, the insurer would not have entered into the policy or would have imposed terms less favorable to the applicant or insured person.

In cases covered by sub-Article (1), the insurer is entitled to retain all premiums paid.