10(1)This paragraph applies if—
(a)a qualifying breach was neither deliberate nor reckless, and
(b)the total premium was reduced as a result of the variation.
(2)If, in the absence of the qualifying breach, the insurer would not have agreed to the variation on any terms, the insurer may treat the contract as if the variation was never made, and paragraph 11 also applies.
(3)If sub-paragraph (2) does not apply—
(a)if the insurer would have agreed to the variation on different terms (other than terms relating to the premium), the variation is to be treated as if it had been entered into on those different terms if the insurer so requires, and
(b)paragraph 11 also applies if the insurer would have increased the premium, would not have reduced the premium, or would have reduced it by less than it did.
