Borrower Insurance: Finally Progress of the Sick

The Lemoine method allows borrower insurance to be terminated at any time and, in certain cases, removes the health questionnaire.

“Fairer, simpler and more transparent access to the borrower insurance market”.. This is the title of the February 28, 2022 law published in the Official Journal of march. It brings unexpected improvements in access to mortgages for people with worsened health risks.

Since 2007, there has been an Aeras Convention (“Insurance and Borrowing to Exacerbate Health Risk”) that facilitates access to insurance if standard contracts cannot be offered. This is for loans less than € 320,000 repaid before € 71.When Includes additional premiums and exclusions that can be guaranteed as defined by the grid, which is an anniversary and is to take into account scientific advances.

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The limits of the Aeras convention

“But in reality, there is a significant delay in revising this grid. The Aeras convention has very little budget and resources, which disables the system.”Isabelle Huet, General Manager of the Association for Cancer Rose Up, said.

In fact, due to the exclusion of additional premiums and guarantees implemented within the framework of the Aeras Convention, even if today’s treatment provides life expectancy close to the general population, it can be borrowed by a significant number of applicants. You will not be able to. This is the case, for example, for people who are infected with HIV.

“Still, their rating is 100%. And for people with cystic fibrosis, the condition of the Aeras grid is like no one can benefit from it.”I regret Bruno Lamothe, who delegated access to the rights of the Séropotes Society.

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Some people like to lie to health questionnaires

“We were able to get patients to accept the idea of ​​paying more for insurance.”Lament Dr. Pascal Melin, President of SOS Hepatitis. However, some people find the pill too bitter and prefer to lie to health questionnaires or avoid hurdles otherwise.

“Some women with cancer were able to get a full loan to their spouse, but it’s hard to accept the idea of ​​donating your salary to repay a loan you don’t have. To buy a house you don’t own … unless you have to get married under the merchandise community “”Testify Isabelle Huet.

The end of the survey, historic steps

Therefore, it became essential to ask for the deletion of the medical questionnaire. “But to get it, we were always sent back there, so we had to convince the Senator that the Aeras Convention wasn’t working.”Bruno Ramos says.

To this end, about 20 associations have been strongly mobilized. “We’ve let go of the political battle for a while. I’ve heard that it’s not a political issue, but a negotiation between stakeholders. But after months of hard work, We were able to form a coalition between parties and groups, and it was rewarded. “, He continues. The abolition of the medical questionnaire has been approved and will take effect on the June.

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Repay by age 60 with a loan of less than € 200,000

We have taken a big step, but at the moment it is limited to mortgages under € 200,000 and will be repaid by the age of 60. “It’s less than the originally proposed € 350,000, but it’s a per capita quota. So this allows you to borrow enough to buy a house for a young couple.I admit Isabelle Huet.

In terms of age, this is the majority of borrowers. 60% are between the ages of 25 and 37. but, “If you need to repay 60 years ago, this means borrowing 40-42 years ago. Calculate Bruno Lamothe. However, people affected by a serious medical condition have a non-linear life course with a career break. Their life plans are late. »»

The amount of borrowing is “Sufficient for couples who want to buy an apartment in a rural area, but most people living with HIV live in Ile de France and are single …”He continues.

And what about business loans?

Therefore, the association prefers to consider this text as a “door foot”. This is a prerequisite for increasing the borrowing limit without a health survey and extending the abolition of this survey to professional loans.

“It’s good to be able to rent for a home, but having access to a professional loan is also very important.”Isabelle Huet insists. “Recently, there was a case of a fully developed company manager with 50 employees who couldn’t rent because of hepatitis C.”Regrets Dr. Melin.

Fortunately, these professional loans relate to other important aspects of this law. It is an expansion of the right to be forgotten by those who have hepatitis C cured. In fact, it applies to mortgages, consumption, and professional loans for facility acquisition. Or equipment.

The right to be forgotten has been extended to those who have hepatitis C cured

What kind of content is it? For those who have been cured of their illness (hepatitis C or cancer-for now), they may not report to the insurance company.

This right was triggered 10 years after the end of treatment in the absence of recurrence. The new law reduces this period to five years, as in the case of cancers diagnosed before the age of 21. “Hepatitis C is the first chronic disease we have received medical treatment for. However, it is also important to get social cure by removing hepatitis C from our medical history and making it reinsurable.”Dr. Melin commented.

Measures to be extended to other medical conditions

This is because insurers consider hepatitis C to be a drug addict rather than a viral risk when the contamination is due to drug use rather than blood transfusions. “The virus carrier is considered a drug addict, so it is a risk profile. »»

Therefore, SOS hepatitis is pleased with this right to be forgotten and is believed to extend to other medical conditions as required by law. “We are entering an era of curing more and more chronic illnesses.”I want that president.

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Right to end at any time

In the meantime, what makes these new measures interesting is that the law can terminate the borrower’s insurance at any time if the original contract is successfully replaced with another contract that provides at least an equivalent guarantee. It is to establish the sex.

Therefore, anyone who currently has a loan with additional premiums or warranty exclusions can take out new insurance. Can be terminated at any time from 1er From June 1st for new loan contractser September for current contract. The possibility of cancellation is stated in the notice attached to the loan offer.

To facilitate comparison, the law provides for compulsory mention of insurance costs for eight years and prohibition of changing the method of calculating depreciation if alternatives are requested.

Risk of highly competitive logic

However, this annual retirement does more than just benefit. “This puts insurers in a very competitive logic. The main risk is that it leads to overselection and demutability. That’s why we worked on the medical side, because the year. If there was only a next retirement, it was dramatic for us. “Bruno Lamothe of the Seropotes Association explains.

With the removal of the health questionnaire, non-health will continue, but non-health criteria: age, occupation, place of residence … and Senate bill reporter Daniel Gremilet believes: increase. “Reputation risk prevents insurers from starting a price-raising spiral.”Price increases are still a concern.

Evaluation of the system in 2 years

The law provided for safeguards: a two-year evaluation of the system by the Financial Sector Advisory Board (CCSF) and the Prudential Control and Resolution Authority (ACPR). “We are waiting to see the effect of the law to make adjustments.”In conclusion, carefully, Adele Begin, a lawyer of the French Diabetes Federation.

“Access to borrowing has been an obstacle course for many years, but the health crisis has exacerbated the situation especially for diabetics. Covid-19 accuses them of endangering them, further complicating the process. did. “”

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Insurer margins continue to make significant profits

But don’t make fun of ourselves. It is not because the law provides for safeguards that we should expect a great deal of financial effort from insurance companies.

First, the medical questionnaire is not buried. Even if the risk is high, especially due to the age of the borrower, it remains approved. Next, “Candidate borrowers are not the most serious, even if they are ill. The most endangered people are kept away from work and cannot borrow.”Emphasize Bruno Ramos.

According to UFC-Que Choisir, the margin of borrower insurance contracts, which is now two to three times that of home or car insurance, continues to be significantly profitable.

Some other solutions

Removing the health survey is a step forward, but it does not apply to all loans. Solutions other than the Aeras convention are rare. According to Le Parisien, the Ile-de-France region began solidarity real estate guarantees in August 2020, benefiting only six people by the end of November 2021. “” This is what is called not being able to find your audience modestly »»I wrote every day.

Prior to the adoption of the bill, there remain banking initiatives such as the Crédit Mutuel Alliance Federal, which proposed the abolition of health questionnaires for former customers (Crédit Mutuel or CIC) and loans under € 500,000. , Before 62 years old.

Or an associative initiative. Therefore, the French Diabetes Federation (FFD) offers the possibility of group contracts. You need to participate in FFD and be up to date on your contributions. Annual medical follow-up is required to benefit from the borrower insurance negotiated by the brokerage firm.