What are the new rules for borrower insurance?

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On February 17, 2022, the Senate decisively adopted a law allowing you to terminate your loan insurance at any time. The bill, entitled the Lemoine Act, should intensify competition in the markets that banks have been jealous of. Focus on what will change.

What are the new rules for borrower insurance?  -© DR
What are the new rules for borrower insurance? -© DR

What does Lemoine’s Law say?

The result of the bill ” For fairer, simpler and more transparent access to the borrower insurance market Presented by Parliamentarian Patricia Lemoin, this text was adopted by Parliament on February 15, 2022, after many twists and turns in the Senate.

Promulgated on February 28, 2022 and effective on the 1ster In March, Law 2022-270 contains three main provisions.

“” The first is the possibility that the borrower will cancel the borrower insurance at any time, and it will be free by signing the loan offer. “Corinne Frappin, a lawyer specializing in real estate law, says this long-awaited measure simplifies the systems already introduced by the 2015 Hamon Act and the 2018 Birkin Act, allowing the insured to borrow. You will be able to change your insurance. After the first year of the subscription, then on each anniversary of the contract..

Why is it a new law?

“The legislators realized that the borrower insurance market was clearly tied up as more than 80% of the insurance was brought to banks, but other players could offer insurance on more favorable terms. I have. “, Justifies Maître Corinne Frappin.

Horace Bourgy, president of Inixia and insurance broker, said: This measure should also be able to end many abuses, including the famous blackmail consisting of not maintaining the conditions for granting credit when relying on external insurance. “Therefore, even if the bank imposes loan insurance when it gets the credit, the borrower can end it on the same day.

From 1er Therefore, all new loan insurance policies signed in June 2022 will be subject to the Remoin Act and will therefore benefit from the possibility of termination later this year.For borrower insurance policies already in progress prior to this date, you will have to wait up to 1.er In September 2022, he was ready to consider terminating and renegotiating his contract. The only obligation: use the new warranty instead of the warranty.

Right to delete and forget health questionnaire

Another important provision of the Lemoine Act: the abolition of health questionnaires and health examinations for mortgages that are less than € 200,000 and occur before 60 years.When Borrower’s birthday. For couples insured by 50% of each head, the maximum loan amount will be raised to € 400,000. “” Specifically, borrowers suffering from health problems will no longer be able to suffer from guarantees and exclusion of additional premiums, which had previously significantly increased premium rates. “Observe the lawyer.

Through the right to be forgotten, the Remoin Act also aims to facilitate insurance for people suffering from certain serious illnesses such as cancer and hepatitis C by shortening that period from 10 years to 5 years. is.

Therefore, the borrower no longer needs to notify the insurance company of his medical condition, which dates back more than five years from the end of the treatment protocol. “” Thus, this measure is a double penalty for those who have not only experienced illness, but have also been very difficult to obtain a loan or have very important insurance conditions that are difficult to maintain. Allows you to put an end to “, Emphasizes Horace Bourgy.

Note that if the right to be forgotten is currently only related to cancer and hepatitis C, legislators stipulate that negotiations must be negotiated within three months of the promulgation of the law, the end of May. is needed. Worked on the possibility of applying this right to other medical conditions. “” If this is unsuccessful, the State Council is responsible for deciding which other illnesses the right to be forgotten can be extended to. Therefore, today, the state wants to promote credit for people with health problems. “I advocate Maître Corinne Frappin.

Finally, to allow borrowers to more clearly identify and compare contracts between them, the Remoin Act now requires organizations to indicate the cost of credit insurance for the first eight years. .. This information allows consumers to more easily refine the savings calculations that can actually be achieved by changing their mortgage insurance.

Good news for the real estate market

“” Therefore, a borrower who terminates a banking contract and takes over the insurance delegation should save an average of € 12,000.A considerable amount of recovery of French purchasing power “We delight the president of Inixia. According to the UFC-QUE CHOISIR Association, about 550 million euros a year could thus be reinjected into the budget of French homes, benefiting the real estate market. A plunge that should have an effect. “” The law facilitates access to borrowing for all sections of the population that may have previously abandoned acquisitions or cut budgets because the insurance amount is too high. “, The lawyer makes a conclusion.

Stephanie Marpinard