As a result of the bill “for fairer, simpler and more transparent access to the borrower insurance market,” the so-called Lemoin Act gives borrowers the possibility of terminating their loan insurance at any time at no cost. .. This long-awaited law was published in the Official Journal of 1.er It was finally adopted by the Diet on March 15, 2022 and February 15, 2022, and then by the Senate on February 17, 2022.
No more waiting for the anniversary of the contract
The promulgated Deputy Patricia Lemoine (Agil Ensemble Group) law allows borrowers to take out their mortgage insurance at any time and no longer within 12 months (Hammon Act) or on their anniversary after signing their loan offer. Allows termination Contract (Birkin Act).
It was sometimes difficult to know the anniversary of his contract. It could be the date of his mortgage offer or the date of the insurance policy. In addition, the notice had to be respected so that it would not be rejected by the bank.
From now on, the insurer will have to notify the borrower annually of the right to cancel and the terms and conditions of its implementation at any time, subject to a fine penalty.
Are all contracts worth renegotiating?
“Loan insurance policies signed before 2016 and expected to be guaranteed in 2022 with capital in excess of € 150,000 may be interested in changing loan insurance. Comparison I have insured. Inixia, a broker that owns loan insurance, analyzes that once a loan insurance policy is signed through a customer’s bank, it is very likely that the customer’s bank will realize significant savings by choosing to delegate insurance. increase. “”
This is the fact that you take out loan insurance with an insurance company other than the one offered by your bank when you sign your mortgage.
Therefore, changing borrower insurance by starting competition in this market, which is 85% relaxed by banks, could save policyholders on average in the range of € 5,000 to € 15,000. ..
That is, in order for an insurance change to be accepted, the new contract must offer the same guarantee as the previous contract for which the criteria were selected by the bank that issued the loan offer. The decision to reject the bank must be explicit and must include all reasons for the refusal, indicating the Remoin Act.
Law in force from June 1, 2022
All new loan insurance policies entered into after June 1, 2022 are subject to the Remoin Act and may be terminated at any time.
From 1er September 2022 for other loan insurance policies
For borrower insurance policies that are already in progress prior to June 1, you must wait until September 1, 2022 before you can consider renegotiating and terminating the contract at any time.
The two systems in force to renegotiate loan insurance, the Hamon Act and the Birkin Act, are in force until September 1, 2022.
8 Year Loan Insurance Costs: New Mandatory Information
The Lemoine Act also enhances borrower information by establishing an obligation to show the cost of loan insurance for the first eight years of credit. “That’s not a coincidence! Indeed, the average mortgage term is eight years in France.
This information allows consumers to more easily compare contracts and improve the savings calculations that can actually be achieved by changing mortgage insurance, “says broker Inixia.
Right to be forgotten enhanced from 1er June 2022
To get loan insurance, the borrower must complete a medical questionnaire by providing information about his or her medical history, specific medical condition, surgery performed, current treatment, and so on.
The Lemoine Act enhances the right to be forgotten for victims of certain serious medical conditions.
Specifically, if the treatment protocol is completed for at least 5 years instead of 10 years ago, the borrower will not have to declare cancer or hepatitis C to the borrower’s insurance after the age of 21.
End of health survey for a particular loan
Another change by this year’s Remoin Act: If you have a mortgage of less than € 200,000 per borrower (ie € 400,000 for a couple) and the period is before your 60th birthday, the medical survey will be abolished. Will be done.