Loi Lemoine: change your credit insurance at any time!

What is loan insurance used for?

LWhen taking out your mortgage, the bank will ask you to guarantee the loan it grants you with insurance. This insurance will take over in the event of unforeseen events (accident, illness) preventing you from reimbursing. You have the option of choosing the loan insurance offered by the bank, known as group insurance, or choosing another, this is called insurance delegation.
But you also have the option of changing credit insurance during the loan.

Infra-annual termination adopted

With the Lemoine law, you can terminate your mortgage insurance at any time, provided that the guarantees between your current contract and the contract you wish to take out are at least equivalent.
The request for termination of credit insurance can be made via any durable medium: simple or registered letter, email, notification in the customer area, etc.
This possibility of termination at any time came into effect on June 1, 2022 for new loan offers and will apply from September 1, 2022 for loan insurance contracts taken out before June 1.

Medical formalities abolished in certain cases

The Lemoine law eliminates medical formalities (health questionnaire, medical examination, etc.) if 3 cumulative conditions are met:

  • The insurance concerns a home loan intended to finance a property for residential use or mixed use (residential and professional).
  • The insured part of the loan does not exceed €200,000.
  • The loan repayment deadline occurs before the insured’s 60th birthday.

The extension of the right to be forgotten

The right to be forgotten of the AERAS Convention allows borrowers who have had an aggravated health risk (cancer, etc.) not to declare their illness to their insurer if no relapse has been observed for a certain period.
With the harmonized Lemoine law, this period is 5 years, regardless of the age of the insured on the date of diagnosis.
The law adds hepatitis C to the list of diseases benefiting from the right to be forgotten.

What is the AERAS Convention?

The AERAS Agreement (Insuring and Borrowing with an Aggravated Health Risk) aims to facilitate access to insurance and credit for people who have or have had a serious health problem.

A reinforced obligation to inform policyholders

The Lemoine law requires the insurer to inform the insured on an annual basis of his right of termination.
The expiry date of the borrower’s insurance as well as its cost over 8 years must also be reminded to the insured.

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