By Michael Seimando
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” The borrower insurance market is undergoing an important development in the interest of the consumer.
Taken out almost systematically when signing a home loan, mortgage borrower insurance covers the risks of death, disability and/or loss of employment, the insurer then taking over and reimbursing the maturities of the loan, in whole or in part.
The borrower’s insurance mechanism has undergone various changes over the past few years, but these remained insufficient to enable the consumer to make savings thanks to real competition between the various operators, mainly made up of banking establishments.
To meet this objective, Law No. 2022-270 of February 28, 2022 for fairer, simpler and more transparent access to the borrower’s insurance market constitutes a very significant step forward. The law introduces a right of termination at any time and free of charge borrower insurance.
This measure will apply from June 1, 2022 for new loan offers and from September 1, 2022 for current insurance contracts.
The Insurance Code is amended to oblige the insurer to inform the insured each year of his right of termination as well as the terms and deadlines (article L 113-15-3 of the Insurance Code). Financial penalties are provided for in the event of non-compliance with this obligation.
“Possibility to terminate your contract at any time”
This possibility of terminating your contract at any time should lead to the possibility of better negotiating your insurance in a very competitive market.
The law of February 28, 2022 also sets important new provisions concerning the right to be forgotten for former patients who wish to take out a mortgage.
The period beyond which no medical information relating to cancerous pathologies and hepatitis C can be collected by the insurers cannot exceed five years from the end of the therapeutic protocol, it was previously ten years.
The removal of the medical questionnaire for loans below €200,000
The reference grid resulting from the “AERAS” convention will also have to evolve to take into account other pathologies and thus integrate them into the “right to be forgotten” system.
Last magnitude measurement flagship of the law: the abolition of the medical questionnaire for home loans below €200,000 and maturing before the borrower turns 60, ie €400,000 for a couple, for example.
The explanatory memorandum to the law provided for “allowing the short-term return of purchasing power to many French people, without burdening the State budget”.
It is to be hoped that its application will not result in an increase in prices…”
For information: Nicolas Perrault has been a lawyer since 1984 and former President of the Order of Lawyers of the Bar of Versailles. Since 1989, he has participated in the historical development of the firm and more particularly of its social division. He holds certificates of specialization in labor law and social protection law and he has also been a certified mediator since 2007 and participates in arbitrations. Website: www.bkpavocat.com
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