Lemoine Law: Change your credit insurance at any time!

What is the purpose of loan insurance?

ITWhen you take out your home loan, the bank will ask you to guarantee the loan it grants you with insurance. This insurance will take over in case of unforeseen circumstances (accident, illness) preventing you from reimbursing. You have the possibility to choose the loan insurance, that you propose the bank called insurance group or to choose another one, this is what the so-called insurance delegation.
Furthermore, you can change your credit security during use.

The adopted annual infra-termination

With the Lemoine law, you can terminate the insurance of your real estate loan at any time, provided that the guarantees between your current contract and the contract you wish to enter into are at least equivalent.
The request for termination of the credit insurance can be made through any durable medium: simple or registered letter, e-mail, notification on the client’s space …
This possibility of termination at any time came into force on June 1, 2022 for the new loan offer and will apply from September 1, 2022 for loan insurance contracts taken out before June 1.

Medical formalities removed in certain cases

The Lemoine law removes medical formalities (health questionnaire, medical examination…) and 3 cumulative conditions are met:

  • The insurance covers a real estate loan intended to finance a residential or mixed-use property (residential and professional).
  • The insured part of the credit does not exceed € 200,000.
  • The repayment date of the loan occurs before the 60th anniversary of the insured.

The extension of the right to be forgotten

The right to forget the AERAS Convention allows borrowers who have had an aggravated health risk (cancer…) not to declare their illness to their insurer and no relapse has been observed for a certain period of time.
With the Lemoine law harmonize 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 with the right to be forgotten.

What is the AERAS Convention?

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

A reinforced information obligation for policyholders

The Lemoine law requires the insurer to inform the insured annually of his right of termination.
The maturity date of the borrower insurance as well as its cost out of 8 and must also be reminded to the insured.

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