Loan insurance: a bill to better inform the borrower.

Martial Bourquin is intimately linked to borrower insurance, more specifically to the delegation of insurance because of the amendment to which he gave his name. Senator du Doubs is still defending a bill to promote the free choice of loan insurance, at a time when 87% of contracts are group insurance.

Loan insurance is far from trivial

Loan insurance is far from trivial

Loan insurance is the guarantee both for the bank and the borrower that the maturities of the mortgage will be honored until the end of the contract in the event of a claim (death, disability, etc.) For this, the banks offer a group contract identical to all the underwriters in order to pool risks, which can sometimes represent a third of the total cost of real estate financing. Since the Lagarde law of 2010, it is possible to take out individual loan insurance, in order to benefit from tailor-made guarantees and thus lower the cost. The Hamon law in 2014 authorized the loan insurance change at any time during the first twelve months, and the amendment Bourquin extended this possibility since 1 January 2018.

The Bourquin amendment, continuous competition

The Bourquin amendment, brought by the socialist senator and integrated into the Sapin 2 law of February 17, 2017, offers the possibility for the borrower to change to another insurance contract on the anniversary date of the signing of the mortgage contract. To be accepted by the bank, the new guarantees must offer protection similar to the group contract.

However, despite this amendment, the termination of the group contract remains little used. The advantage obtained since the 2017 law is the reduction in the tariffs applied. The senator nevertheless remains mobilized on this issue.

Clearer termination date

Clearer termination date

Re-elected to the Senate on September 24, 2017, Senator Martial Bourquin has prepared a bill “to speed up and simplify public action” which plans to improve the information given to individuals because he says it lacks readability. For this, the banks will have the obligation to enter the date of signature of the loan offer on the insurance contract and the notice in order to be used as a possible termination date.

Otherwise, the borrower may terminate his insurance at any time. In addition, they must send a standardized form free of charge summarizing the offer to the borrower within 10 days after the agreement of the mortgage. Finally, they will send every year, well before the anniversary of the contract, a reminder of the right of termination. A fine of $ 15,000 is notably provided for in the event of non-compliance with the law. This project will be voted on in April.

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