The Lemoine Law of 2022: Changing Home Loan Insurance Made Easier and More Inclusive

borrower. This means that for smaller loans, borrowers will no longer have to go through the process of answering health-related questions in order to obtain insurance coverage.

These changes are aimed at making borrower insurance more accessible and inclusive for individuals who may have pre-existing health conditions or have been previously ill. By extending the time limit for not declaring certain illnesses and eliminating the health questionnaire for smaller loans, the Lemoine law ensures that individuals are not unfairly discriminated against when seeking insurance coverage for their loans.

In addition to the changes regarding health conditions, the Lemoine law also makes it easier for borrowers to switch their insurance contracts at any time. Previously, borrowers had to wait for the expiration date of their current contract in order to terminate it and subscribe to a new, potentially cheaper offer. However, with the Lemoine law, borrowers can now terminate their contract at any time, without having to wait for the deadline.

This new regulation gives borrowers more flexibility and the opportunity to potentially save thousands of euros by switching to a cheaper insurance offer. It is important to note that while borrowers have the freedom to change their insurance contract, they must ensure that the new contract provides equivalent guarantees to the initial contract. This means that the level of protection offered by the new contract should be at least as good as the previous one.

To take advantage of this new regulation, borrowers can follow a simple three-step process. First, they can compare offers online to find a new insurance contract that suits their needs and offers better terms. Once they have chosen a new contract, they can apply for it and then send a loan insurance termination letter to their bank, along with the new contract and general conditions. The bank is required to respond to the request within 10 working days and provide reasons in writing if they refuse the request.

It is important to note that the only valid reason for refusal is non-compliance with the principle of equivalence of guarantees. Once the bank’s agreement has been obtained, an amendment to the loan contract is drafted free of charge, and no fees can be charged.

Overall, the Lemoine law of 2022 brings significant changes to borrower insurance regulations, making it easier for individuals to change their insurance contracts and ensuring that individuals with health conditions are not unfairly discriminated against. By taking advantage of this new regulation, borrowers have the opportunity to save money and find insurance coverage that better suits their needs.The Lemoine law of 2022 has made it easier for borrowers to change their home loan insurance, allowing them to subscribe to a new, cheaper offer without waiting for the expiry date of their current contract. This law also aims to be more inclusive for sick or formerly sick people, providing them with better access to borrower insurance.

The regulations regarding credit insurance have evolved significantly in recent years, benefiting borrowers who were previously at the mercy of banks. Currently, more than 85% of annual dues go to bank insurers, even though external contracts can be up to three times cheaper.

Since the implementation of the Lagarde law in 2010, borrowers have had the freedom to choose their insurance contract. This principle of insurance delegation allows borrowers to refuse the insurance offered by the bank and opt for an alternative offer with equivalent guarantees.

Two laws, the Hamon law (July 2014) and the Bourquin law (January 2018), have allowed borrowers to change their insurance contract during the loan. The Hamon law allows changes within the first year of the mortgage, while the Bourquin law allows annual substitutions on the due date with a two-month notice.

However, due to banks’ reluctance to comply with these regulations, the Lemoine law was introduced in February 2022 to facilitate the process for borrowers. Under this law, borrowers can now terminate their insurance contract at any time, without waiting for the deadline. The Hamon and Bourquin laws are no longer applicable, and only the Lemoine law is in effect since September 2022.

To change borrower insurance, borrowers can compare offers online, apply for a new contract, and send a loan insurance termination letter to their bank by registered mail, along with the new contract and general conditions. The bank is obligated to respond within 10 working days and provide written reasons for any refusal. The only valid reason for refusal is non-compliance with the principle of equivalence of guarantees. Once the bank’s agreement is obtained, an amendment to the loan contract is drafted free of charge.

The Lemoine law also benefits sick or formerly sick individuals by improving their access to borrower insurance. The time limit for not declaring cancer in the loan insurance health questionnaire has been reduced to 5 years after the end of the therapeutic protocol and in the absence of relapse. The law also extends this provision to people cured of viral hepatitis C. Additionally, the health quiz requirement is abolished for bank financing below €200,000 (€400,000 for a couple loan with a 50% loan insurance quota on each head) if the balance is due before the borrower reaches the age of 60.

In conclusion, the Lemoine law has strengthened the rights of borrowers, allowing them to change their insurance contracts at any time and providing better access to insurance for sick or formerly sick individuals. Borrowers are encouraged to take advantage of this opportunity to save money and ensure better protection.

How does the Lemoine law of 2022 benefit borrowers with pre-existing health conditions or previous illnesses when it comes to loan insurance?

The anniversary date of the loan.

The Lemoine law builds upon these previous regulations by further expanding the rights of borrowers. It eliminates the need for borrowers to answer health-related questions for smaller loans, ensuring that individuals with pre-existing health conditions or previous illnesses are not unfairly discriminated against. This change makes borrower insurance more accessible and inclusive for individuals who may have previously struggled to obtain coverage.

Additionally, the Lemoine law allows borrowers to switch their insurance contracts at any time, without having to wait for the expiry date of their current contract. This provides borrowers with more flexibility and the opportunity to potentially save a significant amount of money by switching to a cheaper insurance offer.

To take advantage of these new regulations, borrowers can follow a simple three-step process. First, they can compare offers online to find a new insurance contract that better suits their needs and offers better terms. Once they have chosen a new contract, they can apply for it and then send a loan insurance termination letter to their bank, along with the new contract and general conditions.

The bank is required to respond to the request within 10 working days and can only refuse the request if the new contract does not provide equivalent guarantees to the initial contract. Once the bank’s agreement has been obtained, an amendment to the loan contract is drafted free of charge, and no fees can be charged.

Overall, the Lemoine law of 2022 is a significant step forward in borrower insurance regulations. It makes insurance coverage more accessible and inclusive for individuals with health conditions, while also giving borrowers the freedom to switch their insurance contracts at any time. These changes provide borrowers with more options and the opportunity to save money, ultimately empowering individuals to find insurance coverage that better suits their needs.