Thanks to one of the provisions of the Lemoine law, you can changer loan insurance at any time : the savings are yours!
What is the Lemoine law?
The Lemoine law was adopted by the’National Assembly in February 2022 and published in the Official Journal on March 1 of the same year. His goal : liberalize the market of’loan insurance.
Summary of 4 key measures :
- The right to rescind is possible at any time and at no cost for all individuals who have taken out a mortgage. This is the principle of RIA or infra-annual termination.
- The legal deadline for the right to be forgotten has been shortcut by the Lemoine law. Thus, a borrower suffering from cancer no longer has to declare his medical condition if he completed his treatment more than 5 years ago and has not experienced a relapse, regardless of the age at which he was diagnosed. This rule also applies to people with hepatitis C, which was not the case before.
- The candidates for the’insurance n’have more to complete questionnaire of health to subscribe to the’borrower insurance for real estate loans, the share to be insured n’does not exceed €200,000 (outstandings included and per insured) and whose term’completed before the 60th anniversary of the’assured.
- Finally, to facilitate the choice of borrower insurance, theinsurance cost information over 8 years must be displayed by banks and insurers.
Changing your borrower insurance every year is possible
Since June 1, 2022 for new contracts and September 1 for those taken out at an earlier date, termination is possible at any time.
To initiate a cancellation procedure’loan insurance, the new contract must offer guarantees at least equivalent to those of the previous. Otherwise, the lending institution may refuse the change.
This new contract proposal must be sent by registered mail or hand-delivered to your bank. This has a’and ten day period for’accept or justify its refusal.
The steps to change loan insurance
1. Take out new loan insurance
In order to change loan insurance, you must first find a new one that meets the CCSF criteria for equivalence of guarantees as explained above.
2. Send substitute mail to the bank
Then, you send your substitution request by registered mail with acknowledgment of receipt to your bank along with the special conditions and the general conditions of the newly subscribed contract.
The banque has the obligation to answer you under 10 days. And in case of refusal, it must be justified in writing.
3. Terminate the old contract
With the Lemoine law and the principle of infra-annual terminationthere is no more notice period to respect 🎉
Upon receipt of the bank’s agreement, you can send it directly with your cancellation letter by registered mail with acknowledgment of receipt to your insurer.Don’t want to bother with all that paperwork? That’s good ! With the contract offered by My Well Insured Loan, you have absolutely nothing to do. Our team takes care of all this for free. 😎
📩 Where to send the replacement mail?
Mail to the wrong address may not be processed. So to be sure of getting an answer, do not hesitate to check your bank’s website in the section devoted to borrower insurance and substitution.
Why change borrower insurance?
Changing borrower insurance allows you to make savings and of benefit from better guarantees.
Today you have the opportunity to choose a loan insurance adapted to your profile.
With insurance delegation, you will realize significant savings.
Note 🖊 : them business loans & them SCI loans do not fit into the case of RIA (= no possibility of leaving at any time).
However, you always have the option of negotiating with your lender. You can ask them to go through another insurance. Indeed, some allow the delegation of insurance. This will greatly depend on the relationship you have with your bank, the number of loans in progress and your situation. And, in particular, in the context of an SCI, the termination procedure can be indicated in the loan agreement.
In addition, some organizations do not insure all professions and all banking operations. They will then prefer to ask you to use external loan insurance.
Think in any case that it can be negotiated.
🧐 The memo:
- The 4 key measures of the Lemoine Law: termination at any time, reduction of the period of the right to be forgotten, removal of the health questionnaire, information on the cost of insurance over 8 years.
- Change your borrower insurance allows you to make great savings and our team takes care of all the paperwork for you.
- Professional loans & SCI loans do not fit into the case of the RIA: only your bargaining power will allow you to opt for the delegation of insurance.
