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deputies and senators agree to terminate borrower insurance at any time

Termination at any time, removal under conditions of the health questionnaire, time limit for the right to be forgotten reduced: deputies and senators agreed this Thursday, February 3 to change the borrower insurance for home loans for the benefit of the insured. To be definitively adopted, the compromise text validated by the Joint Joint Committee (CMP) must still be voted on one last time by the two chambers, the National Assembly on February 10 and the Senate on February 17.

How to properly tie up your file to obtain a mortgage

Led by MP Patricia Lemoine (Agir) and supported by the government, the bill “for fairer, simpler and more transparent access to the borrower insurance market” aims to introduce more competition in the banking sector, in a strong position in this area (88% market share), and in insurance, in order to lower costs for the consumer.

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“This bill represents a new perspective to support the purchasing power of the French, but also a measure of justice towards all people suffering from pathologies preventing them from carrying out their projects, for lack of mortgage credit”reacted the presidential majority in a press release.

“Increase the information of the insured”

Its flagship measure, the possibility of changing borrower insurance free of charge at any time, and no longer only on the anniversary date, had been rejected at first reading by the Senate dominated by the right-wing opposition. Restored in CMP, this provision will come into force on 1er June for new contracts, and from 1er September for others.

Securing a mortgage: the choice between capitalism and solidarity?

In accordance with the will of the Senate, the obligations of information of the policyholders on their right to cancellation are reinforced. Insurers will therefore have to inform them each year of the existence of this right and the terms of its implementation. “We considered that extending the right to cancellation without increasing information for policyholders was a shot in the dark: […] we can now consider that all the elements are in place for the creditor insurance market to be truly fluid”said the rapporteur for the Senate Daniel Gremillet (Les Républicains, LR).

The medical questionnaire removed under certain conditions

At the initiative of the senators, the health component of the bill comes out of the CMP strong. The medical questionnaire is thus abolished for home loans of less than 200,000 euros and whose term occurs before the 60and borrower’s birthday.

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The “right to be forgotten” period for cancers and hepatitis C is reduced from ten to five years. The “right to be forgotten” now allows former cancer patients to no longer have to declare their disease to their insurer ten years after the end of their therapeutic protocol.

The progress, which did not appear in the text voted on at first reading by the deputies, gave rise to a small battle of press releases. The presidential majority gloried in putting “implement the commitment” of Emmanuel Macron, while the Senate boasted of having, “against the initial opinion of the government, materialized the campaign promise of the President of the Republic”.

The signatories of the AERAS agreement (Insuring and Borrowing with an Aggravated Health Risk) will also be required to enter into negotiations by July 31 on pathologies other than cancer. Sophie Primas, the president (LR) of the Senate’s Economic Affairs Committee, welcomed the progress “historical” who “come to put an end to a large number of very unfair situations”.

Measures hailed by the insurance sector

A day “to be marked with a white stone” which will strengthen “the right of borrowers”welcomed Eric Maumy, president of the wholesale insurance broker April and member of the Association for the Promotion of Competition in Borrowers’ Insurance (Apcade).

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“The competition between traditional banking players, who charge prices two to three times more expensive, with external insurers, can only be favorable to the consumer”said Olivier Moustacakis, co-founder of Assurland.com.

Maël Bernier, spokesperson for Meilleurtaux, welcomed the extension of the “right to be forgotten” but recalled that the abolition of the health questionnaire concerned current and not past health problems. She therefore called on the sector to be “vigilant” in the face of a potential price increase.

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