Borrower insurance: deputies and senators agree to termination 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 on Thursday to change borrower insurance for home loans, in favor 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 next Thursday and the Senate on February 17.

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 position of strength in this area (88% market share), and in insurance, in order to lower costs for the consumer.

“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 real estate credit”, reacted the presidential majority in a statement.

Change insurance at any time

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.

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Restored in CMP, this provision will come into force on June 1 for new contracts, and from September 1 for others.

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 the information of the insured was a sword stroke in the water: (…) we can now consider that all the elements are in place for the insurance market borrower insurance is truly fluid”, declared the rapporteur for the Senate Daniel Gremillet (LR).

On the initiative of the senators, the health component of the bill comes out of the CMP strong.

Health and right to be forgotten questionnaire

The medical questionnaire is thus removed for mortgages below 200,000 euros and whose term occurs before the 60th birthday of the borrower.

The “right to be forgotten” period for cancers is reduced from ten to five years and extended to hepatitis C.

The signatories of the AERAS agreement (Insuring and Borrowing with an Aggravated Health Risk) will also be required to initiate negotiations by July 31, 2022 on pathologies other than cancer.

Sophie Primas, the LR president of the Senate’s Economic Affairs Committee, welcomed “historic” advances which “have just put an end to a large number of very unfair situations”.

Le Revenu, with AFP

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