What are the contributions of the Lemoine law on mortgage borrower insurance?

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La libéralisation du marché de l'assurance emprunteur vient de connaître un nouveau développement par la loi n° 2022-270 du 28 février 2022, pour un accès plus juste, plus simple et plus transparent au marché de l'assurance emprunteur, dite loi Lemoine, qui a été publiée au Journal Officiel du 1er mars 2022.

It will first be recalled that law n° 2020-737 of July 1, 2010, known as the Lagarde law, has undertaken the work of consumer credit protectionby allowing consumers to take out borrower insurance in an institution other than the one issuing the loan, thus facilitating, at least in terms of intentions, the practice of insurance delegation.

Law no. 2014-344 of March 17, 2014, relating to consumption, known as the Hamon law, continued the work of rebalancing the powers between professionals and consumers, indicating that the change of borrower insurer can be done at any time as soon as after the first year of insurance, pursuant to the provisions of Article L 312-9 of the Consumer Code, subject to compliance with a 15-day notice period before the expiry of the first year of the insurance contract. loan, without costs or penalties at the end of the 12th month, as specified by article L 113-15-2 of the consumer code.

The Bourquin amendment of February 2017, supplementing the Hamon law, clarified that at the end of the 12th month of insurance, the borrower insurer could be changed at each expiry of the contract, i.e. i.e. upon automatic renewal of the insurance contract, subject to 2 months’ notice, provided however that the new insurance contract presents guarantees at least equivalent to those of the terminated contract.

Law No. 2022-270 of February 28, 2022, bearing the name of Mrs. Patricia Lemoine, rapporteur for the Economic Affairs Committee, confirms three major changes for the benefit of consumers.

In the first placethe law of February 28, 2022 allows any insured person to terminate their borrower insurance contract at any time and free of charge for all loan offers issued from June 1, 2022, and for all insurance contracts in progress from September 1 2022.

The Lemoine law therefore allows any borrower to terminate his insurance contract at any time from the signing of the loan offer, and no longer at the end of the 12th month.
It is thus now possible to take out a new insurance contract with another insurer without waiting for the anniversary date of the contract (so-called infra-annual termination).
It is quite clear that this new provision opens up the creditor insurance market to competition.

Secondlythe law wins removal of the medical health questionnaire for loans of less than 200,000.00 euros and whose term occurs before the 6th birthday of the borrower, from June 1, 2022, the amount of 200.00.00 euros to be understood as uninsured and on the outstanding balance of all credit agreements.

This is a considerable development, which aims to favor the youngest borrowers, since they must not be more than 60 years old at the end of the mortgage, the amount of which must not itself exceed 200,000.00 euros, with no other outstanding mortgage.

Finally, thirdlythe Lemoine law lowers the time limit for benefiting from the right to be forgotten from 10 to 15 years for former cancer or hepatitis C patientsfrom July 31, 2022.

This system, which aims to promote access to real estate property in the event of serious pathologies being treated, is in fact associated with the AERAS convention (Insuring and Borrowing with an Aggravated Health Risk), which can be mobilized when an insurer refuses to insure a home loan for an aggravated health risk, without a rate increase or exclusion of guarantees.

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